Transcript social distortion

ETHICS IN MARKETING
ANUPREET KAUR
INTRODUCTION
 Ethical marketing is about making marketing decisions that
are morally right. The morality of the marketing decision can
be seen in any part of marketing including sourcing of raw
materials, staff employment and product advertising and
pricing.
 Unethical marketing can send wrong signals about the
products and services, destroy the brand’s reputation, and
possibly lead to legal problems. This explains why the
companies should avoid unethical practices.
CODE OF ETHICS IN MARKETING
1. Responsibilities of the Marketer
(i) Marketers must accept responsibility for the consequences
of their activities.
(ii) They must make every effort to ensure that their decisions,
recommendations and actions are able to identify, serve and
satisfy the customers, organizations and society.
2. Honesty and Fairness
Marketers should be honest and fair in serving consumers,
clients, employees, suppliers, distributors, and the public.
3. In the area of product development and
management
(i) Disclosure of all substantial risks associated with product or
service usage.
(ii) Identification of substitution of any product component
that might materially change the product or impact on the
buyer's purchase decision.
(iii) Identification of extra cost-added features in the product.
4. In the area of promotions
(i) Avoiding of false and misleading advertising.
(ii) Rejecting the high-pressure manipulations or misleading
sales tactics.
(iii) Avoiding sales promotions techniques that use deception
or manipulation.
5. In the area of distribution
(i) Not manipulating the availability of a product for the
purpose of exploitation.
(ii) Not using coercion or threat in the marketing channel.
(iii) Not exerting undue influence over the reseller's choice to
handle a product.
6. In the area of pricing
(i) Not engaging in price fixing.
(ii) Not practicing predatory pricing.
(iii) Disclosing the full price associated with any purchase.
7. In the area of marketing research
(i) Prohibiting selling or fundraising under the guise of
conducting research.
(ii) Maintaining research integrity by avoiding
misrepresentation and omission of relevant research data.
(iii) Treating outside clients and suppliers fairly.
THE VARIOUS UNETHICAL MARKETING
PRACTICES ARE:
1. Making false, exaggerated, or unverified claim
2. Distortion of facts to mislead or confuse potential
buyers
3. Concealing side effects of products or services
4. Criticising rival products
5. Using fear tactics
6. Plagiarism of marketing messages
7. Exploitation
8. Discriminating people of different races, age, sex or
religion
6. Plagiarism of marketing messages
7. Exploitation
8. Discriminating people of different races, age, sex or
religion
9. Spamming
10. Showing gestures for maintaining public relations
FACTORS AFFECTING ETHICAL
MARKETING BEHAVIOR
SIGNIFICANCE OF MARKETING ETHICS
1. Building Customer Loyalty
2. Retaining Good Employees
3. Positive Work Environment
4. Avoidance of Legal Problems
5. Goodwill and Publicity
6. Financial Advantage
7. Competitive Advantage
8. Moral Obligations
ETHICAL ISSUES IN MARKETING
1. Issues related to Market research
2. Issues related to Target Customers and Market
3. Issues related to Pricing
4. Issues related to Advertising and Promotion
5. Issues related to data Collection and Privacy
6. Issues related to Distribution
7. Anti-competitive Practices