M A R K E T I N G E T H I C S

B M G T 2 0 5 : P R I N C I PA L S O F M A R K E T I N G

M A R K E T I N G E T H I C S

F I R M G O A L S

Greed and short term profit seeking

Serious long term conseque

nces

Creating value

over the long run

Long term success

H T T P : / /W W W. Y O U T U B E .C O M / W AT C H ?V = M L L K H J Y E Q 7 I

AT T I T U D E S A B O U T T H E E T H I C A L S TA N D A R D S O F VA R I O U S P R O F E S S I O N S

• Why do you feel marketers (advertising practitioners & salespeople) rank so low on this scale?

• What can marketers do to improve their ranking?

Jeffrey M. Jones, “Nurses Top Honesty and Ethics List for 11th Year,” Gallup, November 19–21, 2010, http://www.gallup.com/poll-145043/nurses-top-honesty-ethicslist-11-year.aspx

C R E AT I N G A N E T H I C A L C L I M AT E I N T H E W O R K P L A C E

Values • Establish • Share • Understand

Rules • Management

commitment • Employee dedication

Controls • Reward • Punishment

A M E R I C A N M A R K E T I N G A S S O C I AT I O N C O D E O F E T H I C S

Generally accepted code in marketing

Flows from general norms of conduct to specific values

Subareas within marketing have their own code of ethics to deal with specific issues

http://www.marketingpower.com/AboutAMA/Pages/Statement%20of%20Ethics.aspx

T H E I N F L U E N C E O F P E R S O N A L E T H I C S

Genetics Family Religion Values

Corbis/Jupiter images

©Royalty-Free/CORBIS Getty Images

C O M P E T I N G O U T C O M E SDangerous flaw in new model

Delay production

Delayed revenue

Possible layoffs

Loss of bonuses

Continue production

Potential injury to consumers

Loss of revenue

T H E L I N K B E T W E E N E T H I C S A N D C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

Socially Responsible Socially IrresponsibleEt

hica

lU

neth

ical

Both ethical and socially responsible

Neither ethical nor socially responsible

Questionable firm practices, yet donates a

lot to the community

Ethical firm not involved with the larger

community

W H I C H C O M PA N Y I S M O R E S O C I A L LY R E S P O N S I B L E ?

A F R A M E W O R K F O R E T H I C A L D E C I S I O N M A K I N G

Step 1 • Identify Issues

Step 2 • Gather

information and identify stakeholders

Step 3 • Brainstorm and

evaluate alternatives

Step 4 • Choose a course

of action

S T E P O N E : I D E N T I F Y I S S U E SMarketing research firm issues

Using results to mislead or

even harm the public

Data collection methods

Hiding the real purpose of the

study

S T E P T W O : G AT H E R I N F O R M AT I O N A N D I D E N T I F Y S TA K E H O L D E R S

Identify all ethical issues and relevant legal information

Identify all relevant stakeholders and get their input on any identified ethical issues

S T E P T H R E E : B R A I N S T O R M A N D E VA L U AT E A LT E R N AT I V E S

• Halt the market research project?

• Make responses anonymous?

• Instituting training on the AMA Code of Ethics for all researchers

S T E P F O U R : C H O O S E A C O U R S E O F A C T I O N

Weigh the alternatives

Take a course of action

• Government agencies have been established to help firms decide what is “ethical”

C H E C K Y O U R S E L F

1. Identify the stages in the ethical decision-making framework.

I N T E G R AT I N G E T H I C S I N T O M A R K E T I N G S T R AT E G Y

Planning Phase

Implementation Phase

Control Phase

P L A N N I N G P H A S E

• The mission or vision statement sets the overall ethical tone for planning.

• Mission statements can be used as a means to guide a firm’s SWOT analysis.

I M P L E M E N TAT I O N P H A S E

Should the firm be targeting this market with this product?

Should the firm be selling its product in this market in this manner?

Should the firm be relocating production to another country?

I S R E D B U L L M A R K E T I N G O N C O L L E G E C A M P U S E S E T H I C A L ?

C O N T R O L P H A S E

1. Check successful implementation 2. React to change

C H E C K Y O U R S E L F

1. What ethical questions should a marketing manager consider at each stage of the marketing plan?

C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

• describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

••Employees ••Their families

Employees

••Current customers ••Potential customers

Customers

••Community ••EnvironmentSociety••Partners

••CompetitorsMarketplace

F O R T U N E M O S T A D M I R E D C O M PA N I E S

H T T P : / / M O N E Y. C N N . C O M / M A G A Z I N E S / F O R T U N E / M O S T-A D M I R E D / 2 0 1 3 / S N A P S H O T S / 6 7 0 . H T M L ? I I D = F _ F 5 0 0 M

C H E C K Y O U R S E L F

1. How has corporate social responsibility evolved since the turn of the twenty-first century?

2. Provide examples of each of the stakeholders that firms should consider in their corporate social responsibility efforts.