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Marketing Basics - Kotler Philip

Summary

The marketing system should function in such a way as to capture, serve and satisfy the needs of consumers and improve their quality of life. In their desire to satisfy the needs of consumers, entrepreneurs can perform certain actions that not everyone likes and not everyone benefits. Marketing executives should be aware of key criticisms of this kind.

Marketing has been criticized for adversely affecting consumer welfare through high prices, the use of misleading techniques, the use of methods of imposing goods, the sale of substandard or unsafe products, the use of planned obsolescence practices and the low level of service for disadvantaged consumers. With regard to the impact on society as a whole, marketing has been criticized for contributing to the spread of excessive commercialism and artificial desires, the lack of socially useful goods, the erosion of culture, and the excessive political influence of business. Critical remarks about the impact of marketing on competition between enterprises boil down to the fact that it induces acquisitions that narrow competition, poses barriers to entry of other firms into the market and encourages predatory competition.

These tangible abuses by the marketing have led to the civic movement, most notably consumerism and the environmental movement. Consumerism is an organized social movement to strengthen the rights and influence of consumers in relation to sellers. Entrepreneurial marketing people see in this situation the opportunity to better serve consumers by providing them with more information, training and protecting them. The environmental movement is an organized social movement with the goal of minimizing the harmful effects of marketing practices and practices on the environment and quality of life. Its supporters demand intervention in all cases when the satisfaction of consumer needs results in too high costs for the environment.

Public movements have led to the adoption of many laws to protect consumers in ensuring the safety of goods, reflecting the truth in loan offers, indicating ingredients and expiration dates on product labels, and reflecting truth in advertising.

Despite the fact that at first many entrepreneurs were opposed to these social movements and laws, today most of them recognize the need for positive consumer information, education and protection. Some firms use the concept of enlightened marketing, based on the principles of customer orientation, innovation, creating value, awareness of the social mission and socio-ethical orientation. Such firms have developed fundamental guidelines and principles designed to help their leaders resolve moral dilemmas.