ETHICS

IN

MARTEKING
What is ethics?


Ethics is the art and science of determining
good and bad or right and wrong moral
behavior.

What is MARKETING?


Marketing is the science and art of exploring,
creating, and delivering value to satisfy the
needs of a target market at a profit.
- Philip Kotler
Marketing Ethics:

Marketing ethics is an
area that deals with the
moral principles behind
marketing. Ethics in
marketing applies to
different spheres such as
in product, pricing,
Placing (Distribution),
promotion & advertising
etc...
Why we need Ethics in Marketing?

We can give many reasons but will notify some:
When an organization behaves ethically,
customers develop more positive attitudes
about the firm, its products, and its services.
To create Values or trust with key
stakeholders
To build good image about the organization
in the minds of customer, employees,
shareholders and the society.
Nestles Case Study
Nestl boycott

The Nestl boycott is a boycott launched on July 7, 1977, in
the United States against the Swiss-based Nestl
corporation. It spread quickly throughout the United States,
and expanded into Europe in the early 1980s.
In Canada, the controversy lasted from 1978 to 1984. It was
prompted by concern about the Nestle's promotion of
breast milk substitutes (infant formula), particularly in less
economically developed countries (LEDCs), which
campaigners claim contributes to the unnecessary suffering
and even deaths of babies, largely among the poor.

Ethical Issues in Marketing:

We discuss Marketing issues by using 4PS OF
MARKETING:
PRODUCT & PACKAGING
PRICE
PLACING (DISTRIBUTION)
PROMOTION (ADVERTISING & BRANDING)
Product
Consumer safety
Product liability and reliability
Designing for special needs

Packaging
Label information
Packaging graphics
Packaging safety
Environmental
implication of
packaging
Price: Second P of Marketing
Bid rigging

Supra competitive pricing

Price fixing

Price skimming

Predatory pricing

Price war

Dumping (pricing policy)

Variable pricing

PLACING (DISTRIBUTION)
Product distribution (or place) is one of the
four elements of the Marketing MIX.
Distribution of product or service is
transporting them from manufacture to
stockiest, wholesalers, retailer and then to
consumers.
Ethical questions may also arise in the
distribution process.
Because sales performance is the most common
way in which marketing representatives and sales
personnel are evaluated.
performance pressures exist that may lead to
ethical dilemmas. For example: pressuring
vendors to buy more than they need and pushing
items that will result in higher commissions are
temptations.

Ethical issues in distribution
Many retailers sell products that have crossed
expiry date is unethical.

Exerting influence to cause vendors to reduce
display space for competitors' products is
unethical.

promising shipment when knowing delivery
is not possible by the promised date is also
unethical.

Paying vendors to carry a firm's product rather than
one of its competitors are also unethical.


Most drug stores would give too many drugs
without prescription from a qualified doctor are also
unethical.


Products are moved in unsafe vehicles ,are also
unethical.

PROMOTION (ADVERTISING
&BRANDING)

Promotion is one of the four elements of
marketing mix (product, price, promotion, place).
It is the communication link between sellers and
buyers for the purpose of influencing, informing,
or persuading a potential buyer's purchasing
decision.
To present information to consumers as well as
others
To increase demand
To differentiate a product
Ethical Issues in Advertising
Puffery
Advertising to Children
Promoting Unhealthy Products
Subliminal Advertising
Deceptive Advertising





THANK YOU!!!!