PBS 242: Fundamentals of

Marketing

Ethical Marketing Communication

Learning Objectives
By the end of the, you should be able to:
• Define ethical marketing.
• Discuss the importance of ethical marketing.
• Explain Ethical concerns in marketing, the dos and
don'ts of ethical marketing.
• Discuss advertising, misrepresentation and public
relations campaigns.
 Ethical Marketing
Ethical marketing refers to the practice of promoting
and advertising products or services using ethical
principles and values. It involves ensuring that
marketing strategies, tactics, and communication
adhere to moral standards, fairness and transparency.
Ethical marketing prioritizes honesty, integrity, and
social responsibility in all aspects of the marketing
process.
 Key Principles of Ethical Marketing
Honesty and Transparency: Providing accurate and
truthful information about products or services,
avoiding deceptive practices or misleading claims.
Fairness: Treating customers, competitors, and
stakeholders fairly and equitably, avoiding unfair
business practices.
Respect for Consumer Rights: Respecting and
protecting the rights of consumers, including privacy
and the right to make informed choices.
 Key Principles of Ethical Marketing
Social Responsibility: Considering and addressing
the broader impact of marketing activities on society,
the environment, and communities.
Authenticity: Building and maintaining an authentic
brand image that aligns with the values and actions o
the organization.
Environmental Sustainability: Incorporating
sustainable practices and minimizing the
environmental impact of marketing activities.
 Importance of Ethical Marketing
• Builds Trust and Credibility: Ethical marketing
practices foster trust between businesses and
consumers. When customers believe that a company
operates with integrity and honesty, they are more
likely to trust its products, services, and
communications.
• Positive Brand Image: Ethical marketing contributes
to a positive brand image. Consumers often prefer
brands that align with their values and demonstrate a
commitment to ethical and socially responsible
practices.
 Importance of Ethical Marketing
Customer Loyalty: Ethical behaviour creates a sense of loyalty
among customers. When consumers trust a brand to act in their
best interest, they are more likely to remain loyal and make
repeat purchases.
Legal Compliance and Risk Mitigation: Adhering to ethical
marketing practices helps businesses comply with laws and
regulations. Ethical conduct reduces the risk of legal issues,
fines, and damage to the company’s reputation.
Competitive Advantage: Ethical marketing can provide a
competitive advantage. In a market where consumers are
increasingly conscious of ethical considerations, businesses that
prioritize ethical practices may stand out from their competitors.
 Ethical Concerns in Marketing
Ethical concerns in marketing arise from practices that may
be perceived as morally questionable or that could potentially
harm consumers, competitors, or the broader society. Some
common ethical concerns in marketing include:
• Deceptive Advertising: Providing false or misleading
information about a product or service, exaggerating its
benefits, or using deceptive imagery to create a false
impression.
• Unfair Competition: Engaging in practices that
undermine fair competition, such as spreading false
information about competitors or engaging in anti-
competitive behaviours.
Ethical Concerns in Marketing
Unsolicited Marketing: Sending unsolicited emails,
messages, or phone calls without the consent of the
recipient, also known as spam, can be invasive and lead to
privacy concerns.
Data Privacy and Security: Mishandling or misusing
consumer data, violating privacy regulations, or failing to
secure sensitive information can raise significant ethical
concerns.
Cultural Insensitivity: Developing marketing materials
that perpetuate stereotypes, offend cultural sensibilities, or
lack sensitivity to diverse backgrounds and perspectives.
 Do’s of Ethical Marketing
Transparency: Provide accurate and clear information
about your products or services.
Honesty: Be truthful in your advertising and avoid
misleading claims.
Customer Privacy: Respect and protect customer privacy
by securing their data.
Fair Pricing: Ensure fair and transparent pricing practices
without hidden fees or deceptive pricing strategies.
Social Responsibility: Demonstrates commitment to
social and environmental issues through ethical business
practices.
 Don’ts of Ethical Marketing
Deception: Avoid deceptive practices such as false
advertising or misleading claims.
Exploitation: Refrain from exploiting vulnerable groups or
creating fear-driven marketing campaigns.
Privacy Violations: Respect customer privacy and avoid
unauthorised use of personal data.
Unfair Competition: Steer clear of tactics that harm
competitors unfairly or involve unethical business practices.
Bait-and-Switch: Never engage in bait-and-switch tactics
where a product or service is misrepresented to lure
customers.
 Advertising
• Advertising in ethical marketing communication
involves promoting products or services while adhering
to moral principles and social responsibility.
• It emphasizes transparency, honesty, and respect for
consumers. Ethical advertising avoids deceptive
practices, ensures the accuracy of information, and
considers the potential impact on society and the
environment.
• The goal is to build trust, foster positive relationships
with consumers, and contribute to the overall well-
being of individuals and communities.
 Misrepresentation
Misrepresentation in ethical marketing communication
refers to presenting information in a way that is deceptive,
misleading, or inaccurate.
This unethical practice involves distorting facts,
exaggerating benefits, or withholding important details to
manipulate consumer perceptions.
It undermines trust and transparency, as consumers may
make purchasing decisions based on false or incomplete
information.
Companies that engage in misrepresentation risk damaging
their reputation and may feel legal consequences for
deceptive advertising practices.
 Public Relations (PR) Campaigns
Public Relations (PR) campaigns are strategic efforts
to manage and improve the image, perfection, and
relationships of an individual or organisation with its
target audience, stakeholders, and the public.
These campaigns are designed to create positive
publicity, build brand awareness, and address any
potential issues or crises.
 Key Elements of Public Relations (PR)
Strategic Communication: PR involves planning and
executing communication strategies to convey a
consistent and positive message to the target audience.
Media Relations: Building and maintaining
relationships with journalists and media outlets to
secure positive media coverage for the organisation.
Crisis Management: Developing plans and strategies
to handle unforeseen crisis or negative situations that
could impact the organisation’s reputation.
Key Elements of Public Relations (PR)
Reputation Building: Creating and maintaining a
positive image by highlighting the organisation’s
values, achievements, and contributions.
Stakeholder Engagement: Engaging with various
stakeholders, including customers, employees,
investors, and the community, to build strong
relationships and address their concerns.
Community Relations: Building ties with the local
community through sponsorships, partnerships, and
involvement in community initiatives.