Marketing ethics mba

GROUP -8

MARKETING ETHICS

CASE TO UDERSTAND CONCEPT…..

Apple’s case that Samsung copied the iPhone and iPad

Samsung Phones Before Iphone…

Samsung Phones After Apple

CASE against Samsung

So Apple claimed a case against Samsung that it became prominent in the smart phone industry, just by copying Apple….

Question……..

What do you say…?Is the copying right…?

YES…….!!!!!!!

If YES…..

What moral principles It has….Copying does spoils the reputation of the

company….

NO………!!!!!

If your Answer was No…..

What will Samsung do to

SATISFY CUSTOMERS…….????

DECISION………..???

What would you do as a Marketing head of Samsung…….??

Will you copy….. Or Will you follow the same traditional methods…

SO THIS DEPICTS THE SUTUATION WHERE “MARKETING ETHICS” IS NEEDED

WHAT IS MARKETING…?

It is the process of communicating the value of a product or service to customers, for the purpose of selling the product or service.

WHAT IS ETHICS…?

Ethics Is the art and science of determining good and bad or right or wrong moral behavior.

MARKETING ETHICS DEFINED..!

Marketing ethics is the systematic study of how moral standards are applied to marketing decisions, behaviors, and institutions.

WHY WE NEED MARKETING ETHICS…?

Marketers face many moral dilemmas.The best things to do is often unclear.Because not all managers have fine moral

sensitivity….

SO COMPANIES NEED MARKETING ETHICS POLICIES……...

EXAMPLES OF DIFFICULT SITUATIONS…

1. YOU WORK FOR CIGARETTE COMPANY: YOU KNOW THAT SMOKING CAUSES

CANCER…

WHAT WOULD YOU DO……??

EXAMPLES Contd…..

2. YOU ARE HIRING A PRODUCT MANAGER

- Who has just left the competitor’s company.- She would be more than happy to tell you all

the competitor’s plan for the coming year….

WHAT WOULD YOU DO….??

An Overview of American Marketing Code of Ethics

PreambleThe American Marketing Association commits

itself to promoting the highest standards of professional ethical norms and values for this members.

General Norms1.Marketers must do not harm.2.Marketers must foster trust in the marketing

system.

Ethical Values….

1. Honesty2. Responsibility3. Fairness4. Respect5. Openness6. Citizenship7. Implementation

Social Criticism Of Marketing…

Marketing receives much criticism. Some of this is justified; much is not.

Marketing Impacts on Individual Custmers

High Prices high costs of distribution, high advertising and promotional cost, Excessive Markups.

Example: Café coffee day charges high price for coffee when compared with other coffee shops. Critics charge that promotion adds only psychological value to the product rather than

functional value

Deceptive Practices

Marketers are sometimes accused to deceptive

practices that lead consumers to believe they will get more value that they actually do.

3 groups: -pricing -promotion -packaging

Contd….

Deceptive pricing -”flat 70 % discount” , “ factory sale”.

Deceptive promotion -”Fair and Lovely”, “Complan”

Deceptive Packaging -”Lays”, “BB creams”

High Pressure Selling

Salespeople are sometimes accused of high pressure selling that persuades people to buy goods they had no thought of buying.

It is often insurance, real estates and cars are sold, not bought

Shoddy or Unsafe Products

I. Many products are not made well and not services well

eg. Kure kure chips –wax, MSG, Bricks, Rods

II.The products deliver little benefit or the product might be harmful

eg. Coca Cola, mosquito coil, Bikes CC

Contd

III. Product safety - electronic goods

For years Consumer Reports magazine and Websites- have reported various hazards in tested products: electrical dangers, carbon monoxide poisoning( refrigerators, air conditioners).

Marketing impacts on society on a whole

Marketing systems have been blamed for adding several “Evils” in the society as a large.

False Wants and too much materialism

Marketers urges consumers to think that “ People are judged by what they own rather than by who they are”.

Phrases such as “greed is god” “I feel like God”Creates false wants….

Too few social goods

Business has been accused of overselling private goods at the expense of public goods.

Example: increase in automobile ownership(private goods)

requires more highways, traffic control, and police services(public goods)

Cultural Pollution

Our senses are being constantly assaulted by advertising.

Pages of ads obscure magazines. These interruptions continually pollutes

people’s mind with messages of materialism.

Marketing impacts on other businesses

Critics also charge that a company’s marketing practices can harm other companies and reduce competition.

I .acquistation of competitors.II .marketing practices creates barrier to entry.III.Unfair competitive marketing prices.

Example

Microsoft:

The operating systems installed on more than 90 % of desktop computers.

Customers are essentially locked into windows OS.

It was nearly a “Monopoly”.

CITIZEN AND PUBLIC ACTIONS TO REGULATE MARKETING

AN ORGANIZED MOVEMENT OF CITIZEN AND GOVERNMENT AGENCIES TO IMPROVE THE RIGHTS AND POWER OF BUYER IN RELATION TO SELLERS .

IT IS A SOCIAL PHENOMENON THAT EMPOWERS THE BUYERS AND CONSUMERS. ITS EFFECTS ARE VISIBLE IN THE LAWS, REGULATIONS AND ALSO THE MARKETING PRACTICES.

Consumerism

CONSUMER MOVEMENTS :

A M E R I C A N B U S I N E S S F I R M S H AV E TA R G E T E D O R G A N I Z E D C O N S U M E R M O V E M E N T S O N T H R E E O C C A S I O N S .

F I R S T C O N S U M E R M O V E M E N T S T O O K P L A C E I N T H E E A R LY 1 9 0 0 S U P T O N S I N C L A I R ’ S W R I T I N G S O N C O N D I T I O N I N T H E M E AT I N D U S T RY A N D S C A N D A L S I N D R U G I N D U S T RY.

S E C O N D C O N S U M E R M O V E M E N T I N T H E M I D 1 9 3 0 S WA S

S PA R K E D B Y A N U P T U R N I N C O N S U M E R P R I C E S D U R I N G G R E AT D E P R E S S I O N A N D A N O T H E R D R U G S C A N D A L .

T H I R D M O V E M E N T S B E G A N I N 1 9 6 0 .

T H E R I G H T S T O I N T R O D U C E A N Y P R O D U C T I N A N Y S I Z E A N D S T Y L E P R O V I D E I T I S N O T H A Z A R D O U S T O P E R S O N A L H E A LT H O R S A F E T Y O R I F I T I S T O I N C L U D E P R O P E R WA R N I N G A N D C O N T R O L S .

T H E R I G H T S T O S P E N D A N Y A M O U N T T O P R O M O T E T H E P R O D U C T P R O V I D E D I T I S N O T D E F I N E D A S U N FA I R C O M P E T I T I O N .

T H E R I G H T T O U S E A N Y P R O D U C T M E S S A G E , P R O V I D E D I T I S N O T D E F I N E D M I S L E A D I N G O R D I S H O N E S T I N C O N T E N T O R E X E C U T I O N .

T H E R I G H T T O I N F L U E N C E P R O D U C T S A N D M A R K E T I N G P R A C T I C E I N WAY S T H AT W I L L I M P R O V E T H E Q U A L I T Y O F L I F E .

Traditional Sellers Rights Include

THE RIGHT TO EXPECT THE PRODUCT TO BE SAFE.

THE RIGHT TO EXPECT THE PRODUCT TO PERFORM AS CLAIMED.

THE RIGHT TO BE WELL INFORMED ABOUT IMPORTANT ASPECTS OF THE PRODUCT.

CONSUMERS WHO BELIEVE THEY GOT A BAD DEAL HAVE SEVERAL REMEDIES .

Traditional Buyer Rights Include

Basic Consumer Rights

The Right to be Safe

The Right to be

informed

Right to choose

CONSUMERISM

CONSUMERISM IS THE FAST EMERGING AS AN ENVIRONMENTAL FORCE AFFECTING MAJOR BUSINESS DECISIONS AS CONSUMER AS BECOME MORE AWARE ABOUT THEIR RIGHTS.

Conclusion :

A N O R G A N I Z E D M O V E M E N T S O F C O N C E R N E D C I T I Z E N A N D G O V E R N M E N T A G E N C I E S T O P R O T E C T A N D

I M P R O V E P E O P L E ’ S L I V I N G E N V I R O N M E N T .

ENVIRONMENTALISM

T H E F I R S T WAV E O F M O D E R N E N V I R O N M E N TA L I S M I N T H E U . S WA S D R I V E N B Y E N V I R O N M E N TA L G R O U P A N D C O N C E R N S C O N S U M E R S I N T H E 1 9 6 0 S A N D 1 9 7 0 S .

T H E S E C O N D E N V I R O N M E N TA L I S M WAV E WA S D R I V E N B Y G O V E R N M E N T W H I C H PA S S E D L AW S A N D R E G U L AT I O N D U R I N G 1 9 7 0 S A N D 1 9 8 0 S G O V E R N I N G I N D U S T R I A L P R A C T I C E S I M PA C T I N G T H E E N V I R O N M E N T.

T H I R D WAV E I S S T R O N G E R WAV E I N W H I C H C O M PA N I E S W H E R E A C C E P T I N G R E S P O N S I B I L I T Y F O R D O I N G N O H A R M TO T H E E N V I R O N M E N T.

Waves of Environmentalism

EN V I R O N M EN TA L S U S TA IN A BI LI TY AT M O S T BA S IC LEV EL A C O M PA N Y C A N P R A C TIC E P O LLU TIO N P R EV EN TIO N M EA N S ELIM IN ATI N G O R M IN IM IZIN G WA S TE

BEF O R E IT IS C R EATED .

C O M PA N IES EM P H A S IZIN G P R EV EN TIO N H AV E R ES P O N D WI TH “ G R EEN M A R K ETIN G ” P R O G R A M S - D EV ELO P IN G EC O LO G IC A LLY S A F ER P R O D U C TS , R EC Y C LE P R O D U C TS .

EX A M P LE : WA LM A RT H A S O P EN ED “ EC O - F R IEN D LY “ S TO R ES IN W H IC H

A IR C O N D ITI O N IN G S Y S TEM U SE N O N - O ZO N E D EP LETIN G R EF R ID G EN T.

Environmental sustainability

E N V I R O N M E N TA L P O L I C I E S S T I L L VA RY W I D E LY F R O M C O U N T RY T O C O U N T RY .

C O U N T R I E S S U C H A S D E N M A R K , G E R M A N Y, J A PA N , A N D U N I T E D S TAT E S H AV E F U L LY D E V E L O P E D E N V I R O N M E N TA L P O L I C I E S A N D H I G H P U B L I C E X P E C TAT I O N S .

B U T M A J O R C O U N T R I E S S U C H A S C H I N A , I N D I A , B R A Z I L A N D R U S S I A A R E I N O N LY T H E E A R LY S TA G E S O F D E V E L O P I N G S U C H P O L I C I E S .

E X A M P L E : P V C S O F T D R I N K B O T T L E S C A N N O T B E U S E D I N S W I T Z E R L A N D O R G E R M A N Y . H O W E V E R T H E Y A R E P R E F E R R E D I N F R A N C E , W H I C H H A S A N E X T E N S I V E R E C Y C L I N G P R O C E S S F O R T H E M . A S I N T E R N AT I O N A L C O M PA N I E S H AV E F O U N D I T D I F F I C U LT T O D E V E L O P S TA N D A R D E N V I R O N M E N TA L P R A C T I E S .

Which all countries have environmental policy

G O G R E E N O R G R E E N WA S H I N G WA L - M A R T, T H E W O R L D ' S L A R G E S T R E TA I L E R , H E A D Q U A R T E R E D AT B E N T O N V I L L E , A R K A N S A S , U S A , H A D B E G U N T O F O C U S O N E N V I R O N M E N TA L S U S TA I N A B I L I T Y I S S U E S I N 2 0 0 5 .

I N T R O D U C T I O N : WA L - M A R T H A S P U B L I C LY A N N O U N C E D G O A L S T O M A K E T H E M E G A S T O R E P O L I C I E S M O R E E N V I R O N M E N TA L LY F R I E N D LY . T H E Y P L E D G E D T O H AV E A L L S T O R E S R U N N I N G O F F O F 1 0 0 P E R C E N T R E N E WA B L E E N E R G Y, C R E AT E Z E R O WA S T E A N D T O M A K E M O R E E N V I R O N M E N TA L LY F R I E N D LY P R O D U C T S . I N 2 0 0 7 WA L - M A R T R E L E A S E D T H E I R “ S U S TA I N A B I L I T Y 3 6 0 ″ S T O R E W I D E P O L I C I E S .WA L - M A R T ’ S E N V I R O N M E N TA L G O A L S C E N T E R A R O U N D R E D U C I N G WA S T E , E N V I R O N M E N TA L LY F R I E N D LY PA C K A G I N G , O F F E R I N G E N V I R O N M E N TA L LY F R I E N D LY P R O D U C T S , R U N N I N G S T O R E S O F F O F R E N E WA B L E E N E R G Y A N D G E N E R A L LY B E C O M I N G M O R E E N E R G Y E F F I C I E N T.

A C T I O N T O WA R D S E N V I R O N M E N TA L LY F R I E N D LY S T O R E S : C U R R E N T LY, T H E R E A R E 2 0 U S WA L - M A R T S T O R E S I N C A L I F O R N I A A N D H AWA I I T H AT R U N P R E D O M I N A N T LY O F F O F S O L A R P O W E R W I T H A N O T H E R 2 0 - 3 0 P L A N N E D F O R 2 0 1 0 I N A R I Z O N A A N D C A L I F O R N I A . T H E S E T H I N - F I L M S O L A R PA N E L S A R E E X P E C T E D T O P R O V I D E 2 0 - 3 0 P E R C E N T O F T H E S T O R E ’ S P O W E R N E E D S ( R O U G H LY 2 2 . 5 K W H ) A N D W I L L B E D E S I G N E D , I N S TA L L E D , M A I N TA I N E D A N D O W N E D B Y S O L A R C I T Y. WA L - M A R T I S U S I N G B O T H C O P P E R I N D I U M G A L L I U M S E L E N I D E ( C I G S ) A N D C A D M I U M T E L L U R I D E T H I N F I L M A S I T U S E S L E S S R AW M AT E R I A L S T H A N T R A D I T I O N A L PA N E L S , M A K I N G L E S S O F A N E N V I R O N M E N TA L I M PA C T.

Case study on Wal-mart Environmental sustainability

S U S TA I N A B L E VA L U E N E T W O R K S :WA L - M A R T S TA R T E D S E E K I N G I D E A S F R O M I T S E M P L O Y E E S , C O N S U LTA N T S , N G O S , A N D S U P P L I E R S O N I T S S U S TA I N A B I L I T Y I N I T I AT I V E S . I T A L S O I N V I T E D E X P E R T S F R O M

T H E W O R L D W I L D L I F E F E D E R AT I O N , N AT U R A L R E S O U R C E S D E F E N S E C O U N C I L , E N V I R O N M E N TA L D E F E N S E , A N D G R E E N P E A C E F O R D I S C U S S I O N S A N D S U G G E S T I O N S O N I T S G R E E N I N I T I AT I V E S .

O P E R AT I O N A L / S U P P L I E R I N I T I AT I V E S :E X P E R T S F E LT T H AT WA L - M A R T H A D A H U G E O P P O R T U N I T Y T O M A K E A D I F F E R E N C E I N T H E S U S TA I N A B I L I T Y A R E A B Y R E VA M P I N G I T S S U P P LY C H A I N . F O R E X A M P L E , I T TA R G E T E D T O R E D U C E 5 % PA C K A G I N G I N A L L I T S P R O D U C T S B Y 2 0 1 3 O V E R 2 0 0 6 L E V E L S . I T WA S E S T I M AT E D T H AT T H E I N I T I AT I V E C O U L D S AV E U S $ 11 B I L L I O N I N T H E C O M PA N Y ' S G L O B A L S U P P LY C H A I N . F R O M F E B R U A R Y 1 , 2 0 0 8 , T H E C O M PA N Y WA S A L S O T O B E G I N U S I N G A PA C K A G I N G S C O R E C A R D T O M E A S U R E A N D E VA L U AT E I T S E N T I R E S U P P LY C H A I N . T H E S C O R E C A R D H A D AT T R I B U T E S C A L L E D T H E ' 7 R ' S O F PA C K A G I N G ' – R E M O V E , R E D U C E , R E U S E , R E C Y C L E , R E N E W , R E V E N U E , A N D R E A D . U S I N G T H E S C O R E C A R D , E A C H S U P P L I E R WA S T O B E E VA L U AT E D R E L AT I V E T O O T H E R S U P P L I E R S .

O R G A N I C PR O D U C TS IN TH E S TO R ESA PA RT F R O M C O N S E RV I N G E N E R G Y A N D R E D U C I N G P O L L U T I O N T H R O U G H I T S S U S TA I N A B I L I T Y I N I T I AT I V E S , WA L - M A RT A L S O S TA RT E D S E L L I N G M O R E A N D M O R E O R G A N I C F O O D AT P R I C E S T H AT W E R E L O W E R T H A N T H O S E O F F E R E D B Y T H E C O M P E T I T I O N . T H E O R G A N I C F O O D I T E M S O F F E R E D B Y WA L - M A RT I N C L U D E D O R A N G E S , TO M ATO E S , L E T T U C E , A P P L E S , F R E S H H E R B S , PA C K A G E D S A L A D S , PA S TA , O L I V E O I L , C O F F E E , T E A , P E A N U T B U T T E R , B R E A D , B A B Y F O O D S , M I L K , C H E E S E , S O U R C R E A M , I C E C R E A M , S A U C E S , A N D S E A F O O D . T H E A S S O RT M E N T O F O R G A N I C F O O D S I N A N Y O F I T S S TO R E S WA S TA I L O R E D A C C O R D I N G TO T H E C U S TO M E R B A S E O F T H AT S TO R E . T H E O R G A N I C O F F E R I N G S W E R E L A B E L E D S E PA R AT E LY F O R T H E C O N V E N I E N C E O F T H E C U S TO M E R S A N D W E R E P R I C E D N O T M O R E T H A N 1 0 P E R C E N T H I G H E R T H A N N O R M A L P R O D U C T S .

F I N A L LY T H E C O M PA N Y P L A N N E D TO C O N S E RV E E N E R G Y, U S E M O R E R E N E WA B L E S O U R C E S O F E N E R G Y, R E C Y C L E WA S T E , A N D S E L L M O R E O R G A N I C P R O D U C T S AT I T S S TO R E S . M A N Y E N V I R O N M E N TA L I S T S W E R E , H O W E V E R , H A P P Y T H AT A B I G C O M PA N Y L I K E WA L - M A RT H A D D E C I D E D TO TA K E U P T H E S U S TA I N A B I L I T Y P L A N K . T H E Y F E LT T H AT E V E N I F WA L - M A RT ' S S U S TA I N A B I L I T Y I N I T I AT I V E S W E R E M E A N T TO I M P R O V E I T S R E P U TAT I O N , I T W O U L D M A K E A H U G E D I F F E R E N C E TO T H E E N V I R O N M E N T B E C A U S E O F I T S S H E E R S C A L E O F O P E R AT I O N S A N D I N F L U E N C E O V E R A L A R G E N U M B E R O F S U P P L I E R S , C U S TO M E R S , A N D E M P L O Y E E S . B U T A N A LY S T S S A I D T H AT WA L - M A RT S T I L L H A D A

L O N G WAY TO G O I N I T S S U S TA I N A B I L I T Y E F F O RT S .

Conclusion :

Business Actions Toward Socially Responsible Marketing

Initially many companies opposed consumerism and environmentalism.

They thought the criticisms were either unfair or unimportant.

But now, most companies have grown to accept the new consumer rights, at least in principle.

They might oppose certain pieces of legislation as inappropriate ways to solve certain consumer problems, but they recognize the consumer’s right to information and protection.

Many of these companies have responded positively to consumerism and environmentalism in order to serve consumer needs better.


Enlightened Marketing

Enlightened marketing refers to a company’s marketing effort supporting the best long-run performance of the marketing system and consists of five principles:

I. Consumer-oriented marketingII. Customer-value marketingIII. Innovative marketingIV. Sense-of-mission marketingV. Societal marketing



Consumer-oriented marketing: Consumer-oriented marketing means that

a company should view and organize its marketing activities from the consumer’s perspective.

It should work hard to sense, serve, and satisfy the needs of a defined group of customers.



Customer-value marketing Customer-value marketing means that the company

should put most of its resources into customer-value-building marketing investments.

Many things marketers do-one-shot sales promotions, minor packaging changes, advertising puffery- may raise sales in the short run but add less value than would actual improvements in the product’s quality, features, or convenience.

Enlightened marketing calls for building long-term customer loyalty and relationships—by continually improving the value consumers receive from the firm’s market offerings.



Innovative marketing:Innovative marketing requires the company

to continuously seek real product and marketing improvements.

The company that overlooks new and better ways to do things will eventually lode customers to another company that has found a better way.



Sense-of-mission marketing means the company should define its mission in broad social terms rather than narrow product terms.

When a company defines a social mission, employees feel better about their work and have a clearer sense of direction.



Societal marketing: Societal marketing means the company

makes marketing decisions by considering consumers’ wants and interests, the company’s requirements, and society’s long-run interests

• Views societal problems as opportunities• Designs pleasing and beneficial products



Deficient products have neither immediate appeal nor long-term benefits

• Bad-tasting and ineffective medicine

Pleasing products have high immediate satisfaction but may hurt consumers in the long run

• Cigarettes and junk food



Salutary products have low appeal but may benefit consumers in the long run

• Seat belts and air bags

Desirable products give both immediate satisfaction and high long-term benefits

• Tasty and nutritious breakfast food


Marketing Ethics

Corporate marketing ethics are broad guidelines that everyone in the organization must follow that cover distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards


Marketing Ethics

Philosophies

Issues are decided by the free market and legal system.

Responsibility is not on the system but in the hands of the individual company and managers

CASE STUDY ON CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility: A Case Study Of TATA GroupOBJECTIVES: To understand the concept of CSR To find out the scope of CSR To know how the Tata group has fulfilled

its responsibility towards all stakeholders; what specific activities, programs and strategies it has set, devised and implemented for the same.

Tata Steel: Tata Steel has adopted the Corporate Citizenship Index, Tata Business Excellence Model and the Tata Index for Sustainable Development. Tata Steel spends 5-7 per cent of its profit after tax on several CSR initiatives. 1.Self-Help Groups (SHG’s) 500 self-help groups under various poverty alleviation

programs. 200 are in activities of income generation thorough micro

enterprises. Women empowerment programs through Self-Help Groups

have been extended to 700 villages.2.Supports Social Welfare Organizations: Tata Steel Rural Development Society Tribal Cultural Society Tata Steel Foundation for Family Initiatives National Association for the Blind Shishu Niketan School of Hope Centre for Hearing Impaired Children Indian Red Cross Society, East Singhbhum

3. Healthcare Projects In its 100th year, the healthcare projects includes child education immunization and childcare plantation activities creation of awareness of AIDS and other

healthcare projects.4. Economic Empowerment: A program aiming at economic empowerment

through improvised agriculture has been taken up in three backward tribal blocks in Jharkhand, Orissa and Chhattisgarh.

An expenditure of Rs 100 crore has been estimated for the purpose and this program is expected to benefit 40,000 tribal living in over 400 villages in these three States.

5.Assistance to government • 12 Lifeline Expresses in association with the

Ministry of Railways, Impact India Foundation and the Government of Jharkhand.

• 5000 people have got surgical facilities and over 1,000 people received aids and appliances.

The National Horticulture Mission program that has been taken up in collaboration with the Government of Jharkhand has benefited more than a thousand households.

In collaboration with the Ministry of Non Conventional Energy and the Confederation of Indian Industry, focus is laid on renewable energy aiming at enhancing rural livelihood.

Titan In its corporate philosophy CSR is defined as doing less harm and more good by adopting the following practices : Respecting and supporting local

communities Caring for the employees Being an active member of society Committed to sustainable development Putting safety(at work) first Titan has

employed 169 disabled people in blue collar workforce at Hosur.

Significance of the study A. To the Policy Makers • This study encourages Private Public Partnership (PPP) for CSR

promotion encompassing infrastructure, pollution, child labor, labor productivity & morale.

• It may become helpful to make the policy makers at political and corporate level as well consider CSR an investment and not an expense as it can become instrumental in increasing goodwill and corporate image.

B. To the Society Development of infrastructure i.e. parks, water purification,

education etc. Environment protection Uplifting of the rural populace Bringing the tribes into the mainstream of the country C. To the Economy as a whole Increase in the growth rate Strategic CSR at political and corporate level can make the

country a better investment destination . Cumulative results may improve Human Development Index

(H.D.I.) of the country.

PRINCIPLES FOR PUBLIC POLICY TOWARDS MARKETING

1. The principle of consumer and producer freedom.

2. The principle of curbing potential harm.3. The principle of meeting basic needs.4. The principle of economic efficiency.5. The principle of innovation.6. The principle of consumer education and

information.7. The principle of consumer protection.

The principle of consumer and producer freedom

Marketing decisions should be made by consumers and producers under relative freedom.

Marketing freedom is important if a marketing system is to deliver a high standard of living.

People can achieve satisfaction in their own terms rather than in terms defined by someone else.

Freedom of producer and consumer is the cornerstone of dynamic marketing system.

The principle of curbing potential harm

As much as possible, transactions freely entered into by producers and consumers are their private business.

The political system curbs producer or consumer freedom only to prevent transactions that harm or threaten to harm the producer, consumer, or third parties.

Transactional harm is a widely recognized grounds for government intervention.

The major issue is whether there is sufficient actual or potential harm to justify the intervention.

The principle of meeting basic needs The marketing system should serve disadvantaged

consumers as well as affluent ones. In a free enterprise system, producers make goods for

markets that are willing and able to buy. Certain groups who lack purchasing power may go without

needed goods and services, causing harm to their physical or psychological well being.

The marketing system should support economic and political actions to solve this problem.

It should strive to meet the basic needs of all people, and all people should share to some extent in the standard of living it creates.

The principle of economic efficiencyTo supply goods and services efficiently and at

low prices.Society’s needs and wants can be satisfied

depends on how efficiently its scarce resources are used.

To make profit, competitors must watch their costs carefully while developing products, prices and marketing programs that serve buyer needs.

The presence of active competition and well-informed buyers keeps quality high and prices low.

The principle of innovationThe marketing system encourages authentic

innovation to bring down production and distribution costs and to develop new products to meet changing consumer needs.

The consumer may face ten very similar brands in a product class.

But an effective marketing system encourages real product innovation and differentiation to meet the wants of different market segments.

The principle of consumer education and information

An effective marketing system invests heavily in consumer education and information to increase long-run consumer satisfaction and welfare.

Companies will provide enough information about their products.

But consumers groups and government can also give out information and ratings.

The principle of consumer protectionConsumer education and information

cannot do the whole job of protecting consumers.

Modern products are so complex that even trained consumers cannot evaluate them with confidence.

A government agency has to review and judge the safety levels.

Consumer may buy products but fail to understand the environment consequences.

ARE COCA-COLA GETTING HEALTH CONSCIOUS?

It’s scientifically proven that eating refined sugars is a leading cause of obesity and it’s certainly no secret that most fizzy drinks have an abundance of sugars in them. So it was refreshing to see that Coca-Cola have launched a 2 minute long commercial in the USA battling obesity.

In the commercial they talk about the Obesity problem in America and what they are doing to create a solution. A few of the ways Coca-Cola are battling it are:

Lowering calories in some of their drinks Distributing smaller bottles and cans across the country Removing high calorie products from schools Get active schemes for children Continued R&D

http://www.livestrong.com/article/458408-does-white-sugar-make-you-fat/

http://morallymarketed.com/marketing-ethics/calling-all-businesses-stop-thinking-short-term/

http://www.morallymarketed.com/marketing-ethics/a-marketing-message-from-banksy/

To Coca-Cola’s credit they indirectly partly blame themselves for obesity by saying “All calories count no matter where they come from, including Coca-Cola and everything else with calories. If you eat and drink more calories than you burn off, you’ll gain weight”. They even add a small piece on educating the consumer about calorie in take.

This is the beginning of a solution however I think the biggest stimulator for sugary drink consumption is the supermarkets. Supermarkets always have offers on these types of products prominently displayed on the end of isles, or eye level on the rack. The placement in supermarkets of these products and bulk discounting will need to change if we want peoples calorie and sugar in take to stabilise. It doesn’t help that Coca-Cola also promote their benchmark soft drink with the tagline “Open Happiness“.

I think this is a great start, and whether Coca-Cola have done this as a PR exercise or are generally concerned it’s a step in the right direction.

To your (ethical) marketing success

http://morallymarketed.com/case-studies/are-you-opening-happiness-or-a-carbonated-soft-drink/