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Consumer Psychology Lesson 07

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4K views15 pages

Consumer Psychology Lesson 07

gh

Uploaded by

matheesha3601
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 07

Marketing Ethics and Social


Responsibility

Grace Hensman
Senior Lecturer
Department of Marketing
Learning Objectives
• To understand the meaning and importance of marketing ethics and
social responsibility.
• To understand how marketers can exploit consumers by targeting
children and encouraging over eating and other forms of irresponsible
buying.
• To understand ethically question able practices such as covert marketing,
manipulative exposure to advertising
• To understand consumer ethics
The Societal Marketing Concept
• Marketing ethics are moral principles that govern marketers’ behavior.

• The essence of marketing is fulfilling the needs of consumers more effectively than
competitors.

• Nevertheless, sometimes this concept is at odds with society’s best interests.

• Societal marketing concept, which advocates balancing society’s interests with the needs
of consumers and marketers.

• This concept calls upon marketers to satisfy the needs and wants of their target markets
in ways that preserve and enhance the well-being of consumers and society as a whole,
while also fulfilling the profit objectives of their organizations.
• https://www.youtube.com/watch?v=DWlRvqw5f9s&t=24s
Exploitive Marketing

• There are many targetable segments that can be easily exploited


because they are more vulnerable than most other consumers,
because of less education, old age, low income, and no political
power.

• 1. Marketing to Children

• 2. Inspiring Overeating and Irresponsible Spending


• https://www.youtube.com/watch?v=8CisEtJ-FH4
• 1. Marketing to Children
• Consumer socialization is the processes by which young people acquire skills,
knowledge, and attitudes relevant to their functioning as consumers in the
marketplace.

• Three stages:
• 1. Perceptual (3–7 years old), during which children begin to distinguish ads
from programs, associate brand names with product categories, and
understand the basic script of consumption.
• 2. Analytical (7–11 years), during which children capture the persuasive intent
of ads, begin to process functional cues regarding products, and develop
purchase influence and negotiation strategies.
• 3. Reflective (11–16 years), when children understand advertising tactics and
appeals, become skeptical about ads, understand complex shopping scripts,
and become capable at influencing purchases.
• 2. Inspiring Overeating and Irresponsible Spending

• Marketing is a form of persuasion. In order to learn how to convince


consumers to adopt a product or induce consumption, marketers have
carefully studied the situational factors surrounding the buying decision.

• For example, people become hungrier in cold environments, so it is always


cold in supermarkets (some nutritionists advise consumers to go food
shopping directly after a filling meal). Marketers know that the longer
consumers stay in the store and wander around, the more they buy.
Manipulative or uninformative nutritional
Labeling
• Nutritional labels are placed on all packaged food items sold in the
United States. Nevertheless, many critiques have pointed out that the
current format of such labels is unclear and somewhat manipulative.
For example, the labels list information on a “per-serving” basis.
Covert Marketing

• Covert marketing (masked or stealth marketing) consists of marketing


messages and promotional materials that appear to come from
independent parties when, in fact, they are sent by marketers.
Popular methods of covert marketing include:
• 1. Actors posing as customers telling people the product benefits and giving them a
chance to examine or try the product.

• 2. Paying bartenders for praising brands of alcoholic beverages and recommending


them to customers.

• 3. Employees posing as customers online, in chat-rooms, blogs, etc. and spreading


positive word-of-mouth about the product and even providing samples. They also
encourage people to tell others about the samples they have received.

• 4. Emails disguised as “urgent” messages or personal thank-you notes.


Consumer Ethics
• Marketers implement ethical strategies in order “to do the right thing,” to
improve their image in the eyes of their constituencies, to reduce scrutiny,
and as an alternative to government legislation.
• Another facet of consumer ethics is buyers’ dishonest behavior in the
marketplace. For example, many stores started charging restocking fees,
limiting return policies, and tracking abnormal return patterns because of
buyers who bought items, used them, and then returned them for a
refund.

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