Consumerism and Marketing Ethics
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Transcript of Consumerism and Marketing Ethics
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CONSUMERISM & MARKETING
ETHICSJINESH JAIN, SWARNA LEKHA, ANUSHA PATIL,
BINDU THUSHARA
PGPBA:2012-2014, DATE: 09-11-2012, IGTC-BANGALORE
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CONSUMERISM
Consumerism=> emotional quotients +the purchasing of material possessions +consumption.
It is multi-cultural and non-geographical.
The comercial brand names and obviousstatus enhancing appeal play major part.
Consumerism can be referred as aconsumer culture.
Impulse buyers =shopaholics.
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CONSUMERISM IN INDIA
The Indian market is currently taking a transition from apredominantly "sellers market" to a "buyers market.
Consumers choice gets influenced by the level of consumer
awareness achieved.
Process of realizing the rights of the consumer as envisaged inthe Consumer Protection Act (1986).
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CONSUMER PROTECTION ACT PLAYERS
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CONSPICUOUS CONSUMPTION
The lavish spending on
goods and services
that are acquired
mainly for thepurpose of displaying
income or wealth to
attain or maintain
social status.
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GREED = HIGH CONSUMPTION
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Anti-Consumerists argue that manyluxuries and unnecessary consumerproducts are social signals.
Makes people identify alike mindedindividuals and relate only with them todisplay social appeal.
Strong belief that product relationships
or brand names, substitute healthyhuman relationships.
OPPOSITION TO CONSUMERISM
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ANTI-CONSUMERISM
Anti-consumerist activism is
parallel to Environmental
activism, Anti-globalization and
Animal-rights activism.
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SOURCES OFOPPOSITION FOR
ECONOMICMATERIALISATION
RELIGION
Opposes materialism, somestating that it interferes
with connection with thedivine, or that it leads to an
immoral lifestyle.
SOCIAL ACTIVISM
Social activists have linked
forms of materialism withwars, crimes, and generalsocial discomfort.
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ENVIRONMENTAL CONCERNS & GREEN
MOVEMENT
The environmental movement is a diverse scientific,social and political movement for addressing theconcerns of environmentalism.
The Green movement is a political movement whichadvocates goals common to Green parties, includingenvironmentalism, sustainability, nonviolence, and social
justice concerns.
From an organizational standpoint, environmentalconsiderations deals with all aspects of marketing newproduct development and communications and all pointsin between.
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GREEN MARKET & ORGANIC
FOOD
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CONSUMERISM & ENVIRONMENT
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CONSUMER PRIVACY
Seek toprotect fromany loss of
privacy.
Consumerloss is not
measurable.
Consumerloss is
stringent.
Commercialestablishme
nts do theopposite.
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Consumer
Privacy
ConsumerPrivacy
Concerns
ConsumerPrivacy
Measures
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BUSINESS AND MARKETING ETHICS
Business Ethics:
Art of applied ethics.
Examines ethical
principles and moral orethical problems in a
business environment.
Ethicism is seen its
increase.
Business ethics can be
normative and a
descriptive discipline.
Range and quantity of
business ethical issuesreflects to which
business is perceived
to be at odds with non
economical social
values.
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Marketing Ethics:
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Marketing Research:
Invasion of privacy: Is a legal term defined as a
violation of the right to be left alone.
Most common privacy that are invaded in the eyes of
law are as follows:
Intrusion of Solitude Public disclosure of private facts
False light
Appropriation
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Occurs because any analysis of real populationsneeds, make approximation and placeindividuals into groups.
Effects of Stereotyping:
Justification of any ill found and prejudicesand ignorance.
Unwillingness to rethink ones attitude andbehaviour towards stereotyped groups.
Theres usually more than one stereotype forthe same group.
Stereotyping:
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TARGET MARKET
Ethical danger points:
Targeting the vulnerable(e.g children, the elderly)
Excluding potential customers from the market.
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PRICING PRACTICES
Price fixing: Is an agreement between thebusiness competitors to sell the same productor service at the same price.
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Price Skimming: Involves charging a relativelyhigh price for a short time when a new, innovative
or much improved product is launched into themarket.
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Price Discrimination: Practiceof selling a commodity atdifferent prices to different
buyers, even though sales costare the same in all of thetransaction.
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VariablePricing
PriceShading
Auction
Variable Pricing:A form of first degree price discrimination, characterized
by individual bargaining and negotiation, and typically
used for highly differentiated high value items.
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Predatory pricing: Also known as destroyerpricing is a practice of a firm selling a product at a
very low price with the intent of drivingcompetitors out of the market, or create a barrierto enter the market for potential new competitors.
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Supra Competitive Price: Ispricing above what can besustained in a competitive
market.
Ex: A drug company.
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Price Wars: Is a term used in
business to indicate a state ofintense competitive rivalryaccompanied by a multi-lateralseries of price reduction.
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Bid rigging is a form of fraud in whicha commercial contract is promised to
one party even though for the sake ofappearance several other parties alsopresent a bid. This form of collusion isillegal in most countries
BID RIGGING
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In economics, "dumping" is a kind ofpredatory pricing, especially in thecontext of international trade. It occurs
when manufacturers export a product toanother country at a price either belowthe price charged in its home market, orin quantities that cannot be explainedthrough normal market competition.
DUMPING (PRICE POLICY)
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Issues overtruth andhonesty
Issues withviolence, sex
and profanity
Taste andcontroversy
Negativeadvertisingtechniques
AdvertisingMedia
ADVERTISING & PROMOTION
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MARKETING STRATEGY
UNETHICAL AND CONTROVERSIAL
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Bait & Switch: deceptive way of selling thatinvolves advertising a product at a very lowprice in order to attract customers who arethen persuaded to switch to a more expensiveproduct
UNETHICAL AND CONTROVERSIAL
MARKETING STRATEGIES
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A system of selling goods in which agency
rights are sold to an increasing number ofdistributors at successively lower levels.
PYRAMID SCHEME
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A policy of producing consumer goodsthat rapidly become obsolete and sorequire replacing, achieved by frequentchanges in design, termination of thesupply of spare parts, and the use ofnondurable materials
PLANNED OBSOLESCENCE
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In economics, vendor lock-in, alsoknown as proprietary lock-in, or
customer lock-in, makes a customerdependent on a vendor for products andservices, unable to use another vendorwithout substantial switching costs
VENDOR LOCK-IN
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VIRAL MARKETING
Gives away product or services
Provide for effortless transfer to others
Scales easily from small to very large
Exploits common motivation and behaviors
Utilizes existing communication networks
Takes advantage of others resources
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GUERILLA MARKETING
Unconventional
method
Lowbudget
Creativestrategy
Publicity
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ANTI COMPETITIVE PRICES
Dumping
Exclusive dealing
Barriers
Price fixing
Refusal to deal
Dividing Territories
Limit pricing
Product typing
Resale price
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Coercive monopoly
Absorption of a competitor
Subsidies from government
Regulations
Protectionism
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CONTROVERTIAL INTERNET
MARKETING STRATEGY
Search engineoptimization
Spamdexing
Embrace, extend andextinguish
Spyware
Adware
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CORPORATE SOCIAL RESPONSIBILITY
WorkPlace
Commun
ity
Environment
Marketplace
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SUMMARY
Consumerism &Marketing Ethics
Consumerism in India
Anti-Consumerism
Consumer safety &
Protection
Environmental
concerns and greenmovement
Consumer privacy
Business & MarketingEthics
Controversial Internet
marketing strategies.
Corporate Social
Responsibility
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QUESTIONS
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THANK YOU!!!