By Group No-605# Vilas Bhagane

43# Nayana Puliyamkottu44# Nikhil Punjabi55# Amol Thorat

What is Ethics in Marketing?

• Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of Marketing.

• Basic principles that govern the business practices of those engaged in promoting products or services to consumers.

• Practising ethics in marketing means deliberately applying standards of fairness, or moral rights and wrongs, to marketing decision making, behaviour, and practice in the organization.

Why we need Ethics in Marketing?

• When an organization behaves ethically, customers develop more positive attitudes about the firm, its products, and its services.

• To create Values or trust with key stakeholders

• To build good image about the organization in the minds of customer, employees, shareholders and the society.

Is Marketing inherently evil?

• Damaging personal autonomy

• Causing harm to competitors

• Manipulating social values

• Marketing a major impact on our self-images

• People spending tons of money and are usually more depressed

• Marketing/Advertising creates artificiality and influences sexual attitudes

Framework of analysis for Marketing Ethics

Process-oriented framework

Stakeholder-oriented framework

Value-oriented framework

Ethical issues as per the Process-Oriented Framework

Marketing Research

Market Segmentation

Pricing

Advertising & Promotion

Placing (Distribution)

Marketing Strategy

Product & PackagingNeuromarketing

Personal Selling

Ethical issues in Advertising• Deceptive advertising

• Surrogate advertising

• Puffery

• Unverified claims

• Women stereotyping

• Sex in advertising

• Comparative advertising

• Use of Children

Unethical Marketing Strategies• Anti-competitive practices

• Bait and switch

• Planned obsolescence

• Pyramid scheme

• Vendor locked-in/Vendor locked-out

• Viral marketing/guerilla marketing

• Subliminal advertising

• Internet related like SEOs,Adware/Spyware

Ethical issues in Distribution• Grey market

• Gift giving

• Selling products that have crossed expiry date

• Exerting influence to cause vendors to reduce display space for competitors' products

• Overpromising shipment deliveries

• Paying vendors to carry a firm’s product rather than competitors’ products

• Recommending drugs without a proper prescription from a qualified doctor

• Transporting products in unsafe vehicles

Marketing Ethics – a tactic in itself• Marketers have been among the fastest to perceive the market's preference for

ethical companies.

• It’s the use of Ethics itself as a selling point or a component of a corporate image.

• Building company vision & mission keeping in mind the society & the environment.

• CSR activities

Questionable Marketing Ethics• Pharmaceutical industry

• Influencing medical professionals to prescribe their drugs by hosting lavish events at conferences and showing doctors with gifts & benefits

• Fast Food• Aim ads that use marketing techniques other than information at audiences

that may not have the maturity to treat them skeptically.eg, aiming at younger children via favourite TV shows or teens via social media.

• Cosmetics• Emphasizing on “environment friendly” for unrelated products like eye-

liners, lip gloss, mascara,etc.

• Infant Formula• Positioning an infant formula on it being better than breast milk when

evidence shows that it is not.

Case Study - Malboro

Background

• In 2011, in Germany, Philip Morris International (PMI) launched a new mass media campaign to promote their re-vamped Marlboro brand.

• PMI recognised that “Innovation is not only about launching new products. Importantly, it is also about thinking differently and innovating in the way they market our brands to adult smokers and trade partners.

• The new campaign was targeted at 18-24 year olds and centres around principles of inspiration and decisiveness, where the young are told ‘Don’t be a Maybe. Be Marlboro.’

Campaign Outline• In December 2011, campaign

billboards appeared with a large black lettered ‘MAYBE’ written on a white background with the MAY crossed out with a red cross

• Few weeks later, the advertisements developed from this simple ‘maybe’ into ads offering two choices and the slogan ‘Don’t be a maybe. Be Marlboro’

• The Belief - “Young adults feel overwhelmed by the flood of information and options that new technologies offer. In this time of uncertainty, they have very few life compasses that can provide them with guidance. With the new campaign, Marlboro encourages them to be decisive, trust themselves and follow their inspiration.

Don’t be a MAYBE– Be Marlboro!

Tobacco advertising law..

In 2012, at the time of writing, the tobacco advertising law in Germany stated that tobacco advertisements were prohibited on television, radio, in print media and on the Internet, however, outdoor advertising on billboards was permitted as was advertising in the cinema after 6pm. In terms of tobacco advertisement content in Germany, the tobacco industry was not permitted to:

• target young people• make any statements that the inhalation of tobacco smoke is worthy • make any claims on health• provide misleading information• make any reference to ‘natural’ nature of ingredients

Questions for discussion

• Is Marlboro’s marketing campaign ethical?

• Do you think the campaign should be stopped immediately as it influences smoking to be worthy?

• How can you tell that the campaign is targeted to 18 to 24 yr olds only?

Thank You