...Scope of Marketing Ethics O.C. Ferrell, Ph.D. Professor of Marketing Creative Enterprise Scholar The Robert O. Anderson School And Graduate School of Management MSC05 3090 1 University of New Mexico Albuquerque, NM 87131-0001 Phone: (505) 277-3468 ocferrell@mgt.unm.edu Nature and Scope of Marketing Ethics INTRODUCTION Marketing ethics is viewed as important because of marketing’s interface with many diverse stakeholders. Marketing is a key functional area in the business organization that provides a visible interface with not only customers, but other stakeholders such as the media, investors, regulatory agencies, channel members, trade associations, as well as others. It is important when addressing marketing ethics to recognize that it should be examined from an individual, organizational, and societal perspective. Examining marketing ethics from a narrow issue perspective does not provide foundational background that provides a complete understanding of the domain of marketing ethics. The purpose of this chapter is to define, examine the nature and scope, identify issues, provide a decision-making framework, and trace the historical development of marketing ethics from a practice and academic perspective. DEFINITION OF MARKETING ETHICS Ethics has been termed the study and philosophy of human conduct, with an emphasis on the determination of right and wrong. For marketers, ethics in the workplace...
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...of Corporate Marketing Ethics and its Relative Importance Vivek Parashar Lecturer of Marketing Center for Management Development (CMD) Dr. K.N Modi Foundation Modinagar – 201204 Email id- vparashar.edu@rediffmail.com vparashar@in.com Mob: 08899080891 |Abstract | |Markets present a clash of interest between various players. There is competition for resources, customers and price etc, which breeds ground| |for activities that may not get ethical sanctions. A certain code of conduct, policies and practices called ethics are required to manage | |markets and marketing. | |Marketing is the heart of all businesses and all other functions depend upon the same for keeping the business moving. It is one business | |function that interacts the most with markets, in fact markets are meant to sell and they exist only when they sell! In such a scenario there| |are bound to be multiple players and a clash is inevitable. Such clash leads to malpractices like hoarding, price competitions, brand wars | |and use of unfair tactics, which is precisely where marketing ethics come into play. | |It is important when addressing marketing ethics to recognize...
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...Ethical Challenges in Marketing Communication Ethics play an integral role in the development and sustenance of any personal or business relationship. Ethics determine the acceptable behaviors within a society and the overall behaviors of a business. Marketers must understand the impact ethics have on marketing communications and develop Integrated Marketing Communication (IMC) strategies accordingly. This paper will discuss various ethical challenges facing marketers today, identify internal and external factors on IMC, and formulate two ethical questions based upon the analysis. Ethics in Marketing The practice of ethics within an organization is an important but difficult concept to understand and practice. The reason ethics are difficult to manage is that the concept is so subjective (Duncan 2002, pp. 671). Ethical values differ between societies and individual relationships, therefore a company must decide on an ethical communication strategy and portray it as consistently as possible. Duncan (2002) describes three ethical considerations companies must understand when developing marketing communications and relationships with customers. Stereotyping Stereotyping plays a significant role in developing marketing strategies that are both effective and ethical. "The challenge for brands is to develop messages that strike a chord with targeted audiences without reinforcing negative stereotypes" (pp. 672). Companies must ensure that their marketing tactics are not...
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...Marketing Research Ethics The dictionary describes ethics as a system of moral principles that set the guidelines for the rules of conduct recognized in respect to a particular class of human actions or a particular group. Ethics are a branch of philosophy dealing with the values relating to the human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions (Webster). There are numerous types of ethical issues involving marketing research. Marketing researchers have a social responsibility to provide the public with honest and accurate findings. It important that marketing researchers not mislead the public by providing misinformation or by participating in unethical practices in the process of obtaining marketing research information (Alsmadi, 2010). Marketing research firms can jeopardize their reputation by providing misleading conclusions, or bias results. It has been determined that a reputation for ethical behavior is important for a firm conducting marketing research, and that retaining the confidence of the public is critical for researchers to ensure that all findings are credible enough to be trusted in the society (Alsmadi, 2010). An organization’s social responsibility is an acceptance of accountability to society for its actions, and that ethics are viewed as the principles, values, and standards of conduct (Alsmadi, 2010). What creates confusion in an organization is what exactly...
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...Scope of Marketing Ethics O.C. Ferrell, Ph.D. Professor of Marketing Creative Enterprise Scholar The Robert O. Anderson School And Graduate School of Management MSC05 3090 1 University of New Mexico Albuquerque, NM 87131-0001 Phone: (505) 277-3468 ocferrell@mgt.unm.edu Nature and Scope of Marketing Ethics INTRODUCTION Marketing ethics is viewed as important because of marketing’s interface with many diverse stakeholders. Marketing is a key functional area in the business organization that provides a visible interface with not only customers, but other stakeholders such as the media, investors, regulatory agencies, channel members, trade associations, as well as others. It is important when addressing marketing ethics to recognize that it should be examined from an individual, organizational, and societal perspective. Examining marketing ethics from a narrow issue perspective does not provide foundational background that provides a complete understanding of the domain of marketing ethics. The purpose of this chapter is to define, examine the nature and scope, identify issues, provide a decision-making framework, and trace the historical development of marketing ethics from a practice and academic perspective. DEFINITION OF MARKETING ETHICS Ethics has been termed the study and philosophy of human conduct, with an emphasis on the determination of right and wrong. For marketers, ethics in the workplace...
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...Marketing ethics is the area of applying moral principles behinds the regulation and operation of marketing. There are several frameworks to analysis marketing ethics, which value-oriented is one of those, and American Marketing Association (AMA) ethical values is one of the approaches under value-oriented framework. This essay will follow the some of the values stated by AMA to explain one of the most famous company worldwide, Starbucks. Starbucks is good at building public’s trust and creating a good image through Marketing ethics. As Starbucks targets at middle class customer groups, which have arisen the sense of being green. Therefore, Starbucks launched different schemes to code with the wants of her target markets. As Starbucks operates store all over the world, her citizenship also expends worldwide. Starbucks has begun to protect the ecological environment. In an interview with Starbucks vice president, Ben Packard, Ben stated that Starbucks was one of the top 5 green power purchasers in the U.S. (Lesley, 2011). Other than targeting at 100% renewable energy consumption, Ben also mentioned the importance of energy reduction which leads Starbucks to a green company. Although Starbucks has made efforts on saving energy consumption , she could only reduce 1.6% per square foot in 2010 which is far below her goal originally as 25%. By seeing this, Starbucks has changed her target goal to be achieved from 2010 to 2015(Starbucks, 2011). However, it is still a question...
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...Need for companies to act ethically with its stakeholders Marketing ethics refers to the practices followed to implement the marketing decision making, behaviour and practice in the organization which comply with the standards of fairness. Marketing aims at creating a competitive advantage which creates value for the organization as well as the customers. Organizations are free to set and implement their standards and practices which is required for their own benefit. However, considering the advancement in our economic system, it is crucial in today’s world for them to not just supply products but also adhere to the ethical standards. In a way ethics is another variable that influences marketing advantage of the organization. Ethical marketing leads to positive sentiment among the current and prospective customers which leads to a better image of the company in the market and also more acceptances of its products by the customers. Unethical marketing by an organization can harm or annoy the customers that could lead to resentment, lack of trust, lost business and sometimes even legal actions. There are also businesses that are set up because their founders believe strongly about an issue and prefer dealing with it through a business. A company needs to be sensitive to the needs and expectations of all its stakeholders. Here stakeholder refers to everyone who is influenced or can be influenced by its products and services. The need for companies to behave responsibly has been...
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...Marketing Ethics 1 Marketing Ethics in Business Jennifer Rebarchick Marketing MBA Misericordia University Summer 2014 Dr. Gargone Marketing Ethics 2 ABSTRACT The field of business ethics and marketing ethics has evolved normatively and substantively over twenty years since the dawn of Business Ethics Quarterly. (Murphy, P. E.; Business Ethics Quarterly. Oct2010; Vol20; I4 (751-733) 3p. There have been positive and negative developments since then. In this paper it will be discussed marketing ethics in business and how this affects the organization I am employed with. I will discuss the definitions of these terms , how ethics is important, what organizations look for in making certain they are following the rules and regulations and some strategies that my organization may look into while dealing with branding or other issues they may face while doing the marketing. DISCUSSION Marketing ethics is defined as the basic principles and values that govern the business practices of those engaged in promoting products or services to the consumers. Sound marketing ethics are typically those that result in satisfaction with the goods and services being promoted. (www.businessdictonary.com) Ethics alone is defined as the basic concept and fundamental principles of decent human conduct. It includes the study of universal values such as essential equality of all men and women, obedience to the law of land, concern for health...
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...Normans conquered England in 1066, William the conqueror and his successors began the process of unifying the country under the rule. The kings courts sought to establish a uniform set of rules for the country as a whole and what led to the common law. It's very important to U.S. law because it underlies judge's decisions in legal controversies. 2.) The key objective of a company is the marketing's part to develop a satisfying relationship with the customers, and both the customer and company benefits from. Providing outstanding business ethics, which constitutes right behavior, fairness, justness, and rightness. Marketing professionals have a duty to act honestly and ethically in their dealings with consumers and the environment. If a business does not have a good business ethic, the only thing that will be the outcome is the company suffering losses, bankruptcy, and causing thousands of workers to lose their jobs. Having the proper business ethics is very important, so companies can avoid paying the price. The minimum acceptable standard for...
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...conducting ethical transactions must be of paramount importance. THE SCOPE OF MARKETING ETHICS Business ethics refers to the moral or ethical dilemmas that might arise in a business setting. Marketing ethics, in contrast, examines those ethical problems that are specific to the domain of marketing. Firm’s attempts to apply sound ethical principles must be a continuous and dynamic process. Anyone involved in marketing must recognize the ethical implications of their actions. ETCHICAL ISSUES ASSOCIATED WITH MARKETING DECISIONS People in marketing interact directly with the public. Creating an ethical climate that establishes the health and well-being of consumers as the firm’s number one priority just makes good business sense. Creating an Ethical Climate in the Workplace The process of creating a strong ethical climate within a marketing firm includes having a set of values that guides decision making and behaviour. Once the values are understood, the firm must develop explicit rules and implicit understandings that govern all the firm’s transactions. Top management must commit to establishing an ethical climate, and employees throughout the firm must be dedicated to that climate, because the roots of ethical conflict often are the competing values of individuals. Each subarea within marketing, such as marketing research, advertising, pricing, and so forth, has its own code of ethics that deals with the specific issues that arise when conducting business in those...
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...Contents Introduction 2 Ethical Behaviour and Theories 2 Ethical Codes 3 Ethical Dilemmas of Nestle 3 Infant Formula: 3 Overcharged Prices 4 Unfair Labour Practices 4 Steps Taken by Nestle 5 Conclusion 5 References 7 Introduction Marketing ethics can be considered as a subset of business ethics which deals with the study of how ethical and moral standards can be applied to various marketing decisions. Various topics can come under the umbrella of marketing ethics and these are product safety, pricing fairness, advertising honesty, product liability, etc. Corporations have increasingly become very competitive and in the last few years, news of breach of ethical codes of conduct have been highlighted in the media (Boone & Kurtz, 2011). This essay will elaborate upon the marketing dilemmas through the lens of ethics using case example of Nestle. Ethical Behaviour and Theories One of the ways through which moral philosophy and ethics can be viewed is through utilitarianism as proposed by John Stuart Mill who argued that the world exists in an imperfect state and individuals should strive to maximize happiness and stated that any increase in the degree of happiness justified any kind of sacrifice (Fritzsche & Oz, 2007). On the other hand, Kant states that the connection between happiness and virtue arose because of the belief that the rational pursuit of virtue and happiness are same in that they are identical wherein virtue can produce happiness...
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...Demographics and Ethical Dilemma for Marketing Professional in a Connected and Diverse Society Jahangir M. Kabir Wilmington University What are the connections among demographics, marketing and ethics? Well, they are deep and potentially detrimental to society, if certain ethical standards are not met. According to Grewal and Levy (2011), firms use segmentation, targeting and positioning to develop marketing strategy and segments its customers in many ways and one of them is demographics (Grewal & Levy, p. 232). Demographic (age, gender, race, income, education etc.) segmentation puts consumers into groups according to easily measured objective characteristics such as age, gender, income and education (Grewal and Levy p. 232). Now lets look at some examples of the use of demographics to market products and services to consumers. I was never an Amazon fan until one day in 2011 I received an email with free Amazon Mom subscription for six months. I signed up immediately because it would make me eligible for free two-day shipping and 20% discount on diapers and baby formulas. Amazon targeted me solely because of my wife being nine months pregnant. Now, I am a loyal Amazon customer shopping for almost anything and everything. Grewal and Levy (2011) gives an excellent example of the use of gender as a marketing strategy to market products and service to men and women (p. 233). For example, TV viewing habits very significantly between men and women. Men tend to channel...
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...Is Marketing Totally Ethical? Kotler and Armstrong, posit that marketing is about managing profitable customer relationships by creating value for the customer in order to get value in return. It begins with identifying what the customer needs, crafting customer driven strategies, fashioning out marketing programs, building customer relationships and capturing value for the firm. In the process of carrying out various marketing activities, through different media, the question of marketing ethics comes to the fore. Marketing ethics according to Philip Kotler is “the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing”. Applied ethics, in the words of Brenda Almond, co-founder of the Society for Applied Philosophy, "the philosophical examination, from a moral standpoint, of particular issues in private and public life that are matters of moral judgment". It is thus a term used to describe attempts to use philosophical methods to identify the morally correct course of action in various fields of human life. An ethical practice would bring about the greatest good and value for all those involved. Marketing is hinged on the need to transmit the value of a product or service to end users to influence buying behavior and unethical practices may arise from the hassle to meet performance targets. Marketing cannot be said to be totally ethical since it involves reaching out to a large mass of people with different backgrounds...
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...Agoda.com Arguable Unethical Marketing Behaviours Agoda.com is a Singapore-based online hotel booking company specializing in the Asia Pacific market with a global network of more than 200 thousands hotels worldwide. After being merged in 2007 by the Priceline.com, one of the largest online travel-related services providers, Agoda.com was on its way of rapid expanding globally however, with its controversial marketing strategy of pricing, which is under heated debate. Therefore, this essay intends to examine the reasonableness and unethicality of its pricing promotion. With the support of advanced customer database, Agoda.com could efficiently promote their “attractive prices” to individual customers according to their demands differently. For example, once a consumer has searched or booker some hotels within a target location, Agoda.com will send promotion email to those consumers with “special offers” according to the consumer’s searching history. This promotion practices seems to be consistent with the customer-driven marketing strategy since this allows the company to explore differentiated market segmentations with different consumers’ needs for different hotels (Woodruff, 1997). However, behind the successful strategy, it is likely to be ignored that the contents of its promotion should be considered as unethical issues, which would violate the code of AMA. These controversial issues in those promotion emails mainly involve two aspects, misleading information and...
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...Faculty of Business The Hong Kong Polytechnic University Assignment On Marketing Ethics Course code: MM2711 Course Title: Introduction to Marketing Tutorial Group: TUT004 Year: 1 Semester: II (2011-12) Date: 22/2/2012 Submitted By: Submitted To: Name: Chu Wing Sze Name: Dr. Simone Cheng Student ID No: 11222966D Tutor FB Faculty, HKPU Nestlé - Unethical Product Development Nestlé, the world's largest food and nutrition company, has been providing customers with a wide variety of food and beverage categories. Nescafé, Milo, Perrier, and Häagen-Dazs are all popular brands listed in its numerous production categories. However, behind the successful brand portfolio, Nestlé, the largest manufacturer of infant formula in the world, was criticized to numerous unethical marketing of infant formula found every year in both developing and developed countries. This paper, based on the research “Misperceptions and misuse of Bear Brand coffee creamer as infant food: national cross sectional survey of consumers and paediatricians in Laos” in the British Medical Journal, analyzes the lack of ethics in the corporation’s product development and management, referring to AMA code of Ethics, and gives recommendations for better implement of ethical business. Bear Brand sweetened beverage creamer is a milk rich dairy product similar to sweetened condensed milk. It is commonly used in beverages...
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