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• Module overview
• 1. What is marketing?
  • 1.1 What is marketing?
    • 1.1.1 Different uses of the term 'marketing'
    • 1.1.2 Different levels of marketing
    • 1.1.3 A definition of marketing
  • 1.2 Clarification of the marketing definition
    • 1.2.1 Outputs
    • 1.2.2 Inputs
    • 1.2.3 Exchange
  • 1.3 Development of marketing
  • 1.4 Types of marketing
  • 1.5 What is a service?
    • 1.5.1 Characteristics of services
    • 1.5.2 A service definition
    • 1.5.3 Classifications of services
    • 1.5.4 Services: a growth sector
  • 1.6 Marketing in the maritime industry
  • 1.7 Towards social and ethical responsibility
    • 1.7.1 Common criticisms of marketing
    • 1.7.2 Social impact of marketing
  • 1.8 Summary

• 2. Strategic marketing management

  • 2.1 Introduction
  • 2.2 The environments
    • 2.2.1 External environment
    • 2.2.2 Internal environment
    • 2.2.3 Mission statements and objectives
    • 2.2.4 Resources
  • 2.3 Controllable factors
  • 2.4 The strategic marketing management process
    • 2.4.1 Planning
    • 2.4.2 Implementation and control
    • 2.4.3 Marketing plan
  • 2.5 Types of marketing strategies
    • 2.5.1 Strategic considerations for services
  • 2.6 Summary

• 3. Marketing research and information systems

  • 3.1 Introduction
  • 3.2 The marketing information system (MIS)
  • 3.3 Marketing research
    • 3.3.1 Scope of research
  • 3.4 The marketing research process
    • 3.4.1 Step 1: defining the problem
    • 3.4.2 Step 2: analysing the situation
    • 3.4.3 Step 3: obtaining problem-specific data
    • 3.4.4 Step 4: interpreting the data
    • 3.4.5 Step 5: solving the problem
  • 3.5 Summary

• 4. Consumer and B2B buying behaviour

  • 4.1 Introduction
  • 4.2 Consumer buying behaviour
    • 4.2.1 Psychological influences
    • 4.2.2 Cultural and social influences
    • 4.2.3 The decision-making process
  • 4.3 B2B buying behaviour
    • 4.3.1 Business buying processes
    • 4.3.2 Main types of business markets
  • 4.4 The buying of services
  • 4.5 Summary

• 5. Segmenting markets, targeting and positioning

  • 5.1 Introduction
  • 5.2 Market segmentation
    • 5.2.1 Dimensions used to segment markets
  • 5.3 Target markets
  • 5.4 Market positioning
  • 5.5 Summary

• 6. Product planning and decisions

  • 6.1 Introduction
  • 6.2 Product concepts
    • 6.2.1 The total product concept
    • 6.2.2 Product classifications
    • 6.2.3 The service offering
  • 6.3 The product mix
  • 6.4 Branding
  • 6.5 Packaging
  • 6.6 Product life-cycle
  • 6.7 Product development
  • 6.8 Summary

• 7. Pricing considerations

  • 7.1 What is the 'price' of a product?
  • 7.2 Pricing environments
  • 7.3 Pricing objectives
  • 7.4 Pricing policies
    • 7.4.1 Discount and allowance policies
  • 7.5 Price setting
    • 7.5.1 Cost-oriented price setting
    • 7.5.2 Demand-oriented price setting
    • 7.5.3 The price setting process
  • 7.6 Summary

• 8. Marketing logistics networks

  • 8.1 Introduction
  • 8.2 Definition of distribution
  • 8.3 Channels of distribution
    • 8.3.1 Selecting channels
    • 8.3.2 Main Australian channels
    • 8.3.3 Distributing services
    • 8.3.4 Managing channels
  • 8.4 Managing distribution
  • 8.5 Distribution and ports
  • 8.6 Summary

• 9. Integrated marketing communications

  • 9.1 Communication with a purpose
  • 9.2 Marketing communication process
  • 9.3 The promotional mix
  • 9.4 Managing advertising
  • 9.5 Managing publicity and public relations
  • 9.6 Managing personal selling
  • 9.7 Managing sales promotion
  • 9.8 Summary

• 10. E-commerce and direct marketing

  • 10.1 Introduction
  • 10.2 Direct marketing
  • 10.3 Electronic commerce
    • 10.3.1 Successful e-commerce
  • 10.4 Online marketing
  • 10.5 Using customer databases
  • 10.6 Privacy issues
  • 10.7 Summary

• 11. Managing the service encounter

  • 11.1 Introduction
  • 11.2 Participants
    • 11.2.1 Customers
    • 11.2.2 Service personnel
  • 11.3 Managing the service encounter
    • 11.3.1 Role theory
    • 11.3.2 Script theory
  • 11.4 Process
    • 11.4.1 Operations management and services
    • 11.4.2 Manufacturing efficiency
    • 11.4.3 Improving services efficiency
    • 11.4.4 Matching supply and demand
  • 11.5 Physical evidence
    • 11.5.1 Types of physical evidence
    • 11.5.2 Space demarcation
    • 11.5.3 Atmospherics
    • 11.5.4 Servicescapes
  • 11.6 Summary

• 12. Customer relationship management

  • 12.1 Introduction
  • 12.2 Customer relationship management
  • 12.3 Customer satisfaction
    • 12.3.1 Benefits of customer satisfaction
  • 12.4 Service quality
    • 12.4.1 Conceptual model of service quality
    • 12.4.2 SERVQUAL
  • 12.5 Summary

1.7.1 Common criticisms of marketing

Products that are poorly made or services not performed well are long remembered. Many products can also be of dubious benefit, for example, do snack foods nourish as well as fill? We have all experienced deceptive packaging where contents have been exaggerated. Or we have known of planned obsolescence , where there is a built-in limit on the product's useful life through style changes or rapid quality deterioration over time.

Consider this

Can you think of any examples of planned obsolescence within the maritime industry?

Some products harm life and incur costs to society, such as cigarettes, liquor and motorcycles. Other products are of unsafe design . Did you know that at one time there was no incentive to build fire-resistant aircraft interiors because it was cheaper to pay for passenger insurance against the occasional air-crash?

Another objectionable practice of marketing is dumping . Dumping occurs when products such as dangerous medicines, cigarettes and pesticides are sold in developing countries while they are restricted in developed nations.

Promotion is another area in which ethical issues are evident. Much of advertising seems to play on consumer insecurities, selling love, and promising material well being as life-fulfilment. Advertising is used arguably to persuade consumers to buy products that they do not really want. The marketer's rebuttal is that they cannot cause the purchase of a product but only influence choice between brands.

Consider this

Why is this rebuttal inconsistent?

There are other related complaints of high-pressure selling , for instance, life insurance and encyclopaedias or deception in sales promotions such as 'bait-and-switch'. However, the strongest arguments have been about the costs involved in differentiating products and restraint of competition.

Pricing is a sensitive area. All consumers are acutely aware of instances of deceptive pricing, excessive markups, hidden long-term costs, unequal pricing to different segments of the market or pricing cartels between so-called competitors.

Activity 1.8

See if you can cite an example of each of the pricing criticisms in the maritime industry.

Distribution is probably the less noticed source of ethical lapses. Sometimes however, there are too many intermediaries managing inefficiently or duplicating services. The distribution of services might also be limited solely by the criterion of high profit and therefore, a needed service may not be offered in a place where the demands may not be great. Perhaps more subtle are attempts to block competitors' entry through dominating and restricting channels of distribution.

The next reading summarises some of the main areas of criticism of marketing: that it costs too much, encourages materialism, does not create value, that its practitioners are unscrupulous, and that it is unresponsive to consumer wants. Turn to it now to learn about the detail of these criticisms.

In your text

Kotler et al. (2004), Chapter 22, pp. 862-870, 'Social and ethical issues in marketing'.

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