The Dove Campaign for Real Beauty - Pearson

Part 1 Marketing nowA heavily promoted brand ofaspirin sells for much morethan a virtually identical nonbrandedor store-brandedproduct. Critics charge thatpromotion adds only psychologicalvalue to the productrather than functional value.detergents, toiletries – include promotion and packaging costs that can amount to 40 per cent ormore of the manufacturer’s price to the retailer. Critics charge that much of the packaging andpromotion adds only psychological value to the product rather than real functional value.Marketers respond by saying that advertising does add to product costs, but it also adds valueby informing potential buyers of the availability and merits of a brand. Brand name productsmay cost more, but branding gives buyers assurances of consistent quality. Moreover, consumerscan usually buy functional versions of products at lower prices. However, they want and arewilling to pay more for products that also provide psychological benefits – that make them feelwealthy, attractive or special. Also, heavy advertising and promotion may be necessary for a firmto match competitors’ efforts – the business would lose ‘share of mind’ if it did not matchcompetitive spending. At the same time, companies are cost-conscious about promotion and tryto spend their money wisely.Excessive mark-upsCritics also charge that some companies mark up goods excessively. They point to the drugindustry, where a pill costing 5 cents to make may cost the consumer €2 to buy. They point to thepricing tactics of perfume manufacturers, who take advantage of customers’ ignorance of thetrue worth of a 50 ml bottle of Chanel perfume, while preying on their desire to satisfyemotional needs.Marketers respond that most businesses try to deal fairly with consumers because they wantto build customer relationships and repeat business. Most consumer abuses are unintentional.When shady marketers do take advantage of consumers, they should be reported to industrywatchdogs and to other consumer-interest or consumer-protection groups. Marketers also stressthat consumers often don’t understand the reason for high mark-ups. For example, pharmaceuticalmark-ups must cover the costs of purchasing, promoting and distributing existingmedicines, plus the high research and development costs over many years of formulating andtesting new drugs.Deceptive practicesMarketers are sometimes accused of deceptive practices that lead consumers to believe they will getmore value than they actually do. Deceptive marketing practices fall into three groups: deceptive68