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Ethics and Marketing

Ethics and Marketing. Becoming Responsible: The Case of Philip Morris. Becoming Responsible: The Case of Phillip Morris. Karen Enthoven Karthik Rajaraman Ben Thompson Emma Weston. Outline. Philip Morris – The Case Ethical Issues Raised Advertising Issues Ethical Issues in Marketing

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Ethics and Marketing

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  1. Ethics and Marketing Becoming Responsible: The Case of Philip Morris Becoming Responsible: The Case of Phillip Morris Karen Enthoven Karthik Rajaraman Ben Thompson Emma Weston

  2. Outline • Philip Morris – The Case • Ethical Issues Raised • Advertising Issues • Ethical Issues in Marketing • Q&A

  3. Philip Morris – The Case • Maker of the World’s Best Selling Cigarette “Marlboro” • Increased Diversification (Kraft Foods, Miller Brewing) • Repositioning to meet changing social climate • From Tobacco Giant to World’s largest Packaged Goods Company • New Mission Statement: “To be the most responsible, effective and respected developer, manufacturer and marketer of consumer products, especially products intended for adults” • New Tagline “Working to make a difference. The people of Philip Morris” • The Ugly Truth • Marlboro kills 75,000 Americans per year • 2/3 of $80Bn USD revenue still comes from Tobacco

  4. Ethical Issues Raised • Shareholder Responsibility • Self interest - meeting shareholder needs • Moving with the times • Right to compete and effectively represent products • Stakeholder Responsibility • Accurate information • Proper representation • Responsible Advertising

  5. Advertising Issues • Current Situation • Legal framework • Ethical dilemma - Protection vs Freedom • Easy to circumvent (Marlboro Country) • Ideal Situation • Ethical behaviour • Onus is on Tobacco companies • Relatively undeveloped • Promotion of individual products

  6. Ethical Issues in Marketing • Ethics and the relationship between marketing manager and their customers • Representing the official company position vs the Truth • Advertising conventions – stretching the truth • What happens when you are found out? • Role of a Code of Ethics • Good but can be circumvented • Can tobacco companies be trusted ? • May just be lip service • Advent of “Green Marketing” • Green does not necessarily mean ethical

  7. Questions

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