marketing ethics term report

8/17/2019 Marketing Ethics Term Report

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Contents

Marketing ethics......................................................................................................... 3

Is marketing inherently evil?................................................................................ ...3

Specifc issues in marketing ethics............................................................................. 3

Market research.......................................................................................................3

Invasion o privacy........................................................................................ ....... 4

Stereotyping......................................................................................................... 4

Market audience...................................................................................................... 5

thics in advertising and promotion.......................................................................... . !

"eceptive #dvertising and thics............................................................................... $

%he use o ethics as a marketing tactic...................................................................$

&euromarketing ethics............................................................................................ ... '

Marketing strategy...................................................................................... ............. ()

*urther issues in marketing ethics............................................................................ ((


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Marketing ethics

+Marketing ethics is an area o applied ethics ,hich deals ,ith the moral principles-ehind the operation and regulation o marketing. Some areas o marketing ethics

ethics o advertising and promotion / overlap ,ith media ethics .+

Is marketing inherently evil?

# popularist anti0marketing stance commonly discussed on the -logosphere and

popular literature is that any kind o marketing is inherently evil. %he position is

-ased on the argument that marketing necessarily commits at least one o three

,rongs1

• "amaging personal autonomy . %he victim o marketing in this case is theintended -uyer ,hose right to sel 0determination is in ringed.

• Causing harm to competitors. 2cessively ferce competition and unethical

marketing tactics are especially associated ,ith saturated markets .

• Manipulating social values. %he victim in this case is society as a ,hole or

the environment as ,ell. %he argument is that marketing

promotes consumerism and ,aste

Specifc issues in marketing ethics

Market research

Market research is the collection and analysis o in ormation a-out consumers

competitors and the e ectiveness o marketing programs. ith market research

-usinesses can make decisions -ased on ho, the responses o the market

leading to a -etter understanding o ho, the -usiness has to adapt to thechanging market. It is used to esta-lish ,hich portion o the population ,ill or

does purchase a product -ased on age gender location income level and

many other varia-les. %his research allo,s companies to learn more a-out past

current and potential customers including their specifc likes and dislikes.

https://en.wikipedia.org/wiki/Advertisinghttps://en.wikipedia.org/wiki/Promotion_(marketing)https://en.wikipedia.org/wiki/Promotion_(marketing)https://en.wikipedia.org/wiki/Media_ethicshttps://en.wikipedia.org/wiki/Autonomyhttps://en.wikipedia.org/wiki/Market_saturationhttps://en.wikipedia.org/wiki/Consumerismhttps://en.wikipedia.org/wiki/Advertisinghttps://en.wikipedia.org/wiki/Promotion_(marketing)https://en.wikipedia.org/wiki/Media_ethicshttps://en.wikipedia.org/wiki/Autonomyhttps://en.wikipedia.org/wiki/Market_saturationhttps://en.wikipedia.org/wiki/Consumerism


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thical danger points in market research include1

• Invasion o privacy .

•

Stereotyping .

Invasion of privacy

#s companies conduct research they also come into contact ,ith confdential

and personal in ormation ,hich comes ,ith a level o risk or -oth the -usiness

as ,ell as the individual. &o, day6s consumers are -om-arded ,ith mail a ter

using their email address to enter in a competition thus -ecoming part o a-usiness7s mailing list. %here ore companies are provided ,ith critical

in ormation ,hich they must not take advantage o -ut use in an ethical

manner.

Stereotyping

8ortraying an ideal -ody ,eight or physical appearance can have potential

harm ul e ects on the individual such as lo, sel 0esteem issues or anore2ia.

9ood marketing is ethical marketing it is a-out pleasing and developing astrong relationship ,ith customers in a caring manner -y not primarily only

ocusing on achieving results in order to generate proft.

8eople a ected -y unethical market research1

• 8u-lic

• :espondents

• Client

• :esearcher

https://en.wikipedia.org/wiki/Privacyhttps://en.wikipedia.org/wiki/Stereotypinghttps://en.wikipedia.org/wiki/Privacyhttps://en.wikipedia.org/wiki/Stereotyping


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#pproaches to privacy can -roadly -e divided into t,o categories1 ree market

and consumer protection. In a ree market approach commercial entities are

largely allo,ed to do ,hat they ,ish ,ith the e2pectation that consumers ,ill

choose to do -usiness ,ith corporations that respect their privacy to a desired

degree. I some companies are not su;ciently respect ul o privacy they ,ill

lose market share. In a consumer protection approach in contrast it is claimed

that individuals may not have the time or kno,ledge to make in ormed choices

or may not have reasona-le alternatives availa-le. Stereotyping occurs -ecause

any analysis o real populations needs to make appro2imations and place

individuals into groups.


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Market audience

thical danger points include1

• 2cluding potential customers rom the market1 selective marketing is

used to discourage demand rom undesira-le market sectors or

disen ranchise them altogether.

• %argeting the vulnera-le e.g. children the elderly/.

2amples o unethical market e2clusion or selective marketing are past industry

attitudes to the gay ethnic minority and o-ese + plus0si=e +/ markets. Contrary

to the popular myth that ethics and profts do not mi2 the tapping o thesemarkets has proved highly profta-le. *or e2ample >) o @S clothing sales are

no, plus0si=e. #nother e2ample is the selective marketing o health care so that

unprofta-le sectors i.e. the elderly/ ,ill not attempt to take -enefts to ,hich

they are entitled. # urther e2ample o market e2clusion is the pharmaceutical

industry7s e2clusion o developing countries rom #I"S drugs .

2amples o marketing ,hich unethically targets the elderly include1 living

trusts time share raud mass marketing raud and others. %he elderly hold a

disproportionate amount o the ,orld7s ,ealth and are there ore the target o

fnancial e2ploitation.

In the case o children the main products are unhealthy ood ashion ,are and

entertainment goods. Children are a lucrative market1 +Children (> and under

spend more than A(( -illion o their o,n money and inBuence amily spending

decisions ,orth another A(!5 -illion+ -ut are not capa-le o resisting or

understanding marketing tactics at younger ages +children don7t understand

persuasive intent until they are eight or nine years old+/. #t older agescompetitive eelings to,ards other children are stronger than fnancial sense.

%he practice o e2tending children7s marketing rom television to the school

ground is also controversial.

https://en.wikipedia.org/wiki/Plus_size_clothinghttps://en.wikipedia.org/wiki/AIDS_drugshttps://en.wikipedia.org/wiki/Living_trusthttps://en.wikipedia.org/wiki/Living_trusthttps://en.wikipedia.org/wiki/Time_sharehttps://en.wikipedia.org/wiki/Mass_marketing_fraudhttps://en.wikipedia.org/wiki/Plus_size_clothinghttps://en.wikipedia.org/wiki/AIDS_drugshttps://en.wikipedia.org/wiki/Living_trusthttps://en.wikipedia.org/wiki/Living_trusthttps://en.wikipedia.org/wiki/Time_sharehttps://en.wikipedia.org/wiki/Mass_marketing_fraud


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ther vulnera-le audiences include emerging markets in developing countries

,here the pu-lic may not -e su;ciently a,are o skilled marketing ploys

trans erred rom developed countries and ,here conversely marketers may

not -e a,are ho, e2cessively po,er ul their tactics may -e. #nother vulnera-le

group are mentally unsta-le consumers. %he defnition o vulnera-ility is also

pro-lematic1 or e2ample ,hen should inde-tednesses seen as a vulnera-ility

and ,hen should +cheap+ loan providers -e seen as loan sharks unethically

e2ploiting the economically disadvantaged?

https://en.wikipedia.org/wiki/Loan_sharkshttps://en.wikipedia.org/wiki/Loan_sharks


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thics in advertising and promotion

#dvertising is mass and paid communication ,ith a undamental purpose to

deliver in ormation acDuire attitudes and induce action -enefcial to the

advertiser E generally the sale o the product or service . #dvertising andpromotion have a signifcant inBuence on people society in large ,hile shaping

their attitudes -ehaviors and priorities . Some scholars -elieve that advertising

supports ethical issues . It is also considered unethical to shame a su-stitute or

rivals product or services Srivastava F &andan >)()/. ther ethical issues

include mistreatment o ,omen advertising to children misleading advertising

and other issues ,hich lead to ethical decline o society . Mistreatment o

,omen is evident immensely in advertisements. ten ,omen are matched up

,ith household products such as cleaning supplies and are sho,n as doingdomestic ,ork ,hich represents stereotyping o ,omen. omen are also o ten

used as se2 sym-ols to convey particular messages a-out products. #lso men

are o ten apparent in "IG do it yoursel / ads ,hich deliver the idea o them

-eing a Hhandy man. #n ad ,hich demonstrates ethical eatures is truth ul it

doesn6t make alse claims and it provides su;cient in ormation or the -uyer to

make in ormed choices. 2hi-iting a level o respect and dignity or its -uyers is

important ,hile demonstrating decency. #n e2ample o an advert produced -y

Coca Cola through using alse advertising it sho,ed unethical issues -ehind its

production. Coca Cola used o arl Janger eld Chanel designer/ ,ho had

claimed to lose $) pounds on a diet that ,as mainly attri-uted to diet coke HI

drink diet coke rom the minute I get up to the minute I go to -ed and I drink

nothing elseK . %his advert ,as specially targeted to,ards ,omen as it aimed to

-e conveyed as a ashion trend through the use o a amous ashion designer.

Coke used thin models and ,orld0reno,ned ashion designers -oth o ,ho are

cautious o -ody image ,hich sho,s the ,rong message or ,omen especially

young ,omen. %he advert sho,s that going over-oard ,ith dieting is

conventional and that diet coke is the ,ay o going a-out achieving a thin and

attractive -ody. It is ethically ,rong to -e using arl Jager eld6s e2treme dieting

,ays in order to promote diet coke. It is not only advocating an e2treme

statement -ut it is also sending the ,rong message a-out the drink -y directly

associating it to a Hhealthy ideal -odyK. ten the line -et,een ethical and

unethical advertising is -lurred ,hat may seem unethical to some consumers or


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thical pit alls in advertising and promotional content include1

• Issues over truth and honesty. In the ('4)s and ('5)s to-acco used to -e

advertised as promoting health. %oday an advertiser ,ho ails to tell the truthnot only o ends against morality -ut also against the la,.


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are common e2amples. lectronic spam and telemarketing push the -orders

o ethics and legality more strongly.

• Shills and astrotur ers are e2amples o ,ays or delivering a marketing

message under the guise o independent product revie,s and endorsementsor creating supposedly independent ,atchdog or revie, organi=ations. *or

e2ample ake revie,s can -e pu-lished on #ma=on. Shills are primarily or

message0delivery -ut they can also -e used to drive up prices in auctions

such as Pay auctions.

• &ative advertising is the -lurring o lines -et,een advertising and

content.

https://en.wikipedia.org/wiki/Spam_(electronic)https://en.wikipedia.org/wiki/Shillhttps://en.wikipedia.org/wiki/Astroturfinghttps://en.wikipedia.org/wiki/Ebayhttps://en.wikipedia.org/wiki/Native_advertisinghttps://en.wikipedia.org/wiki/Spam_(electronic)https://en.wikipedia.org/wiki/Shillhttps://en.wikipedia.org/wiki/Astroturfinghttps://en.wikipedia.org/wiki/Ebayhttps://en.wikipedia.org/wiki/Native_advertising


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"eceptive #dvertising and thics

#nother -reach o marketing ethics has to do ,ith the use o deceptive

advertising. %his orm o advertising is not specifc to one target market and can

sometimes go unnoticed -y the pu-lic. %here are a num-er o di erent ,ays in,hich deceptive marketing can -e presented to consumersN one o these

methods is accomplished through the use o humor. In a study conducted -y


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• 9reen,ash is an e2ample o a strategy used to make a company appear

ethical ,hen it7s unethical practices continue.

• Ji-eration marketing is another strategy ,here-y a product can

masDuerade -ehind an image that appeals to a range o values includingethical values related to li estyle and anti0consumerism.

"Liberation marketing takes the old mass culture critique — consumerism as

conformity — fully into account, acknowledges it, addresses it, and solves it.

Liberation marketing imagines consumers breaking free from the old enforcers

of order, tearing loose from the shackles with which capitalism has bound us,

escaping the routine of bureaucracy and hierarchy, getting in touch with our

true selves, and nally, nding authenticity, that holiest of consumergrails." %homas *rank /

&euromarketing ethics

&euromarketing and its precursor neuroeconomics uses clinical in ormation

a-out -rain unctions and mechanisms to help e2plain ,hat is happening inside

o the H-lack -o2K so prevalent in many e2planations o consumer -ehavior. In

order to do so specialists use neuro imaging techniDues and record -rainresponses to di erent stimuli. %he &euromarketing Science F Pusiness

#ssociation has launched on &ovem-er >)(> a &euromarketing Code o thics .

%his is a frst step to,ards adopting international standards applied to using

neuroscientifc methods to study the e ectiveness o advertising campaigns

packaging and product design as ,ell as communication campaigns rom non0

proft organi=ations and government institutions.


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programs to encourage healthy li estyle choices may -e saved under the ""

provided it is -ased on good scientifc in ormation in the frst place such as

regular e2ercise.


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Marketing strategy

%he main theoretical issue here is the de-ate -et,een ree markets and

regulated markets . In a truly ree market any participant can make or change

the rules.


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• Spy,are R#d,are

https://en.wikipedia.org/wiki/Spywarehttps://en.wikipedia.org/wiki/Adwarehttps://en.wikipedia.org/wiki/Spywarehttps://en.wikipedia.org/wiki/Adware


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*urther issues in marketing ethics

Marketing ethics overlaps ,ith environmental ethics in respect o ,aste

pro-lems associated ,ith the packaging o products.

Some such as mem-ers o the advocacy group &o *ree Junch have argued that

marketing -y pharmaceutical companies is negatively impacting physicians7

prescri-ing practices inBuencing them to prescri-e the marketed drugs rather

than others ,hich may -e cheaper or -etter or the patient.

thical thinking is responding to situations that deal ,ith principles concerning

human -ehavior in respect to the appropriateness and inappropriateness o

certain communication and to the decency and indecency o the intention and

results o such actions. In other ,ords ethics are distinctions -et,een right and,rong. Pusinesses are con ronted ,ith ethical decision making every day and

,hether employees decide to use ethics as a guiding orce ,hen conducting

-usiness is something that -usiness leaders such as managers need to instill.

Marketers are ethically responsi-le or ,hat is marketed and the image that a

product portrays. ith that said marketers need to understand ,hat good

ethics are and ho, to incorporate good ethics in various marketing campaigns

to -etter reach a targeted audience and to gain trust rom customers.

Marketing ethics regardless o the product o ered or the market targeted sets

the guidelines or ,hich good marketing is practiced. hen companies create

high ethical standards upon ,hich to approach marketing they are participating

in ethical marketing. %o market ethically and e ectively one should -e reminded

that all marketing decisions and e orts are necessary to meet and suit the

needs o customers suppliers and -usiness partners. thical -ehavior should -e

en orced throughout company culture and through company practices.


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communities. Critics have re erred to these ,eapons as + Saturday &ight

Specials+ re erring to the negative connotation that they are purchased to

commit crimes. In de ense o the critics opinions i in act these guns are

purchased ,ith the intent to commit such crimes than one must Duestion the

ethics -ehind marketing these products to criminals. Is the marketer acilitating

the crime -y appealing to this target market ,ith a ,eapon that is easily

accessi-le? hile the argument in this case may seem unethical due to the

Duestiona-le nature o these cheap handguns this argument does not apply to

the sale o all guns. %hat is -ecause ,eapons that are legally sold to customers

at an a orda-le rate or sa ety purposes sel 0de ense hunting and la,

en orcement are per ectly ethical due to the act that they are sa e product that

is marketed to a responsi-le consumer. %his comparison supports the act that

ethical marketing can -e perceived di erently consumers depending on thenature o the nature o the product that is -eing sold.

marketing ethics term report

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