ETHICS IN MARKETING
WHAT IS ETHICS?
Is the art and science of determining
good and bad or right or wrong moral
WHAT IS MARKETING?
Marketing is the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a profit.
WHY ETHICS ?
• When an organization behaves
ethically, customers develop
more positive attitudes about
the firm, its products, and its
Marketing ethics as a right or wrong action
Marketing ethics means a standard by which a marketing action may
be judged “RIGHT” or “WRONG”.
• is the area of applied
ethics which deals with the
moral principles behind the
operation and regulation
of marketing. Ethics in marketing
applies to different spheres such as
product, pricing, Placing(Distributio
n), promotion & advertising etc...
WHY WE NEED ETHICS IN MARKETING?
We can give many reasons but will notify some:
• When an organization behaves ethically, customers develop more positive attitudes about
the firm, its products, and its services.
• To create Values or trust with key stakeholders
• To build good image about the organization in the minds of
customer, employees, shareholders and the society.
ETHICAL ISSUES IN MARKETING:
We discuss Marketing issues by using 4P’S OF MARKETING:
• PRODUCT & PACKAGING
• PLACING (DISTRIBUTION)
• PROMOTION (ADVERTISING & BRANDING)
• Consumer safety
• Product liability and reliability
• Designing for special needs
PRICE: SECOND P OF MARKETING
• Bid rigging
• Supra competitive pricing
• Price fixing
• Price skimming
Product distribution (or place) is one of the four elements of
the Marketing MIX.
Distribution of product or service is transporting them from
manufacture to stockiest, wholesalers, retailer and then to
ETHICAL ISSUES IN DISTRIBUTION
• Ethical questions may also arise in the distribution process.
• Because sales performance is the most common way in which marketing representatives and
sales personnel are evaluated.
• performance pressures exist that may lead to ethical dilemmas. For example: pressuring
vendors to buy more than they need and pushing items that will result in higher commissions
• Promotion is one of the four elements of marketing mix (product, price, promotion, place). It is the
communication link between sellers and buyers for the purpose of influencing, informing, or persuading
a potential buyer's purchasing decision.
• To present information to consumers as well as others
• To increase demand
• To differentiate a product
ETHICAL ISSUES IN ADVERTISING
• Advertising to Children
• Promoting Unhealthy Products
• Subliminal Advertising
• Deceptive Advertising