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Exploiting Social Paradigms 1
Running head: EXPLOITING SOCIAL PARADIGMS
Exploiting Social Paradigms: The Ethicality Associated with Cultural Marketing Today
Nicholas C. Duff
Morehead State University
Exploiting Social Paradigms 2
Abstract
In the world of marketing today, there has been an ever-increasing shift in choosing to
take advantage of or exploit social paradigms when it comes to advertising a product and getting
consumers interested enough to purchase. Specifically, marketing teams are choosing to utilize
their research of consumer markets to find those segments that represent lower-income minority
groups who are, therefore, more willing to purchase their products offered at lower prices. In this
study, I will attempt to convey the ethical implications in these practices as well as offer
solutions that could work to re-shape company-wide philosophies towards a consummate belief
in respecting customer values and offering superior customer-service.
Introduction
Ethicality can be a very sensitive topic of which to debate, particularly when it is done-so
with a specific focus on marketing and the ways in which marketing professionals will target and
exploit consumers. It certainly is not new news that companies within a capitalistic market are
going to place a primary focus on profits and on taking the necessary measures to expand the
consumer base so that, you guessed it, profits will continue to rise. However, it is not acceptable
for companies to exploit consumers (specifically from low-income markets) or to disrespect
consumer cultures in order to drive business success. All that this does is establish an
uncomfortable feeling of distrust and skepticism on the part of consumers. Whole-scale changes
have to be made in the marketing ideologies and practices that companies choose to employ.
From the bottom to the top of an organization, we have to get back to treating customers with the
respect and honesty that they deserve; not because it might improve the bottom line, but because
consumers are what allow companies to exist at all and they, therefore, should be treated as
valuable assets. This study aims to look at a brief overview of the ethical issues and
Exploiting Social Paradigms 3
considerations that surround marketers and the companies for which they work, the impact of
culture in marketing practices, specific examples of consumer segments that have been targeted
by unfair advertising, and will offer suggestions for making meaningful changes in the
consumer-company relationship going forward.
The Ethical Issues in Marketing
It is hard to find a more controversial issue in today’s consumer markets than that of the
ethicality (or lack thereof) in the marketing practices of today’s capital giants. Ethical judgments
vary rather widely across individuals as every person has their own views on what constitutes
acceptable selling tactics and what crosses a moral line. This phenomenon, long recognized in
the field of psychology, poses a vexing practical problem in marketing because arriving at a
consensus of opinion concerning the ethics of various controversial marketing practices is often
incredibly difficult and sometimes impossible (Kleiser, Sivadas, Kellaris, & Dahlstrom, 2003).
Whether we are discussing back-door selling, slotting allowances, alcoh-pop drinks, tobacco
promotions, or ambush marketing, there are a vast number of ethical dilemmas in the ways that
marketers are choosing to promote their products and, more specifically, the consumer segments
that they are specifically targeting. It seems that far too often we can so visibly see how
companies are choosing to target minority markets with their advertising, but it is because of this
tactic that a large amount of distrust of powerful firms has blossomed.
Consumers are becoming more and more aware of when they are being exploited and,
thereby, taking it more and more offensively. As stated by Tichy and McGill (2003), a cascade
of public distrust – and disgust – has followed ethical transgressions by some of America’s most
visible business leaders, creating trauma on many fronts, none more critical than the need for
leaders who can raise the level of business ethics – and spread the word in the process. The
Exploiting Social Paradigms 4
previous line cannot be understated, as it is the key to creating an air of honesty and integrity
between consumers and marketers. We are in a time, now, where weak or sleazy self-
aggrandizers cannot carry us safely into the future. We need smart, gutsy leaders with vision and
integrity to get us through the minefields – leaders who can teach others to follow in their
footsteps, hold firm to their values, and proliferate those norms across the organization (Tichy &
McGill, 2003).
To give an example of ethical malpractice in marketing today, let’s look at the
pharmaceutical industry, specifically. Drug companies today are increasingly becoming the
subjects of fierce criticisms from consumers.
They stand accused of focusing on “me too” drugs which confer little clinical benefit
over existing medicines; rushing these to market through cunning clinical trials designed
to make them look better than they are; and suppressing data to the contrary. The industry
is also lambasted for expensive, aggressive and misleading direct-to-consumer
advertising, which sometimes creates conditions to fit the drugs, rather than the other way
around (Weber, 2006).
It is because of actions such as these that there is such little trust of drug companies and the
legitimacy of the products that they are so frequently willing to try to convince us that we need.
A February 2005 Kaiser Family Foundation poll of 1,200 Americans found that 70 percent
agreed that drug companies put profits ahead of people (Weber, 2006).
Yet another aspect of the ethical dilemmas in marketing deals with marketing research.
The crux of the typical moral argument against deception in research is the contention that
regardless of the anticipated research ends, it is always wrong to mislead research participants
because deception represents a clear violation of the individual’s basic right to informed consent
Exploiting Social Paradigms 5
and it shatters the trust inherent in the implicit contractual relationship between the researcher
and participant (Kimmel & Smith, 2001). Yet again we find ourselves referencing the concept of
the trust and the importance that it plays in consumer marketing. Whether it’s a customer in a
store looking at a product or a consumer who has agreed to aid in company research so that
organizations know which products to produce, marketers should respect their potential
purchasers. And what is the best way for companies to show respect to their buyers? By
promoting honest dialogue and implementing selling strategies based upon appreciation and
value of the customer’s time and business.
The Role of Culture in Marketing Practices
According to Kotler and Keller (2012):
“Culture is the fundamental determinant of a person’s wants and behavior. Through
family and other key institutions, a child growing up in the United States is exposed to
values such as achievement and success, activity, efficiency and practicality, progress,
material comfort, individualism, freedom, external comfort, humanitarianism, and
youthfulness.”
Where we grow up, the livelihood to which we grow accustomed, and the inherent values that
are instilled within us based upon our backgrounds is what ultimately determines where and in
what we find worth. Children who grow up in lesser developed countries will undoubtedly have
a much different view of self, their relationships with others, and traditions. It is because of these
differences that marketers have to attend so closely to the cultural values in every country and
with every nationality with which they hope to successfully market their products.
Culture plays a very important role in defining ethics standards because dissimilar
cultures socialize their people differently, according to what is (and, just as importantly, what is
Exploiting Social Paradigms 6
not) acceptable behavior (Pires & Stanton, 2002). The international environment is often
recognized as attracting more difficulties for marketers because their ‘ethics’ parameters are
likely not to match the notion of ‘good’ in the foreign country where they wish to operate. This
results in a problem because it directly compromises successful international market penetration.
The key idea that marketers have to understand is that culture has a major impact on the
exchange process as a whole. Individuals from similar cultural backgrounds have a ‘collective
mental programming’ which is part of their conditioning that they share with other members of
their nation, region, or group, but not with members of other nations, regions, or groups
(Armstrong, 1996). To truly be successful international marketers, marketing professionals have
to be able to sell their product based upon a foundation of understanding of the foreign culture’s
law, respect for individuality, rights of property, religion, national identity and loyalty, and
values and customs (Armstrong, 1996).
Advances in communication, technology, and transportation have facilitated rapid
globalization and, as a result, more firms are conducting business outside of their domestic
borders. Due to this, business executives from an assortment of backgrounds and cultures have
been brought together and given the opportunity to foster entrepreneurial relationships built
around mutual respect for one another’s values. It is imperative in today’s world for
multinational businesspeople to be sensitive to these values, cultures, and ethical standards of
other countries. Given the increasing globalization of firms and the growing interdependencies
among countries far and wide, the need for clearer comprehension of cultural influences on
ethical and organizational practices has never been greater (Paul, Roy, & Mukhopadhyay, 2006).
For any companies that are striving towards globalization of their brands, it becomes absolutely
vital that executives clearly explain their expectations and any underlying assumptions at the
Exploiting Social Paradigms 7
forefront of any business negotiations. Furthermore, it may prove very beneficial for business
executives to organize training programs for managers from participating countries which will
promote developing and reinforcing a formal or an informal common code of ethics (Paul, Roy,
& Mukhopadhyay, 2006). Doing so will work to minimize any instances of subsequent
misunderstanding or any unintended (what may be seen as) disrespectful business actions.
Targeting Minority Groups
Targeting minorities is increasingly seen as a form of exploitation on the part of
marketers. In regard to the bottled water industry as an example, a recent study found that Latino
parents are three times more likely to choose bottled water over tap water for their children. But
why is this? Hispanic children, according to the New York Department of Health, are at a
significantly higher risk of obesity than other groups. Parents who are aware of this trend fall
victim to the bottled water industries who use this information to convince Hispanic consumers
that their bottled water is ‘healthier’ and ‘purified’, thus manipulating the concerned parents into
spending more to get it. Along the same lines, marketing groups for soda companies will see the
‘higher risk of obesity’ statistic on Hispanics as a sign that they can convince Hispanic
consumers to buy more of their products. “Marketing for sugary drinks also may be targeted
disproportionately more often to minority and low-income youth who consume more of these
products and are at higher risk of obesity and related diseases (Whitman, 2011).” Furthermore,
beverage companies spent over 948 million dollars in advertising sugary drinks and energy
drinks in 2010 (Whitman, 2011), a trend primarily aimed at low income families who see their
products as nothing more than pleasing beverages that can be purchased at a cheap price. Many
do not even realize that they are being targeted by these soft drink and energy drink companies;
Exploiting Social Paradigms 8
marketers are aware that based upon Hispanic health patterns, they are an easy sell if the
companies can provide a sweetened product at the lowest possible price.
Yet another minority group within the United States that we frequently see targeted by
marketing firms is the African American population, specifically those younger and living within
urban areas. In February of 1989, R. J. Reynolds introduced a new menthol cigarette called
Uptown into a Philadelphia test market composed primarily of young urban black consumers.
This move by the company immediately prompted public interest groups to bombard RJR with
complaints as well as moral outcries over what these groups perceived to be RJR’s blatant
exploitation of an already disadvantaged consumer group (Sautter & Oretskin, 1997).
Furthermore, these protestors believed that companies such as RJR should not contribute to the
further demise of the urban black community’s health standards by so evidently playing on the
knowledge of the higher degree of smoking-related illnesses found within the black population.
In Senate hearings since which have examined the targeting of minorities by alcohol and tobacco
companies, opponent’s arguments center around the mindset that minorities are more vulnerable
and/or easy manipulated than other groups in society with respect to the advertising efforts of
PHP (Potentially Harmful Products) marketers. Put another way, protestors are essentially stating
that PHP advertisements are capable of creating a need in minority markets that did not or would
not exist without exposure to such ads. Why is this? Companies do extensive research on
consumer markets before they ever decide on a marketing strategy. They are aware of the
consumers that make up the lower-income tiers of the market and who also comprise the
segments of the market that have the most alcohol and tobacco related illnesses. In knowing this,
both alcohol and tobacco companies will choose to distribute their products in and around these
markets because doing so provides the greatest opportunity for the companies to make profits.
Exploiting Social Paradigms 9
Now let us take a look at multi-level marketing and the inherent un-ethicality associated
with it. Multi-level marketing (MLM), also known as network marketing, refers to the practice of
distributing, selling, or supplying products or services through various levels of independent
agents (contractors, distributors, etc.). These agents are, then, paid commissions, bonuses,
discounts, dividends, or other forms of consideration in return for selling products or services
and/or for recruiting other agents (Koehn, 2001). Classic examples of these types of companies
include Mary Kay, Avon and Amway. The vulnerability with to those who choose to get
involved with these types of companies centers around endless-chain distributing. Endless-chain
distributor schemes ask people to make an investment and, in return, grant them a license to
recruit others who, in turn, recruit still others into the scheme. Put another way, the investor is
essentially paying for the opportunity to receive compensation, but only when his or her recruit
brings others into the scheme. Such types of business activity take advantage of segments of the
population who are in need of a job and must work from home (typically younger mothers from
minority backgrounds). Pyramid schemes are fraudulent because they typically promise a large
return in return for a small investment (Koehn, 2001). Those who join early often do not make a
great deal of money and those who come in late make even less or sometimes even lose money
because there simply are not enough remaining people left to recruit. Because of this, the
corporation makes off with your initial investment and then you make even less in return in
trying to recruit business for said company.
Making a Change for the Better
Building off of the concept of trust, consumers want and need to see companies who are
socially responsible and who will put the investments from consumers to good use by not only
improving the customer-service experience, but by making decisions that will positively impact
Exploiting Social Paradigms 10
humanity as a whole. What does this mean exactly? As consumers, we certainly want to be
treated with respect and we want to feel confident that in giving a company our business, that
same company will invest in providing us with continually improving customer service in
conjunction with reliable products. However, even beyond that, a great way for a company to
build upon my trust is for me to see that said company is about more than just making a profit.
Socially responsible corporate conduct and policies can further marketing and business goals
exponentially if they are managed from a strategic marketing perspective and if the marketing
tools and techniques utilized are used in projects to promote good causes (Ven, 2008). This could
mean donating a portion of proceeds to charity, investing in a playground renovation project, or
hiring veterans in need of finding work. Doing so brings an almost human-like image or vibe to a
company and it establishes a consumer belief that your company truly cares.
Ethical problems in marketing revolve around marketing professionals balancing their
duties and responsibilities toward the parties involved in the exchange process (Lund, 2000). In
other words, marketers have to be able to find the appropriate balance of, for instance, providing
honest competitive pricing related to their products and still meeting the profit goals set forth by
the company itself. Low and Davenport (2008) contend that both fair trade and ethical trade
movements increasingly need to rely on strategies for bottom-up change, meaning placing a
premier focus on serving the customer with reputable employees and a quality product. This
individualistic approach, referred to as ‘shopping for a better world’, must be augmented by
more collectivist approaches to affect transformative change; in particular, this means
establishing more mission-driven organizations led by professionals with a mindset and desire
towards developing affinity relationships with customers that reflect and promote fair and ethical
trade. For change to truly take place, there has to be commitment to change and towards a
Exploiting Social Paradigms 11
restructure of operations so that the company mission towards ethical actions from the bottom to
the top of the organization are clearly seen (this includes product sourcing and product sales).
We (as consumers) need to grow to expect more from companies than just a tangible
product that we can purchase at a semi-reasonable price. It has to go much deeper than that if we
want to see a global shift in marketing practices and establish a true sense of trust and good-will
between marketers and consumers. Stakeholders and the market in general expect firms to
respond to ethically charged issues through their marketing practices and other behaviors (Martin
& Johnson, 2007). Examples of ethically-charged issues to which firms have been called upon to
respond include worldwide poverty and the spread of disease, global warming, natural resource
depletion, and the massive accrual of man-made waste (Taylor et al., 2007). As evidenced clearly
in the marketplace, firms respond to these and a host of other normative concerns along a
continuum with their activities and practices; instead of seeing companies addressing these issues
only when it is convenient or only when a chance for a profit is made visible, we need to see a
shift towards ethical over-conformity. Ethical over-conformity reflects situations where a firm
exceeds stakeholder expectations by adopting marketing programs and training behaviors that go
above and beyond what society has determined is acceptable (Martin & Johnson, 2007). Perhaps
this means donating products or committing a certain percentage of sales each year to disaster-
relief efforts, restructuring company operations to reduce paper use and, thereby, helping the
environment, or offering free company career fairs in low-income communities worked by
professionals who can offer interview tips, resume reviews, and general career advice.
Furthermore, we want to be able to clearly see that companies are making efforts to improve
their ethical marketing conduct. This means a company developing or restructuring employee-
training programs that place a specific emphasis on ethical conduct, hiring and using managers
Exploiting Social Paradigms 12
who have demonstrated a commitment to running an organization in which people are treated the
right way, and (when necessary) reprimanding those employing unethical practices and teaching
them how to conduct themselves in a manner that reflects the company’s drive towards equality
and respect (Bodkin & Stevenson, 2007).
Conclusions
Ultimately, regardless of the groups or the minorities that may be targeted (because let’s
be honest, we are all targeted my marketers in one form or another), companies have to instill a
change in philosophies within their companies and devote themselves to promoting products and
services fair and honestly. This must be done in a manner that not only establishes trust and
mutual-respect, but that demonstrates a company-wide commitment to building a company-
customer relationship based upon an understanding of what people value and how those values
can be best represented and respected in marketing efforts. Extending upon this point, marketing
professionals and the corporations for which they work have to help foster changes in society as
a whole. It sounds like a pretty daunting to task to put on marketers, but what I really mean is
that corporations have to begin to put people before profits. The wonderful thing about it is that
if consumers see that you (as a company) are donating to charities, assisting in disaster relief
efforts, and implementing environmental renewal/protection programs, consumers are going to
naturally develop a greater appreciation for you and products that you offer, thus improving the
standing of the company.
We live in a society where we so often see people being targeted and taken advantage of
when the opportunity to make money is on the line; Hispanics being targeted by soft drink
companies, blacks being targeted by cigarette companies, stay-at-home moms being targeted by
multi-level marketing firms. We have to, as people, come to expect more of ourselves and, as
Exploiting Social Paradigms 13
consumers, expect more from the companies from whom we so willingly do business.
Consumers have to become more knowledgeable and aware of oppressive advertising and have
the fortitude to let companies know when the ethicality of their marketing is unacceptable. From
a corporate standpoint, executives must hire and train leaders who can and will instill a
company-wide philosophy of valuing consumers by showing them that their customs and beliefs
are valued too. It does not have to be a game of deceit and manipulation; all it takes is a
willingness from marketers and consumers alike to expect more of ourselves and to demand
mutual respect.
Exploiting Social Paradigms 14
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Exploiting Social Paradigms 15
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Exploiting Social Paradigms 16
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