What is ethics? Ethics is the art and science of determining good and bad or right and wrong moral behavior.
What is MARKETING?Marketing is the science and art of exploring,creating, and delivering value to satisfy theneeds of a target market at a profit.- Philip Kotler
Marketing Ethics:Marketing ethics is anarea that deals with themoral principles behindmarketing. Ethics inmarketing applies todifferent spheres such asin product, pricing,Placing (Distribution),promotion & advertisingetc...
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.
Nestle’s Case Study• Nestlé boycott• The Nestlé boycott is a boycott launched on July 7, 1977, in the United States against the Swiss-based Nestlé corporation. It spread quickly throughout the United States, and expanded into Europe in the early 1980s.• In Canada, the controversy lasted from 1978 to 1984. It was prompted by concern about the Nestles promotion of breast milk substitutes (infant formula), particularly in less economically developed countries (LEDCs), which campaigners claim contributes to the unnecessary suffering and even deaths of babies, largely among the poor.
Ethical Issues in Marketing: We discuss Marketing issues by using 4P’S OF MARKETING: • PRODUCT & PACKAGING • PRICE • PLACING (DISTRIBUTION) • PROMOTION (ADVERTISING & BRANDING)
Product• Consumer safety• Product liability and reliability• Designing for special needs
PLACING (DISTRIBUTION) 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 consumers.
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 are temptations.
Many retailers sell products that have crossedexpiry date is unethical.Exerting influence to cause vendors to reducedisplay space for competitors products isunethical. promising shipment when knowing deliveryis not possible by the promised date is alsounethical.
Paying vendors to carry a firms product rather thanone of its competitors are also unethical. Most drug stores would give too many drugswithout prescription from a qualified doctor are alsounethical. Products are moved in unsafe vehicles ,are alsounethical.
PROMOTION (ADVERTISING &BRANDING)• 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 buyers purchasing decision.• To present information to consumers as well as others• To increase demand• To differentiate a product
Ethical Issues in Advertising• Puffery• Advertising to Children• Promoting Unhealthy Products• Subliminal Advertising• Deceptive Advertising