Transcript Marketing

Lecture 10
Marketing and Ethics
Dr. Lucy Ting
[email protected]
Agenda
• Morality and Ethics
– Define the Scope
• What is Marketing?
– Marketing Evolution
– Value of Marketing
• Ethical Issues of Marketing
– STP Process
– Branding
Agenda
• Ethical Issues in Advertising
– Deception
– Manipulation
– Exaggeration
Morality
“Morality refers to those basic and
constitutive features of the lives of reasongiving beings that provide action-guidance
with regard to the well being of sentient life
and the integrity of their world.”
Brenkert (2008)
“Morality is concerned with social practices
defining right and wrong.”
Beauchamp et al. (2009), “Ethical Theory and
Business,” 8th Edition, Pearson: London
Ethics
“Ethics…attempt(s) to take the measure
of morality in some critical and evaluative
manner.”
Brenkert (2008)
“Ethics point to reflection on the nature
and justification of right actions. (It) refers
to attempts to introduce clarity, substance
and precision of argument into the domain
of morality.”
Beauchamp et al. (2009), “Ethical Theory and
Business,” 8th Edition, Pearson: London
Personal Opinions?
• Too broad
– “Some of our beliefs and values
are moral, but others religious,
aesthetic, self-interested…etc.”
• Too narrow
– “Without moral systems in which
we agree, at least in general, life
would not only be a much less
bearable experience, it would
also be utterly changed.”
Brenkert (2008)
What is Marketing??
Marketing as a Process
5. Capture
Value and
Profit
1. Understanding
Marketplace and
Customers
2. Customer
Oriented
Strategy (STP)
4. Build
Customer
Relationship
3. Integrated
Marketing Program
(Marketing Mix)
Kotler and Armstrong (2009)
Marketing Evolution
emphasise the
most efficient
Production 1870~
way to product
Era
1930
and distribute
products
emphasis on
aggressive
1930~
Sales Era
selling to move
1950
products out of
warehouses
Demand >
Supply;
consumers
have no choice
Supply >
Demand;
consumers are
pushed to buy
Solomon et al. (2008) “Marketing: Real People, Real Choices,”
Pearson Prentice Hall, Chapter 1
Marketing Evolution
focus to satisfy
Consumer 1950~ customers’
Era
1990 needs and
wants
Supply >
Demand;
consumers are
taken care of
Supply >
Demand;
focus to benefit
individuals and
New Era ? 1990~? the
society
stakeholders
together as
customers
Solomon et al. (2008) Chpt 1
The Value of Marketing
• Marketing is about Exchange relationship
– The process by which some transfer of value
occurs between at least two parties (1) willing
to make a trade; (2) agreeing on the value of
exchange; (3) agreeing on how its carried out.
– The supply and demand model of economics
Solomon et al. (2008) & Bagozzi (1975), “Marketing as Exchange,”
Journal of Marketing, 39(Octorber), pp. 32-39
The Value of Marketing
• Marketing is about Meeting Needs
– marketing identify stakeholders (ie.
consumers) needs and provide the products
that satisfy those needs to ensure the firm’s
long-term profitability
Solomon et al. (2008) & Bagozzi (1975), “Marketing as Exchange,”
Journal of Marketing, 39(Octorber), pp. 32-39
The value of Marketing
• Marketing is about Creating Utility
– Utility creates value and is the sum of the
benefits and usefulness consumers receive
from using a product
Solomon et al. (2008) & Bagozzi (1975), “Marketing as Exchange,”
Journal of Marketing, 39(Octorber), pp. 32-39
What is Marketing?
Marketing is an organizational function
and a set of processes for creating,
communicating, and delivering value to
customers and for managing customer
relationships in ways that benefit the
organization and its stakeholders.
American Marketing Association
www.marketingpower.com
(accessed Nov 2008)
Ethical Issues of Marketing
For instance,
1. Segmentation and Target Market
2. Branding