Marketing's Impact on Individual Consumers
Consumers have various concerns regarding how well the marketing system serves their interests. There are six prime criticisms levelled at the marketing function by, consumer advocates, consumers and government agencies.
i. Harming consumers through great prices.
ii. High-pressure selling.
iii. Deceptive practices.
iv. Planned obsolescence.
v. Poor service to disadvantaged consumers.
vi. Shoddy or unsafe products.
i. Harming consumers through high prices: Various critics charge the marketing system causes prices to be superior than need be. Some of the factors to which these critics point are as:
- High costs of distribution. Greedy intermediaries mark up cost beyond the value of their services. There are several intermediaries and they all duplicate services. Resellers have responded by saying that: the job performed by the intermediaries is essential and takes away the responsibility from the consumer or the producer, the increasing mark up is actually the result of developed services, operating price are driving up cost, in realism, profit margins are low because of intense competition. Powerful retailers pressure their channel members to keep cost low.
- High advertising and promotion costs. Marketing is accused of driving up promotion and advertising costs. Marketers respond by saying that: consumers want more than the just functional qualities of products, they want branding, psychological benefits even though it can cost more, gives purchaser confidence, heavy advertising is required to inform millions of potential purchaser of the merits of a brand, Heavy promotion and advertising may be essential for a firm to match competitors' efforts. Companies are cost-conscious and attempt to spend their promotional dollars intelligently.
- Excessive mark ups. Critics charge that some of the companies mark up goods excessively. it charge is responded by the marketers respond by saying as: most of the businesses try to deal quite with consumers because they desire the repeat business, most of the consumer abuses are unintentional, while shady marketers do take benefit of consumers, and they should be reported to the authorities, Consumers frequently do not understand the reason for the high mark up.
ii. Deceptive Pricing: Sometimes marketers are accused of deceptive practices that lead consumers to expect that they will obtain more value than they in fact do. Three groups exist with respect to these alleged practices following:
1). Deceptive pricing includes such type of practices as falsely advertising "wholesale" or "factory" prices, or a big reduction from a phony high list cost.
2). Deceptive promotion includes such type of practices as overstating the product's performance or features, luring the customer to the store for a bargain which is out of stock, or running rigged contests.
3). Deceptive packaging includes exaggerating package contents via subtle design, not filling the package to the top, by using misleading labelling, or explain size in deceptive terms. Misleading practices have led to legislation and other consumer protection actions. Marketers argue that mostly companies ignore deceptive practices because such practices harm their business in the long run. According to some of the experts, some puffery, but, will always take place.
iii. High-pressure selling: High-pressure selling is another criticism of marketing. Laws need door-to-door salespeople to announce that they are selling a manufacture. Also, purchaser has a "three-day cooling-off period" in which they may cancel a contract after rethinking it.
iv. Shoddy and Unsafe products: Shoddy or unsafe manufacture are another criticism levelled against marketers. Complaints include following: 1). Complaints regarding products not being made nice or services were not carry out well. 2). Products deliver small benefit. 3). Product security has been a problem for several reasons described following:
- Producer indifference.
- Increased production complication.
- Poorly trained labor.
- Poor quality control.
Responses to these complaints from marketers are positive. In general Marketers want to make beneficial and secure products.
v. Planned obsolescence: Planned obsolescence is a scheme of causing products to become obsolete before they in fact need replacement and it is a criticism leveled by consumers. Fashion is frequently cited as an instance. Marketers respond that consumers as lifestyle changes; they obtain tired of old goods and desire a new look. Much of so-called planned obsolescence is in fact the typical interaction of competitive and technological forces in a free society.
vi. Poor service: In modern society poor service to disadvantaged consumers is another criticism against marketing. Obviously, better marketing systems have to be built in low-income areas. Critics consider the poor have been exploited by marketers.