Competitive Dynamics and Socially Responsible Marketing
1. Sustainable Marketing
Definition:
- Marketing approach that balances consumer needs with environmental/social responsibility to ensure future sustainability.
Evolution of Marketing Concepts:
| Era | Focus | Example |
|---|---|---|
| Traditional | Profit-driven | Fast fashion brands like Zara |
| Societal | Consumer + Society benefits | Patagonia’s eco-friendly products |
| Sustainable | Future generations | Tesla’s renewable energy solutions |
2. Social Criticisms of Marketing
Consumer Impacts:
-
High Prices
- Issue: Marketing costs inflate prices
- Counter: Value-added services justify costs (e.g., Amazon Prime)
-
Deceptive Practices
- Example: Inflated “original” prices for fake discounts
- Solution: FTC truth-in-advertising regulations
-
High-Pressure Selling
- Unethical: Timeshare scams
- Ethical: Consultative selling (Apple)
-
Product Safety
- Case: Volkswagen emissions scandal
- Prevention: Rigorous quality control
Societal Impacts:
-
Materialism
- Black Friday overconsumption
-
Cultural Pollution
- Ad clutter in digital spaces
-
Unfair Competition
- Amazon’s predatory pricing
3. Consumer & Environmental Activism
Consumer Actions:
- Boycotts: #DeleteUber campaign
- Ethical Purchasing: Supporting brands like Patagonia
- Digital Advocacy: #WhoMadeMyClothes movement
Environmental Actions:
- Waste Reduction: Reusable products movement
- Circular Economy: Apple’s device recycling program
- Clean Tech: Beyond Meat’s plant-based alternatives
4. Sustainable Marketing Principles
-
Consumer-Oriented
- Co-creation (Starbucks Idea platform)
-
Innovative
- Lush’s package-free products
-
Societal Focus
- Matrix:
- Desirable (healthy/eco)
- Salutary (vaccines)
- Matrix:
5. Ethical Marketing Practices
| Area | Best Practice | Example |
|---|---|---|
| Advertising | Truthful claims | FDA drug ad regulations |
| Pricing | Avoid collusion | EU vs. Google antitrust case |
| Safety | Recall systems | J&J Tylenol crisis response |
6. Business Sustainability Strategies
Marketing Principles:
-
Customer-Value Focus
- Tesla’s free charging network
-
Mission-Driven
- Dove’s Real Beauty campaign
-
Societal Balance
- Unilever’s Sustainable Living brands
Environmental Strategies:
| Strategy | Implementation | Example |
|---|---|---|
| Pollution Prevention | Zero-waste manufacturing | Toyota factories |
| Product Stewardship | Full lifecycle responsibility | HP ink recycling |
| Clean Tech | Renewable energy | Google data centers |
7. Corporate Social Responsibility
Key Areas:
-
Transparency
- Everlane’s Radical Transparency
-
Inclusivity
- Fenty Beauty’s 40-shade range
-
Community Impact
- Starbucks’ refugee hiring
Compliance:
- FTC advertising rules
- EPA environmental standards
- Labor regulations
8. Societal Marketing Framework
Decision Matrix:
| Low Immediate Satisfaction | High Immediate Satisfaction | |
|---|---|---|
| High Long-Term Benefit | Salutary (vaccines) | Desirable (eco-products) |
| Low Long-Term Benefit | Deficient | Pleasing (junk food) |
Guides product development decisions balancing consumer wants and societal needs