New Frontiers of Value Creation in Marketing: The Multi-stakeholder Approach

Marketing Flaws and Criticisms

NEW FRONTIERS OF VALUE CREATION IN MARKETING: THE MULTI-STAKEHOLDER APPROACH STUDII UNIVERSITAS TAURI NENSIS UNIVERSITÀ DI TORINO DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO"THE ISSUE Marketing suffers from the following flaws:

• Stakeholder misperceptions
• Value creation process that, typically, is thought to be: Dichotomous and myopically oriented to just customers and shareholders > Anchored to profit maximization > Exclusive vs inclusive > it excludes stakeholders that can potentially participate to value co-creation initiatives
• As a pure firm-centric process, it potentially ignores marketing activities' impact on society and the environment or, considers it just residually

communication job pure commercial pnl . guru to sell hustle misleading to manipulate operations aggression premi-donne political diabolic violence to profit from money objective consensus merefake scams subjucated unfair oreasons advertising idea Resciniti et al., 2020 Bhattacharya and Korschun, 2008; Cluley 2016; Freeman et al., 2010; Hackley, 2018; Kachersky and Lerman, 2013; Laczniak and Murphy, 2012; Sheth et al., 2006 pervasiveness strategy Oaggressive manipulation false „slogan profit stimulated hate slaves tricks thechniques campaign product expedient DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO"Social Criticisms of Marketing

Marketing's Impact on Individual Consumers

High Prices and Deceptive Practices

• High prices
• Deceptive practices
• High-pressure selling
• Shoddy, harmful, or unsafe products
• Planned obsolescence
• Poor service to disadvantaged consumers

A heavily promoted national brand sells for much more than a virtually identical non-branded or store-branded product. Critics charge that promotion adds only psychological value to the product rather than functional value. FREE OUR 100TH ANNIVERSARY EBOOK 100% Fruit "No Sugar Added" Great Value SINCE 1912 California Raisins SUN.MAID I A Fat Free Food A Cholesterol Free Food CALIFORNIA GOLDEN RAISINS NET WT 12 OZ (340g) U NET WT. 15 OZ (425g) SUP'S 16.2: ER OUNCE $1.94 23.2€ PER OUNCE $3.48 00132-0007-0021 OM CON QUESNES YSOL Sheila Fitzgerald/Shutterstock EuroMed DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO" Vilnius, 2023 RETAIL PRICESocial Criticisms of Marketing Marketing's Impact on Individual Consumers

High Prices: Complaints and Responses

• Complaint: . Prices are too high due to high costs of: · distribution · advertising and promotion · excessive mark-ups
• Response: · Intermediaries are important and offer value. · Advertising informs buyers of availability and merits of a brand. . Consumers don't understand the cost of doing business.

EuroMed Vilnius, 2023 DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO"Social Criticisms of Marketing Marketing's Impact on Individual Consumers

Deceptive Practices: Pricing, Promotion, and Packaging

Deceptive practices: Complaint: Companies use deceptive practices that lead customers to believe they will get more value than they actually do. These practices fall into three categories. · Deceptive pricing · Deceptive promotion · Deceptive packaging Deceptive pricing: Large retailers from JCPenney and Kohl's to Neiman Marcus, Nordstrom, and Old Navy have been hit with lawsuits alleging that they used inflated original prices. OLD NAVY C IT'S A HUGE sale UP TO 50 % off 8 $10 ACTIVE for the family 50% ADULTS TEES $7 KIDS TEES ON $5 OLD NAVY toronto Jill Morgan/Alamy Stock Photo EuroMed Vilnius, 2023 DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO"Social Criticisms of Marketing Marketing's Impact on Individual Consumers

Deceptive Practices: Consumer Protection

Deceptive practices: Response: Support legislation to protect consumers from deceptive practices. Make lines clear-is it deception, alluring imagery, or puffery (exaggeration for effect)? . Products that are harmful · Products that provide little benefit . Products that are not made well DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO" Vilnius, 2023 EuroMedSocial Criticisms of Marketing Marketing's Impact on Individual Consumers

High-Pressure Selling: Complaints and Responses

• Complaint: • Salespeople use high-pressure selling that persuades people to buy goods they had no intention of buying.
• Response: . Most selling involves building long-term relationships with valued customers. High-pressure or deceptive selling can damage these relationships

DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO" EuroMed Vilnius, 2023Social Criticisms of Marketing (6 of 12) Marketing's Impact on Individual Consumers

Shoddy, Harmful, and Unsafe Products

• Complaint: · Products have poor quality, provide little benefit, and can be harmful.
• Response: · Good marketers realize there is no value in marketing shoddy harmful, or unsafe products.

Harmful products: Is the soft drink industry being irresponsible by promoting harmful products, or is it simply serving the wants of consumers while letting them make their own consumption choices? CARBONATING THE WORLD The Marketing and Health Impact of Sugar Drinks in Low- and Middle-income Countries CENTER FOR Science IN THE Public Interest Center for Science in the Public Interest Vilnius, 2023 EuroMed DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO"Social Criticisms of Marketing (7 of 12)

Planned Obsolescence: Complaints and Responses

• Complaint: . Producers cause their products to become obsolete.
• Response: · Planned obsolescence is really the result of a competitive market.

Planned obsolescence: When it comes to consumer electronics, anything over a year or two old seems hopelessly out-of-date. Is it planned obsolescence, or are companies simply meeting consumer demands for the latest technology? Maxx-Studio/Shutterstock EuroMed Vilnius, 2023 DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO"Social Criticisms of Marketing (8 of 12) Marketing's Impact on Individual Consumers

Poor Service to Disadvantaged Consumers

• Complaint: · American marketers serve disadvantaged customers poorly.
• Response: . Some marketers profitably target these customers and the FTC has taken action against marketers that do.

SNAP Supplemental Nutrition Assistance Program Food & Nutrition Service; Ronstik/123 RF Serving underserved consumers: The USDA recently launched a pilot program that lets low-income SNAP consumers order online, giving them vastly broader food options at competitive prices. EuroMed Vilnius, 2023 DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO"Social Criticisms of Marketing (9 of 12) Marketing's Impact on Individual Consumers

False Wants and Materialism

• Complaint: . The marketing system urges too much interest in material possessions
• Response: · People do have strong defenses against advertising and other marketing tools.

Materialism: Some marketers are urging "conscious consumption." REI closes its stores on Black Friday and encourages customers to #OptOutside. We're closed today, and we think that's a good thing. #optoutside Spend your Black Friday outside and share your best days with us. rei.com/optoutside MediaNews Group/Bay Area News via Getty Images EuroMed Vilnius, 2023 DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO"Social Criticisms of Marketing (10 of 12) Marketing's Impact on Individual Consumers

Increased Pressure on Public Goods

• Complaint: . Businesses oversell private goods at the expense of public goods.
• Response: . There needs to be a balance between private and public goods.

DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO" Vilnius, 2023 EuroMedSocial Criticisms of Marketing (11 of 12) Marketing's Impact on Individual Consumers

Cultural Pollution: Complaints and Responses

• Complaint: · Marketing and advertising create cultural pollution.
• Response: · Marketing and advertising are planned to reach only a target audience and consumers have alternatives.

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Marketing's Impact on Other Businesses

Competitive Marketing Practices and Antitrust

• Acquisition of competitors
• Barriers to entry
• Unfair competitive marketing practices

Competitive marketing practices: The European Commission recently fined Google heavily for illegally using its search dominance to manipulate the results of its Google Shopping search comparison services to favor its own shopping services at the expense of rivals. Antitrust: Google Shopping Commission européenne European Commission Alexandros Michailidis/Shutterstock EuroMed Vilnius, 2023 DM DIPARTIMENTO DI MANAGEMENT "VALTER CANTINO"