CONSUMERISM & MARKETING ETHICS

JINESH JAIN, SWARNA LEKHA, ANUSHA PATIL, BINDU THUSHARA PGPBA:2012-2014, DATE: 09-11-2012, IGTC-BANGALORE

CONSUMERISM
Consumerism => emotional quotients + the purchasing of material possessions + consumption. It is multi-cultural and non-geographical. The comercial brand names and obvious status enhancing appeal play major part.

Consumerism can be referred as a consumer culture. Impulse buyers = shopaholics.

CONSUMERISM IN INDIA
The Indian market is currently taking a transition from a predominantly "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 in the Consumer Protection Act (1986).

CONSUMER PROTECTION ACT PLAYERS

CONSPICUOUS CONSUMPTION
The lavish spending on goods and services that are acquired mainly for the purpose of displaying income or wealth to attain or maintain social status.

GREED = HIGH CONSUMPTION

OPPOSITION TO CONSUMERISM
Anti-Consumerists argue that many luxuries and unnecessary consumer products are social signals.

Makes people identify alike minded individuals and relate only with them to display social appeal. Strong belief that product relationships or brand names, substitute healthy human relationships.

ANTI-CONSUMERISM
Anti-consumerist activism is parallel to Environmental activism, Anti-globalization and Animal-rights activism.

SOURCES OF OPPOSITION FOR ECONOMIC MATERIALISATION

RELIGION

SOCIAL ACTIVISM

Opposes materialism, some stating that it interferes with connection with the divine, or that it leads to an immoral lifestyle.

Social activists have linked forms of materialism with wars, crimes, and general social discomfort.

ENVIRONMENTAL CONCERNS & GREEN MOVEMENT

The environmental movement is a diverse scientific, social and political movement for addressing the concerns of environmentalism.
The Green movement is a political movement which advocates goals common to Green parties, including environmentalism, sustainability, nonviolence, and social justice concerns. From an organizational standpoint, environmental considerations deals with all aspects of marketing new product development and communications and all points in between.

GREEN MARKET & ORGANIC FOOD

CONSUMERISM & ENVIRONMENT

CONSUMER PRIVACY

Seek to protect from any loss of privacy. Consumer loss is stringent.

Consumer loss is not measurable. Commercial establishme nts do the opposite.

Consumer Privacy

Consumer Privacy Concerns

Consumer Privacy Measures

BUSINESS AND MARKETING ETHICS

Business Ethics:
Art of applied ethics. normative and a descriptive discipline.

Range and quantity of Examines ethical business ethical issues principles and moral or reflects to which ethical problems in a business is perceived business environment. to be at odds with non Ethicism is seen its economical social increase. values. Business ethics can be

Marketing Ethics:

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

Stereotyping:
Occurs because any analysis of real populations needs, make approximation and place individuals into groups.
Effects of Stereotyping: Justification of any ill found and prejudices and ignorance. Unwillingness to rethink ones attitude and behaviour towards stereotyped groups. Theres usually more than one stereotype for the same group.

TARGET MARKET
Ethical danger points: Targeting the vulnerable(e.g children, the elderly) Excluding potential customers from the market.

PRICING PRACTICES
Price fixing: Is an agreement between the business competitors to sell the same product or service at the same price.

Price Skimming: Involves charging a relatively high price for a short time when a new, innovative or much improved product is launched into the market.

Price Discrimination: Practice of selling a commodity at different prices to different buyers, even though sales cost are the same in all of the transaction.

Variable Pricing: A form of first degree price discrimination, characterized by individual bargaining and negotiation, and typically used for highly differentiated high value items.

Variable Pricing

Price Shading

Auction

Predatory pricing: Also known as destroyer pricing is a practice of a firm selling a product at a very low price with the intent of driving competitors out of the market, or create a barrier to enter the market for potential new competitors.

Supra Competitive Price: Is pricing above what can be sustained in a competitive market. Ex: A drug company.

Price Wars: Is a term used in business to indicate a state of intense competitive rivalry accompanied by a multi-lateral series of price reduction.

BID RIGGING

Bid rigging is a form of fraud in which a commercial contract is promised to one party even though for the sake of appearance several other parties also present a bid. This form of collusion is illegal in most countries

DUMPING (PRICE POLICY)

In economics, "dumping" is a kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market, or in quantities that cannot be explained through normal market competition.

ADVERTISING & PROMOTION

Issues over truth and honesty
Taste and controversy

Issues with violence, sex and profanity

Negative advertising techniques

Advertising Media

MARKETING STRATEGY

UNETHICAL AND CONTROVERSIAL MARKETING STRATEGIES

Bait & Switch: deceptive way of selling that involves advertising a product at a very low price in order to attract customers who are then persuaded to switch to a more expensive product

PYRAMID SCHEME

A system of selling goods in which agency rights are sold to an increasing number of distributors at successively lower levels.

PLANNED OBSOLESCENCE
A policy of producing consumer goods that rapidly become obsolete and so require replacing, achieved by frequent changes in design, termination of the supply of spare parts, and the use of nondurable materials

VENDOR LOCK-IN

In economics, vendor lock-in, also known as proprietary lock-in, or customer lock-in, makes a customer dependent on a vendor for products and services, unable to use another vendor without substantial switching costs

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

GUERILLA MARKETING

Unconvent ional method

Low budget

Creative strategy

Publicity

ANTI COMPETITIVE PRICES

Dumping Exclusive dealing Barriers Price fixing Refusal to deal Dividing Territories Limit pricing Product typing Resale price

Coercive monopoly Absorption of a competitor

Subsidies from government

Regulations Protectionism

CONTROVERTIAL INTERNET MARKETING STRATEGY

Search engine optimization Spamdexing Embrace, extend and extinguish Spyware Adware

CORPORATE SOCIAL RESPONSIBILITY

Work Place Commun ity Environ ment Market place

SUMMARY
Consumerism & Marketing Ethics Business & Marketing Ethics

Consumerism in India Controversial Internet marketing strategies. Anti-Consumerism Consumer safety & Protection Corporate Social Responsibility

Environmental concerns and green movement

Consumer privacy

QUESTIONS

THANK YOU!!!