Ethics in Marketing

Compiled By:Raoul DCosta 10 Roysten DSa - 14 Wayne Rodrigues - 45 Gaurav Vaswani - 53 Sheetal XaXa - 58

 Ethics are a collection of principles of right conduct that shape the decisions people or organizations make. Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing.

What do we understand by marketing ethics???

Ethicality

Several Areas of concern in marketing ethics

Deceptive marketing practices(promotion issue) Ethical product and distribution practices Focus on materialism Ethical issues in marketing to children Ethical issues in marketing to minorities Ethical issues of portrayal of women in marketing efforts

Avoid bankruptcy, fines, lawsuits and criminal Charges Strengthens sales, brand image, and reputation Strengthens employee loyalty Avoid loss of business Create a strong customer relationship

Significance Of Marketing Ethics

Ethics in Marketing
7 Principles for Public Policy towards Marketing Philip Kotler

1. 2. 3. 4. 5. 6. 7.

The Principle of Producer & Consumer Freedom The Principle of Curbing Potential Harm The Principle of Meeting Basic Needs The Principle of Economic Efficiency The Principle of Innovation The Principle of Consumer Education & Information The Principle of Consumer Protection

Ethical Norms Do not harm Foster trust in marketing system Embrace ethical values

Ethical Norms & Values for Marketers

Ethical Values Honesty Responsibility Fairness Respect Transparency Citizenship

Unethical Market Practices

1. 2. 3. 4. 5.

5 Unethical Practices You Must Avoid

Dont Try to Force Your Customers into Buying Dont Try to Sell Crap Avoid Not Having a Good Customer Support Always Over Deliver Never Under Deliver Dont Give Customers Something Different This will only worsen the situation

 What happened? :The Consumer Product Safety Commission outlawed the sale of three-wheel all-terrain cycles in the United States in 1988. The issue: Although some manufacturers had already turned to four-wheel models, other manufacturers still had inventories of three-wheel cycles. Reason for ban: Reasons ranged from contentions that although the vehicles themselves were safe, the drivers were too young, too inexperienced, and more inclined to take risks and be injured.3 What could be done? : Even after the three-wheel product was banned here, outlawed vehicles could still be sold outside the United States.

Product Dumping.

 What should the sellers do with their inventory? Is it ethical to sell the products in other countries even though it has been deemed unsafe in ours? If I dont sell it in another country I will go in a loss, Whats more important ?

Ethical concerns

 What Happened? Samsung Electronics ran an advertising campaign that had a letter-turning blonde robot dressed in a red evening dress, complete with diamond bracelet and necklace. Problem:The ad was a takeoff on Vanna Whites role of turning letters for contestants on the television game show Wheel of Fortune Action taken: White filed suit alleging that Samsungs use of the Robo Vanna was an appropriation of her image and a taking of her creative output. Response:Samsung maintained there was no appropriation because the ads were a takeoff on Wheel of Fortune.

V-A-N-N-A: It Belongs to Me

 Should Samsung have taken the image of Vanna White without permission? Even if no permission was taken at first Samsung could have compensated Vanna White when she raised the issue. In the end Samsung was sued , hurting their image, was it worth it ?

Ethical Issues

Conclusion