final_marketing ethics.pptx

8/14/2019 Final_Marketing Ethics.pptx

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Workplace Ethics (Marketin

By: Arvind Hoskote

B Quennie

Balaram Sahu

Barjona Foning

Bhupesh YadavBhaskar Gupta


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Definition What is Work Ethics?

A group of moral principles, standards of behavior, orset of values regarding proper conduct in the work place

Marketing Work Ethics

Practices that emphasize transparent, trustworthy, and

responsible personal and organizational marketing policies

and actions that exhibit integrity as well as fairness to consumers

and other stakeholders

(Marketing ethics focuses on principles and standards that define acceptable

marketing conduct, as determined by various stakeholders and the organization

responsible for marketing activities. )

Marketing WorkEthics

Ethical Issues &Marketing Mix

Focus on IndiaInternational

Focus


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COCA COLA vs Mountain Dew

Racial

stereo

Violen

towar

wome




Focus


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Ethical Norms - Marketers

Do no harm

(add value to their organizations and customers,adhering to all applicable laws and regulations,

ethical standards in choice making)

Foster trust in the marketing system

(products are appropriate for their

intended and promoted use)

Embrace ethical values

(honesty, responsibility, fairness, respect,

openness and citizenship)




Focus


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Ethical Values - Marketers

Honesty(to be truthful and forthright in our dealings with customers and stakeholders)

Responsibility

(to accept the consequences of our marketing decisions

and strategies)

Fairness

(to try to balance justly the needs of the buyer with the

interests of the seller)

Respect

(to acknowledge the basic human dignity of all stakeholders)

Openness

(to create transparency in our marketing operations)

Citizenship

(to fulfil the economic, legal, philanthropic and societal responsibilities that serve stakeholders in

Hone

Respect

Openness




Focus


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Factors influencing ethical decision making

Individual Factor

(When people need to resolve ethical conflicts in their daily lives,they often base their decisions on their own values and principles of right or wrong)

Organizational Factors

(learn from others in the organization, Organizational pressure)

Opportunity

(Opportunityconditions that limit barriers or provide rewards

may also shape ethical decisions in marketing)




Focus


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Current ethical issues in marketing

Controversial Product - Advertising

Alcohol

Cigarettes

Condoms

Female contraceptives

Female hygiene products

Female underwear

Funeral services

Gambling

Male underwear

Pharmaceuticals

Political parties

Racially extremist groups

Religious denominations

Sexual diseases

Weight loss programs

Controversial Advertising

Using deceptive advertisements

Advertising for children

Tobacco advertising

Alcoholic beverages advertising

Negative political advertising

Racial stereotyping

Sexual stereotyping




Focus


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Current ethical issues in marketing Sexism in marketing

Super market AsdasMarketing Campaign

Behind every great Christmas, theres mum and behind every great Christmas, theres Asda

(caused particular offence among male viewers who claimed it belittled non-mothers running households,

Gender marketing

Barclaycards ad( the stuffed monkey character says to a Barbie doll: on your bike dolly, its for his son)

Social gambling

Facebooks dealing with online gaming firm 888

(Is social networking site a suitable environment for gambling? - younger social network users)




Focus


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ETHICAL ISSUES AND THE MARKETIN

MIX

M k i W k E hi l I & I i l


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Product Issues Product that is harmful

Ex: thalidomide disaster in Germany in 1958.

Fail to disclose information about product Ex: Compaq sued Packard Bell for not disclosing that Packard Bell computers incorporated used parts

Larger packages are more noticeable on the shelf

Ex: chips

Product quality

Adding of carcinogenic substances to make preparation tasty

Planned obsolescence: purposely causing existing product out of date by introducing ne

Type: Material Planned Obsolescence

Style Planned Obsolescence

Material planned obsolescence: obsolescence in functionality

Ex: electronics products

Style planned obsolescence: firms make minor changes in product within a short period, to attrac

people.

Ex: fashion items and cars

Copying the style of packaging to mislead customers

Ex: Ferrero Rocher lookalikes




Focus

M k ti W k Ethi l I & I t ti l


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Pricing Issues Bait and switch: advertising one item at low price (bait)customers into stor

different product at higher price.(switch).

Selling higher priced product is legal but advertising low priced item is unethical

Price fixing:collaboration of two or more firms in setting prices usually to kee

Horizontal price fixing: when competitors making same product jointly determine the price.

Ex: in 1994 six major US airlines fixed the prices

Vertical price fixing: manufacturers force retailers to charge high prices.

Predatory pricing: company set low price to eliminate competitors>>>>>> mo

increase prices Ex: American airlines in 1990

Price discrimination: charging different prices to different customers based on

ability or willingness to pay

Ex: amazon.com

Dumping




Focus

M k ti W k Ethi l I & I t ti l


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Promotion Issues Deceptive advertising: when the consumer is led to believe something w

Ex: hair restoration or weight loss advertisements

Puffery:exaggerated claims of a products superiority; statements that mliterally true

Ex: Taj Mahal tea campaign where Ustad Zakir Hussain vowed to give up tabla

Cookies: small text files that automatically download to a users computethat user visits a Web Site and that is capable of gathering information on

Unsubstantiated claims: claims need to substantiated by trials from indeprecognized institutions

Olays Total effects cream Indias first anti-ageing cream

Offending sensibilities

ING Vysya Bank: father distressed by higher education of daughter and also bygirl (considered anti-women)




Focus

Marketing Work Ethical Issues & International


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Distribution Issues Slotting allowances: fee paid by manufacturer to retailer in ex

of keeping their product in their shelves.

Grey market goods: foreign made products imported into coun

distributors that are not authorized.

Ex: selling electronics items

Exclusive territories: an area assigned by company to distribut

no other distributer will work.

Vendor lock-in/ lock-out




Focus



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Coun

Indian Context Fairness Cream Ads

Usage of fear to advertise a certainproduct

Fears often unsubstantiated

Reflect vivid racial discrimination

Depict sexual stereotyping, for a long

time were targeted towards women

Other ads do the sameAds)

Large market for the p

Indian mindset inclined

fairness of skin (e.g. ma

ads.)

Why is it unethical?




Focus



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Effect on Consumers

Builds up fear about darker complexionInduces wrong ideas about skin color

preference

Encourages racial and sexual stereotyping

Typical Fear tactics utilized include:Unwanted by parents

Cant secure jobs

Rejection during marriage proposals

Consumers View*:

Majority of the respon

the ads are exaggerated

75% of the respondent

view advertisements of

cts as unethical

* Based on a study conducted by Raghave Rao Gundala et al.





Focus



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As an alternative to the typical fear tactics employed by the advertisers, they emphasize other priorities of their products such as

Protecting the skin from possible damage sunburns etc.

Enhancing the health and cleanliness of the skin rather than its color

Beauty Enhancement

Is this more acceptable??





Focus

Marketing Work Ethical Issues &d

International


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Political Advertising

Clip 1 Clip 2




Focus

Marketing Work Ethical Issues &F I di

International


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Subliminal Advertising

Subliminal advertising, also known as subconscious stimuli messaging, is a foadvertising that uses subtle imagery, sounds, and content to attempt to influ

the subconscious mind into making purchases or finding something to be ap

Even such brief messages can be

processed by the brain but at anunconscious or subliminal level

Can manipulate viewers into liking or

disliking an object

Reasons for the same are completely

unrelated to the objects characteristics

Deprives consumer of choice

Why is it unethical? Counter Arguments

No conclusive research to prove

the same

Although it is not strictly illegal, in

adopted a policy saying that sublim

advertising was contrary to the pu

is widely considered to be an unet




Focus


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Marketing Work Ethical Issues &Focus on India

International


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Unethical Marketing Practices by Philip Morris United States Tobacco Division of

On an average company sells

harmful addictive products that

kill almost 20% of Americans each

year

Instead of targeting the health problems and looking to

manufacture safer cigarettes, Phillip Morris began

marketing to the younger crowd.

1975: Marlboros phenomenal growth rate in the past has

been attributable in large part to our high

market penetration among young smokers . . .15 to 19 years

old . . . my own data, which includesyounger teenagers, shows even higher Marlboro market

penetration among 15-17-year-olds

Statements on record/internal documents

1969: Smoking a cigarette for the beginner is a symbolic act. . .

. 'I am no longer my mother's child, I'm tough, I

am an adventurer, I'm not square.

Source: http://www.tobaccofreekids.org/research/factsheets/pdf/0011.pdf

The company issued a report in the Czech Republic saying that

premature smokers deaths have 'positive effects' because they

save governments money.

Unethical practice

Tried to coerce the University of

Stirling to hand over secret data into

teenage smoking and cigarettepackaging gathered over more than a

decade

Tried to

confiden

with teediscuss t

tobacco

Source: http://www.telegraph.co.uk/health/healthnews/873using-FOI-laws-to-access-secret-academic-data.html

Targeted

smoker,

masculin

associat

The young tend to me moreimpressionable and naive, warranting

a tag as a vulnerable group, therefore

potentially easily persuaded into

smoking

PMI were fined 10 billion US dollars

for damage settlements related to

their marketing of Light cigarettes

which was positioned as a healthier

alternative to existing range

Marlbor

becomi

on youn

Product pl

schools th

specific pu

gEthics Marketing Mix

Focus on IndiaFocus


International
http://www.tobaccofreekids.org/research/factsheets/pdf/0011.pdfhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.tobaccofreekids.org/research/factsheets/pdf/0011.pdf


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The boycott of Nestle

A boycott was launched in the United States on July 7, 1977,

against the Swiss-based Nestl corporation for "aggressive

marketing" of mothers milk substitutes.

Resulted in several premature infant deaths because

uneducated and poor mothers ceased to breastfeed and instead

fed their babies Nestls formula

Promoting infant formula with misleading and harmful

strategies that violate the International Code of Marketing of

Breastmilk Substitutes and put babies at risk

Targeting less economically developed countries (LEDCs), which

campaigners claim contributes to the unnecessary suffering and

deaths of babies, largely among the poor

International Baby Food Action Network (IBFAN) and Save the

Children claim the promotion of infant formula over

breastfeeding has led to health problems and deaths amonginfants in less economically developed countries

IBFAN claim that Nestle distributes free formula sample

maternity wards

After leaving the hospital, the formula is no longer freesupplementation has interfered with lactation, the fami

the formula

Nestle systematically undermines public health message

claiming its formula 'protects' babies, when babies fed o

to become sick than breastfed babies

It also refuses to bring instructions on preparing formula

guidance, so denying parents information on how to red

possible intrinsic contamination of powdered infant form

Marketing Practices under scrutiny

Examples of marketing of artificial baby mil

In Thailand, it gives

out samples of its

milk substitutes to

mothers in a

marketing scheme

In Egypt, packaging and

advertising of Nestl

powders repeatedly use

phrases such as identical to

breast-milk or as in

breast-milk

http://en.wikipedia.org/wiki/Nestl%C3%A9_bSource:

gEthics Marketing Mix

Focus on IndiaFocus


International
http://en.wikipedia.org/wiki/Nestl%C3%A9_boycotthttp://en.wikipedia.org/wiki/Nestl%C3%A9_boycott


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McDonalds marketing practices towards Kids

One of the largest distributors of toys, which is included in 20%

of their sales.

The Happy Meal that is targeted towards children began in 1979.

McDonald's targets children through Ronald McDonald and the

kids play areas as well, making it a fun environment

In 2010 McDonald's was sued for unethical marketing practices

towards children through the act of providing those toys by

Monet Parham from Sacramento

Evaluating McDonalds marketing practices

Company's

main goal is

to maximize

profit for

the owner

and

stockholders

Friedmans Theory of Individualism

Purposely marketing

to children because

they are able to

persuade their

parents to purchase

their products

Friedman would

agree with their

practices because it

has and will

continue to create

maximum profit

Utilitarian theory

Happiness should be maximized while pain should be

All the stakeholders are happy considering the situati

customers, which include the parents and children, thand the McDonald's corporation

Virtue theory

One should express

good character,

which includes

courage, honesty,temperance, and

justice

With higher profits employees are able to have job se

opportunities available around the world, happy pare

M

t

vs

n

McDonald's has

good ideas, good

products, andfairness to their

consumers.

Kantian Theory

McDonald's has been

consistent with their

marketing techniques

since the 1970's

McDonald's has done so

with gender based prod

age focused meals and

healthy options

Ethics Marketing MixFocus on India

Focus

E hi C li P


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Ethics Compliance Programand

Corporate Social Responsibil


International


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Ethics compliance programs

Development of code of ethics : guidelines developed by companies to help emake ethical decisions

Example: Dows code of business conduct include ethical principles and policies to various issues

Consumerism : social movements that protect consumers from harmful busin

Example: Establishment of various act and legislations

( cigarette labeling act 1966)


Focus

Marketing Workhi

Ethical Issues &k i i



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Ethics compliance programs (Con

Green marketing : marketing of products and packages that are less toxic and

Example: Aveda a skin care product manufacturer developed products without an

and synthetic materials and recyclable packaging material.

Corrective advertising : advertising that clarifies previous deceptive claims

Example: Warner Lamberts corrective advertisement for LISTERINE mouthwash w

prevent colds or sore throat


Focus

Marketing WorkEthi

Ethical Issues &M k ti Mi


F


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Corporate Social Responsibility Firms have become viewed as responsible for more than generating profits.

Social responsibilityMarketing philosophies, policies, procedures, and actions that have the enhancement of sociea primary objective.

Provide future benefits in the form of consumer approval and loyalty.


Focus

Marketing WorkEthi

Ethical Issues &M k ti Mi


F


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Steps for Corporations to improve StandBusiness Ethics

1) Appoint a senior- level ethics compliance officer.

2) Setup an ethics code capable of detecting and preventing misconduct.

3) Distribute a written code of ethics to employees, subsidiaries and require all business parit.

4) Conduct regular ethics training programs to communicate standards and procedures.

5) Establish systems to monitor misconduct and report grievances.

6) Establish consistent punishment guidelines to enforce standards and codes.

7) Promote ethically aware and responsible Managers.

Ethics Marketing Mix Focus

References


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References

http://www.csustan.edu/market/williams/Chapter%204.htm

http://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.article

http://www.academia.edu/2012630/Ethical_Aspects_in_the_Advertising_of_Fairness_Creams

www.iped-uk.com/marketing_ethics.doc

http://www.marketingpower.com/AboutAMA/Documents/Ethics%20Code%20Update%20-%20

%20Final.pdf

http://www.tobaccofreekids.org/research/factsheets/pdf/0011.pdf

http://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FO

secret-academic-data.html

http://en.wikipedia.org/wiki/Nestl%C3%A9_boycott
http://www.csustan.edu/market/williams/Chapter%204.htmhttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.academia.edu/2012630/Ethical_Aspects_in_the_Advertising_of_Fairness_Creamshttp://www.iped-uk.com/marketing_ethics.dochttp://www.marketingpower.com/AboutAMA/Documents/Ethics%20Code%20Update%20-%202%2017%2009%20-%20Final.pdfhttp://www.marketingpower.com/AboutAMA/Documents/Ethics%20Code%20Update%20-%202%2017%2009%20-%20Final.pdfhttp://www.tobaccofreekids.org/research/factsheets/pdf/0011.pdfhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://en.wikipedia.org/wiki/Nestl%C3%A9_boycotthttp://en.wikipedia.org/wiki/Nestl%C3%A9_boycotthttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-access-secret-academic-data.htmlhttp://www.tobaccofreekids.org/research/factsheets/pdf/0011.pdfhttp://www.tobaccofreekids.org/research/factsheets/pdf/0011.pdfhttp://www.marketingpower.com/AboutAMA/Documents/Ethics%20Code%20Update%20-%202%2017%2009%20-%20Final.pdfhttp://www.marketingpower.com/AboutAMA/Documents/Ethics%20Code%20Update%20-%202%2017%2009%20-%20Final.pdfhttp://www.marketingpower.com/AboutAMA/Documents/Ethics%20Code%20Update%20-%202%2017%2009%20-%20Final.pdfhttp://www.marketingpower.com/AboutAMA/Documents/Ethics%20Code%20Update%20-%202%2017%2009%20-%20Final.pdfhttp://www.marketingpower.com/AboutAMA/Documents/Ethics%20Code%20Update%20-%202%2017%2009%20-%20Final.pdfhttp://www.iped-uk.com/marketing_ethics.dochttp://www.iped-uk.com/marketing_ethics.dochttp://www.iped-uk.com/marketing_ethics.dochttp://www.academia.edu/2012630/Ethical_Aspects_in_the_Advertising_of_Fairness_Creamshttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.articlehttp://www.csustan.edu/market/williams/Chapter%204.htm