Marketing ethics


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Marketing ethics

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  • Bid rigging is a form of fraud in which a commercial contract is promised to one party even though for the sake of appearance several other parties also present a bid. This form of collusion is illegal in most countries. It is a form of price fixing and market allocation, often practiced where contracts are determined by a call for bids, for example in the case of government construction contracts.
    In economics, "dumping" can refer to any kind of predatory pricing. However, the word is now generally used only in the context of international trade law, where dumping is defined as the act of a manufacturer in one country exporting a product to another country at a price which is either below the price it charges in its home market or is below its costs of production.
    Price discrimination or price differentiation[1] exists when sales of identical goods or services are transacted at different prices from the same provider eg DVD
    On 1 August 2007 it was reported that British Airways has been fined £121.5 million[1] for price-fixing. The fine was imposed by the Office of Fair Trading (OFT) after BA admitted to the price-fixing of fuel surcharges on long haul flights
  • Marketing ethics

    1. 1. What is ethical marketing? Ethical marketing refers to the application of marketing ethics into the marketing process Marketing ethics has the potential to benefit society as a whole, both in the short- and long-term Study of Ethical marketing should be included in applied ethics and involves examination of whether or not an honest and factual representation Marketing ethics has influenced companies and their response is to market their products in a more socially responsible way The increasing trend of fair trade is an example of the impact of ethical marketing
    2. 2. cont… The philosophy of marketing is not lost with this newfound ethical slant, but rather hopes to win customer loyalty Ethical marketing should not be confused with government regulations brought into force to improve consumer welfare Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. Some areas of marketing ethics overlap with media ethics.
    3. 3. Marketing ethics includes…
    4. 4. Frameworks of analysis for marketing ethics
    5. 5. Is marketing inherently evil? Damaging personal autonomy Causing harm to competitors Manipulating social values. Marketing has a major impact on our self- images, People are spending tons of money and are usually more depressed. Marketing/Advertising creates artificiality and influences sexual attitudes.
    6. 6. List of unethical pricing practices
    7. 7. Involvement in the community Honesty, truthfulness and fairness in marketing Use of animals in product testing Agricultural practices e.g. intensive faming The degree of safety built into product design Donation to good causes The extent to which a business accepts its alleged responsibilities for mishaps, spillages and leaks The selling of addictive products e.g. tobacco Involvement in the arms trade Trading with repressive regimes Ethical issues and society - examples
    8. 8. Ethical issues arising from internal and industry practices - examples Treatment of customers - e.g. honouring the spirit as well as the letter of the law in respect to warranties and after sales service The number and proportion of women and ethnic minority people in senior positions The organisation’s loyalty to employees when it is in difficult economic conditions Employment of disabled people Working conditions and treatment of workers Bribes to secure contracts Child labour in the developing world Business practices of supply firms
    9. 9. Unethical practices in marketing - examples Pricing lack of clarity in pricing Dumping Price fixing cartels Encouraging people to claim prizes when they phoning premium rate numbers “Bait and switch” selling High pressure selling Counterfeit goods and brand piracy Copying the style of packaging in an attempt to mislead consumers Deceptive advertising Irresponsible issue of credit cards and the irresponsible raising of credit limits Unethical practices in market research and competitor intelligence
    10. 10. Unethical practices relating to products - examples
    11. 11. controversial marketing strategies
    12. 12. Institute of Business Ethics Suggestions for Good Practice
    13. 13. What is an Ethical code? This is a set of principles governing morality and acceptable behaviour. It is likely to cover the following: