Social Criticisms in Marketing

Christine Yvonne L. Balinas

Objective: To be able to understand the
Social Criticisms in Marketing.
MARKETING
We define marketing as promoting a product or service.

Marketing includes the advertising part that we know so well from commercials and ads.
● PRODUCT

● PRICE

● PLACE

● PROMOTION
 Marketing
Regulations
Regulation means providing rules and
frameworks for business and other activities.
Purpose of Regulation
1.)To guarantee minimum standards ;
2.) To protect the weak against the strong ; and
3.)To provide an appropriate framework for ethical business behaviour to create standards
where none exist
Marketing and the Law
Consumer Protection Act in the Philippines

●
 Consumer Protection Act in China
China’s first comprehensive Consumer Protection Law (PRC
●
Protection of Consumer Rights and Interests Law) was

passed in October 1993 and contained eight chapters and a

total of 55 articles and had been expressly informed by the

1985 UN Guidelines on Consumer Protection.

PURPOSE OF THE LAW: “To protect the lawful rights and

interests of consumers, maintaining the order of society and

economy, and promoting the sound development of the

socialist market economy.”

SOCIAL MARKETING CRITICISMS
High Cost of Distribution

High Advertising and Promotion Costs

Excessive Markups
Deceptive Practices
 I.High Cost of Distribution

Intermediaries mark up prices ●

beyond their value due to

inefficiencies and unnecessary or
duplicative services.
 II.High Advertising and Promotion Costs

● Summary of Online Advertising Cost

Prices are inflated to absorb advertising
and sales promotion costs, and packaging
only adds to the psychological, not
functional, value of the product.
 III. Excessive Markups

Companies mark up products excessively.

III. Excessive Markups

●
III. Excessive Markups

●
 IV.Deceptive Practices

●
Companies use deceptive practices that lead customers to
believe they will get more value than they actually do.
These practices fall into three categories:

A. Deceptive pricing
B.Deceptive promotion
C.Deceptive packaging
●
 V. High-Pressure Selling

Sales people use high-pressure selling

that persuades people to buy goods they
had no intention of buying.
 V. High-Pressure Selling

Methods of High pressure selling

1. Endless Chatter

2. Emotional manipulation

3.Limited Time offers

 V. High-Pressure Selling

1. Unethical and Provoking

2. Forced Decision Making

 VI. Unfair competitive marketing practices

The law of unfair competition is primarily comprised of torts that cause

economic injury to a business through a deceptive or wrongful business
practice. Unfair competition can be broken down into two broad
categories:

1. unfair competition
1. sometimes used to refer only to those torts that are meant to
confuse consumers as to the source of the product (also
known as deceptive trade practices)
2. unfair trade practices
1. comprises all other forms of unfair competition.
 VI. Unfair competitive marketing practices

A."bait and switch" selling tactics

A “bait and switch” takes place when a seller creates an appealing

but ingenuine offer to sell a product or service, which the seller does
not actually intend to sell.
 VI. Unfair competitive marketing practices

B. Trademark infringement

If someone else steals your intellectual property and uses it to gain

revenue or market share, you may be eligible to file a suit. An example of
this is when a competitor uses your logo or slogan in their own advertising
 VI. Unfair competitive marketing practices

C. False advertising

When a competitor makes an unfair or untrue statement about their

products or services, you should talk to a lawyer right away. This type of
misleading business practice can cut into your customer base and profits
over time.
 VI. Unfair competitive marketing practices

D. Unauthorized substitution

Sometimes called the “bait and switch,” this illegal method involves
someone misrepresenting a product, and after the sale, substituting the
product with a version (“knockoff”) of lesser quality. This tactic often goes
hand in hand with trademark infringement.
 VI. Unfair competitive marketing practices

E. Misappropriation of trade secrets

Your company’s internal knowledge, including your formulas, recipes,

strategies, and more, are protected under intellectual property laws. If a
competitor gets their hands on your intel, and uses it for their own
monetary gain, you can bring legal charges against them.
 VI. Unfair competitive marketing practices

F. False representation

If a competitor gets ahead in the marketplace by making false claims or

offering faulty guarantees, you may be able to get justice. This type of
unfair competition often includes product warranties, satisfaction
guarantees, and other commercial policies.
REFERENCES
China Consumer Protection Act Retrieved from: https://link.springer.com/article/10.1007/s10603-022-09518-3#:~:text=China's%20first%20comprehensive%20Consumer%20Protection,187).

Consumer’s Act of the Philippines. RA 7394 Retrieved from: https://lawphil.net/statutes/repacts/ra1992/ra_7394_1992.html

Cost of Distribution. Retrieved from: https://www.wallstreetmojo.com/distribution-cost/

High Pressure Selling https://www.monash.edu/business/marketing/marketing-dictionary/h/high-pressure-selling#:~:text=A%20selling%20approach%20in%20which,customer%20to%20make%20a%20purchase.

Potter, P. B. (2013). China’s legal system. Polity Press.

Product Markups https://www.businessinsider.com/products-high-markups-2014-7

Legal Information Cornelle Law School. https://www.law.cornell.edu/wex/unfair_competition

Unfair Market Practices https://primumlaw.com/2017/10/20/5-main-types-unfair-competition/#:~:text=Unauthorized%20substitution,in%20hand%20with%20trademark%20infringement.

United Nations. (1999). Expansion of the United Nations guidelines on consumer protection to include sustainable consumption. Resolution E/1999/INF/2/Add.2.

Twigg-Flesner, C., & Micklitz, H.-W. (2010). Think global- towards international consumer law. Journal of Consumer Policy, 33(3), 201–207.

Wei, D. (2020). From fragmentation to harmonization of consumer law: The perspective of China. Journal of Consumer Policy, 43, 35–56.
END