Ethics in Marketing

POWER POINT PRESENTATION POWER POINT PRESENTATION ONON

ETHICS IN MARKETING ETHICS IN MARKETING

MARKETING ETHICSMARKETING ETHICS

Marketing ethicsMarketing ethics is the area of is the area of applied ethics which deals with the applied ethics which deals with the moral principles behind the operation moral principles behind the operation and regulation of marketing. and regulation of marketing.

WHY ETHICS ARE IMPORTANTWHY ETHICS ARE IMPORTANT

Ethics are important due to they tell Ethics are important due to they tell marketer what is right or wrong or good or marketer what is right or wrong or good or bad.bad.

Ethics are important for person to spend Ethics are important for person to spend his life with satisfaction as ethicshis life with satisfaction as ethics

means to do right thing.means to do right thing.

FRAMEWORK OF ANALYSIS FRAMEWORK OF ANALYSIS OF MARKETING ETHICS OF MARKETING ETHICS

Value – oriented frameworkValue – oriented framework

Stakeholder-oriented frameworkStakeholder-oriented framework

Process – oriented frameworkProcess – oriented framework

Value –Oriented frameworkValue –Oriented framework

Value-oriented framework, analyzing Value-oriented framework, analyzing ethical problems on the basis of the ethical problems on the basis of the values which they infringe (e.g. values which they infringe (e.g. honesty, autonomy, privacy, honesty, autonomy, privacy, transparency). An example of such an transparency). An example of such an approach is the AMA Statement of approach is the AMA Statement of Ethics.Ethics.

American Marketing Association Code of American Marketing Association Code of EthicsEthics

Stakeholder-oriented frameworkStakeholder-oriented framework

Stakeholder-oriented framework, Stakeholder-oriented framework, analyzing ethical problems on the analyzing ethical problems on the basis of whom they affect (e.g. basis of whom they affect (e.g. consumers, competitors, society as a consumers, competitors, society as a whole).whole).

Ronald McDonald HouseConcerned for ill children

Process – oriented frameworkProcess – oriented framework

Process-oriented framework, Process-oriented framework, analyzing ethical problems in terms of analyzing ethical problems in terms of the categories used by marketing the categories used by marketing specialists (e.g. research, price, specialists (e.g. research, price, promotion, placement).promotion, placement).

SPECIAL ETHICAL ISSUES IN SPECIAL ETHICAL ISSUES IN MARKETINGMARKETING

Pricing Issues Pricing Issues

Promotional IssuesPromotional Issues

Channel IssuesChannel Issues

Product IssuesProduct Issues

PRICING ISSUESPRICING ISSUES

List of unethical pricing practices.List of unethical pricing practices. price fixingprice fixing price skimmingprice skimming price discriminationprice discrimination variable pricingvariable pricing predatory pricingpredatory pricing price warprice war bid riggingbid rigging dumping (pricing policy)dumping (pricing policy)

PROMOTIONAL ISSUESPROMOTIONAL ISSUES

False and misleading advertisingFalse and misleading advertisingNegative advertisingNegative advertisingCreating demand for vice or Creating demand for vice or

unwholesome productsunwholesome productsIntrusive promotionsIntrusive promotions

CHANNEL ISSUESCHANNEL ISSUES

Slotting allowancesSlotting allowancesGray market merchandiseGray market merchandiseExclusive geographic territoriesExclusive geographic territoriesExclusive dealing agreementsExclusive dealing agreementsRefusal to dealRefusal to deal

Product IssuesProduct Issues

Products that create harmProducts that create harmTargeted at disadvantaged groups (e.g., Targeted at disadvantaged groups (e.g.,

cheap wine targeted to alcoholics and cheap wine targeted to alcoholics and homeless people)homeless people)

Wasteful & unnecessary packagingWasteful & unnecessary packagingUnsafe productsUnsafe productsOmit information Omit information Incomplete testing of productIncomplete testing of product

ETHICAL VALUESETHICAL VALUES

RESPECT

OPENNESS FAIRNESS

RESPONSIBILITY

HONESTY

ETHICAL VALUES

HONESTYHONESTY

tell the truth in all situations and at all tell the truth in all situations and at all timestimes

offer products of value that producer claim offer products of value that producer claim in communications. in communications.

honorexplicit and implicit commitments honorexplicit and implicit commitments and promises and promises

RESPONSIBILITYRESPONSIBILITY

make strenuous efforts to serve the needs make strenuous efforts to serve the needs of customers. of customers.

  acknowledge the social obligations to acknowledge the social obligations to stake holders that come with increased stake holders that come with increased marketing and economic power. marketing and economic power.

recognize special commitments to recognize special commitments to economically vulnerable segments of the economically vulnerable segments of the market such as children, the elderly and market such as children, the elderly and others who may be substantially others who may be substantially disadvantaged.disadvantaged.

FAIRNESSFAIRNESS

Represent products in a clear way in Represent products in a clear way in selling, advertising etcselling, advertising etc

avoid manipulations and sales tactics that avoid manipulations and sales tactics that harm customer trust.harm customer trust.

not engage in price fixing, predatory not engage in price fixing, predatory pricing,“bait-and-switch” etc tactics. pricing,“bait-and-switch” etc tactics.

RESPECTRESPECT

avoid stereotyping customers avoid stereotyping customers listen to the needs of customers listen to the needs of customers special effort to understand suppliers, special effort to understand suppliers,

intermediaries, and distributors from other intermediaries, and distributors from other cultures. cultures.

OPENNESSOPENNESS

strive to communicate clearly strive to communicate clearly fully disclose list prices and terms of fully disclose list prices and terms of

financing as well as available price deals financing as well as available price deals and adjustments.and adjustments.

explain significant product or service risks explain significant product or service risks

IMPLEMENTATIONIMPLEMENTATION

Finally, we recognize that every industry Finally, we recognize that every industry sector and marketing subdiscipline has its sector and marketing subdiscipline has its own specific ethical issues that require own specific ethical issues that require policies. An array of such codes can be policies. An array of such codes can be accessed through links on the accessed through links on the AMAAMA Web Web site, site, Direct Marketing AssociationDirect Marketing Association, , Marketing Research AssociationMarketing Research Association etc. etc. which should be followed by the marketerwhich should be followed by the marketer