978-0134492513 Chapter 20 Lecture Notes Part 2

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Define consumerism and environmentalism and explain

how they affect marketing strategies.

CONSUMER ACTIONS TO PROMOTE

SUSTAINABLE MARKETING

Consumerism

Consumerism is an organized movement of citizens and

government agencies to improve the rights and power of

buyers in relation to sellers.

Traditional sellers’ rights include:

The right to introduce any product in any size and

style, provided it is not hazardous to personal health

or safety; or, if it is, to include proper warnings and

controls.

The right to charge any price for the product,

provided no discrimination exists among similar

kinds of buyers.

The right to spend any amount to promote the

product, provided it is not defined as unfair

competition.

The right to use any product message, provided it is

not misleading or dishonest in content or execution.

The right to use any buying incentive programs,

provided they are not unfair or misleading.

Traditional buyers’ rights include:

The right not to buy a product that is offered for

sale.

The right to expect the product to be safe.

The right to expect the product to perform as

claimed.

Consumer advocates call for the following additional

consumer rights:

The right to be well informed about important

aspects of the product.

The right to be protected against questionable

products and marketing practices.

The right to influence products and marketing

Learning Objective

3

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Key Term:

Consumerism

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Photo: Consumer’s

desire for more

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practices in ways that will improve the “quality of

life.”

The right to consume now in a way that will

preserve the world for future generations of

consumers

Environmentalism

Environmentalism is an organized movement of concerned

citizens, businesses, and government agencies to protect and

improve people’s living environment.

The first wave of modern environmentalism in the United

States was driven by environmental groups and concerned

consumers in the 1960s and 1970s.

The second environmentalism wave was driven by federal

government, which passed laws and regulations during the

1970s and 1980s governing industrial practices impacting

the environment.

The third environmentalism wave is a merging of the first

two waves in which companies are accepting more

responsibility for doing no harm to the environment.

More and more companies are adopting policies of

environmental sustainability.

Figure 20.2 shows a grid that companies can use to gauge

their progress toward environmental sustainability.

Pollution prevention involves eliminating or minimizing

waste before it is created.

Product stewardship involves minimizing not just pollution

from production and product design but all environmental

impacts throughout the full product life cycle, and all the

while reducing costs.

Design for environment (DFE) and cradle-to-cradle

practices involve thinking ahead to design products that are

easier to recover, reuse, or recycle and developing programs

to reclaim products at the end of their lives.

New clean technology. Many organizations that have made

good sustainability headway are still limited by existing

information

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Key Term:

Environmentalism

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Key Term:

Environmental

sustainability

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Photo:

Environmental

sustainability,

adidas

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Figure 20.2: Then

Environmental

Sustainability

Portfolio

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technologies. To create fully sustainable strategies, they will

need to develop innovative new technologies.

A sustainability vision serves as a guide to the future. It

shows how the company’s products and services, processes,

and policies must evolve and what new technologies must

be developed to get there.

The “beyond greening” activities identified in Figure 20.2

look to the future.

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Photo: Chipotle

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Photo: The North

Face

Assignments, Resources

Use Real Marketing 20.1 here

Use Discussion Question 20-3 and 20-4 here

Use Additional Project 5 here

Use Small Group Assignment 1 here

Use Individual Assignment 1 here

Use Think-Pair-Share 4 here

Troubleshooting Tip

Consumerism and environmentalism are two

important concepts for students. It is unlikely that

either of these movements will disappear any time

soon, and because the internet has made so much

information available to so many, these issues will

likely only become more in the forefront of

consumers’ minds. Product recalls have become

commonplace, but it is worth discussing any recalls

that have affected students. Comparing the number

of recalls today to the number in the 1960s and

1970s will also help. As for environmentalism, it can

be useful to ask how many students have traveled to

cities in other countries where the pollution controls

are not as stringent as in the United States. Also,

discuss how your own university recycles.

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Public Actions to Regulate Marketing

Many of the laws that affect marketing are listed in Chapter

3.

The task is to translate these laws into the language that

marketing executives understand as they make decisions.

Review Learning Objective 3: Define consumerism and

environmentalism and explain how they affect marketing

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Figure 20.3: Major

Marketing Decision

Areas That May Be

Called Into

Question Under the

Law

strategies.

Assignments, Resources

Use Outside Example 1 here

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Describe the principles of sustainable marketing.

BUSINESS ACTIONS TOWARD SUSTAINABLE

MARKETING

Sustainable Marketing Principles

Under the sustainable marketing concept, a company’s

marketing should support the best long-run performance of

the marketing system.

It should be guided by five sustainable marketing

principles:

Consumer-Oriented Marketing

Consumer-oriented marketing means that the company

should view and organize its marketing activities from the

consumer’s point of view.

Only by seeing the world through its customers’ eyes can

the company build lasting and profitable customer

relationships.

Customer-Value Marketing

Customer-value marketing means the company should put

most of its resources into customer value-building

marketing investments.

By creating value for consumers, the company can capture

value from consumers in return.

Innovative Marketing

Innovative marketing requires that the company

continuously seek real product and marketing

improvements.

Sense-of-Mission Marketing

Learning Objective

4

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Key Terms:

Consumer-oriented

marketing,

Customer-value

marketing

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Key Terms:

Innovative

marketing,

Sense-of-mission

marketing

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Sense-of-mission marketing means that the company

should define its mission in broad social terms rather than

narrow product terms.

Societal Marketing

Societal marketing means a company makes marketing

decisions by considering consumers’ wants and interests,

the company’s requirements, and society’s long-run

interests.

Products can be classified according to their degree of

immediate consumer satisfaction and long-run consumer

benefit. (Figure 20.4)

Decient products have neither immediate appeal nor

long-run benefits.

Pleasing products give high immediate satisfaction

but may hurt consumers in the long run.

Salutary products have low appeal but may benefit

consumers in the long run.

Desirable products give both high immediate

satisfaction and high long-run benefits.

Review Learning Objective 4: Describe the principles of

sustainable marketing.

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Photo: Amazon

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Key Terms: Societal

marketing

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Figure 20.4:

Societal

Classification of

Products

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Key Terms:

Deficient products,

Pleasing products,

Salutary products,

Desirable products

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Ad: method

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Ad:

Sense-of-mission

marketing, CVS

Health

Assignments, Resources

Use Real Marketing 20.2 here

Use Video Case here

Use Discussion Question 20-5 here

Use Critical Thinking Exercises 20-6 and 20-7 here

Use Small Group Assignment 2 here

Troubleshooting Tip

The concepts of sustainable marketing should not be

difficult to understand; however, you should go

through them carefully. Consumer-oriented market–

ing should certainly not be new, but the term will be.

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Explain the role of ethics in marketing

MARKETING ETHICS AND THE SUSTAINABLE

COMPANY

Marketing Ethics

Corporate marketing ethics policies are broad guidelines

Learning Objective

5

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Table 20.1: Some

Morally Difficult

Situations in

Marketing

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that everyone in the organization must follow.

What principle should guide companies and marketing

managers on issues of ethics and social responsibility?

One philosophy is that such issues are decided by the free

market and legal system.

A second philosophy puts responsibility not on the system

but in the hands of individual companies and managers.

Written codes and ethics programs do not ensure ethical

behavior.

The Sustainable Company

Sustainable companies are those that create value for

customers through socially, environmentally, and ethically

responsible actions.

Sustainable marketing provides the context in which

companies can build profitable customer relationships by

creating value for customers in order to capture value from

customers in return, now and in the future.

Review Learning Objective 5: Explain the role of ethics in

marketing.

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Photo: Google

Assignments, Resources

Use Discussion Question 20-5 here

Use Critical Thinking Exercise 20-8 here

Use Online, Mobile, and Social Media Marketing

here

Use Marketing Ethics here

Use Company Case here

Use Additional Project 6 here

Use Individual Assignment 2 here

Use Think-Pair-Share 5 here

Use Outside Example 2 here