Ethics in marketing

ethics in marketing research

1. ETHICS IN MARKETING RESEARCH
INTRODUCTION
Ethical marketing is about making marketing decisions that are morally right. The
morality of the marketing decision can be seen in any part of marketing including
sourcing of raw materials, staff employment and product advertising and pricing.
Unethical marketing can send wrong signals about the products and services, destroy
the brand’s reputation, and possibly lead to legal problems. This explains why the
companies should avoid unethical practices.
What is ethics?
Ethics is the art and science of determining good and bad or right and wrong moral
behavior of a single or group of people.
What is MARKETING?
Marketing is the science and art of exploring, creating, and delivering value to satisfy
the needs of a target market at a profit. - Philip Kotler
Marketing Ethics:
Marketing ethics is an area that deals with the moral principles behind marketing.
Ethics in marketing applies to different spheres such as in product, pricing, Placing
(Distribution), promotion & advertising etc...
Why we need Ethics in Marketing?
There are many reasons but will notify some:
 When an organization behaves ethically, customers develop more positive
attitudes about the firm, its products, and its services.
 To create Values or trust with key stakeholders

2.  To build good image about the organization in the minds of customer,
employees, shareholders and the society.
Ethical Issues in Marketing:
We discuss Marketing issues by using 4P’S OF MARKETING:
 PRODUCT & PACKAGING
 PRICE
 PLACING (DISTRIBUTION)
 PROMOTION (ADVERTISING & BRANDING)
Product
 Consumer safety
 Product liability and reliability
 Designing for special needs
Packaging
 Label information
 Packaging graphics
 Packaging safety
 Environmental implication of packaging
Price: Second P of Marketing
 Bid rigging
 Supra competitive pricing
 Price fixing
 Price skimming
PLACING (DISTRIBUTION)

3.  Product distribution (or place) is one of the four elements of the Marketing
MIX.
 Distribution of product or service is transporting them from manufacture to
stockiest, wholesalers, retailer and then to consumers.
Unethical Practices
 Many retailers sell products that have crossed expiry date is unethical.
 Exerting influence to cause vendors to reduce display space for competitors'
products is unethical.
 Promising shipment when knowing delivery is not possible by the promised
date is also unethical.
 Paying vendors to carry a firm's product rather than one of its competitors are
also unethical.
 Most drug stores would give too many drugs without prescription from a
qualified doctor are also unethical.
 Products are moved in unsafe vehicles ,are also unethical.
PROMOTION (ADVERTISING &BRANDING)
 Promotion is one of the four elements of marketing mix (product, price,
promotion, place). It is the communication link between sellers and buyers for
the purpose of influencing, informing, or persuading a potential buyer's
purchasing decision.
 To present information to consumers as well as others
 To increase demand
 To differentiate a product
Ethical Issues in Advertising
 Puffery ( Nothing to support the fact. )
 Advertising to Children

4.  Promoting Unhealthy Products
 Subliminal Advertising
 Deceptive Advertising
Ethics in Consumer Protection
What is Consumer Protection ?
Consumer: refers to any individuals or households that use goods and services
generated with in the economy.
Consumer Protection: a concept that are designed to ensure fair competition and the
free flow of truthful information in the marketplace.
• Consumer Protection laws : laws designed to prevent businesses that engage in
fraud or specified unfair practices from gaining and advantage over competitors and
provide additional protection for the weak for those unable to take care of
themselves.
Ethics in Marketing in Consumer Protection
Market is flooded with duplicate goods having fake labels for selling drugs, food
stuffs, consumables like agarbatis, suparis etc. followed by misleading advertisements.
This result in disrepute for the products of good companies even though such fake
goods are small in quantities.
Who is responsible for consumer protection?
 Responsibility of Business
 Responsibility of Consumer
 Responsibility of Government
Responsibility of Business

5. The business including producers and traders have to due regard to consumer rights
as it is their social responsibility. They have to come out with quality goods at
reasonable prices.
Responsibility of Consumer
All efforts regarding consumer protection will not produce desired results if
consumerism is not accepted as a means of asserting and enjoying their rights.
Responsibility of Government
Innocent and helpless consumers should be protected by the Government through
enacting legislations. Government will have to set its own priorities for the protection
consumer’s right.
Consumer Protection Act,1986
 Better protection of interests of consumer.
 Protection of rights of consumers.
 To prevent practices having adverse effect on competition.
 To promote and sustain competition on market.
 To protect the interests of consumers.
Scope of Consumer Protection
 Applies to whole India.
 Applies to all type of goods and services, public utilities and public sector
undertakings.
 All types of complaints relating to goods, unfair trade pictures.
Who can file complaint ?
 The consumer to whom the goods are sold or delivered or agreed to be sold
are delivered or the service has been provided or agreed to be provided.

6. SIGNIFICANCE OF MARKETING ETHICS
1. Building Customer Loyalty
2. Retaining Good Employees
3. Positive Work Environment
4. Avoidance of Legal Problems
5. Goodwill and Publicity
6. Financial Advantage
7. Competitive Advantage
8. Moral Obligations

8. Ethical Issues in Marketing Research
 Excessive interviewing
 Lack of consideration
 Abuse of respondents
 Delivering sales pitches under the guise of marketing research
 Incomplete reporting of results
 Misleading reporting of results

9.  Nonobjective research
 Use of data and the confidentiality of information collected