Professional Documents
Culture Documents
By: Arvind Hoskote B Quennie Balaram Sahu Barjona Foning Bhupesh Yadav Bhaskar Gupta
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Definition
What is Work Ethics? A group of moral principles, standards of behavior, or set of values regarding proper conduct in the work place Marketing Work Ethics Practices that emphasize transparent, trustworthy, and responsible personal and organizational marketing policies and actions that exhibit integrity as well as fairness to consumers and other stakeholders (Marketing ethics focuses on principles and standards that define acceptable marketing conduct, as determined by various stakeholders and the organization responsible for marketing activities. )
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Focus on India
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Responsibility
(to accept the consequences of our marketing decisions and strategies)
Honesty
Fairness
(to try to balance justly the needs of the buyer with the interests of the seller)
Openne ss
Respons ibility
Respect
(to acknowledge the basic human dignity of all stakeholders)
Openness
(to create transparency in our marketing operations)
Respect
Citizenship
Fairnes s
(to fulfil the economic, legal, philanthropic and societal responsibilities that serve stakeholders in a strategic manner)
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Organizational Factors
Opportunity
(Opportunityconditions that limit barriers or provide rewards may also shape ethical decisions in marketing)
OPPORTUNITY
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Using deceptive advertisements Advertising for children Tobacco advertising Alcoholic beverages advertising Negative political advertising Racial stereotyping Sexual stereotyping
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Social gambling Facebooks dealing with online gaming firm 888 (Is social networking site a suitable environment for gambling? - younger social network users)
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Product Issues
Product that is harmful
Ex: thalidomide disaster in Germany in 1958. Ex: Compaq sued Packard Bell for not disclosing that Packard Bell computers incorporated used parts
Product quality
Planned obsolescence: purposely causing existing product out of date by introducing new product
Style planned obsolescence: firms make minor changes in product within a short period, to attract style conscious people.
Ex: fashion items and cars
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Pricing Issues
Bait and switch: advertising one item at low price (bait) customers into stores sale of different product at higher price.(switch).
Selling higher priced product is legal but advertising low priced item is unethical Horizontal price fixing: when competitors making same product jointly determine the price.
Ex: in 1994 six major US airlines fixed the prices
Price fixing: collaboration of two or more firms in setting prices usually to keep prices high.
Vertical price fixing: manufacturers force retailers to charge high prices.
Predatory pricing: company set low price to eliminate competitors>>>>>> monopoly>>>>> increase prices
Ex: American airlines in 1990
Price discrimination: charging different prices to different customers based on their assumed ability or willingness to pay
Ex: amazon.com
Dumping
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Promotion Issues
Deceptive advertising: when the consumer is led to believe something which is not true
Ex: hair restoration or weight loss advertisements
Puffery: exaggerated claims of a products superiority; statements that may not be literally true
Ex: Taj Mahal tea campaign where Ustad Zakir Hussain vowed to give up tabla
Cookies: small text files that automatically download to a users computer whenever that user visits a Web Site and that is capable of gathering information on the user Unsubstantiated claims: claims need to substantiated by trials from independent and recognized institutions
Olays Total effects cream Indias first anti-ageing cream
Offending sensibilities
ING Vysya Bank: father distressed by higher education of daughter and also by birth of baby girl (considered anti-women)
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Distribution Issues
Slotting allowances: fee paid by manufacturer to retailer in exchange of keeping their product in their shelves. Grey market goods: foreign made products imported into countries by distributors that are not authorized.
Ex: selling electronics items
Exclusive territories: an area assigned by company to distributer in which no other distributer will work. Vendor lock-in/ lock-out
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Why is it unethical?
Counter Arguments
Usage of fear to advertise a certain product Fears often unsubstantiated Reflect vivid racial discrimination Depict sexual stereotyping, for a long time were targeted towards women
Other ads do the same (Seat-belt Ads) Large market for the product Indian mindset inclined towards fairness of skin (e.g. matrimonial ads.)
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Political Advertising
Clip 1
Clip 2
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Subliminal Advertising
Subliminal advertising, also known as subconscious stimuli messaging, is a form of advertising that uses subtle imagery, sounds, and content to attempt to influence the subconscious mind into making purchases or finding something to be appealing
Why is it unethical? Even such brief messages can be processed by the brain but at an unconscious or subliminal level Can manipulate viewers into liking or disliking an object Reasons for the same are completely unrelated to the objects characteristics Deprives consumer of choice Counter Arguments No conclusive research to prove the efficacy of the same Although it is not strictly illegal, in 1974 the FCC adopted a policy saying that subliminal advertising was contrary to the public interest. It is widely considered to be an unethical practice
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Marlboro Man associated with becoming a man based on research on young teens who start smoking Product placed in close proximity to schools through outlets etc. with specific purpose of targeting teenagers
Source: http://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-
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Targeting less economically developed countries (LEDCs), which campaigners claim contributes to the unnecessary suffering and deaths of babies, largely among the poor Promoting infant formula with misleading and harmful strategies that violate the International Code of Marketing of Breastmilk Substitutes and put babies at risk Resulted in several premature infant deaths because uneducated and poor mothers ceased to breastfeed and instead fed their babies Nestls formula
International Baby Food Action Network (IBFAN) and Save the Children claim the promotion of infant formula over breastfeeding has led to health problems and deaths among infants in less economically developed countries
In Egypt, packaging and advertising of Nestl powders repeatedly use phrases such as identical to breast-milk or as in breast-milk
Botswana proclaims that Growing up is Thirsty Work and promotes Lactogen for the hungry fullterm infant
http://en.wikipedia.org/wiki/Nestl%C3%A9_boycott
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Utilitarian theory
Happiness should be maximized while pain should be minimized All the stakeholders are happy considering the situation, the stakeholders are the customers, which include the parents and children, the employees of McDonald's and the McDonald's corporation With higher profits employees are able to have job security, ore job opportunities available around the world, happy parents and children.
In 2010 McDonald's was sued for unethical marketing practices towards children through the act of providing those toys by Monet Parham from Sacramento
Virtue theory
One should express good character, which includes courage, honesty, temperance, and justice McDonald's has good ideas, good products, and fairness to their consumers. McDonald's is honest with their food nutrition, and variety of products that satisfy different consumers needs
Kantian Theory
McDonald's has been consistent with their marketing techniques since the 1970's McDonald's has done so with gender based products, age focused meals and healthy options Began the marketing techniques to children out of self-interest to maximize profits
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Example: Dows code of business conduct include ethical principles and policies to deal with various issues
Consumerism : social movements that protect consumers from harmful business practices
Example: Establishment of various act and legislations ( cigarette labeling act 1966)
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Example: Aveda a skin care product manufacturer developed products without animal contents and synthetic materials and recyclable packaging material.
Example: Warner Lamberts corrective advertisement for LISTERINE mouthwash would not prevent colds or sore throat
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Focus on India
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References
http://www.csustan.edu/market/williams/Chapter%204.htm http://www.marketingweek.co.uk/news/2012-the-year-in-marketing-ethics/4005139.article http://www.academia.edu/2012630/Ethical_Aspects_in_the_Advertising_of_Fairness_Creams www.iped-uk.com/marketing_ethics.doc http://www.marketingpower.com/AboutAMA/Documents/Ethics%20Code%20Update%20-%202%2017%2009%20%20Final.pdf http://www.tobaccofreekids.org/research/factsheets/pdf/0011.pdf http://www.telegraph.co.uk/health/healthnews/8734295/Philip-Morris-tobacco-firm-using-FOI-laws-to-accesssecret-academic-data.html http://en.wikipedia.org/wiki/Nestl%C3%A9_boycott