ETHICS IN MARTEKING

What is ethics?

Ethics is the art and science of determining good and bad or right and wrong moral behavior.

What is MARKETING?

Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. - Philip Kotler

Marketing Ethics:
Marketing ethics is an area that deals with the moral principles behind marketing. Ethics in marketing applies to different spheres such as in product, pricing, Placing (Distribution), promotion & advertising etc...

Why we need Ethics in Marketing?

We can give many reasons but will notify some: When an organization behaves ethically, customers develop more positive attitudes about the firm, its products, and its services. To create Values or trust with key stakeholders To build good image about the organization in the minds of customer, employees, shareholders and the society.

Nestles Case Study

Nestl boycott The Nestl boycott is a boycott launched on July 7, 1977, in the United States against the Swiss-based Nestl corporation. It spread quickly throughout the United States, and expanded into Europe in the early 1980s. In Canada, the controversy lasted from 1978 to 1984. It was prompted by concern about the Nestle's promotion of breast milk substitutes (infant formula), particularly in less economically developed countries (LEDCs), which campaigners claim contributes to the unnecessary suffering and even deaths of babies, largely among the poor.

Ethical Issues in Marketing:

We discuss Marketing issues by using 4PS OF MARKETING: PRODUCT & PACKAGING PRICE PLACING (DISTRIBUTION) PROMOTION (ADVERTISING & BRANDING)

Product
Consumer safety Product liability and reliability Designing for special needs

Packaging
Label information Packaging graphics Packaging safety Environmental implication of packaging

Price: Second P of Marketing

Bid rigging Supra competitive pricing Price fixing Price skimming

 Predatory pricing Price war Dumping (pricing policy) Variable pricing

PLACING (DISTRIBUTION)
Product distribution (or place) is one of the four elements of the Marketing MIX. Distribution of product or service is transporting them from manufacture to stockiest, wholesalers, retailer and then to consumers.

Ethical issues in distribution

Ethical questions may also arise in the distribution process. Because sales performance is the most common way in which marketing representatives and sales personnel are evaluated. performance pressures exist that may lead to ethical dilemmas. For example: pressuring vendors to buy more than they need and pushing items that will result in higher commissions are temptations.

Many retailers sell products that have crossed expiry date is unethical. Exerting influence to cause vendors to reduce display space for competitors' products is unethical.
promising shipment when knowing delivery is not possible by the promised date is also unethical.

 Paying vendors to carry a firm's product rather than

one of its competitors are also unethical. Most drug stores would give too many drugs without prescription from a qualified doctor are also unethical. Products are moved in unsafe vehicles ,are also unethical.

PROMOTION (ADVERTISING &BRANDING)

Promotion is one of the four elements of marketing mix (product, price, promotion, place). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision. To present information to consumers as well as others To increase demand To differentiate a product

Ethical Issues in Advertising

Puffery Advertising to Children Promoting Unhealthy Products Subliminal Advertising Deceptive Advertising