CH21: Socially Responsible Marketing Flashcards
triple bottom line
the concept that a company has a responsibility to people (social component), planet (sustainability component), and profit (monetary component)
the 5 components of corporate responsibility in the workplace
- fair compensation
- work-life balance
- diversity that is promoted
- safe and healthful working environment
- employee development
the 3 things enhanced by corporate giving
- company image
- customer loyalty
- perceived product performance
the main dilemma of corporate philanthropy
good deeds can be overlooked if the company is seen as exploitative or fails to live up to its positive image
bottom of the pyramid
socioeconomic concept used to refer to the largest but poorest group of the world’s population, who live on less than $2.50 a day
reverse innovation
the use of a successful product in a developing market as the base for an inexpensive alternative in developed markets
cause marketing
the linking of a firm’s contributions to a designated cause with its customers’ revenue-producing transactions (e.g. donating a percentage of profits)
benefits of successful cause marketing
- improved social welfare
- differentiated brand positioning
- strong customer bonds
- enhanced company image
- reservoir of goodwill
- boosted internal morale
- increased sales and market value
what can make cause marketing backfire?
- questionable link between product and cause
- firm is seen as self-serving and exploitative
- company is not seen as consistent
- company is only occasionally engaged
social marketing
marketing done by a nonprofit or government organization to further a cause, such as “say no to drugs”
main goal for social marketing
influencing behavioral change for social good by using a systematic marketing planning process that involves some well-defined audience segment
the main components of a social marketing campaign
- clearly defined goal
- well-articulated strategy
- meaningful tactics to translate the strategy to reality
- viable implementation plan
- process for evaluating program success
brand activism
a company taking a stance on an important or controversial social, economic, environmental, or political issue; has important societal implications (e.g. Nike and Colin Kaepernick)
sustainability
the ability to meet humanity’s needs without harming future generations
main sectors where there is consumer interest for green products
- auto
- energy
- technology
- personal care
- food
- household
greenwashing
providing misleading information or giving the impression that products or practices are more environmentally friendly than they really are
main downside of green products
can be more expensive due to costlier ingredients and higher transportation costs due to lower volumes
major environmental trends for marketers to be aware of
- shortage of raw materials
- increased cost of energy
- increased pollution levels
- changing role of governments
main legal regulations involving advertisements
advertisers must not make false claims, use false demonstrations, or create ads with the capacity to deceive, even if no one is actually deceived; sellers are also legally obligated to avoid bait-and-switch advertising
what is one key demographic that consumer protection advocates are concerned about?
children who are online
SoLoMo
Social Local Mobile; young people who are highly mobile and happy to share their locations via apps and communicate with others by phone
socially responsible targeting
targeting that serves not only the company’s interests but also the interests of those targeted; the issue is not who is targeted, but how they are targeted and for what purpose
what is a major area of concern regarding customer privacy?
geolocation; companies can pinpoint a person’s whereabouts using technology to track daily routines, frequently visited establishments, and even movements within a retail store
why are consumers accepting more privacy intrusions over time?
- they don’t realize how much information they’re giving out
- they don’t feel like they have a choice
- they don’t think it really matters
General Data Protection Regulation
EU regulation that required data processors to clearly disclose any data collection, reveal the purpose of the data collection, state how long data are being retained, and disclose whether the data are being shared with any third parties
