Ethical issues in marketing mix ppt

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Ethical issues in marketing mix ppt

We use cookies to give you the best experience possible. Ethical Issues Affecting Each Component of the Marketing Mix Ethical issues in businesses among other related issues like conflicts or success revolves around relationships. Key player in this case include shareholders, investors, customers, suppliers and managers who are responsible for the development of strategies aimed at attaining success Carroll et al The board of directors in every business has the mandate of giving direction and oversight making sure that the business does not stray from its course and remains relevant in achieving its objectives in a socially acceptable, legally acceptable and ethical manner.

Don't use plagiarized sources. In many instances of unethical business conduct, there exists a certain degree of compliancy and knowing corporation which acts to perpetuate the acceptance of such conduct.

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Importantly, most ethical issues come into existence due to conflicts in belief patterns and value conflicts regarding what is wrong or what is right. This occurs because ethical standards are a derivative of deeply-rooted personal believes and societal morals which may not be universally agreed upon.

Ethical issues exist in all functional areas of the businesses including; finance, accounting, production, marketing, operations and even management. They involve practices like product safety, human resource management, plant safety, business practices and environmental problems among others Carroll et al The elements of the marketing mix are important aspects of the business which can be evaluated in the light of ethical issues.

Marketing mix encompasses all the major areas of decision making affecting the marketing process and when carefully blended, desirable results for the organization are obtained.

Marketing mix is important for all businesses as it shapes the function of marketing in both non-profit making and profit making organizations. As marketing managers make decisions about the overall process of marketing, they have to consider the specific elements of the marketing mix which include price, promotion, product and place and in other instances they are even supposed to consider the sub-elements in each element in order to satisfy the wants and needs of the customers. Marketing mix holds a special place in businesses in that it is the hub identifying the best and suitable marketing strategy.

As the markets demands change, the marketing mix also has to be changed in a manner which allows alignment with the goals and objectives of the organization. The external environment therefore plays a critical role in necessitating alterations and other changes in the marketing mix.

One of the most fluctuating variables of the external environment is the customer; whose preferences and tastes change swiftly among other factors like brand loyalty Stone Given the importance of the marketing mix and the fact that all important aspects of the business revolves around it, it becomes a rather sensitive area in ensuring that regardless of the ambitions of the business, the management does not go overboard to affect its relationships with the other stakeholders who have any form of interest in the business Tittle Ethical issues usually arise when some of these relationships are affected or the moral fiber as defined by law or the society in which this business exists is coarsened.

This means that the business has a responsibility of providing the society with good made adhering to all ethical issues and also of high quality. In looking closely at all the elements of the marketing mix and how ethical issues can affect them, it is important to point out that the essence of the businesses is not only to maximize profits but also to take care of consumers of the products, the employees and the environment.

The product, which is one of the elements of the marketing mix, is a sensitive component with regard to ethical issues Swarbrooke and Horner The whole product life cycle is vulnerable to ethical issue right from the development to its elimination. Ethical issues may arise from product packaging.Thank you. Loved this article, its very useful. I would use it as a reference source for my report in marketing ethics related to the "Place" of the marketing mix.

Good luck. Post a Comment. Saturday, August 22, Ethical issues in marketing mix. Marketing Ethics Marketing ethics concerns the application of ethical considerations to marketing decision making. Marketing ethics can be considered as moral judgement and behaviour standards in marketing practice or moral code or system in marketing area.

In other words, marketing ethics is the research of the base and structure of rules of conduct, standards, and moral decisions relating to marketing decisions and practices. Marketing executives who take strategic decisions often face with ethical conditions and their decisions is related to all sides of marketing mix as product, price, place and promotion. Marketing executives' ethical decision making process related to these decisions is affected by miscellaneous ways as philosophical, economical, sociological, psychological, and religious.

In this study, marketing ethics is studied according to elements of marketing mix as product, price, place and promotion. Ethics and Product Decisions Marketing executives face with a lot of ethical problems related to planning and application of product strategies. This grows out of seeing product security as engineering problem in most. Similarly, some product areas such as especially toys for children are sensitive to the ethical problems. Ethics and Pricing Decisions Pricing is probably one of the most difficult areas of marketing when it is analyzed from the ethical point of view.

Ethically, price should be equal or proportional to benefit which is taken by the consumers. At power relationship in the channel, if channel members to put their power which they have into bad use, this may cause an ethical problem.

ethical issues in marketing mix ppt

Other ethical issues result in subjects as retailing decisions, direct marketing, supply and channel management. Advertisements are one of the ways of marketing which is criticised most from an ethical point of view.

Unilateral advertising message, preconceived advertising messages, advertisements breaking programmes are criticized.

Every breath you take: adding ethics to the marketing mix

Whether advertisements are ethics or not is determined according to the extent of loss of advertisements to consumers. The relationship between advertising and ethics can be analysed from the point of view of persuasive trait of advertising, deception, puffery and making promises that cannot be kept.

Other ethical issues related to advertising include advertising to children, demonstrations, mock-ups, endorsements and testimonials. Posted by winodd at PM. Labels: Ethical issues in marketing mix. Older Post Home. Subscribe to: Post Comments Atom. About Me winodd View my complete profile.Ethics is a prime concern in marketing, and the areas of price, placement and promotion are no exception.

Ethics in Product Price, Placement & Promotion in Marketing

Pricing refers to the way in which prices are set for consumers, considering the cost of inputs, distribution and overhead. Placement involves the strategic positioning of products within retail stores. Promotions involve short-term price discounts or giveaways. Each of these areas presents its own set of ethical dilemmas, challenges and legal guidelines to navigate.

Understanding the role of ethics in product price, placement and promotion in marketing can help you to stay on the right side of the law while developing a reputation for setting high ethical standards.

Price collusion can be a major source of ethical pressure in many industries, and artificial price-fixing is illegal in a wide range of countries. Price collusion exists when a number of competitors agree to set prices at a certain level, bypassing the natural market forces of supply and demand and creating an unfair advantage over consumers.

Artificially inflating prices of necessary consumer goods such as gasoline or basic food goods can breach consumers' ethical expectations, as well. Setting different price points for different consumers for the same goods can be considered an unethical move and can land a company on the wrong side of the law and consumer sentiment.

Favor fair-market pricing whenever possible to maintain ethical pricing structures, and refuse to do business with suppliers or cooperate with competitors who offer price-fixing deals. End-caps, point-of-sale displays and demo kiosks are all examples of positioning techniques that are inherently harmless, but which can be used in arguably unethical ways. Candy distributors, for example, are known for placing bright displays at children's eye level right before checkout counters in grocery stores, knowing that the combination of children's pleas and parents' stress while standing in line will result in increased sales.

There is nothing illegal about this tactic, but some consumers consider such emotional manipulation to be highly unethical, especially when it involves children.

Ethical Issues Affecting Each Component of the Marketing Mix Essay

Slotting allowances can be considered unethical by some, as well. Slotting allowances are cash payments paid by large and financially strong brands to secure the best shelf space in retail stores, making it artificially difficult for small brands to gain shoppers' attention. Promotions are designed to boost short-term sales by providing irresistible value propositions to consumers. Coupons, holiday sales events, mail-in rebates and giveaways all fall under the promotions category.

The "bait and switch" tactic is widely considered unethical, yet many companies still practice this promotions technique. With bait and switch, a company advertises a significant discount on a valuable product, but stocks only a small number of that item in stores. Customers are lured in by the great deal, only to discover that a completely different and often inferior product is being promoted instead.

Avoid this tactic at all costs. Even though it is legal, the bait-and-switch tactic can tarnish your ethical reputation quickly. Other areas of marketing present their own distinct ethical challenges. The areas of advertising and sales serve as prime examples. Advertising ethics are highly regulated by law when it comes to honesty, discrimination and young audiences, but advertisers need to go the extra mile to avoid offending viewers even within the boundaries of the law.

Sales practices such as cold calling, canvassing and door-to-door solicitation are regulated by local, state and federal regulations. David Ingram has written for multiple publications sinceincluding "The Houston Chronicle" and online at Business. As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law.

He has earned a Bachelor of Arts in management from Walsh University. What Is Point-of-Purchase Marketing? Share on Facebook. Pricing Strategy Ethics Price collusion can be a major source of ethical pressure in many industries, and artificial price-fixing is illegal in a wide range of countries. Product Placement Ethics End-caps, point-of-sale displays and demo kiosks are all examples of positioning techniques that are inherently harmless, but which can be used in arguably unethical ways.

Ethics and Promotions Promotions are designed to boost short-term sales by providing irresistible value propositions to consumers.

Other Ethical Considerations Other areas of marketing present their own distinct ethical challenges. Photo Credits.At least once this simple step has been put in place, a signal is raised to start explicitly, proactively and seriously, thinking about this important aspect.

Most marketers develop or market products suited to defined market segments, as this along with appropriate targeting and positioning should help maximise sales and brand equity.

ethical issues in marketing mix ppt

In doing this, however, some very broad questions can be asked. If the answer is no to either of these, one could rightly say the company has misled its shareholders, its employees, the public, and all other relevant stakeholders. Similarly, is the packaging appropriate? Will it be deceptive by design or default to its target segment, and will it be appropriate for others who could be exposed to it? Are the warranties, customer service or customer care, either promised or inferred, not only clear, but really deliverable?

Most marketers will consider the best pricing model to be one that boosts sales and profit but, depending on the industry and segment, the price set can also have significant ethical implications beyond the company. A pricing model designed to increase profits, however, excludes consumers with low economic means, and may appear unfair when the product or service is not just desirable, but a necessity of life.

This type of issue is no more clearly demonstrated than in the pharmaceutical industry, where certain life-saving drugs may be priced at a level that only the affluent can afford — in effect creating a form of economic discrimination with life-anddeath health consequences.

The issue of where a product can be purchased along the supply chain may seem innocuous at first, but it can also pose significant ethical ramifications. If a product is made too easily accessible, for example products of addiction and harm such as tobacco, alcohol and internet gamblingthe consequences can be negative. Similarly, so can making a product available to market segments where a high probability exists that it may be used incorrectly or inappropriately. Some may remember the famous case in Africa, where a multinational corporation made infant formula available to impoverished breastfeeding mothers.

Conversely, not making a product available can raise ethical questions. For example, when an agricultural company makes one type of pest- or drought-resistant crop available to one country, but not to another, particularly if the latter is a third-world country with limited options. Finally, withdrawing or deleting a product or service can also have far-reaching impacts, especially if this goes beyond the understood or expected product life-cycle and support.

Bad taste can typically be described as something unpleasant, inappropriate, or something that defies our cultural norms. Unethical, however, denotes something that breaks the rules of the game, or has negative or unacceptable consequences. Examples include promoting how fast a car can go, when clearly speed limits exist; forms of beauty advertising that set impossible standards and expectations, thereby impacting self-esteem; and offering finance to those who clearly cannot afford it.

ethical issues in marketing mix ppt

But there are many other aspects of the promotional mix that can also have significant ethical repercussions. For example, whom you promote to, is important.

Marketing to the vulnerable may be deemed unethical as, for a variety of reasons, they may not have the ability to appropriately evaluate the offering. And even if you decide there are no ethical concerns around who you promote to, there is still the question of how much information we should provide. When is it unethical to disclose too little information, or too much? The powers and abilities of effective marketers to impact and influence the world create unique responsibilities and considerations.

However, just stopping and thinking about it is surely a great start.

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This article featured in Market Leader, July Download PDF. Every breath you take: adding ethics to the marketing mix Adding ethics to the marketing mix. First things first Being legal does not mean being ethical, and being ethical does not mean being legal.

While consequences can be important, some things can be deemed as unethical simply based on the motivation or act itself.Though the pursuit of social responsibility and ethical marketing does not automatically translate into increased profit, it is still the responsibility of the firm to ensure it is responsible for its actions and their impact on society.

To be socially responsible is when the organization is concerned about people, society and environment with whom and where it conducts business. Consumers have the right and power to decide which companies succeed or fail; so marketers have a major responsibility to ensure their practices are seen as philanthropic without being phony. BrandKarma is the perfect example of one of the means by which consumers make these decisions. Ethical Marketing is a philosophy that focus focuses on honesty, fairness and responsibility.

Principles of this practice include:. The introduction of the statement reads in summary that values are the representation of the collective idea of desirable and morally correct conduct. And that the values outlined in the document serve as the standard by which individuals measure their own actions and those of others including marketers.

These values facilitate best practices when transacting business with the public and all involved. The Canadian Marketing Association also has a code of ethics and standards, which is a self-regulatory guideline for marketers.

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Though marketers are responsible for their marketing content, members of the CMA must abide the code. The principles of this code include:. Companies are aware that consumers are savvy and opinionated. So with this in mind, firms should create an ethically sound marketing plan and integrate it into all aspects of their marketing mix. While ethics and social responsibility are sometimes used interchangeably, there is a difference between the two terms.

Ethics tends to focus on the individual or marketing group decision, while social responsibility takes into consideration the total effect of marketing practices on society. Next, marketers should forecast the long-term effects of the decisions that pertain to those changes.

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Bearing in mind that a company cannot satisfy the needs of an entire society, it best serves marketers to focus their most costly efforts on their target market, while being aware of the values of society as a whole. Five simple steps every marketer can take to create a sustainable socially responsible market plan are:.

ethical issues in marketing mix ppt

Social conscious marketing addresses the shortcomings of traditional marketing practices and follows the philosophy of mindfulness and responsibility. This philosophy states according to Chron. Below is the list of main aspects socially responsible marketing practice rely on. This socially responsible practice teaches that companies should base policies and operations on a consumer perspective. As an example, an over crowded website with lots of ads dumped onto it will be easily spotted if the marketers were to practice this method.

Improving products and services in innovative manner improves the experience for users. And improving marketing strategies, polices, and brand personality, on an ongoing basis will position your company as an innovative experience to be repeated and passed on.

A company that produces valuable products and focuses on offering the customer great pricing, excellent experiences and great customer service will not have to resort to pushy sales tactics and gimmicks. Apple brand is famous for having people happily wait in line overnight to be first to own an upgraded product. A clearly defined corporate mission will help companies be clear about their plans, goals, and practices.

By putting the good of the community and associates over profit, companies will indeed see an increase in the number of consumers willing to pay premium prices for their products.Ethics are explained as the moral principles and values that oversee the actions and decisions of a person or group.

They serve as guidelines to act rightly and justly when faced with ethical problem. Ethics in marketing denotes to the practice of marketing in business in an ethical and moral way. It means intentionally applying standards of justice and represents the company to others. While the objective of any business is to be money-making, if a company has to use counterfeit advertisement, or misleading or objectionable marketing tactics to attain it, it's really not running a successful marketing campaign.

There can be short term gain in doing something unethical. Researchers stressed on the fact that acts in an ethical manner will get in long-term rewards for their actions. Doing business in ethical way can build loyal customers, get more referrals, and will be building a positive image about their business. Marketing has the potential to influence beliefs and behaviours. It is important to maintain high ethical standards to protect the interests of customers and the public, and the reputation of clients.

Marketing ethics has been developed with reference to business ethics that reflect interest of various stakeholders. These ethics describe principles that are acceptable in marketplace. Marketing is an activity which is at the front of business activities with regular interfaces with customers and general public Chonko The non-adherence to moral practices in marketing has paved way for two major movements such as consumerism and environmentalism Kotler and Armstrong These groups have started exerting pressures on marketers to consider and act in an ethical manner.

Interest in ethical concerns in marketing has, considerably heightened Hunt et al. There is no overstatement in mentioning that researches in marketing ethics have become a precursor of researches in ethics in other areas. Murphy and Laczniak in theoretical analysis stated that "the function within business firms most often charged with ethical abuse is marketing. InTsalikis and Fritzsche reviewed the literature on marketing ethics. Later, Gaski conducted thorough research of marketing ethics and categorised the marketing ethics literature as falling into a introduction to ethical problems, b questioning the inherent ethics of marketing activity, c empirical studies of ethical beliefs and d direction and advice for making marketing more ethical.

Attribute of marketing is to give the satisfaction of the needs of consumers. Since the fulfilment of consumers' needs is the major goal of marketing, it is considered that the principled approach which dominates is, for the most part, utilitarian. Additionally, since the satisfaction of the needs of one's fellow man is in itself nearly undeniable ideal, marketing managers tend perhaps to concern themselves less with the way in which this ideal is attained, thereby neglecting the deontological facet of their actions.

This image of marketing has already been suggested by Fritsche and Becker and by Fraedrich et al. Briefly, since the propensity in marketing is basically utilitarian, one is often inclined to believe that, on this level, it is highly ethical. A certain inconsistency emerges from the research of ethics in marketing. On the one hand, it is dominated by utilitarian perspective, assures managers of a clear principles since they can consider the consequences of their conduct as ethical. Alternatively, a utilitarian viewpoint does not necessarily mean that marketing is ethical.

As for marketing's deontological aspect, this does not seem to be a major concern for the majority of practitioners. Codes of ethics have also been proposed as a means to accomplish high ethical standards in business.Product :. Marketers are supposed to identify and satisfy needs of consumers. Products offered do not always contribute to satisfying existing needs but sometimes create new needs through the promotion of materialism.

It appears not to be ethical from marketers to forget the first role of marketing at the benefit of mercantilism. Ethical marketing activity should prevent poorly made and unsafe products.

Products not made well or products delivering little benefit or less benefit than promised are commonplace criticism made to marketers. More questionable is the case of harmful products due to poor design or lack of quality. The quality of a product should always have the priority on economic concerns. Moreover, pre-tests should be conducted to ensure the compliance of products to safety standards. Packaging can also be a source of ethical concerns. Yet, this fruit juice contains more apple than litchi plus raspberry together.

Promotion :. The most commonplace ethical concern in promotion is deception. Deception is commonplace in advertising. A campaign by a famous beauty brand is to be mentioned: an actress was engaged to promote a false eye lash mascara… but the actress wore fake eyelashes in the TV commercial!

The company undercame negative feedback from offended consumers. Deception can also appear in sales promotion. Consumers desire to obtain more for the same price and are therefore sensitive to sales promotion like free gift, price reduction or special offers.

The ethical risk is that companies may be tempted to take advantage of customers by making promises and promotions that cannot be kept. Most frequently found problems are rigged contests or games e. Price :. Marketers should be allowed to charge any price they want provided there is no price discrimination among consumers and that prices are all inclusive.

However, too high prices are not ethical, when they do not reflect the existing cost structure but are a means to take advantage of consumers. This is especially true in the case of monopoliesoligopolies or cartels. Besides, advertised prices should always be realistic prices that consumers will find in stores. The odd-pricing and partitioned prices practices can also be questionable on ethical grounds. With odd-pricing, marketers resort to odd numbers e.

Partitioned prices aim at sharing the total price in several sub prices to make consumers believe the price is lower than in reality. Place :. Consumers can be manipulated without knowing it through subtle marketing techniques in distribution outlets. For example, shelves at lower heights target children, and stores can be organised in such a way that it encourages consumers to pass through more shelves. The ethical concern of such practices is whether subliminal incentives are morally acceptable: would consumers have bought the products even if those marketing techniques had not been used?

Can those techniques cause economic hardships to shoppers by making them buy more than they can afford? Ethical concerns are also linked with the segmentingtargeting and positioning process. Efforts to target consumer populations can be subject to unethical attitudes e. For example, the issue of higher insurance premiums to people with poor credit ratings is morally questionable.


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