chap03=ethical & environmental issue

8/9/2019 Chap03=Ethical & Environmental Issue

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Ethical, Regulatory, and

Environmental Issues


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Ethical Issues in Marketing CommunicationsEthical Issues in Marketing Communications

Ethics in MarcomEthics in Marcom Involves matters of right and wrong, orInvolves matters of right and wrong, ormoralmoral, conduct, conduct

pertaining to any aspect of marketing communicationspertaining to any aspect of marketing communications

Honesty, honor, virtue, integrityHonesty, honor, virtue, integrity

Ethical ConductEthical Conduct

Lack ofLack ofconsensusconsensus about what it isabout what it is

Ethical lapses and moral indiscretions occur underEthical lapses and moral indiscretions occur under

pressures of trying to meetpressures of trying to meet business goalsbusiness goals andandattempting to satisfy the demands of theattempting to satisfy the demands of the financialfinancial

communitycommunity


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Sources of Ethical IssuesSources of Ethical Issues

Ethical Issues in

Marketing Activities and

Communications

Advertising

Targeting Marcom

Public Relations

Internet Marketing

Sales Promotions

Packaging

Communications


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The Ethics ofTargetingThe Ethics ofTargeting

Ethical DebateEthical Debate

Is it ethical to targetIs it ethical to target

products andproducts andcommunications efforts tocommunications efforts to

segments that aresegments that are

vulnerable or put at risk byvulnerable or put at risk bythese actions?these actions?


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The Ethics ofTargetingThe Ethics ofTargeting

Targeting Food and

Beverage Products

Targeting Tobacco and

Alcohol ProductsTargeting Miscellaneous

Products

Ethical Issues in

Targeting Children

and Teens


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Targeting to Economically DisadvantagedTargeting to Economically Disadvantaged

ConsumersConsumers

Billboards advertising tobaccoBillboards advertising tobacco

and alcohol disproportionatelyand alcohol disproportionately

appear in innerappear in inner--city areascity areas


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Ethical Issues in AdvertisingEthical Issues in Advertising

Advertising Creates

Stereotypes

Advertising Persuades

People to Buy Things

They Do Not Need

Advertising Plays on

Peoples Fears and

Insecurities

Criticisms of

Advertising

Advertising Is Untruthful

Advertising Is

Manipulative

Advertising Is Offensive


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Ethical Issues in Public RelationsEthical Issues in Public Relations

PublicityPublicity IInvolves scatter positive information about a firm andnvolves scatter positive information about a firm and

its products.its products.

Like advertisingLike advertisingthe same ethical issues applythe same ethical issues apply

Negative PublicityNegative Publicity

When firms confess to product shortcomings andWhen firms confess to product shortcomings and

acknowledge problems or, instead, attempt to coveracknowledge problems or, instead, attempt to cover

up the problemsup the problems


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Ethical Issues in Packaging and BrandingEthical Issues in Packaging and Branding

Label Information

Packaging Safety

Packaging Graphics

EnvironmentalImplications

Packaging and

Branding

Ethical Issues

Brand Naming and

Brand Name Theft


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Ethical Issues in Sales PromotionsEthical Issues in Sales Promotions

Sales PromotionsSales PromotionsManufacturer promotions directed at wholesalers andManufacturer promotions directed at wholesalers and

retailers and to consumersretailers and to consumers

Slotting AllowancesSlotting Allowances

Manufacturers have to pay retailers to handle a newManufacturers have to pay retailers to handle a new

productproductIs this a form of bribery and is it unethical?Is this a form of bribery and is it unethical?


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Ethical Issues in Online MarketingEthical Issues in Online Marketing

Consumer Privacy IssuesConsumer Privacy IssuesConsumers privacy rights to personal information andConsumers privacy rights to personal information and

shopping behaviors collected by online marketersshopping behaviors collected by online marketers

Security of personal information collected onlineSecurity of personal information collected online

Selling of personal information to other parties withoutSelling of personal information to other parties without

consent of consumerconsent of consumer

Bogus positive product evaluations and blogsBogus positive product evaluations and blogs


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Fostering Ethical Marketing CommunicationsFostering Ethical Marketing Communications

The ProfessionalThe Professional

Ethics TestEthics Test

Take only actions that would be viewed as proper by

an objective panel of your professional colleagues

The Golden RuleThe Golden RuleAct in a way that you would want others to act

toward you

The TV testThe TV testWould l feel comfortable explaining this action on

television to the general public?


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Regulation of Marketing CommunicationsRegulation of Marketing Communications

The Advertising Standards Council of India (ASCIThe Advertising Standards Council of India (ASCI--http://www.ascionline.org/http://www.ascionline.org/) (1985) has adopted a) (1985) has adopted a

Code forSelfCode forSelf--Regulation in Advertising.Regulation in Advertising.

It stands for the protection of the legitimateIt stands for the protection of the legitimate

interests ofinterests ofconsumersconsumers and all concerned withand all concerned with

advertisingadvertising -- aadvertisers, media, advertisingdvertisers, media, advertising

agenciesagencies and others who help in the creation orand others who help in the creation or

placement of advertisementsplacement of advertisements

Fewer false, misleading claimsFewer false, misleading claims

Fewer unfair advertisementsFewer unfair advertisements

Increasing respectabilityIncreasing respectability


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Under Socities Registration Act, 1860 in

Bombay.


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Environmental Marketing CommunicationsEnvironmental Marketing Communications

Legitimate Green MarketingLegitimate Green Marketing Is a firms introduction of environmentally orientedIs a firms introduction of environmentally oriented

products and its undertaking of marcom programs toproducts and its undertaking of marcom programs to

promote thempromote them

Seeks to accomplish two objectives:Seeks to accomplish two objectives:

Improve environmental qualityImprove environmental quality

Satisfy customersSatisfy customers


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Green Advertising

Presenting an

Image of

Environmental

Responsibility


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Green Advertising

Promoting a Green

Lifestyle

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