MARKETING ETHICS

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MARKETING ETHICS

• DIRECT MARKETING COMMUNICATION
• Week 2
• MKT 306J2

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• An ethical issue is an identifiable problem,
  situation or opportunity requiring an individual
  or organisation to choose from among several
  actions that must be evaluated as right or wrong,
  ethical or unethical.
• Any time an activity causes consumers to feel
  deceived, cheated or manipulated, a marketing
  ethical issue exists regardless of the legality
  of that activity.
• Paul Smith Marketing Communications, 1997

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ETHICS

• The study of good and right conduct.
• Fairness
• Justice
• Trust

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• Marketing ethics defined
• 1. Marketing ethics are moral principles that
  define right and wrong behaviour in marketing.
• 2.Marketing ethics go beyond issues that have
  been formalised through laws and regulations to
  conform to societys standards, ethical marketing
  decisions foster mutual trust.

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• Marketing ethics are controversial
• 1. Views on what is ethical or unethical depend
  on the nature of the organisation, life
  experiences and personal values.
• 2.Regardless of how a person or organisation
  views a particular activity, if society judges it
  wrong or unethical, this view affects the
  organisations ability to achieve its goals.

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Factors that influence the ethical decision
making process
Ethical Decisions
Personal Moral Philosophies
Organisational Relationships
Opportunity
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ETHICAL ISSUES IN MARKETING

• Ethical Issues Defined
• 1. An ethical issue is an identifiable problem,
  situation or opportunity requiring an individual
  or organisation to choose from among several
  actions which must be evaluated as right or wrong
  ethical or unethical.
• 2. Ethical issues may stem from conflicts between
  a marketers attempt to achieve organisational
  objectives and customers desires for safe and
  reliable products.

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DIRECT MARKETING TOOLS

• DIRECT MAIL
• TELEMARKETING
• DOOR-TO-DOOR SELLING
• DIRECT RESPONSE ADVERTISING
• COMPUTERISED HOME SHOPPING
• HOME SHOPPING NETWORKS
• MISCELLANEOUS (stuffers,inserts,leaflet drops)

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PROMOTION ISSUES

• Advertising - abuses can include exaggerated
  claims, concealed facts and outright lying.
• Sales promotion - misleading copy, prices,
  rigged contests, luring customers to the
  store with a bargain which is out of stock.

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PROMOTION ISSUES

• Personal selling - high pressure selling,
  questionable tactics, cowboy
  salesmen, bribery, use of lease
  rental agreements.
• Public Relations - Exaggerating facts, use of
  contacts, use of advertorial

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DIRECT MARKETING ETHICAL ISSUES

• Clashes between what consumers want and
  organisational policies.
• INVASION OF PRIVACY
• UNSOLICTED GOODS
• JUNK MAIL
• MISUSE OF MAILING LISTS

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ETHICS

• Controls
• Self Regulation - DMA
• Legislation - UK EC
• Company Corporate Measures

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DIRECT MARKETING ASSOCIATIONCode of Practice

• Ethics - Honesty, Clarity, Legality
• Professionalism - Quality, Training, Competence
• Terms - Special Offers
• Product safety
• Use of mailing lists
• Telephone marketing