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|CHAPTER 20 Social Responsibility and Ethics 645

                                                                                                      Examples of desirable products abound. For

                                                                                                      example, Vapur makes a line of reusable, lightweight,

                                                                                                      collapsible water bottles that are highly functional

                                                                                                      and also more convenient, stylish, and environmen-

                                                                                                      tally friendly than either the disposable plastic bottles

                                                                                                      or rigid water bottles they replace. When full, pliable

                                                                                                      Vapur Anti-Bottles can be easily stuffed in pockets or

                                                                                                      backpacks; when empty, they can be rolled, folded, or

                                                                                                      flattened and easily tucked away. At the same time, the

                                                                                                      bottles require less energy to make and transport than

                                                                                                      rigid bottles, and unlike disposable plastic bottles, they

                                                                                                      don’t clog landfills or require recycling. Vapur also do-

    Desirable products: Vapur Anti-Bottles’ reusable, collapsible water                               nates portions of its sales to organizations such as Leave
bottles are highly functional and also more convenient, stylish, and                                  No Trace and The Conservation Alliance, and its Drops

environmentally friendly than either the disposable plastic bottles or rigid                          of Hope program annually donates thousands of Vapur

water bottles they replace.                                                                           bottles to charitable organizations around the world.27

Vapur, Inc. Vapur® and Anti-Bottle® are registered trademarks of Vapur, Inc.                          Companies should try to turn all of their products

                                                                                                      into desirable products. The challenge posed by pleas-

                             ing products is that they sell very well but may end up hurting the consumer. The product

                             opportunity, therefore, is to add long-run benefits without reducing the product’s pleasing

                             qualities. The challenge posed by salutary products is to add some pleasing qualities so that

                             they will become more desirable in consumers’ minds.

                             For example, PepsiCo hired a team of “idealistic scientists,” headed by a former direc-

                             tor of the World Health Organization, to help the company create attractive new healthy

                             product options while “making the bad stuff less bad.” PepsiCo wants healthy products

                             to be a $30 billion business for the company by 2020. The group of physicians, PhDs, and

                             other health advocates, under the direction of PepsiCo’s vice president for global health

                             policy, looks for healthier ingredients that can go into multiple products as well as reduc-

                             tions of sugar, salt, and fat while maintaining the same flavor in its familiar products. For

                             example, in 2011 Frito-Lay cut the salt in all of its potato chips by 25 percent. And, to help

                             cut calories, it uses a zero-calorie sweetener, Pure Via, in its Tropicana Trop50 orange juice

                             and Gatorade G2 brands. By 2012, PepsiCo’s nutrition business revenue represented 20 per-

                             cent of its annual net revenue, and 49 percent of its U.S. beverage volume came from juices,
                             low- or zero-calorie drinks, and active hydration beverages.28

                             Marketing Ethics

                             Good ethics are a cornerstone of sustainable marketing. In the long run, unethical marketing
                             harms customers and society as a whole. Further, it eventually damages a company’s reputation
                             and effectiveness, jeopardizing its very survival. Thus, the sustainable marketing goals of long-
                             term consumer and business welfare can be achieved only through ethical marketing conduct.

                                   Conscientious marketers face many moral dilemmas. The best thing to do is often
                             unclear. Because not all managers have fine moral sensitivity, companies need to develop
                             corporate marketing ethics policies—broad guidelines that everyone in the organization must
                             follow. These policies should cover distributor relations, advertising standards, customer
                             service, pricing, product development, and general ethical standards.

                                   The finest guidelines cannot resolve all the difficult ethical situations the marketer
                             faces. Table 20.1 lists some difficult ethical issues marketers could face during their
                             careers. If marketers choose immediate-sales-producing actions in all of these cases, their

   FIGURE | 20.4                                                              Immediate Satisfaction
Societal Classification
of Products                                                                                     Low       High
                                                                              High Salutary products  Desirable
                             Long-run                                                                 products           The goal? Create desirable products–
                                Consumer Benefit                                                                         those that create both immediate customer
                                                                              Low Deficient products  Pleasing products  satisfaction and long-run benefit. For
                                                                                                                         example, Vapur Anti-Bottles are highly
                                                                                                                         functional but also convenient, stylish,
                                                                                                                         and environmentally friendly.
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