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Copy of Marketing Ethics

Marketing Ethics--its spheres, importance and groups that it concerns

michelle allwright

on 9 May 2012

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Transcript of Copy of Marketing Ethics

Marketing Ethics
Why are Marketing Ethics Practiced?
Marketing strategy
Stakeholder demand
Not to hinder image, reputation or marketing efforts
Destroy customer relationship
Improves marketing performance & profits
Customer expectation
Part of Corporate Social Responsibility
Potential Ethical Issues in Marketing
Misrepresenting the firm's capabilities
Manipulation of misuse of data or information
Exploitation of children or disadvantaged groups
Invasion of privacy
Abusive behaviour
4 Ps
Product Issues
Pricing Issues
Place Issues
Promotion Issues
Misrepresentation of goods and services
Failing to disclose products defects
Misleading warranties
Failure to disclose important product info
Reducing package contents without reducing package size
Price deception
Reference pricing claims
Price discrimination
Price fixing between competitors
Fraudulent refund policies
Exclusive distribution arrangements
Tying contracts
Withholding product availability
Withholding product or promotional support
False or misleading advertising or selling techniques
High-pressure sales people
Bribery or salespeople or purchasing agents
Entertainment and gift giving
Stereotypical portrayal of women, minorities and senior citizens
Sexual innuendo in advertising
Deceptive Communication
Exaggerated claims
Unethical expressions
"...helps make you feel much better"
"...helps prevent"
Provacative advertisement
Increasing competition-provacative advertisement
Codes of Conduct
Reflects the value of organisation
Established by top management
Philosophy of organisation
No universal standards
"Quick test"-to comply with values and rules

Is the action legal?
Does it comply with our values?
If you do it will you feel bad?
How will it look in the newspaper?
If you know it's wrong, don't do it!
If you are not sure, ask!
5 to 7 Core Values
Can't be effective without training employees!
Communicate the code frequently
Examine high-risk areas and issues
Make the code understandable
Revise it every year
Fair Trading
95% of children--Joe the Camel with cigarretes
Average child--40,000 commercials on TV each year
65% of children, aged 8-18, have TV in their bedroom
32%, aged 2-7, 26%, aged under 2 years: have TVs
Babies request brands as soon as they start to speak clearly
Under the age of 8, children can't understand the persuasive intent
Why Unethical?
More effective because children have no critical thinking/judgement
Children have no money and persuade their parents to buy the product
Encouraging unhealthy drinks and food
2009 study: children that watched food ads ate 55% more
85% more sugar
65% less fibre
60% more sodium
than cereals marketed to adults!
Fast food chains spend more than $3 billion a year on ads to children
Hook kids by untraditional ads
Why Target Kids?
They have their own purchasing power
Influence parent's buying decisions
Adult consumers of the future
"Brand marketing must begin withchildren.
Even if the child does't buy the product and will not for many years...the marketing must begin in childhood"
James McNeal, The Kids Market 1999
Ways of Advertising to Children
Commercialization and education(supply schools with technology in exchange for high company visibility)
Incentive programs (PizzaHut)
Children are online without parent's supervision
Ethical Issues in Using Stereotypes
Stereotyping can be a vice
Celebrity Endorsement
Marketing to Minorities
“We don’t smoke that s_ _ _. We just sell it. We reserve the right to smoke for the
young, the poor, the black and stupid.”
R.J. Reynolds Tobacco Company Executive
Dasani by Coca-Cola
EthicalIssues in Tobacco and Alcohol Advertising
Ethical Issues Surrounding the Portrayal of Women in Marketing Efforts
Less intelligent
Obsessed with men
Unable to assume leadership roles
Unable to make decisions
Sexual interest for males
Chased by man
Portrait in violent situations
Canadian Whiskey
Thank you very much for your attention!
Marketing Ethics Defined
Marketing ethics addresses principles and standards that define acceptable conduct in the market place.
Unethical practices usually occur when an organisation is under pressure to meet objectives.

Ethical marketing is an approach by organisations whereby they recognise that the task of marketing is to be both enlightened to society's views and ethical in the organisation's approach to society as a whole and to customers
What do individual consumers worry about?
 • Consumer worries include:
 – High prices
 – Poor‐quality
 – Dangerous products
 – Misleading advertising claims
 – Deceptive practices
 – Breaches of privacy
 – High‐pressure selling
 – Planned obsolescence
 – Poor service to disadvantaged consumers
Business firms have been the target of organised
consumer movements since the 1960s.
Consumers have become better educated, products
have become more complex and hazardous, and
marketing organisations have raised consumers’
expectations as they seek to gain sustainable
competitive advantage.
Consumerism is an organised movement of citizens
and government agencies to improve the rights and
power of buyers in relation to sellers.
Consumer Watchdogs
What about Environmentalism?
Environmentalism is an organised movement of
concerned citizens, businesses and government
agencies seeking to protect and improve people’s
living environment.

Environmentalists are not against marketing, they
simply want people and organisations to operate
with more care for the environment and achieve
sustainable development.

Environmentalism creates some special challenges
for global marketers. As inter
national trade barriers
come down and global markets expand,
environmental issues are having an ever greater
impact on international trade.
Environmental for the Individual
Environmental on a global level
• Competition law
• Contract and consumer law
• Standards
• Product liability
• Marketing Communication
• Sales and aftersales finance
• Franchising
• Intellectual property
Legal Compliance
Full transcript