Ethical Considerations in Marketing Communications
Marketing communications professionals often enough to make decisions based on ethical standards.
The American Marketing Association describes
ethics
as relating to "moral action, con-duct (sic), motive, and character. It also means professionally right or befitting, conforming to professional standards of conduct" ("Definition of ethics," 2013, para. 268). The American
Advertising Federation has a subdivision called the
Institute for Advertising Ethics
whose "fundamental purpose is to Inspire Advertising, Public Relations and Marketing Communications Professionals to Practice the Highest Personal Ethics in the Creation and Dissemination of Commercial Information to Consumers" (AAF, 2013, para. 2).
Some of the main decisions marketing indications professionals will have to make in the course of creating the marketing communications plan include targeting, advertising, promotions, and packaging.
Ethics of Targeting
As we learned in unit two, businesses need to target their audiences so that the right consumers receive the right message.
Determining the
target
market
is important to a business to ensure that your marketing and advertising dollars are spent correctly.
Budgets are not limitless so companies need to stretch their advertising dollars.
They do this by targeting groups of people is most likely to purchase the product.
However, is focusing on one group ethical, especially if that group consists of people more vulnerable to advertising messages such as children and teenagers.
Toys and games are the obvious advertisements directed at children, however advertisers have come under fire for pitching junk food to children.
The FTC reports that even back in 2006, fast food and beverage makers spent $2.3 billion marketing to children.
The federal government has proposed specific
guidelines
that while voluntary, would encourage the food industry to carefully consider its advertisements to children.
Food and beverage manufacturers would have to create healthier recipes or forgo advertising to children. (Neuman, 2011).
More recently, Nickelodeon has been criticized for using its characters and brand to market junk food to children.
Urged by various health groups, the company has taken steps to limit the licensing of its characters to foods that are considered healthier. ("Center for Science," 2012).
Ethics of Advertising
In general, the
ethics of advertising
has been debated since its creation.
Many consider to be deceptive and often contain misleading information. While there are truth in advertising laws and regulations, some criticize the fact that there are ways around this.
The Federal Trade Commission
enforces the truth in advertising laws amongst all types of media.
"When consumers see or hear an advertisement, whether it’s on the Internet, radio or television, or anywhere else, federal law says that ad must be truthful, not misleading, and, when appropriate, backed by scie.
Ethical Considerations in Marketing CommunicationsMarketing commun.docx
1. Ethical Considerations in Marketing Communications
Marketing communications professionals often enough to make
decisions based on ethical standards.
The American Marketing Association describes
ethics
as relating to "moral action, con-duct (sic), motive, and
character. It also means professionally right or befitting,
conforming to professional standards of conduct" ("Definition
of ethics," 2013, para. 268). The American
Advertising Federation has a subdivision called the
Institute for Advertising Ethics
whose "fundamental purpose is to Inspire Advertising, Public
Relations and Marketing Communications Professionals to
Practice the Highest Personal Ethics in the Creation
and Dissemination of Commercial Information to Consumers"
(AAF, 2013, para. 2).
Some of the main decisions marketing indications professionals
will have to make in the course of creating the marketing
communications plan include targeting, advertising, promotions,
and packaging.
Ethics of Targeting
As we learned in unit two, businesses need to target their
audiences so that the right consumers receive the right message.
Determining the
target
market
is important to a business to ensure that your marketing and
advertising dollars are spent correctly.
Budgets are not limitless so companies need to stretch their
advertising dollars.
They do this by targeting groups of people is most likely to
purchase the product.
However, is focusing on one group ethical, especially if
that group consists of people more vulnerable to advertising
messages such as children and teenagers.
2. Toys and games are the obvious advertisements directed at
children, however advertisers have come under fire for pitching
junk food to children.
The FTC reports that even back in 2006, fast food and beverage
makers spent $2.3 billion marketing to children.
The federal government has proposed specific
guidelines
that while voluntary, would encourage the food industry to
carefully consider its advertisements to children.
Food and beverage manufacturers would have to create healthier
recipes or forgo advertising to children. (Neuman, 2011).
More recently, Nickelodeon has been criticized for using its
characters and brand to market junk food to children.
Urged by various health groups, the company has taken steps to
limit the licensing of its characters to foods that are considered
healthier. ("Center for Science," 2012).
Ethics of Advertising
In general, the
ethics of advertising
has been debated since its creation.
Many consider to be deceptive and often contain misleading
information. While there are truth in advertising laws and
regulations, some criticize the fact that there are ways around
this.
The Federal Trade Commission
enforces the truth in advertising laws amongst all types of
media.
"When consumers see or hear an advertisement, whether it’s on
the Internet, radio or television, or anywhere else, federal law
says that ad must be truthful, not misleading, and,
when appropriate, backed by scientific evidence" (FTC, n.d.,
para.1).
However even if the advertising is truthful, is it still
manipulative?
The point of advertising is to encourage consumers to make the
purchase; often the advertisements target our emotions.
3. The question is if there a way for advertisers to use emotions
and at the same time remain ethical.
Along the same lines, advertising also focuses on the issues a
consumer will face if he or she does not have the company's
product.
This plays on the consumer fears and insecurities and may
encourage the customer to purchase items that he or she does
not need.
Where is the line between advertising and encouraging sales and
ethics?
Ethics of Promotions
In Unit Seven, we discussed trade promotions and some of the
challenges associated with them.
Forward buying or bridge buying happens when manufacturers
offer off-invoice pricing and the retailers stock up on the
product for use after the promotional period has expired.
Diverting
is when the manufacturer restricts a promotion to a certain
group or stores or geographic region and the retailer orders
additional goods at the promotion price in the area where the
deal is being offered and then ships those goods to other stores
that are not being targeted.
Both of these issues could be seen as
unethical
.
Ethics in Packaging and Branding
Marketing
communicators
need to ensure that both packaging and branding of their
product follow ethical standards.
Regards to packaging, the item needs correct labeling
information and a safe package.
Regards to food the FDA said standards in terms of proper
labeling.
In addition, the label has to contain graphics that include a true
representation of the product.
4. Finally, it is important for the package to be safe, especially
regarding medications and child safety features.
Regulatory Considerations in Marketing Communications
Marketing communications, like other businesses, face a variety
of regulations both mandatory and voluntary.
These
regulations range from advertising to labeling.
At the federal level in the United States, government regulation
is performed by the Federal Trade Commission (FTC) and the
Food and Drug Administration (FDA). In regards to
advertising, there are several forms of self-regulation.
Federal Regulatory Agencies
The Federal Trade Commission's regulatory authority
encompasses
deceptive advertising, unfair practices, and information
accuracy.
Within FTC, the Division of Advertising Practices
"protects consumers from unfair or deceptive advertising and
marketing practices that raise health and safety concerns, as
well as those that cause economic injury" (FTC, n.d., para. 1).
Their
enforcement
includes
the advertising of dietary supplements and weight loss
products, monitoring and creating strategies for enforcement of
new advertising techniques and media, supervising the
advertising of food to children, maintaining industry practices
regarding the marketing of violent movies, music, and
electronic games to children, and observing marketing practices
in regards to alcohol and tobacco products (FTC, n.d.).
The Division of Advertising Practices
also works with state and international officials regarding the
enforcement of consumer protection issues and the self-
regulation of the advertising and marketing industries.
The
5. FDA
is responsible for guidelines and directives in regards to the
packaging of food and drug products.
Besides an accurate listing of ingredients, many foods now
require specific nutritional information on the labels.
In addition, the Food and Drug Administration is responsible
for labels and advertising of prescription drugs.
They are responsible for ensuring the other truthful and that any
claims made in the advertisements are supported by scientific
facts.
Advertising Self-Regulation
While the FTC and FDA provide federal regulation for the
safety of consumers, there are several groups that offer self-
regulation of advertising.
Self-regulation
offers a complement to the federal standards enacted by the
government. The Advertising Self-Regulatory Council
(ASRC) is the main body that establishes the policies for
advertising self-regulation.
According to the ASRC, the organization establishes the
policies and procedures for advertising industry self-regulation,
including the National Advertising Division (NAD), Children’s
Advertising Review Unit (CARU), National Advertising Review
Board
(NARB), Electronic Retailing Self-RegulationProgram (ERSP)
and Online Interest-Based Advertising Accountability
Program (Accountability Program.) The self-regulatory system
is administered by the Council of Better Business Bureaus
(ASRC, 2012, para. 1).
The ASRC was previously the National Advertising Review
Council (NARC) but was rebranded as the ASRC in 2012.
The National Advertising Division (NAD)
holds advertisers responsible for their claims by reviewing
cases involving truth in advertising one brought forth
by competitors, consumer groups, or even individual consumers.
6. For example, when Gorilla Glue said its glue was the "toughest
glue on planet Earth," the NAD ruled that this claim had to
be proven.
Another case involved the claim that MacBooks were the
"greenest family of notebooks." Dell Computers challenged this
and the NAD ruled that the claim could not be confirmed
(Slutsky, 2011)
Review the readings and lectures for this week.
Create the Executive Summary portion of the Marketing
Communications Plan using the business and information
presented in the Case Study along with all of the previous
submissions. Meet the following requirements:
In 350 to 600 words, create the Executive Summary for the
plan.
Ensure that all changes and updates have been made to the
previous sections of the plan.
Please adhere to the Publication Manual of the American
Psychological Association, (6th ed., 2nd printing) when writing
and submitting assignments and papers.
Submit the entire Marketing Communications Plan to the
DropBox.