1. Ethics In Distibution
Companies do exercise unethical practices in Distribution
Following are few examples how a company use their power and resources to indulge
in unethical practices to earn a little more
•Collusion > Cartel: a state where two or more organization forms a understanding
with each other having similar product to maximize the profit
Ex OPEC ( manages quotas in nigeria, venezuela etc)
• Abuse of monopoly status: a State where there is no other manufacturer in the
market that produces same kind of product and services
Ex BCCI in IPL, MICROSOFT

2. Ethics & Promotion
• Promotion as we all know is one of the most important part of sales
strategy but then to promote the product companies at times choose
some approaches that is certainly not ethical
• Promotions via advertising has been done mainly keeping in mind 3
appeals
Sexual, shock and emotional appeal.
• Companies mainly falter here not because of the content but because of
the timing of the ad that needs to be aired and also the misleading
information that ad gives out.
• Profiling customer and using data to evaluate to target the customer
based on their time of engagement to media is one of the major
challenges that companies are facing today

3. Emotional appeal

4. Emotional appeal

5. Shock Appeal

6. Sexual Appeal

7. Is this ethical

8. Product labeling & Ethics
• Consumer today are aware and cautious of
the product or services they are using
• safety is of prime importance
• Companies are hence required to mention the
composition of materials used in the product
• warnings have been mentioned for few
services a customer wants to undertake
• ISI mark, Halal and product composition
mentioned in products

9. • Honda recalled 72000 city model because of
default power window switch
• Toyota recalled 8,700 units of corolla and altis
because of the same dysfunction
• Dell was forced to recall 4.1 million laptop
because of the faulty battery supplied by sony

10. The famous coke ad

11. Marketing to children
• Children today are most exposed to different
marketing activities due to exposure to social
media, more relaxed lifestyle
• Hence making marketers more responsible
• Customers support companies that
communicate with children in responsible way

12. Ask your mother!!

13. Every mother would love it!!

14. Ethics in Pricing
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Govt all over have taken strong steps to ensure that end consumers are not made to
pay more and there have been cases companies been fined for the same
Companies do follow practices that are unethical
Price gouging: where prices are charged more than the govt. perceived price
ex- life saving drugs, where in generic version of the same is available in the market
Price Discrimination: different prices are charged for different customers based on
Time, Sex and Nationality
Ex- ticket to taj mahal for a foreigner cost 500
aviva has different pricing for women for the same product
air lines charge different prices for the same ticket according to the time
of
booking
Price Collusion: Same as cartel where in companies makes gets into deal with other
companies to maximize profit
Ex- British airways and virgin atlantic were fined in 2004 -2006 for forming a cartel
CCI slapped fine of INR 63.07billion to top 10 cement companies for forming such
cartel