Introduction

Ethics can be simply defined as the principles of rightful conduct, which are responsible for shaping up people’s decisions as
well as those of organizations. All sectors of governance and operation are required to incorporate ethics in their system in
order to be successful. As such, ethical behavior is applicable in the health, businesses, political, and social sectors, among
the others.

In marketing, ethical behavior is applied by ensuring fairness when making moral marketing decisions (Hunt and Vitell 12).
Ethical behavior does not only create a good image of the organization in the society, but also fosters trust in the marketing
systems, hence attracting more customers, which is the main objective in marketing. Several demerits could come about
because of failure to apply ethical behavior in marketing.

For instance, organizations could be pressed by the government and the society with regard to their unethical behavior.
Since this could significantly affect the business enterprise, ethical behavior ought to be incorporated in the operation
systems of every business organization. This paper is, therefore, an analysis of ethical behavior in marketing by looking at
the various points where ethics is applied in the marketing systems.

Ethical behavior in marketing

Performing their marketing duties, marketers ought to be ethically responsible for their actions. This is the fact that marketing
is a wide sector in the business world; it is divided into various sub-groups all of which require to be ethically conducted.
These sub-groups include market research, advertising, promotions, pricing, and the target audience (Hunt and Vitell 6). In
this section, some of the expected ethical behaviors will be sampled in the aforementioned marketing subgroups.

Marketing research
This is an important part of marketing in which marketers invest in research and development in order to find out the market
demand. Thus, they determine if their intended products will do well. The information that is obtained from the conducted
researches is of great significance especially when it comes to marketing the products and services of any given business
enterprise.

Nevertheless, during the retrieval of the information from consumers, the latter may consider it as an invasion of their
privacy. This may in turn make some of the respondents resistant to revealing some pieces of their personal information.
When this happens, the marketers who are required to provide the data may end up exaggerating some of the information or
give out the wrong results in other cases.

As such, consumers are misled. This is a typical example of an area in research that requires the application of ethics. It is,
therefore, important that self-imposed ethical standards should be laid down in the research process so as to avoid
collection and issue of inaccurate information.

On the same note, it has been noted that some of the marketing tactics are normally designed in ways that exploit the
consumers. In this case, the marketers may practice stereotypical presentations that are offensive especially to the minority
market segment (Hunt and Vitell 10). These could take the form of questionable or harmful products as well as display of the
presentations that demean certain groups of people in terms of race, social class and color just to mention a few.

Marketing Audience
Different products and services in the market normally have their target audience. The target audience can be categorized in
terms of ages, gender, race, and social class, among other factors. For instance, a company producing a new variety of
sanitary towels will aim at the women as their target audience.

It will, therefore, be offensive to market the sanitary towels to the men since they do not use such commodities. Whenever
the public is offended by the way some marketers publicize their products or services, they may demand for the intervention
of governing authorities and in extreme cases lead to stopping of the marketing at once. It is in this regard that before the
promotional messages are displayed to the public, they have to be screened and tested to ensure that their content is not
offensive.

As such, the marketers have the ethical responsibility for editing their content to make sure that it meets the interest of their
target audience to avoid being offensive. They should also bear in mind that a group of people in the market who may not be
consumers can get offended with their marketing appeals regardless of how hard they try to screen and test their content.

Pricing

Most marketers have the habit of deceiving their consumers concerning the prices of their goods and services during
marketing. This is referred to as deceptive pricing.

In this case, the consumers pay high prices while they get low quality products and services. “Deceptive pricing could take
the form of misleading selling prices, omission of important terms of sale, false comparison of prices, and offering low prices
only when the commodity or service is purchased alongside other purchases” (Ruggiero 107).

In other instances, markers have been noted to offer low prices to poor quality or defective products. This is unethical as it
does not allow the buyer to know the condition of the product until the purchase is made.

Among other pricing tools that marketers use to deceive consumers and make them buy low quality products and services at
higher prices include price fixing, price wars, price discrimination, and big rigging.

Under big rigging, marketers manipulate the prices of the products or services to look cheap yet in real sense, they are the
same as the initial ones or even higher. For instance, some businesses reduce the quality of the product to a minimal
percentage but still charge the same price. This is unethical as it makes the consumers believe that they pay for the real
quality which is worse than it was.

Advertising and Promotion

Advertising and promotion are one of the key areas in which ethical behavior in marketing is ignored by marketers.
Advertising and promotion of goods and services manly involve direct interaction and sending messages concerning specific
goods and services to the targeted audience. It is ethical that marketers plan on what is to be conveyed through advertising
and promotions. This is because the target audience, which comprises of the consumers, is very sensitive to what is
conveyed to them in adverts and promotions. In addition to this, some images that are normally included in advertisements
can be offensive to the children, hence crating a very bad picture of the product and company advertising it. It is in this
regard that the media companies filter the advertisements such that those that are not appropriate for the children come late
in the evening after watershed (Ruggiero 98). Watershed is the name given to the time after 9 p.m. when children are
asleep, hence allowing the media to cast programs and advertisements targeted at the adults.

Honesty is another essential ethical behavior, which the marketers are required to possess. There are several cases in
which consumers have seen certain products in advertisements and promotions to look enticing, but when they buy the real
product from the retail shops, they find that it is of a lower quality.
This happens because the marketers take photos of nicely produced products, or in case of service promotions, they deliver
high quality services during the promotions only for consumers to get the favorable for the company’s impression. Marketers
normally use this as a way of enticing and attracting consumers with the notion that the products or services are of high
quality even when they are not.

Marketers have practiced negative advertising for a long time yet there are the governing authorities, which ought to regulate
and curb this behavior. However, even without the intervention of the governing authorities, the markets ought to know that
negative advertising is unethical and should be stopped in order to avoid consumer exploitation.

Conclusion
Given the above discussion on ethical behavior in marketing, it can be depicted that it is important that marketers practice
ethics when marketing their goods and services. This is because most of the unethical behaviors by marketers normally
exploit the consumers by deceiving them stating that they receive quality goods/ services for the price they pay (Ruggiero
107). It is, therefore, important that marketers practice ethics during all the stages of marketing right from market research,
pricing to advertising and promotions
Business ethics is one of the most complicated and contentious subjects in human history. The relationship between doing
the right thing and making money has been studied by both academics and business leaders for years with little concesus
reached. A survey by the Ethics Resource Center found that 43% of respondents believed their supervisors lacked ethical
integrity. One overriding question surrounds many business practices: what is the ethical way to sell things?

That question has never had a satisfactory answer, but in recent years it has become a hot button issue. According to the
Bureau of Economic Analysis, corporate profits soared to all time highs in 2011. At the same time, the world was suffering
through a crippling economic downturn made worse by unscrupulous business practices. The vast disparity between
corporations and their customers has made ethical business practices an extremely relevant issue.

Companies realize the importance of acting in more ethical way, and broadcasting this transformation to their customers.
One of the easiest ways to achieve this is through their marketing practices. If a company makes an effort to advertise more
ethically, it reflects positively on every area of that business.

What is ethical marketing

Ethical marketing is less of a marketing strategy and more of a philosophy that informs all marketing
efforts. It seeks to promote honesty, fairness, and responsibility in all advertising. Ethics is a notoriously
difficult subject because everyone has subjective judgments about what is “right” and what is “wrong.”
For this reason, ethical marketing is not a hard and fast list of rules, but a general set of guidelines to
assist companies as they evaluate new marketing strategies.

Principals of ethical marketing

 All marketing communications share the common standard of truth.

 Marketing professionals abide by the highest standard of personal ethics.

 Advertising is clearly distinguished from news and entertainment content.

 Marketers should be transparent about who they pay to endorse their products.

 Consumers should be treated fairly based on the nature of the product and the nature of the
consumer (e.g. marketing to children).

 The privacy of the consumer should never be compromised.

 Marketers must comply with regulations and standards established by governmental and
professional organizations.

 Ethics should be discussed openly and honestly during all marketing decisions.

There are distinct advantages and disadvantages to ethical marketing. Unethical advertising is often just
as effective as it is unethical. And since unethical behavior is not necessarily against the law, there are
many companies who use unethical advertising to gain a competitive advantage.
Many people buy diet pills even though they are rarely, if ever, effective. This is because some diet pill
companies use exaggerated and manipulative claims to essentially trick customers into buying these
products. If that same company committed to using ethical advertising they would probably go out of
business. However sneaky their business model may be, it is not illegal and it is keeping their doors
open.

For companies looking to improve the image of a brand and develop long-term relationships with
customers, this kind of unethical behavior can quickly lead to failure. Customers do not want to feel
manipulated by the brands they like. Companies can use ethical marketing as a way to develop a sense
of trust among their customers. If a product lives up to the claims made in its advertising, it reflects
positively on the entire company. It can make the consumer feel like the company is invested in the
quality of the products and the value they provide customers.

It is impossible to claim that any company is completely ethical or unethical. Ethics resides in a gray area
with many fine lines and shifting boundaries. Many companies behave ethically in one aspect of their
advertising and unethically in another.

Dove soap, for instance, ran a widely seen ad campaign featuring “real” models. The ad was meant to
promote realistic body images and encourage girls to love the way they looked even if they were not
supermodels. However, other Dove ads both during and since featured stereotypically beautiful models
whose images have been altered to hide imperfections. Dove marketed ethically in one campaign and
unethically in another. This illustrates how difficult it is to do the right thing in all circumstances. What is
most important for any company that claims to practice ethical advertising is to make it a fundamental
feature of their marketing process. With every decision they must ask themselves “will this sell” and “is
this the ethical way to sell it?”

Types of unethical advertising

 Surrogate Advertising – In certain places there are laws against advertising products like
cigarettes or alcohol. Surrogate advertising finds ways to remind consumers of these products
without referencing them directly.

 Exaggeration – Some advertisers use false claims about a product's quality or popularity. A
Slogan like “get coverage everywhere on earth” advertises features that cannot be delivered.

 Puffery – When an advertiser relies on subjective rather than objective claims, they are puffing
up their products. Statements like “the best tasting coffee” cannot be confirmed objectively.

 Unverified Claims – Many products promise to deliver results without providing any scientific
evidence. Shampoo commercials that promise stronger, shinier hair do so without telling
consumers why or how.

 Stereotyping Women – Women in advertising have often been portrayed as sex objects or
domestic servants. This type of advertising traffics in negative stereotypes and contributes to a
sexist culture.
 False brand comparisons – Any time a company makes false or misleading claims about their
competitors they are spreading misinformation.

 Children in advertising – Children consume huge amounts of advertising without being able to
evaluate it objectively. Exploiting this innocence is one of the most common unethical marketing
practices.
5 Most Important Reasons for Ethical Behaviour in Marketing– Explained

1. Well – being of consumers:

Management should be concerned with the well- being of consumers, since they are the lifeblood of a
business. Ethical behaviour in marketing strategies, policies and campaigns ensure acknowledgment of
consumer’s interests.

2. Role of business leaders in marketing:

Marketing activities should not be interpreted wrongly by public as consisting of misleading packaging
labels, false claims in ads, phony list prices, and infringements of well established trademarks.

3. Reduced Government regulations:

Unethical marketing behaviour increases the probability of government control on business. Most of the
Governmental limitations on marketing are the result of management’s failure to maintain its ethical
responsibilities in marketing.

4. Regain social power:

Marketing executives manage a great deal of social power as they influence the markets and speak out
an economic issue. However, there is responsibility tied to that power. If marketing executives do not
use their power in a socially acceptable manner, that power will be lost in the long run.

5. Boost public image:

Buyers form an opinion about the entire organization on the basis of their contact with one person i.e.
the person who represents the marketing function (e.g. A sales clerk for retail store) Ethical marketing
behaviour can protect and improve the image of the enterprise.
Business Ethics and Marketing: Definition, Principles and Needs
Business (or marketing) ethics are the moral principles generally found in forms of formulas, songs,
anecdotes, statements, or words that indicate direct or indirect lessons or guidelines that
businessmen have to observe while dealing with various interested parties. Business ethics and
marketing seem clashing. But, it is not the case always. Nowadays, due to competition, consumer
awareness, government compulsion, and self-restrictions imposed by the regulating body for the
relevant associations, marketers have started observing business ethics in marketing practices.

Marketing ethics are meant for ensuring fair dealings with marketing participants – customers,
dealers, employees, government, and the society. Consumerism, a social movement, is directed
toward compelling the marketing managers to practice such ethics. Ethics are either observed
voluntarily or are forced by the Law. In order to protect consumer rights (for example, right to know,
right to complain, right to be heard, right to safety, etc.) and ensure consumer welfare, government of
India has formulated at least 30 Laws, of which, most of them have been amended several times to
match the contemporary situations.

Definitions:

In fact, it is not possible to define marketing ethics in the exact words as they exert many loose
implications. There can be several definitions of marketing ethics.

In simple words, we can say:

Business ethics are standards or moral principles to judge right or wrong. They determine system of
conduct or behaviour of businessmen in relation to customers and others parties involved in business
activities. Ethics can be expressed in a variety of forms. It can be said: Business ethics are the moral
principles generally found in forms of formulas, songs, anecdotes, statements, or words that indicate
direct or indirect lessons or guidelines that businessmen have to observe while dealing with various
parties.

In the same way:

Marketing/business ethics are the business conditions that a marketer is required to observe while
dealing with customers and other participants. The ethics are self-observed or imposed by relevant
bodies for the benefits of customers and society as a whole.

At last, we can say:

the welfare of consumers, and fair dealing with all other parties involved in marketing transactions.

Some Business Ethics:

There are a number of moral principles prescribed by different associations and governments. They
include:
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1. Do not cheat customers by defective or inferior products.

2. Avoid black marketing, hoarding, profiteering and speculation for the interest of buyers.

3. Refrain from unhealthy competition, or promote healthy competition.

4. Ensure honesty and precision while packaging, labeling, and advertising the products.

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5. Do not defame the image and reputation of other rival firms by improper methods.

6. Create and maintain up-to-date records of economic transactions and produce them when asked by
the relevant authority.

7. Pay taxes and duties honestly in time.

8. Discharge social responsibilities towards suppliers, governments, investors, employees, service

providers, etc.

9. Do not make any contracts with others that affect adversely the long-term social interest and
welfare of people. Do not work against national interest.

10. Extend all possible support and cooperation to the governments in implementing social and
economic plans.

11. Contribute liberally for promoting socially significant activities.

12. Protect ecological environment in all possible ways

who form and promote business ethics?

Various parties can contribute to formulation (development) and promotion of business ethics.
Particularly, globally recognized organisations (like the WHO, the World Bank, the UNO, the UNESCO,
the UNICEF, etc.), non-government organisations (NGOs), trade unions, governments, relevant
associations of business units and industries, professionals, spiritual organisations and religious leaders,
active and established political parties, academic and training institutes, business organisations (their
founders/pioneers and managing bodies), customer organisations, any other registered or non-
registered body of people, and a common man can have valuable direct or indirect contribution in
development and promotion of business ethics. Business ethics are promoted through general or
specific circulars, bulletins, reposts, speeches of well-known personalities, and all other mass media.

Needs and Objectives of Business Ethics in Marketing:

Business ethics are special type of regulatory guidelines. They are vital for making business operations
more authentic. Today’s marketing practices are full of deceptive packing, ambiguous offers,
exaggerated advertising, and aggressive selling. Some marketers practice several unfair tactics to attract
customers in pursuit of sales volumes and profits. Business ethics restrict these all things. Their presence
and compulsion to follow them make a lot of difference in marketing activities. Business ethics are
necessary for marketer as well as consumers. They have many direct or indirect purposes.

Some common purposes may include the followings:

1. To prevent malpractices in business. Ethics make business activities more authentic.

2. To ensure uniformity in marketing practices among various business enterprises throughout the
country.

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3. To make marketers more aware, sensible, and liable to customers and society as a whole.

4. To ensure confirmation of marketing practices with the contemporary legal framework.

5. To enforce government, voluntary social organisations, and others to be alert regarding long-term
interest and welfare of society.

6. To assist government to formulate necessary legal provisions and enforce the marketers to obey
them.

7. To distinguish ideal firms from exploiting firms. They facilitate in taking needed actions against those
firms indulging malpractices.

8. To decide on rewards, awards, certificates, prizes, and other encouragements for deserving business
firms.