Ethics of Marketing & Advertising (Group -2 )

Bhavika Sareen Kriti Jain Bikram Jeet

Ankita Sharma Ishadarshi

High Prices

Poor Service

Planned Obsolescence

Impact
Deceptive Pricing Unsafe Products High Pressure Selling

Pricing Bait & Switch Pricing

Fraudulent sales tactics / Deceptive Pricing Punishable under US law as false advertising. Most commonly used Examples of it in virtually any advertising circular for major department stores, electronics and computer stores & automobile retailers . The purpose of bait & switch tactics is to get customers to visit the store or business by advertising very low prices. Once the customer is in store, the sales person attempt to offer the customer items at higher

Pricing
Horizonta l Price Fixing Predator y Pricing Vertical Price Fixing
Price Fixing Among Competitors

Temporary Pricing a product or providing services at prices that are low enough to drive competitors out of market , so as to monopolize the market.

Price Fixing Between manufacturer & distributor

Ethical Issues & the Marketing Mix

Product Issues Pricing Issues

Customers Promotion Issues Distribution Issues

Factors influencing ethical marketing behavior

Three concepts of Three concepts of social social responsibility responsibility

Ethics of Advertising

Advertising : Definition
A form of communication used to encourage or persuade an audience (viewers, readers or listeners; sometimes a specific group of people) to continue or take some new action Desired result : Drive consumer behaviour with respect to a commercial offering Political and ideological advertising

Impact of Advertising
Advertising can succeed in two ways: By creating a desire for the sellers product in consumers By creating a belief in the consumers

HOW?

Advertising Ethics
Analysis of the nature of advertising in general and of specific ethical issues that arise in advertising

Current professional codes and practices in advertising industry and relation to ethics
A marketing or promotion action might be legal but not ethical Do the companies have the obligation to tell the truth or does the goal of selling the product override such ethical concerns?

Framework of Advertising ethics

Value-oriented framework
Analyzing ethical problems on the basis of the values which they infringe (e.g. honesty, autonomy, privacy, transparency) Ex: AMA Statement of Ethics

Stakeholder-oriented framework
Analysing ethical problems on the basis of whom they affect (e.g. consumers, competitors, society as a whole)

Process-oriented framework
Analysing ethical problems in terms of the categories used by marketing specialists (e.g. research, price, promotion, placement).

Examples of Unethical Behavior in Advertising

SPONSORSHIP BY CIGARETTE BRANDS Sponsorship of Sports Events & Cultural Events
WILLS, a subsidiary of ITC used to sponsor sports

Tennis tournaments were sponsored by Gold Flake cigarette SPONSORSHIP BY ALCOHOL BRANDS Sponsorship of sports & cultural events widely undertaken by brands in India
Royal Stag sponsors India cricket matches & cricket players Seagram sponsors events such as Chivas Regal Polo Championships

Targeting to Children and Teens

Products targeted to kids are unnecessary and the communications involved are exploitative Use of posters, book covers, free magazines, advertising, and other so-called learning tools Placing products in movies with tie-in merchandise programs Targeting adult products to pre-adults
Use of unacceptable images Cartoons
Miller Brewing Company bolder beer

Marketing of adult-oriented entertainment products to children and teens:

Violent films, video games, and music

Greatest recent controversy is Joe Camel and Camel cigarettes

Impact of Unethical Advertising

Spoiling habits of children Portrayal of women as sex objects Ethnic stereotyping/representation Sexual orientation Gender stereotyping Medias dependence on advertising for revenue makes them vulnerable to control by advertisers Encourages materialism Makes people buy things they dont need

Thank You