MARKETING ETHICS
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Transcript of MARKETING ETHICS
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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L E A R N I N G O B J E C T I V E S
MARKETING ETHICS
Why do marketers have to worry about ethics?
What does it take for a firm to be considered socially responsible?
How should a firm make ethically responsible decision?
How can ethics and social responsibility be integrated into a firm’s marketing strategy?
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Mattel – Product Safety Crisis
Lead paint from
subcontracted manufacturer
in China
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Firm Goals
Greed and short term profit seeking
Serious long term consequences
Creating value over the long run Long term success
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The Scope of Marketing Ethics
Business Ethics Marketing Ethics
Miller Commercial
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Attitudes About the Ethical Standards of Various Professions
Why do you feel marketers (advertising practitioners) rank so low on this scale?
What can marketers do to improve their ranking?
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Citibank Addresses Identity Theft
Why is this a good customer issue to address?
Why are these ads effective?
Citibank Commercial
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Creating an Ethical Climate in the Workplace
Values– Establish– Share– Understand
Rules– Management
commitment– Employee
dedication Controls
– Reward– Punishment
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American Marketing Association Code of Ethics
Generally accepted code in marketing
Flows from general norms of conduct to specific valuesSubareas within marketing have their own code of ethics to deal with specific issues
AMA Website
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The Influence of Personal Ethics
Genetics Family
Religion Values
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Why People Act Unethically
Are all the individuals who engage in questionable
behavior just plain immoral or unethical?
What makes people take actions that create so much
harm?
Decisions often have conflicting outcomes, where both options have positive and negative
consequences
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Competing Outcomes
Dangerous flaw in new model
Delay production
Delayed revenue
Possible layoffs
Loss of bonuses
Continue production
Potential injury to consumers
Loss of revenue
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The Link Between Ethics and Corporate Social Responsibility
Firms should implement programs that are socially responsible
Employees should act in an ethically responsible manner
Build-A-Bear Workshop
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A Framework for Ethical Decision Making
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Step One: Identify Issues
Marketing research firm
issuesData
collection methods
Using results to mislead or even harm the public
Hiding the real purpose of the study
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Step Two: Gather Information and Identify Stakeholders
Identify all ethical issues and relevant legal information
Identify all relevant stakeholders and get their input on any identified ethical issues
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Stakeholder Analysis Matrix for a Marketing Research Firm
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Step Three: Brainstorm Alternatives
Halt the market research project?
Make responses anonymous?
Instituting training on the AMA Code of Ethics for all researchers
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Step Four: Choose a Course of Action
Weigh the alternatives
Take a course of action
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Ethical Decision-Making Evaluation Questionnaire
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Check Yourself
1. According to the American marketing Association Code of Ethics, what are the six ethical values
2. Identify the four stages in the ethical decision making framework
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Integrating Ethics Into Marketing Strategy
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Planning Phase
The mission or vision statement sets the overall ethical tone for planning.
Firms often go beyond the mission or vision statement by including a values statement.
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Donating over $200 million since 1982
Newman’s Own
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Implementation Stage
Aqua Teen Hunger Force LED display was
mistaken as a bomb Secret Sparkle Body
Spray Sold through retailer
that targets 7-14 year olds although packaging claimed to keep out of reach of children
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Implementation Phase
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?
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Control Phase
1. Check successful
implementation2. React to
change
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The Six Tests of Ethical Action
•Would I want to see this in the media?The Publicity Test
•Would the person I admire the most do this?The Moral Mentor Test
•Would I want the person I admire the most to SEE me doing this?
The Admired Observer Test
•Could I give a clear explanation for the actionThe Transparency Test
•Would I be able to look in the mirror and respect myselfThe Person in the Mirror Test
•Would I like to be on the receiving end of this action?The Golden Rule Test
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Check Yourself
1. Should a marketing manager insist on assessing the ethics of a situation she or he is facing?
2. Identify one ethical issue you might face in each of the three phases of a marketing plan
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Understanding Ethics Using Scenarios
Scenario 1: R.J. Reynolds: Promotions to YouthScenario 2: Victoria’s Dirty SecretScenario 3: Pregnant Teen TV StarScenario 4: Who Is on the Line?Scenario 5: West Virginia T-Shirts Scenario 6: Giving Credit Where Credit Isn’t DueScenario 7: The Jeweler’s Tarnished ImageScenario 8: No Wonder It’s So GoodScenario 9: Bright Baby’s Bright IdeaScenario 10: Money from Mailing ListsScenario 11: The Blogging CEO
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Scenario 1: R.J. Reynolds
What are the ethical issues Mailings to young
adults Candy flavored
cigarettes Is it wrong? Why
or why not?Back to list of scenarios
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Scenario 2: Victoria’s Dirty Secret
What was Victoria’s Secret doing?
Was it wrong? Unethical How could they fix
this?
Back to list of scenarios
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Scenario 3: Pregnant Teen TV Star
Should the show be cancelled?
Should the pregnancy be written into the script?
How should Nickelodeon handle this?
Is there any way this could be helpful?Back to list of scenarios
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Scenario 4: Who Is on the Line?
What are the ethical issues in this scenario?
Why would a firm use this service?
How do you think consumers will respond to firms who use this service?
Would you advise purchasing this service?
Back to list of scenarios
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Scenario 5: West Virginia T-Shirts
What are the ethical issues in this scenario?
If you were the retailer how would you have responded?
Does a history of previous inappropriate business practices impact your opinion of the retailer?
Back to list of scenarios
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Scenario 6: Giving Credit Where Credit Isn’t Due
Is this an inappropriate target market?
Could you argue that the firm provides a valuable service to this market?
Would you advise the cataloger to pursue this new strategy?
Back to list of scenarios
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Scenario 7: The Jeweler’s Tarnished Image
Is the manufacturer responsible for the acts of independent sales people?
How do you feel the Billing’s should respond?
Back to list of scenarios
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Scenario 8: No Wonder It’s So Good
Is the legal non disclosure of the alcohol content and ethical issue?
Should the firm be required to disclose the alcohol content?
What would you do if you were Mia?
Relax with Enjoy Cola
Back to list of scenarios
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Scenario 9: Bright Baby’s Bright Idea
Is the potential for injury enough to merit removal of the product from the market?
Do you feel it is ethical to move the product to a less regulated market?
What would you have advised the CEO?Back to list of scenarios
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Scenario 10: Money from Mailing Lists
Should Mangold continue to use the Marketing Metrix mailing list?
Should he tell his new customers how he got their names?
Do customers need to give consent before companies collect information on their online behavior?
Back to list of scenarios
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Scenario 11: The Blogging CEO
Should Burdick be allowed to praise his company anonymously?
Should he be allowed to attack his competitors?
How would you feel if you knew a blogger had personal interests in the topic?Back to list of scenarios
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GlossaryCorporate social responsibility
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.
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