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Ethics of Marketing & Advertising (Group -2 )

Bhavika Sareen Ankita Sharma

IshadarshiKriti Jain

Bikram Jeet

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UnsafeProductsDeceptivePricing

High Prices

HighPressure Selling

PoorService

PlannedObsolescence

Impact

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Fraudulent sales tactics / Deceptive Pricing

Punishable under US law as false advertising.Most commonly usedExamples of it in virtually any advertising

circular for major department stores, electronicsand computer stores & automobile retailers .

The purpose of bait & switch tactics is to getcustomers to visit the store or business by advertising very low prices.

Once the customer is in store, the sales personattempt to offer the customer items at higher

Pricing Bait & Switch

Pricing

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Pricing

Price Fixing Among CompetitorsHorizonta

l PriceFixing

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

Predator y Pricing

Price Fixing Between manufacturer &distributor

VerticalPrice

Fixing

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Customers

ProductIssues

PricingIssues

Promotion

Issues

Distribution

Issues

Ethical Issues & the Marketing Mix

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Factors influencing ethical marketingbehavior

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Ethics of Advertising

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Advertising : Definition A form of communication used to encourage

or persuade an audience (viewers, readers orlisteners; sometimes a specific group of people)to continue or take some new action

Desired result : Drive consumer behaviour withrespect to a commercial offering

Political and ideological advertising

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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?

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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 advertisingindustry 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 ordoes the goal of selling the product override such ethical

concerns?

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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).

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Examples of Unethical Behavior in AdvertisingSPONSORSHIP BY CIGARETTE BRANDS

Sponsorship of Sports Events & Cultural Events WILLS, a subsidiary of ITC used to sponsor sportsTennis tournaments were sponsored by Gold Flake

cigarette

SPONSORSHIP BY ALCOHOL BRANDSSponsorship of sports & cultural events widely

undertaken by brands in IndiaRoyal Stag sponsors India cricket matches & cricket playersSeagram sponsors events such as Chivas Regal PoloChampionships

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Targeting to Children and TeensProducts targeted to kids are unnecessary and thecommunications involved are exploitativeUse of posters, book covers, free magazines, advertising,and other so-called learning toolsPlacing products in movies with tie-inmerchandise programsTargeting adult products to pre-adults

Miller Brewing Company bolder beer

Use of unacceptable images CartoonsGreatest recent controversy is Joe Camel and Camel cigarettesMarketing of adult-oriented entertainment products tochildren and teens:

Violent films, video games, and music

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Impact of Unethical AdvertisingSpoiling habits of childrenPortrayal of women as sex objectsEthnic stereotyping/representationSexual orientationGender stereotypingMedias dependence on advertising for revenuemakes them vulnerable to control by advertisersEncourages materialismMakes people buy things they dont need

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Thank You