ETHICAL MARKETING AND ISSUES• Ethical marketing is an honest and factual representation of a product, delivered in a framework of cultural and social values for the consumer. It promotes qualitative benefits to its customers, which other similar companies, products or services fail to recognize• Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing.
ISSUES• High Prices• High costs of distribution, high advertising and promotion costs, and excessive markups contribute to high product prices
ISSUES• Price fixing requires a conspiracy between two or more sellers; the purpose is to coordinate pricing for mutual benefit at the expense of buyers
ISSUES• Price fixing is an agreement between business competitors to sell the same product or service at the same price. In general, it is an agreement intended to ultimately push the price of a product as high as possible, leading to profits for all the sellers. Price-fixing can also involve any agreement to fix, peg, discount or stabilize prices. The principal feature is any agreement on price, whether expressed or implied. For the buyer, meanwhile, the practice results in a phenomenon similar to price gouging.
• Deceptive Practices• Sometimes consumers are made to believe that they will get more value than they actually do. Deceptive pricing, promotion and packaging are practices charged with misleading consumers.• High-pressure selling• High pressure selling persuades people to buy good they had no thought of buying. It is often said that insurance, real estate, and used cars are sold, not bought. Salespeople entice purchase.
• Shoddy or unsafe products• Product quality or function is often criticized. For example, McDonald’s fat containing products, Hershey’s chocolate, and industrial products like lawn mowers.• Planned Obsolescence• Causing products to become obsolete before they actually should need replacement. For example, toner cartridges.