Mktg Theories

8/9/2019 Mktg Theories

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C L A S S 3 4 ( 8 T H A P R 2 0 1 4 ) :

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

BUSI 211: Business Ethics


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AGENDA 2

A. Course Evaluation

B. What’s Up in the World Today

C. Why ad industry prone to unethical ehavior

!. Ethical theories o" #ar$etin%E. Cause&related #ar$etin%

'. (reen #ar$etin%

(. Thou%ht o" the !ay ). )o#e*or$


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A. COURSE EVALUATION+

,our turn to evaluate #e-


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B. !"#$% &' #!* +,- T+"/

The onus is on you to si%n up "or a ti#e slot and toactually sho* up on the ti#e slot.

/nce you #iss it0 you #ay the lose the chance to do

so %iven ho* close *e are to the end o" the se#ester.I *ill no lon%er e re#indin% people aout this.


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C. H IS AD INDUSTR PRONE TOUNETHICAL BEHAVIOR

ost o" us have developed scepticis# aout ads in that *e o"ten thin$ they are #isleadin% or not truth"ul.

Why do you thin$ the advertisin% industry has

developed a reputation "or unethical ehavior3


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2445 Ad industry study 6

Ad industry and acade#ic leaders intervie*ed aout ethics in ad industry.

1) B",,*,% #+ *#!"- *%+ "5: Uncertainty aout #ana%e#ent0pressures o" havin% to co#e up *ith ne* ideas under deadline pressure.

'e* ad a%encies had ethics codes or proper processes.

7erceived tension et*een #ana%e#ent and creativity: Creative people don’t

"ollo* processes ecause 8can ha#per creativity9 8ad a%encies are too cool "orschool9.

Intense deadlines and constant pressure to produce ne* and etter ideas: 8soconsu#ed *ith co#in% up *ith ideas "aster and etter than ever e"ore.9

Client&ased nature o" advertisin%: Ethical decisions #ade y clients and nota%encies: 8Clients say ;that is *hat I *ant you to do’9.


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Ad industry cont’d>

2) R+-* +6 +,5"7"#+"- &-#&,*: Culture has to supportethical decision #a$in% and leaders crucial in creatin% culture. 8Culture is proaly #ost i#portant "actor *hen it co#es to ethics.

Whether an or%ani?ation really accepts and uys into hi%h standards is aculture issue and a leadership issue9.

@eaders vie*ed as crucial to creatin% and #aintainin% culture throu%hea#ple they set and throu%h pro%ra#s they initiate. 8,ou set culture y ea#ple. The "irst ti#e a senior person says one thin% and acts inanother *ay0 it starts to erode culture and %oes do*n "ro# there9.

eed to call out unethical ehavior and respond to it in appropriate

#anner to provide clarity in a %rey *orld as to *hat is ri%ht ehavior.

Source: !ru#*ri%ht and urphy0 Journal of Advertising0 vol. +D0 no. 1 Sprin% 24450 pp. D+14>


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D. ETHICAL THEORIES OF MARKETING

D

'ro# our tetoo$: What do so#e o" our "avouriteethical theories have to say aout #ar$etin% andadvertisin%3


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E#!"- #!*+,*% +6 ",*#55

U#-#","%: Advertisin% should #a$e so#econtriution to overall happiness to e o" so#eethical *orth.

V,#&* *#!%: Advertisin% should e %rounded in#oral values.

C&-#&,"- ,*-"#%: e.%. #ar$etin% alcohol inusli# country unethical *hile ci%arette

advertisin% is not as unethical vs. in #any Westerncountries0 it is opposite.


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Ethical theories cont’d14

R5!#% 9"%* "'',+"! (+! R";-%):Co#panies have contractual relationship *ithcusto#ers so #oral duties to custo#er are created

y relationship. A contract is valid only i" all + o" these are #et:

Both parties have "ull $no*led%e aout nature o" contract.

either party #ust #isrepresent "acts o" contractual relationshipto the other.

o one is "orced to enter contract.Source: anuel FelasGue?0 7earson 8Business Ethics90 6th Edition


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Ethical theories cont’d11

D*+#+-+5/

C+'"/ !"% 6+--+;5 *%:

1. D/ #+ +'-/: Co#pany #ust provide consu#ers *ith a product that lives up to the clai#s that the co#panyhas #ade aout product re%ardin%: R*-"9-#/: product *ill "unction as consu#er is led to epect it

*ill "unctionH S*,* -6*: product *ill continue to "unction "or as lon% as

consu#er is led to epect it *ill "unctionH M"#""9-#/: ease at *hich product can e #aintained and

repairedH and S"6*#/: de%ree o" ris$ associated *ith usin% product.


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12

2. D/ +6 %-+%&,*: Co#pany #ust disclose eactly *hatconsu#er is uyin% and any other relevant in"or#ation that coulda""ect custo#er’s decision to uy product0 e.%. any health ris$s0in%redients0 costs0 product ratin%s0 etc.

3. D/ +# #+ %,*',*%*#: ust not #islead0 deceive or hideany relevant in"or#ation to custo#ers0 e.%. can’t sell so"t*are *ith u%s that could cause prole#s to custo#er0 say so#ethin% is onsale *hen it is on re%ular price.

4. D/ +# #+ +*,*: Can’t use pressure or ta$e advanta%e o" a uyer’s "ear or stress to #a$e a purchase.Source: anuel FelasGue?0 7earson 8Business Ethics90 6th Edition


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E. CAUSE


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C"&%*


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Cause&related #ar$etin% cont’d1

C,#%: ot sustainale

ay *ea$en other types o" "undraisin%.

D+ o" custo#ers have "avorale i#a%es o" co#panies *ho en%a%e

in cause&related #ar$etin%0 there"ore Just a cynical #ar$etin% tool. !eontolo%ists

7ost&odernists: Ka#pant consu#eris# %iven #oral value


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F. GREEN=SUSTAINABLE=ENVIRONMENTAL MARKETING

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What does our tetoo$ say aout %reen #ar$etin%3

Even i" super"icially %reen products eco#eincreasin%ly "ashionale0 ethics could eco#e

con"used *ith aesthetics philosophy o" eauty.(enuine ethical #ar$etin% vie*s consu#ers as part

o" #ar$etin% o" *ider ecosyste# and that socialchan%e happens %radually *ith consu#ers #a$in%

ethical choices as part o" process o" social chan%e.


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A'',+"!*% #+ 5,** ",*#51>

1. F", '-"/ "'',+"!: Custo#ers have ri%ht to $no* *hat they are %ettin%.Critical o" ;%reen*ashin%’: dout"ul unveri"iale or "alse environ#ental clai#s.

KeGuire clear laellin% o" cos#etic products that say they are not tested onani#als *ith certi"ication "ro# an independent #onitorin% or%ani?ation. I" thereis no such lael0 assu#e testin% on ani#als *as done.

Consu#ers #ust e ale to #a$e an in"or#ed choice.

2. M""5*,"-%# "'',+"!: Consu#er holds certain #oral values that co#panyhas to #eet to %et consu#er to uy its products.

Aout #eetin% consu#er de#and0 not really chan%in% corporate values.

3. R*6+,%# "'',+"!: Co#pany’s activities should e re&ali%ned *ithsta$eholder epectations and needs.

Any chan%e in co#pany’s activities #otivated at least in part y sel"&interest ecause need "avorale i#a%e to increase #ar$et share.


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(reen #ar$etin% approaches cont’d1D

4. D"-+5 "'',+"!: eed dialo%ue et*een co#pany and sta$eholders to resolveco#petin% concerns and interests.

Actual outco#e is less i#portant than #anner and "or# o" dialo%ue.

>. R*+%#,&#+%# "'',+"!: !eep Ecolo%y approach.

ar$eters should respond proactively to environ#ental de%radation especially since

#ar$etin% part o" prole# and not solution. Business can play a central role in sustainale develop#ent.

Adopt a #ini#alist approach in #ar$etin% less pac$a%in% and paper in %eneral productsthat are produced in a sustainale and hu#an "ashion0 e.%. Body Shop cos#etics.

7ro#ote consu#er a*areness o" #aJor issues0 e.%. Fol$s*a%en ad: cars should e "ullyrecyclale and consu#ers consider recyclaility *hen choosin% a car.

?. I#*,',*#"%# '*,%'*#*: 'ocus on internal issues and etent #orality inte%ratedinto #ar$etin%.


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T,&%#15

Trust is $ey to lon%&ter# relationships and retainin%not Just acGuirin% custo#ers.

I'+,#"# +%*,"#+%:

ature and etent o" consu#er $no*led%e. )o* consu#ers can #a$e in"or#ed decisions. Incorporatin% ethical #ar$etin% even i" not "inancially

re*ardin%.


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G. THOUGHT OF THE DA 24

8Trans"or#in% a rand into a socially responsileleader doesnLt happen overni%ht y si#ply *ritin% ne*#ar$etin% and advertisin% strate%ies. It ta$es e""ort toidenti"y a vision that your custo#ers *ill "ind credileand ali%ned *ith their values.9 M Si#on ain*arin%


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H. HOMEORK 21

Keadin%: "ro# Chap D )K and /B

/TE: Kead these sections and pa%es only: Section D. pp 1> to 1>6H

Section D.6 p.1>D0 and Section D.D N case study pp.1D1&1D6. We *ill e discussin%case study net class.

/ther parts o" chapter /T on ea#.

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