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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

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