POWER POINT PRESENTATION

ON
ETHICS IN MARKETING
 MARKETING ETHICS

Marketing ethics is the area of

applied ethics which deals with the
moral principles behind the operation
and regulation of marketing.
 WHY ETHICS ARE IMPORTANT
 Ethics are important due to they tell
marketer what is right or wrong or good or
bad.
 Ethics are important for person to spend
his life with satisfaction as ethics
means to do right thing.
 FRAMEWORK OF ANALYSIS
OF MARKETING ETHICS
 Value – oriented framework

 Stakeholder-oriented framework

 Process – oriented framework

 Value –Oriented framework
 Value-oriented framework, analyzing
ethical problems on the basis of the
values which they infringe (e.g.
honesty, autonomy, privacy,
transparency). An example of such an
approach is the AMA Statement of
Ethics.
 American Marketing Association Code of
Ethics
 Stakeholder-oriented framework

 Stakeholder-oriented framework,
analyzing ethical problems on the
basis of whom they affect (e.g.
consumers, competitors, society as a
whole).
Ronald McDonald House
Concerned for ill children
 Process – oriented framework

 Process-oriented framework,
analyzing ethical problems in terms of
the categories used by marketing
specialists (e.g. research, price,
promotion, placement).
 SPECIAL ETHICAL ISSUES IN
MARKETING
 Pricing Issues

 Promotional Issues

 Channel Issues

 Product Issues
 PRICING ISSUES
List of unethical pricing practices.
 price fixing
 price skimming
 price discrimination
 variable pricing
 predatory pricing
 price war
 bid rigging
 dumping (pricing policy)
 PROMOTIONAL ISSUES
 False and misleading advertising
 Negative advertising
 Creating demand for vice or
unwholesome products
 Intrusive promotions
 CHANNEL ISSUES
 Slotting allowances
 Gray market merchandise
 Exclusive geographic territories
 Exclusive dealing agreements
 Refusal to deal
 Product Issues
 Products that create harm
 Targeted at disadvantaged groups (e.g.,
cheap wine targeted to alcoholics and
homeless people)
 Wasteful & unnecessary packaging
 Unsafe products
 Omit information
 Incomplete testing of product
 ETHICAL VALUES

HONESTY

RESPECT RESPONSIBILITY

ETHICAL VALUES

OPENNESS FAIRNESS
 HONESTY
 tell the truth in all situations and at all
times
 offer products of value that producer claim
in communications.
 honorexplicit and implicit commitments
and promises
 RESPONSIBILITY

make strenuous efforts to serve the needs
of customers.
  acknowledge the social obligations to
stake holders that come with increased
marketing and economic power.
 recognize special commitments to
economically vulnerable segments of the
market such as children, the elderly and
others who may be substantially
disadvantaged.
 FAIRNESS
 Represent products in a clear way in
selling, advertising etc
 avoid manipulations and sales tactics that
harm customer trust.
 not engage in price fixing, predatory
pricing,“bait-and-switch” etc tactics.
 RESPECT

 avoid stereotyping customers

 listen to the needs of customers
 special effort to understand suppliers,
intermediaries, and distributors from other
cultures.
 OPENNESS
 strive to communicate clearly
 fully disclose list prices and terms of
financing as well as available price deals
and adjustments.
 explain significant product or service risks
 IMPLEMENTATION
Finally, we recognize that every industry
sector and marketing subdiscipline has its
own specific ethical issues that require
policies. An array of such codes can be
accessed through links on the AMA Web
site, Direct Marketing Association,
Marketing Research Association etc.
which should be followed by the marketer