ETHICS IN MARKETING

Responsibility to Customers

Each marketer is responsible for ethical behavior. Decisions and actions should be evaluated to determine if they are honest and fair.

Responsibilities of the MarketerIN PRODUCT DEVELOPMENT AND

MANAGEMENT Disclosing all substantial risks Identifying substitutions that change the

product or impact buying decisions Identifying extra cost-added featuresIN PROMOTIONS Avoiding false and misleading advertising Rejecting high-pressure or misleading

sales tactics and promotions

Responsibilities of the MarketerIN DISTRIBUTION Not exploiting customers by

manipulating the availability of a product Not using coercion

Coercion – To compel or force one to act based on pressure, harassment, threats, or intimidation.

Not exerting undue influence over the reseller’s choice to handle a product

Responsibilities of the MarketerIN PRICING Not engaging in price fixing

Price Fixing - Agreement among competing vendors to sell at the same price.

Not practicing predatory pricing Predatory Pricing - Charging very low prices to

drive competition from the market and then raising prices once a monopoly has been established.

Disclosing the full price associated with any purchase

Responsibilities of the MarketerIN MARKETING RESEARCH Prohibiting selling or fundraising

disguised as conducting research Avoiding misrepresentation and

omission of pertinent research data Treating clients and suppliers fairly

Consumerism

Organized actions of groups of consumers seeking to increase their influence on business practices.

CONSUMER BILL OF RIGHTS 1960’s – President John F. Kennedy

1. Right to adequate and accurate information2. Right to safe products3. Right to product choices4. Right to communicate their ideas and

opinions to business and government

Better Business Bureau

Provides a forum for consumer complaints about businesses.

Private business, and businesses become members by paying dues.

Video Project

Responsibilities of the Marketer On Page 47 in your textbook, there is a chart

that lists out the Responsibilities of the Marketer. Each group will be assigned one of the main headings and you are responsible for each of the bullets in that section.

Each group must visually teach the class about their responsibility. You can accomplish this by:

Presenting an oral and visual representation of doing it the wrong way. For example:

Your video needs to demonstrate the “wrong way” to operate as a marketer. Example:

In Product Development and Management:

Disclosing all substantial risks associated with a product or service Saturday Night Live, Consumer Probe

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