LECTURE 12 - SOCIAL AND SUSTAINABLE MARKETING Flashcards
Define ethics in marketing
emphasizes “good ethics is good for business” but acknowledges grey areas
define social marketing
aims at behavior change for social good, differentiating it from traditional marketing focused profits
define corporate social responsibility (CSR)
organizations acting beyond legal requirements for societal well-being
define sustainable marketing
balances current consumer/business needs with future generations’ needs
ethical & legal issues in marketing - common issues
- selling (eg. bribery, trade secrets, discrimination)
- advertising (eg. false, deceptive, bait-and-switch tactics)
- pricing (eg. price-fixing, predatory pricing)
ethical & legal issues in marketing - business ethics code
Australian codes set guidelines for professional and ethical conduct
case studies of unethical practices
- Volkswagen emissions scandal: $20 billion in fines and compensations across the US, Germany and Canada
- impact of unethical behavior: high-profile cases (eg. Enron, JPMorgan) show financial and reputational costs
marketing impacts on consumers and prices
- criticisms:
- high prices due to distribution, advertising and markups
- deceptive practices, planned obsolescence, and high-pressure sales tactics - debate on value vs. price: while critics argue marketing adds only psychological value, marketers assert that they deliver genuine value
explain planned obsolescence & false wants
- products may be designed to become obsolete to stimulate new purchases
- promotion of luxury and status-driven goods is criticized for fueling materialism and consumerism
social marketing vs commercial marketing
- social marketing focuses on changing behaviors for societal benefits rather than profit
- It applies in health, environmental, and economic issues, often used by governments and nonprofits
benchmark criteria for social marketing
- behavior change: the primary goal
- audience research: understanding target groups’ needs and preferences
- segmentation: tailoring messages to specific demographics
- exchange: highlighting the benefits of change over current behaviors
- marketing mix: using diverse tactics beyond just communication (product, place, price, promotion)
- competition: identifying and addressing competing behaviors
three social marketing streams
- downstream: targets individual behavior change
- midstream: focuses on community-level influences
- upstream: aims at systemic changes via policy and environment
define non-profit marketing
marketing activities focused on social objectives rather than profit
explain CSR in nonprofits marketing
often holds organizations to high standards due to community expectations
explain challenges in non-profit marketing
limited acceptance for aggressive tactics like telemarketing