Marketing Ethics2

8/8/2019 Marketing Ethics2

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What is ethical marketing?

y Ethical marketing refers to the application ofmarketing ethics into the marketing process

y Marketing ethics has the potential to benefit society asa whole, both in the short- and long-term

y Study of Ethical marketing should be included inapplied ethics and involves examination of whether ornot an honest and factual representation

y Marketing ethics has influenced companies and theirresponse is to market their products in a more sociallyresponsible way

y The increasing trend of fair trade is an example of theimpact of ethical marketing


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cont

y The philosophy of marketing is not lost with thisnewfound ethical slant, but rather hopes to wincustomer loyalty

y Ethical marketing should not be confused with

government regulations brought into force to improveconsumer welfare

y Marketing ethics is the area of applied ethics whichdeals with the moral principles behind the operation

and regulation of marketing. Some areas of marketingethics overlap with media ethics.


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Marketing ethics includes

Marketingeffectiveness

Marketresearch

Marketsegmentation

Marketingstrategy

Marketingmanagement

Marketdominance


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Frameworks of analysis for marketing ethics

Process-oriented framework

Stakeholder-oriented framework

Value-oriented framework


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Is marketing inherently evil?

yDamaging personal autonomy

y Causing harm to competitors

yManipulating social values.

yMarketing has a major impact on our self-images,

y People are spending tons of money and are

usually more depressed.yMarketing/Advertising creates artificiality and

influences sexual attitudes.


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List of unethical pricing practices

Bid riggingDumping(pricingpolicy)

Predatorypricing

Pricediscrimination

Price fixingPrice

skimming

Price warSupra

competitivepricing

Variablepricing


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Ethical pitfalls in advertising and promotionsEthical pitfalls in advertising and promotions

Issues overtruth and

honesty.

Issues overtruth and

honesty.

Issues withviolence,

sex and

profanity.

Issues withviolence,

sex and

profanity.

Taste andcontroversy

Taste andcontroversy

Negativeadvertising

techniques

Negativeadvertising

techniques


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y Involvement in the communityy Honesty, truthfulness and fairness in marketing

y Use of animals in product testing

yAgricultural practices e.g. intensive faming

y The degree of safety built into product designy Donation to good causes

y The extent to which a business accepts its allegedresponsibilities for mishaps, spillages and

y leaksy The selling of addictive products e.g. tobacco

y Involvement in the arms trade

y Trading with repressive regimes

Ethical issues and society - examples


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Ethical issues arising from internal and industry

practices - examples

y Treatment of customers - e.g. honouring the spirit aswell as the letter of the law in respect to warranties andafter sales service

y The number and proportion of women and ethnic

minority people in senior positionsy The organisations loyalty to employees when it is in

difficult economic conditions

y Employment of disabled people

yWorking conditions and treatment of workers

y Bribes to secure contracts

y Child labour in the developing world

y Business practices of supply firms


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Unethical practices in marketing - examples

y Pricing lack of clarity in pricingy Dumpingy Price fixing cartelsy Encouraging people to claim prizes when they phoning

premium rate numbersy Bait and switch sellingy High pressure sellingy Counterfeit goods and brand piracyy Copying the style of packaging in an attempt to mislead

consumersy Deceptive advertisingy Irresponsible issue of credit cards and the irresponsible

raising of credit limitsy Unethical practices in market research and competitor

intelligence


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Unethical practices relating to products - examples

Selling goodsabroad whichare banned at

home

Omitting toprovide

information onside effects

Unsafe products

Built inobsolescence

Wasteful andunnecessar

pac aging

Deception onsize and content

Inaccurate andincompletetesting ofproducts

Treatment ofanimals in

product testing


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The use of childlabour and forced

labourroduction ins eatsho s

iolation of thebasic ri hts of

or ers

I norin of health,safety andenvironmental

standards

unethical

ractices bysu liers inthe su ly

chain


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controversial marketing strategies

Anti-competitive practices

Bait and switch

Planned obsolescence

Pyramid scheme

Vendor lock-in / Vendor lock-out

Viral marketing / guerilla

marketing


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Institute of Business Ethics Suggestions for Good Practice

relations

customers

shareholdersand investors

employees

suppliers

governmentand local

community

environmentcompetitors

internationalbusiness

mergers andtakeovers

directorsand

managers

Complianceandverification


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What is an Ethical code?y This is a set of principles governing morality and acceptable

behaviour. It is likely to cover the following:

Personalbehaviour

Corporatebehaviour

Environm-ental

Behaviour

SocietalBehaviour

Marketing Ethics2

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