Ethical Issues In Marketing And Advertising 4n1g4p

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‡ Ethics in marketing ± focuses on the ensuring ethical practices in the methods of marketing and selling the products to the consumers. ± Seeks to ensure fairness and transparency in marketing.

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‡ Unethical marketing practices of businesses. ‡ E.g.:-cigarette companies reducing menthol levels to hook first- time smokers.

‡ Focus on increasing revenues at any cost. ‡ Leading to exploitation of consumers. ‡ Defective products being marketed to them. ‡ Harmful effects of the products like:- health hazards, other damages.

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‡ People who buy and use products with the intention of fulfilling their needs are called consumers. ‡ The idea of consumer protection ± is to protect the consumers from the damages caused to them, ± by giving them correct and complete information ± In other words, to develop a sense of moral duty & responsibility on the part of business organizations. |

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‡ The purpose of a business is to create customers for its products and services. ‡ They a business. ‡ It will result in the well- being of the company.

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Î ‡ a e.g. honesty, autonomy, privacy, transparency. ‡ e.g. consumers, competitors, society as a whole ‡ e.g. research, price, promotion, placement |

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‡ Sales practices - pressure on sales personnel to sell ‡ Violating ways - deception - manipulation |

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‡ Labeling: means for selling product & also informing the consumer. - Fair Packaging and Labeling Act ed by congress in 1966 - Nutrition Labeling and Education Act (NLEA) (1990) |

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‡ î : ethical danger points in marketing research include: - Invasion of privacy - Stereotyping ‡ î : ethical danger points include - Targeting the vulnerable e.g. children, the elderly - Excluding potential customers from the market: |

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‡ : Process of determining what a company will receive in exchange for its product ‡ The moral (and legal) issues in pricing fall into two categories: ---The use of prices to engage in anticompetitive behavior that can seriously harm other firms. ---Concerns fairness in pricing , which can be violated when prices are used to deceive or manipulate consumers and when goods are overpriced in ways that | consumers cannot easily detect.

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The major anticompetitive marketing practices are as follows: ‡ Is an agreement , either explicit or implicit, among two or more companies in the same market to sell goods at a set price. ‡ Products are sold on the condition that they be resold at a price fixed by the manufacturer or distributor. ‡ Charging of different prices or offering different of sale for goods of the same kind to different buyers. ‡ Reducing prices to unreasonably low or unprofitable levels in order to drive competitors | out of business.

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Pricing can be done in ways that treat consumers unfairly The main type of such unfair pricing are : ‡ Unconscionably high price (price gouging) ‡ Misleading prices, including prices that are difficult to determine and compare.

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The means by which the products are delivered from the manufacturer to the ultimate consumer The main ethical issues in distribution are : ‡ to gain access to shelf space in stores ‡ «that arise from diverting and parallel importing. Three illegal abuses of power in distribution are : ‡ Reciprocal Dealing ‡ Exclusive Dealing ‡ Tying dealing |

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Î ‡ Non personal communication ‡ About an organization and its products ‡ To a target audience ‡ Through a mass medium |

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1.Covert Advertising ± Advertising in movies

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· Advertising in commercial ads .

Digital Video Camera 6M Pixel with MP3 / MP4 and Flashlight (Force /auto/off), Video recorder (with sound), Still Photos PC Camera and MP3 player, Digital voice recorder and Power control: Auto power off |

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‡ To build brand personality ‡ To increase the sales of the product/service ‡ To create and maintain a brand image. ‡ To introduce a new product or service. |

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‡ Truthfulness in advertising ‡ To establish itself in the hearts of the customers

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ment creates false belief

‡ Interferes with the ability of people to make rational consumer choices ‡ Depends not only on truth or falsity of claims but also on its impact

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Hidden fees and surcharges Rebates Inflated price comparison Cost-plus pricing Buy u, get free Introductory offers Non-sale ments Disclaimers and fine print Fillers and oversized packaging Label tampering |

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‡ Making use of subconscious factors that influence human actions ‡ Play on human desires for security, acceptance, self esteem, etc

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‡ Interferes with freedom of choice

‡ Acts without our knowledge and thus without consent

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Are we aware that products are being d without our consent « ???

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© Advertising Educates Consumers ± Pro: Advertising informs ± Con: Advertising is superficial and intrusive M()! * +

‡ Advertising improves living standards ± Pro: Ads lower the costs of products ± Con: Ads are wasteful and help only some |

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