Most ethical isuues in marketing

Ethics

Most ethical isuues in marketing

Ethics are a code of values and ethics that govern the actions of a person regarding what is right versus what is wrong. They determine our behaviour when we are faced with a moral dilemma and are subjective, in which they vary from person to person depending on their point of view. Because they’re particular, ethical standards differ internally.

Ethical practices, as well as unethical practices, can have an effect on marketing, and in some instances, unethical behaviour can lead to government interference because the ethical choices and moral philosophy are relative to marketing practices.

 An ethical issue in marketing arises when a problem or situation requires an ethical decision or when customers are cheated or felt manipulated. Marketers must be able to resolution ethical decisions effectively.

ETHICAL ISSUES

Ethical issues can be arising from product, price, place and promotion:

Product-related issues– Businesses have to account for ethical issues regarding their products/services. Issues include fake information about the product, the value of the product, and its functions.

Other unethical practices concerning the product are hiding information, duplicating products, duplicating brand, bad quality, and holding products for profit. Marketers must take into consideration-

Product safety and impact on culture.

Environmental concerns.

The value of the product.

 

Price-related issues– The common ethical concern is whether pricing is fair or is the consumer getting what he has paid for. Though marketers have the correct to price products to generate revenue, pricing becomes an unethical issue when customers are broken in the process of making higher profits. The major issues are:

 Price fixing– It occurs when competitors agree to raise or lower prices within the market. It is an illegal activity undertaken by competitors and a major concern of government antitrust implementation.

 Price discrimination– It occurs when a business charges different prices to different customer groups for the similar product or services. Though this is related to segmentation and not an unethical practice, it becomes questionable when price discrimination occurs even the product value and quality is the same.

Other issues are manipulating pricing, price skimming, deceptive pricing and penetration.

Place related issues– Ethical issues in distribution impact relationships between producers and the middleman. The role of the middleman is the ensure that products have successfully reached the end consumer. All intermediaries involved in the selling process must work in the agreement set by the business. They approve to certain rights, responsibilities and they must not breach their contracts. Ethical concerns rise when intermediaries exploit further intermediaries for personal gain. Such issues are:

Price Concessions– Intermediaries are under agreements and must not have any effect on the price of products. Some businesses allow intermediaries minimum and maximum dimensions. This is known as retail price maintenance. Some intermediaries set idealistic prices and conditions which means the end consumer suffers.

Trying Arrangement– It occurs when manufacturers demand that retailer’s stock least popular, or competitor products along with their products. The purpose is too generous more sales, however, the intermediary has to incur further costs as they must sell products which are difficult to sell. Exclusively arrangements occur when manufacturers demand that only their products are sold by retailers.

Other issues are high-cost spreading, storage of product, geographical differences.

Promotion-related issues– Advertising is the visual element in marketing and it poses many ethical issues. The promotional aspect has an effect on consumers and how they are influenced by the purchase making result. Ethical issues arise when a customer becomes victims of false or misleading publicity tactics to increase sales. Such issues are-

Sexual and shock advertising tactics– Promotional effectiveness relies on building an emotional relationship with consumers to gain care. Ethical concerns arise when marketers adopt sensual themes to promote products or services. There are cultural suggestions for using sexual appeal, it may be acceptable in some countries or for the same products. An ethical consideration get up when the level of shock is used, it may not be necessary.

 Children and vulnerability– Children are increasingly attractive victims of promotional campaigns. Forceful marketing campaigns directed at children means that parents are losing control of the type of marketing directed at their children. The internet at a marketing means has an influence on the type of content children are exposed to. That becomes unethical which are damaging to children.

  Other unethical issues are false claim, misleading claim, replacement advertising, high pressure to sell.

WAYS TO AVOID ETHICAL ISSUES

Some measures for curbing unsocial and unethical marketing related to advertising are:

1. A Statute designed to discourage fraud in advertising.

2. A better Business Bureau, an organization of businessmen, for the drive of discouraging unfair commercial practices.

3. Code to govern advertising duplicate by Association of National Advertisers.

4. Several reputed publishers in design media should keep a strict vigil over their advertisements.

5. The Information & Broadcasting Ministry should also preserve a close watch over the advertisements on radio and television.

CONCLUSION

Ethical business practices are important in every industry, as well as marketing. Consumers are often distrustful. The public doesn’t forget the past ads that they supposed were too good to be true that turned out to be less than truthful. Likely due to bad marketing practices, many of today’s consumers expect slide in marketing - the assurance that companies firmly stand behind their claims. Our core beliefs are ashore in our personal ethics and extend into our work practices.

In marketing, it’s less of whether we think our marketing practices are ethical and more of whether consumers believe they’re ethical. So, ethical marketing means any company should make honest claims to attract potential customers. When customers perceive the marketing performs to be honest and genuine, they can begin to faith in the brand. Mutual trust works to develop brand trustworthiness, which keeps customers coming back and inspires them to spread the word about the business. Customers expect transparency, and newer technology will give them access to it. It’s time for us to rise to the occasion and quit pretending unethical practices are acceptable.