MARKETING ETHICS

BY:-

CHARU MALHOTRA PRITHA GAUTAM PRATYUSH SINGH APRATIM JEETESH KUMAR ROHIT SHARMA MUKESH KUMAR

MARKETING
Marketing can be in general defined as

Process of planning and promoting the desired product.

Implementation of the designed plan in order to satisfy the market Must look the environmental factor and culture Must focus on target audience

 It is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. Must have in mind that Once consumer trust is lost it is very difficult to regain Must have good marketing practice but it should be ethical and environmental friendly and should not affect the culture of the local state Learn to say no to unethical practices

WHY MARKETING ETHICS IS NECESSARY

The world of business is changing because customers are demanding more. Never have marketing ethics been more important to us. We want ecologically friendly products made in a socially conscious manner. If you are starting a business, you'll have more success if you consider the significance of marketing ethics.

CONT..
EXAMPLE: In Britain, a company called The Body Shop is very successful precisely because it is ultra aware of marketing ethics. The Body Shop sells skin care products and cosmetics. This company is against animal testing, supports community trade, defends human rights and protects the planet.

CREATING AN ETHICAL CLIMATE

1. VALUES 2. RULES 3. CONTROLS

Frameworks of analysis for ethical marketing

VALUE ORIENTED FRAMEWORK STAKEHOLDER OREINTED
PROCESS ORIENTED FRAMEWORK

ETHICAL ISSUES IN MARKETING PACKAGING AND BRANDING PRICING MARKET RESEARCH MARKET AUDIENCE ADVERTISING AND PROMOTION

PACKAGING AND BRANDING

Four aspects of packaging involve ethical issues 1. Label information 2. Packaging graphics 3. Packaging safety 4. Environmental implication of packaging.

PRICING ETHICS

A fair price is one that both parties agree to. Pricing should offer value for the money. There should be no hidden extras.

Unethical Pricing Practices Price fixing Price skimming Predatory pricing Price war Price discrimination Dumping (pricing policy)

Marketing Research
Ethical danger points in market research include: Invasion of privacy. Stereotyping. Stereotyping occurs because any analysis of real populations needs to make approximations and place individuals into groups. However if conducted irresponsibly, stereotyping can lead to a variety of ethical undesirable result

Marketing Audience
Ethical danger points include:
Targeting the vulnerable (e.g. children, the elderly). In the case of children, the main products are unhealthy food, fashion ware and entertainment goods. Excluding potential customers from the market:

selective marketing is used to discourage demand from undesirable market sectors .

Marketing Audience

contd

Examples of unethical market exclusion or

selective marketing are past industry attitudes to the gay, ethnic minority and obese ("plussize") markets.

ADVERTISING
Advertising is a form of communication used to persuade an audience (viewers, readers or listeners) to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering

ETHICS IN ADVERTISING
PUFFERY ADVERTISING TO CHILDREN PROMOTING UNHEALTHY PRUDUCTS SUBLIMINAL ADVERTISING SURROGATE ADVERTISEMENTS DECEPTIVE ADVERTISING EXPLOITING SOCIAL PARADIGMS

CONT
PUFFERY Puffery is language used in the promotion of a product which is designed to make the product seem more appealing with the use of claims which are usually subjective, bombastic, and difficult to prove. A classic example of puffery is a sign over a diner which proclaims that it has the world's best hamburgers

DECEPTIVE ADVERTISING
Advertising that makes false claims or misleading statements, as well as advertising that creates a false impression Deceptive practices can take many other forms as well, such as false promises, unsubstantiated claims, incomplete descriptions, false testimonials or comparisons, small-print qualifications of advertisements, partial disclosure, or visual distortion of products.

PROMOTING UNHEALTHY PRODUCTS

The average person is exposed to over 2,500 advertisements per day, and some of these advertising messages are for products that could be considered unhealthy. Some obvious examples are cigarettes, cigars, and chewing tobacco. Other products that may be unhealthy if used to excess are alcohol, over-the-counter drugs, fast foods, and high-fat or high-cholesterol foods. Consumers need to be aware that some advertised products may be unhealthy

ADVERTISING OF CIGRETTES
In spite of its risks, advertising tobacco products is still allowed in the United States and many other countries, albeit with some restrictions. For example, in the United States tobacco advertisements may not appear on radio or television, although they are allowed in newspapers and magazines intended for adult readers

CONT.
ADVERTISING ALCOHOL ADVERTISING OF FAST FOOD AND HIGH FAT FOODS

SURROGATE ADVERTISING
Surrogate advertising is advertising which embeds a brand or product message inside an advertisement which is ostensibly for another brand or product.

Case study
The case study is about crisis management at the japanbased Toyota motors corporation, one of the largest automobiles in the world. In January 2010,toyota was forced to recall millions of cars after problems with braking, floor mats and acceleration pedals in vehicles .The recalls even led Toyota to halt sales and production of eight of its most popular models. Due to growing number of recalls ,companys position was affecting in global automobile industry. Analysts began to question Toyota's legendary quality and felt that the recalls represented a major failure on part of the company.

Cont..
The case describes the various crisis of management initiatives undertaken by the company to regain the trust of consumers and restore its image as a quality automaker. As part of its crisis management process. Toyota placed ads in prints and television media plateforms to address its customers.Crisis management experts were of the view that the image of toyota would depend on how quickly it can fix the problems and how well it communicates with its customers.