Ethical Issues in Marketing

posted prices .Pricing Issues ‡ ‡ ‡ ‡ ‡ ‡ Predatory pricing Vertical price fixing Horizontal price fixing Comparative price advertising Bait-and-switch Scanned vs.

Pricing Issues ‡ Price discrimination ± Inside channel systems ± Business to consumer .

Pricing Issues ‡ Price discrimination inside channel systems ± Justifications ‡ ‡ ‡ ‡ Differences in cost Differences in quality Changing market conditions To meet competition ± Deals must be offered on a ³proportionately equal basis´ .

Pricing Issues ‡ Business to consumer price discrimination ± First degree price discrimination (charging more to those who will pay it) ‡ Auto dealers ‡ Furniture ‡ Internet sites? .

Pricing Issues ‡ Business to consumer price discrimination ± Second degree price discrimination (charging different prices based on the nature of the offering) ‡ ‡ ‡ ‡ Multiple unit pricing Price bundling Coupons Rebates .

Promotional Issues ‡ False and misleading advertising ‡ Creating demand for vice or unwholesome products ± Tobacco? ± Alcohol? ± Fattening foods? ± Pornography or sexually explicit material? ‡ Intrusive promotions .

Channel Issues ‡ Slotting allowances ‡ Buyback / stocklift / lift-out ‡ Gray market merchandise ± Diverted merchandise ‡ ‡ ‡ ‡ Exclusive geographic territories Exclusive dealing agreements Tying contracts Refusal to deal .

cheap wine targeted to alcoholics and homeless people) ‡ Quality deterioration as a result of a harvesting strategy ‡ Planned obsolescence ‡ Counterfeit merchandise .g..Product Issues ‡ Products that create harm ± Targeted at disadvantaged groups (e.

Ethical Frameworks ‡ Moral idealism ± universal rights and obligations ‡ Utilitarianism ± the greatest good for the greatest number ‡ Social justice ± emphasis on fairness and equality for all individuals .

Stakeholders ‡ ‡ ‡ ‡ ‡ ‡ Stockholders Employees Customers Distributors Suppliers Society .

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