Lecture 10

Marketing and Ethics

Dr. Lucy Ting

Lucy.Ting@manchester.ac.uk

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 reason-giving beings that provide action-guidance with regard to the well being of sentient life and the integrity of their world.”

“Morality is concerned with social practices defining right and wrong.”

Brenkert (2008)

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.”

“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.”

Brenkert (2008)

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

1. Understanding Marketplace and Customers

2. Customer Oriented

Strategy (STP)

3. Integrated Marketing Program

(Marketing Mix)

4. Build Customer

Relationship

5. Capture Value and

Profit

Kotler and Armstrong (2009)

Marketing Evolution

Solomon et al. (2008) “Marketing: Real People, Real Choices,” Pearson Prentice Hall, Chapter 1

Production Era

1870~1930

emphasise the most efficient way to product and distribute products

Demand > Supply; consumers have no choice

Sales Era 1930~1950

emphasis on aggressive selling to move products out of warehouses

Supply > Demand; consumers are pushed to buy

Marketing Evolution

Consumer Era

1950~1990

focus to satisfy customers’ needs and wants

Supply > Demand; consumers are taken care of

New Era ?1990~?

focus to benefit the stakeholders

Supply > Demand; individuals and society 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