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Criticisms of Marketing - Coggle Diagram
Criticisms of Marketing
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Market Structure
The structure of markets can have a significant impact on the power of organisations within an industry.
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Organisational Power
The evolution of house brands, also known as private label brands, has been criticised and blamed for the reduction of choice in markets where market power is concentrated.
Power tends to corrupt, and absolute power corrupts absolutely,
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Big Data
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While there is the potential to use data to help create products and services closely aligned to people's wants and needs, there are also concerns that this will result in an invasion of privacy and invasive marketing techniques.
Product-Related Issues
These are more problematic in transitional economies than in mature economies where quality control may be more tightly regulated.
Packaging also creates several ethical issues. The first relates to the high volume of waste generated by excessive packaging, with implications for both the resources needed to produce the packaging and packaging disposal.
Slack packaging - the practice of using large packages to visually overstates the quantity of product the package contains
Health Halo effect which is claimed to lead to increased consumption of the product and thus to potential overeating
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Pricing-Related Issues
Price Gouging - occurs when a firm sets the price of goods or services at a level that is seen as unreasonably high
Price Skimming - where a higher price is charged at the time a new product or service is introduced to the market
Predatory Pricing - setting the price low so that competitors go low and rise again deceptive pricing.
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Price Discrimination - occurs when the price of goods or services is different for different people or for different distribution systems, such as online vs conventional retail outlets.
Price Collusion - occurs when two or more firms who are dominant in a specific market collectively set and maintain prices at a higher level that would have applied if there had been free competition.
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Product Placement
Involves the insertion of a recognisable branded product into the content or background of a range of media broadcasting formats.
PR/Publicity
Reports of:
- Flogs - fake blogs
- Ghost Blogging - writing blogs on behalf of the stated author without disclosing the true authorship.
- Ghost Tweeting - writing tweets on behalf of the stated author without disclosing the true authorship
- Astroturfing - paying people to create false grass roots support for an organisation or brand
Selling
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Cultural background of staff may influence how they perceived ethical issues, but more research is needed in this area.
Ethical training may sensitise staff to potential ethical issues but may not impact on whether unethical behaviour will occur or not.