Marketing Ethics

Marketing Ethics
Marketing Ethics
• Marketing ethics addresses principles and standards that define acceptable conduct in the market place. Marketing usually occurs in the context of an organization, and unethical activities usually develop from the pressure
to meet performance objectives.
• Some obvious ethical issues in marketing involves clear cut attempts to deceive or take advantage of a situation
Marketing Ethics & Consumer Right
• The law and regulations are generally designed to protect the consumers from unethical practices by businesses
• These laws and regulations recognize that consumers have certain basic rights in the market place
• Each marketer must relay on his/her own value system to determine what is and is not ethical
Ethical Issues in Marketing
• Marketing ethics Marketers' standards of conduct and moral values.
• Many companies create ethics programs to train employees to act ethically.
• Employees' personal values sometimes conflict with employers' ethical standards.
Ethics in Marketing Research
• Invalid or unreliable research studies
• Invasion of consumer privacy, not respecting confidentiality
• Disguising sales as research
• Failure to secure voluntary and informed participation
• Competitive intelligence gathering
• Consumers are concerned about privacy, and Internet has increased privacy concerns
• FTC provides consumer information about privacy online
• The U.S. government also maintains a Do Not Call registry to prevent unwanted telemarketing.
Ethics in Product/Packaging
Example: Package strategy.
• Larger packages are more noticeable on the shelf.
• Oddly sized packages make price comparison difficult
• Actual versus apparent size
Example: Product strategy.
• Misleading or inadequate information
• Excessive or environmentally-unfriendly packaging
• Product testing: on animals or insufficient testing to reveal safety concerns
• Marketing socially controversial products
• Marketing unsafe products
Ethics in Distribution
• What is the appropriate degree of control over the distribution channel?
• Should a company distribute its products in marginally profitable outlets that have no alternative source of supply?
Ethics in Promotion
• Truth in advertising is the bedrock of ethics in promotion.
• Marketing to children has come under increased scrutiny.
• Marketing beer to college students, including through providing promotional items such as shirts and hats, raises ethical questions.
Ethics in Pricing
• Most regulated aspect of a firm's marketing activities.