Post on 03-Jun-2018
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ETHICS
IN
MARTEKING
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What is ethics?
Ethicsis the art and science of determining
good and bad or right and wrong moral
behavior.
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What is MARKETING?
Marketingis the science and art of exploring,
creating, and delivering value to satisfy the
needs of a target market at a profit.- Philip Kotler
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Marketing Ethics:
Marketing ethics is anarea that deals with the
moral principles behind
marketing. Ethics inmarketing applies todifferent spheres such asin product, pricing,Placing (Distribution),promotion & advertisingetc...
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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 organizationin the minds of customer, employees,shareholders and the society.
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Nestles Case Study
Nestl boycott
The Nestl boycottis a boycott launched on July 7, 1977, inthe United States against the Swiss-based Nestlcorporation. 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 ofbreast milk substitutes (infant formula), particularly in lesseconomically developed countries (LEDCs), whichcampaigners claim contributes to the unnecessary sufferingand even deaths of babies, largely among the poor.
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Ethical Issues in Marketing:
We discuss Marketing issues by using 4PS OF
MARKETING:
PRODUCT & PACKAGING
PRICE
PLACING (DISTRIBUTION)
PROMOTION (ADVERTISING & BRANDING)
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Product
Consumer safety
Product liability and reliability
Designing for special needs
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Packaging
Label information
Packaging graphics
Packaging safety
Environmental
implication of
packaging
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Price: Second P of Marketing
Bid rigging
Supra competitive pricing
Price fixing
Price skimming
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Predatory pricing
Price war
Dumping (pricing policy)
Variable pricing
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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.
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Ethical questions may also arise in thedistribution process.
Because sales performance is the most common
way in which marketing representatives and salespersonnel are evaluated.
performance pressures exist that may lead toethical dilemmas. For example: pressuring
vendors to buy more than they need and pushingitems that will result in higher commissions aretemptations.
Ethical issues in distribution
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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.
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Paying vendors to carry a firm's product rather thanone 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.
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PROMOTION(ADVERTISING
&BRANDING)
Promotionis one of the four elements ofmarketing 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 purchasingdecision.
To present information to consumers as well as
others To increase demand
To differentiate a product
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Ethical Issues in Advertising
Puffery
Advertising to Children
Promoting Unhealthy Products Subliminal Advertising
Deceptive Advertising