Unethical Marketing

Unethical Marketing- Week 11 - Marketing ManagementRyan Abramowitz 756363Marco Cersosimo 773626Anisha Ann Koshy 668815Stephen Khalek 538235Saptarishi Nandy Purkayastha 668940Johanna Winarjo 547480

Childhood Obesity

N.B. LINE OF ARGUMENTATION:Although marketers are responsible for the provision of ethical information, the decisions and ultimate responsibility for childhood obesity relies on the parents and children because its a god damn free market economy!

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5Is TV advertising responsible for childhood obesity in Australia?TV AdvertisingHow does product labeling affect the perception of consumers?LabellingWould an anti-obesity tax decrease childhood obesity?Anti-Obesity TaxEthics: Is childhood obesity the responsibility of Marketers?Ethical MarketingEthics: Is childhood obesity the responsibility of Parents & Children?Ethical ConsumptionTodays Journey

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Is the regulation of media marketing, in a democratic, free market economy ethical or does it violate the notion of democracy?

The Higher PerspectiveTaking a Step Back From Ethics

Increasing OverweightNumer of overweight children in Australia has doubled in recent yearsIncreasing Obesity1 in 5 children in Australia is no considered obeseIncreasing Sedentary Activities Children watch an avergae of 2.5 hours of television every day

ObesityDrivers of Obesity

Obesity is increasingly becoming one of Australias largest healthcare issues, and the prevalence will only increase.

EthicsEthical Consumerism and Marketing industry

What is Ethical Consumerism?The political, religious, spiritual, environmental, social or other motives for choosing one product over another

Ethical Consumerism is a burgeoning social movementRelative and SubjectiveDevelops chronic decisions become lifelong battles

Ethical marketing is a philosophy that seeks to promote honestly, fairness and responsibility in the advertising.

Part 1The Role of Mixed Media Marketing in the Creation of Obese Children

TV advertising affects our kids more than we think

Television AdvertisingThreat of TV AdvertisingOut of 13 developed countries investigated, Australia has the Highest amount of food ads per hour20%30%81%

Australian Children are obeseAustralian Ads in Child Programming is Food relatedFood related programming promotes low nutritional value#1Advertising to children is easy. The nag-factor makes advertising to children (consumer) an effective means to have parents purchase the product (buyer)

Role of RegulationMediating Media

Code of ConductRestraintsClassificationsThe type of foods that can be advertised is currently unregulated in Australia.Commercial TV Code state ads should not persuade unhealthy habits and must accurately show the dietary value

A maximum of 10 minutes/hour of ads can be shown during children programmingNo ads are allowed during P classified programs

Kelloggs TV Advertising

Bombardment of InformationChildren under 8 consider the advertising as entertaining and do not understand the persuasive intention.

Mass MediaIts not just TV

Media Saturation

LabelingLabeling Affect to PerceptionWarn and educate consumers on the origins and health content

Educational FunctionsMisinformed packaging creates misleading statementsTransparency

Help consumers build a positive awareness around consumption habitsPotential Benefits

Affecting the Bottom-LineHow can organisations align their values to build trust with their consumers?

Anti-Obesity TaxInterventionist MethodologyIncentiviseEncouragement to choose healthy optionsSocietal DiscourseRaises discussion in media and general conversationAlternate RevenueThe Government can generate capital to inject into healthcareDiscriminationLow socio-economic demographics priced out of marketWhats Healthy?No definable boundaries exist on healthOther FactorsObesity is influenced by quantity, quality, genetics & exercise

Part 2The Balance of Responsibility between Marketers and Parents & Children

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Corporate Social Marketing(Carroll, 1979)

1. Build Brand Awareness2. Enhance Brand Image3. Establish Brand Credibility

4. Evoke Brand Feelings5. Create a Sense of Brand Community6. Elicit Brand Engagement

EconomicBaselineLegalRequirementEthicalBehaviour

By surpassing the Economic and Legal requirements, organisations can enhance their brand

Introduction to part 2: Where does the responsibility fall? Marketers? Or Parents and Children?

Due to the nature of a free market economy, all players have the freedom of choice. The marketers will produce products desired by customers and consumers will purchase products that they want. By understanding this, we must acknowledge that both marketers as well as Parents and Children will have some degree of responsibility.Although it is ideal that Marketers act with ethical behaviour, the problem is there is no obligation to do so. Carroll (1979) discusses that organisations first priority is to suffice their baseline: to be economically profitable. Once they have done this, they have the choice to meet the legal requirements. Regulation by law enforcement agencies ensure that corporations act morally. However, the third level of corporate social responsibility is to provide ethically driven behaviour. This is a grey area. As there is no obligation to do so, this is often seen as an undesirable external costs that undermine the economic bottom line of corporations (to maximise profits). This demonstrates that Marketers are technically NOT responsible for the provision of ETHICAL MARKETING, as they have met their legal requirements set by the regulations (as Marco previously discussed). And Ethical Marketing would significantly hinder the sales of their products in a business that boasts a lucrative bottom line (highly profitable).However, It has been argued that if Marketers DO engage with Corporate Social Marketing there are 6 strongly identifiable BENEFITS that their corporations would receive. (LIST AND BRIEFLY DISCUSS THE 6 BENEFITS)Drawing conclusions from this, it is possible to argue that there are BENEFITS to organisations to engage with Corporate Social Marketing, however, as they are not OBLIGED to do so, society does not hold them RESPONSIBLE for the provision of ethical marketing. Therefore, by default the RESPONSIBILITY of CHILDHOOD OBESITY falls to the PARENTS & CHILDREN.*SLIDE*15

TV advertising affects our kids more than we think

Consumer PsycheIntention-Behaviour Gap (Carrington, Neville & Whitwell, 2014)

Consumption Enactments - Modes of Shopping - Spontaneous Shopping Effort decision making at point of purchaseC. Pre-meditated & Rapid Shopping behaviourUnderstand the Concept of Ethical Consumption

Only 3% of consumers purchase ethically.27% of consumers are biased by external factors.Integration into LifestyleCommitment & Sacrifice have been integrated to the consumers lifestyle Plans & HabitsPlans & Habits exist that make ethical consumption inherent to the individual

Intend to Purchase EthicallyPurchase Ethically

The Problem with the Consumer Psyche is that there is the Intention-Buyer Gap. This shows that although consumers have the intention of purchasing ethically, only 3% actually do.16

Legislative change keeps the free market in check but removes consumers freedom of choice

LegislationConsumers will purchase what is easily available not what portrays their values Customer Apathy

To affect a free market, consumers should boycott disagreeable productsStanding for Beliefs

The Free-Market ParadoxWithout the drive from consumers to change, organisations will not change

Meeting Customer SatisfactionThe Paradox of Free Markets (Quester, et al., 2007)

The problem of Consumer Psyche is further propagated by the paradox of the free market. Customers are apathetic to organisations provision of unethical products, or in the case of this, in the provision of foods that create Childhood Obesity. If they stop engaging then by the law of free markets, organisations would cease to have any demand for their products and they would cease their production. However, in the case that a legislative body did step in to represent the views of the consumer, they in turn would be voiding the underlying and fundamental principles of a free market economy, whereby people have a choice to choose what they consume and organisations choose what they produce.

Conclusively, the problem of Australian Childhood Obesity is not going away any time soon. At the rate we are going, the marketers will still market unethical products, legislation wont step to sufficiently constrain the production and advertising of food and beverages contributing to Childhood Obesity. Finally, this relies on the Parents and Children. Although the responsibility of choice in a democratic society falls upon themselves, Carrington, Neville & Whitwell (2014) demonstrate that even of the 30% of the population who do intend to purchase ethically, only a very few % will commit to do so fully. Therefore responsibility seems to be the one thing that Australia does not poses in abundance when it comes to the growing problem of Childhood Obesity. 17

ConclusionFree markets are not conducive to regulation

Australian Bureau of Statistics (2013). Australian Health Survey: Updated Results, 2011-2012. Media Release. Retrieved October 11, 2015, from http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/4364.0.55.003Chapter12011-2012 .Carrington, M. J., Neville, B. A., & Whitwell, G. J. (2014). Lost in translation: Exploring the ethical consumer intention-behavior gap.Journal Of Business Research, (1), 2759.Kotler, P., & Keller, K. L. (2012).Marketing management. Upper Saddle River, N.J. : Prentice Hall, c2012.Parliament of Australia (2011). Marketing Obesity? Junk Food, Advertising and Kids. Research Paper. Retrieved October 11,2015, from http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1011/11rp09#_Toc282609508 .Paul N. Bloom, Steve Hoeffler, Kevin Lane Keller, and Carlos E. Basurto, How Social-Cause Marketing Affects Consumer Perceptions, MIT Sloan Management Review (Winter 2006), pp. 4955Pride, W. M. (2006).Marketing : Asia - Pacific edition. Milton, Qld. : John Wiley & Sons, 2007Quester, P., McGuiggan, R., Perreault, W. D., & McCarthy, E. J. (2007). Creating and Delivering Value, 5th ed., Sydney, Australia: McGraw-Hill.Williams, J. (2012). Ethical and Responsible Food and Beverage Marketing to Children and Adolescents. Retrieved from http://www.changelabsolutions.org/sites/default/files/EthicalFoodMarketing_FINAL_20121005.pdf http://danielsethics.mgt.unm.edu/pdf/Childhood%20Obesity%20DI.pdfhttp://www.jhsph.edu/research/centersandinstitutes/teachingthefood-system/curriculum/_pdf/Marketing_and_Labeling_Background.pdf

Bibliography

Increase Awareness of advertising

1-1-1 Approach

Enhance User Capability Online Shopping, Food App

Making Weekly Plans

Healthy Living Campaign (Jump Rope for Heart)

Health Star Rating System

Appendix: RecommendationsChanging Australian Obesity