Ppt chapter 4

Principles of MarketingMKT3010

Chapter 4Marketing Ethics

Patricia Knowles, Ph.D.

Associate ProfessorClemson University

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Marketing EthicsThese are the learning objectives guiding the chapter and will be explored in more detail in the following slides.

Identify the ethical values marketers should embrace. Distinguish between ethics and social responsibility.Identify the four steps in ethical decision making.Describe how ethics can be integrated into a firm’s marketing strategy.Describe the ways in which corporate social responsibility programs help various stakeholders.

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Firm GoalsProfit is important to the success of the firm. But how the firm makes that profit can have a dramatic impact on the firm’s future.


Greed and short term profit seeking

Serious long term consequences

Creating value over the long run Long term success

Javier Pierini/Getty Images

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The Scope of Marketing Ethics


This YouTube video is a Miller ad for responsible drinking.

Business Ethics Marketing Ethics

http://www.youtube.com/watch?v=mLlKHjYeQ7I

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Attitudes About the Ethical Standards of Various ProfessionsMarketing is a very visible part of business. Often practices that are the result of other business functions will be attributed to marketing. Marketers need to stress the good things that they do and the value that the add to society. Also, by policing practitioners and sanctioning those who violate the various codes of ethics, etc., marketers can demonstrate that they are serious about ethical standards.


• Why do you feel marketers (advertising practitioners & salespeople) rank so low on this scale?

• What can marketers do to improve their ranking?

Jeffrey M. Jones, “Nurses Top Honesty and Ethics List for 11th Year,” Gallup, November 19–21, 2010, http://www.gallup.com/poll-145043/nurses-top-honesty-ethicslist-11-year.aspx

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Creating an Ethical Climate in the WorkplaceA strong ethical climate requires a commitment from the top down within the firm. Everyone within the firm must agree to a system of controls that rewards appropriate behavior and punishes inappropriate behavior.


Values• Establish• Share• Understand

Rules• Management commitment• Employee dedication

Controls• Reward• PunishmentStockbyte/Getty Images

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American Marketing Association Code of Ethics


Each sub-area within marketing, such as marketing research, advertising, pricing, and so forth, has its own code of ethics that deals with the specific issues that arise when conducting business in those areas.

Generally accepted code in marketing

Flows from general norms of conduct to specific values

Subareas within marketing have their own code of ethics to deal with specific issues

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The Influence of Personal EthicsIn many cases, ethics is in the eye of the beholder.


Genetics Family

Religion Values

Corbis/Jupiter images

Photo Disc/Getty Images ©Digital Vision Ltd.

©Royalty-Free/CORBIS Getty Images

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Why People Act Unethically

Are all the individuals who engage in questionable behavior just plain immoral or unethical?

What makes people take actions that create so much harm?

Decisions often have conflicting outcomes, where both options have positive and negative consequences

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Compelling Outcomes

Dangerous flaw in new model

Delay production

Delayed revenue

Possible layoffs

Loss of bonuses

Continue production

Potential injury to consumers

Loss of revenueDigital Vision/Getty Images

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The Link Between Ethics and Corporate Social Responsibility


Socially Responsible Socially Irresponsible

Ethi

cal

Une

thic

al

Both ethical and sociallyresponsible

Neither ethical norsocially responsible

Questionable firmpractices, yet donates a

lot to the community

Ethical firm not involvedwith the larger

community

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A Framework for Ethical Decision MakingThis concept is broken down in the next slides.


Step 1

• Identify Issues

Step 2

• Gather information and identify stakeholders

Step 3

• Brainstorm and evaluate alternatives

Step 4

• Choose a course of action

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Step 1: Identify IssuesIn a marketing research firm, ethical issues might include:• Data collection methods—not informing respondents that they are being observed• Hiding the true purpose of a study from respondents—telling them they are an independent research

company, but actually doing research for a particular politician.• Using results to mislead or even harm the public—results of a pharmaceutical study.


Marketing research

firm issues

Using results to mislead or

even harm the public

Data collection methods

Hiding the real purpose of the study

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Step 2: Gather Information and Identify Stakeholders


Identify all ethical issues and relevant legal information

Identify all relevant stakeholders and get their input on any identified ethical issues

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Step 3: Brainstorm and Evaluate Alternatives


The alternative solutions depend on the type of ethical issue and how the stakeholders are affected.

• Halt the market research project?

• Make responses anonymous?

• Instituting training on the AMA Code of Ethics for all researchers

Ryan McVay/Getty Images

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Step 4: Choose a Course of Action


Alternatives are then evaluated and a course of action is chosen. The chosen course represents the best solution for the stakeholders using ethical best practices.

Weigh the alternatives

Take a course of action

Digital Vision/Getty Images

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Check Yourself


1. Identify the stages in the ethical decision-making framework.

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Integrated Ethics into Marketing Strategy


As marketers, you must ask questions specific to each stage and examine those questions carefully before moving on to the next stage.

Planning Phase

Implementation Phase

Control Phase

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Planning Phase


By incorporating ethics into the firm’s mission statement, the firm sets a standard for its subsequent ethical decision making. The mission statement signals the firm’s strategic priorities.

• The mission or vision statement sets the overall ethical tone for planning.

• Mission statements can be used as a means to guide a firm’s SWOT analysis.

©M Hruby

2020

Newman’s Own: Donating Over $200 Million Since 1982The adding value 3.1 box features Newman’s Own Organics.


©Newman’s Own, Inc.

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Implementation Phase


Should the firm be targeting

this market with this product?

Should the firm be selling its product in this market in this

manner?

Should the firm be relocating

production to another country?

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Control Phase


1. Check successful implementation

2. React to change

Barbara Penoyar/Getty Images

Any plan requires constant evaluation and revision, and this truism applies particularly to the evaluation of ethical issues.

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Check Yourself


1. What ethical questions should a marketing manager consider at each stage of the marketing plan?

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Corporate Social Responsibility


• Employees• Their families

Employees

• Current customers

• Potential customers

Customers

• Community• Environment

Society

• Partners• Competitors

Marketplace

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Check Yourself


1. How has corporate social responsibility evolved since the turn of the twenty-first century?

2. Provide examples of each of the stakeholders that firms should consider in their corporate social responsibility efforts.

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Glossary


Corporate social responsibility describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

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