Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

22. Ethical Marketing in a
    Consumer−Oriented World:
    Appraisal and Challenges

Text © The McGraw−Hill

Companies, 2002

642 Chapter 22

rise in business, we can look forward to much lower micro-marketing costs and

strategies that do a better job of satisfying customer needs.

Many critics of marketing take aim at the macro-marketing system. They think

(1) advertising, and promotion in general, are socially undesirable and (2) the

macro-marketing system causes poor use of resources, limits income and employ-

ment, and leads to an unfair distribution of income. Most of these complaints

imply that some micro-marketing activities should not be permitted—and because

they are, our macro-marketing system does a poor job. Let’s look at some of these

positions to help you form your own opinion.

Some critics feel that marketing helps create a monopoly or at least monopolis-

tic competition. Further, they think this leads to higher prices, restricted output,

and reduction in national income and employment.

It’s true that firms in a market-directed economy try to carve out separate monop-

olistic markets for themselves with new products. But consumers do have a choice.

They don’t haveto buy the new product unless they think it’s a better value. The

old products are still available. In fact, to meet the new competition, prices of the

old products usually drop. And that makes them even more available.

Internet

Internet Exercise Ikea is an innovative furniture company that is using its

website to refine its strategy. It has always relied on information technology to

keep costs low by tracking sales at individual stores and using the informa-

tion to control inventory and reduce shipping costs between the factory,

distribution centers, and its massive retail stores. Go to the Ikea website

(www.ikea.com). What else does the website tell you about Ikea’s strategy?

Does the website help Ikea offer superior value? Explain your answer.

Macro-Marketing Does Not Cost Too Much

Marketing stimulates
innovation and the
development of new ways to
meet customers’ needs.

Micro-efforts help the
economy grow