MKT 420 Contemporary Issues in Marketing

1. MKT 420 Contemporary Issues in Marketing Chapter 10 Ethical Debates in Marketing

2. Marketing Ethics : definitions • “standards of conduct and moral judgement applied to marketing practice” • “the systematic study of how moral standards are applied to marketing decisions, behaviours and institutions” • Scope of Marketing ethics : scope ??????????????. Who will define the scope or who should define the scope. Is it proactive or reactive. • WHAT ROLE FOR MARKETING ETHICS? : • The role marketing ethics ought to play, both in relation to the individual • and the organization, has been a key topic for debate. Authors have • questioned the extent to which marketing ethics might offer guidelines to marketers.

3. Issues related to Marketing Ethics Functional areas Product • Price • Placement • Promotion

4. Sub-disciplines of marketing • Sales • Consumers/consumption • International marketing • Marketing ethics education • Marketing research • Social marketing • Internet marketing • Law and ethics

5. Specific ethics related topics • Ethics and society • Ethical decision-making models • Ethical responsibility towards marketers ’ stakeholders • Ethical values • Norm generation and definition • Marketing ethics implementation • Relationship between ethics and religion • Discrimination and harassment • Green marketing • Vulnerable consumers

6. Deontological Theories: Deontological theories focus on the behaviors of the individual, specially the principles used to arrive at the ethical decision. In this perspective the focus is on the behavior itself and actions are judged by their inherent wrongness or rightness.

7. Teleological Theories : Teleologists place emphasis on perceived outcomes rather than behaviors. They propose that individuals should make judgments based on an evaluation of the likely consequences of their actions. Ethical egoism : suggests that individuals should act in their own interests, i.e. choose an act that results in the most favorable consequences for the individual.

8. Utilitarianism : strives to produce the greatest good for the greatest number of people. Here, an act should be judged on an evaluation of the balance of good consequences over bad consequences it provides for all individuals.

9. Laczniak and Murphy : have developed a set of perspectives to guide marketing activity. Their seven basic perspectives (BP) are as : BP1: Ethical marketing puts people first. BP2: Ethical marketers must achieve a behavioral standard in excess of the law. BP3: Marketers are responsible for whatever they intend as a means or ends as a marketing action. BP4: Marketing organizations should cultivate better (i.e. higher) moral imagination in their managers and employees. BP5: Marketers should articulate and embrace a core set of ethical principles. BP6: Adoption of a stakeholder orientation is essential to ethical marketing decisions. BP7: Marketing organizations ought to delineate an ethical decision Making protocol.

10. General Theory of Marketing Ethics model developed by Hunt and Vitell (see page 126 from text book) ETHICAL CRITICISMS OF MARKETING PRACTICE : Marketing Research and Segmentation : Marketing research is one of the key interfaces between an organization and its public. However, because it relies on collecting personal Information from individuals it is open to abuse. The potential ethical pitfalls of marketing research are numerous, both the practices of data collection and the subsequent use of this data present ethical challenges.

11. Advertising : Advertising is the area of marketing activity which has attracted the most criticism over the years. Research suggests that consumers innately distrust advertising. A review of consumer surveys on beliefs about advertising since the 1930s found that ‘70% think that advertising is often untruthful, it seeks (perhaps successfully) to persuade people to buy things they do not want, it should be more strictly regulated, and it nonetheless provides valuable information.

12. Product and Brand Management : Murphy et al. (2005, p. 82) identify a series of ethical issues in relation to product and brand management. In particular, they ask ‘what degree of disclosure does a product manager owe consumers who will be using the organization’s branded product? and what responsibilities do product managers and retailers have related to the social ramifications of their products. The issue of social responsibility becomes obvious when we think about potentially harmful products such as alcohol, tobacco and fast foods.