MARKETING ETHICS

Presented by-
Sukumar kr. sharma
DEFINITION-
 Marketing ethics is the area of applied ethics which
deals with the moral principles behind the operation and
regulation of marketing. Some areas of marketing ethics
(ethics of advertising and promotion) overlap with media
ethics.
 Marketing ethics is the area of applied ethics which
deals with the moral principles behind the operation and
regulation of marketing. Some areas of marketing ethics
(ethics of advertising and promotion) overlap with media
ethics
THE DOMAIN OF MARKETING ETHICS

The relationship between a customer and an organization

exists because of mutual expectations built on trust, good
faith, and fair dealing in their interaction. In fact, there is
an implied covenant of good faith and fair dealing, and
performance cannot simply be a matter of the firm’s own
discretion (Ferrell, 2004).
CONTINUE-
 Marketing ethics not only requires an attempt to make
ethical decisions, but also to avoid the unintended
consequences of marketing activities. This requires
consideration of key stakeholders and their relevant
interests (Fry and Polonsky, 2004). Market orientation
has been found as the key variable in the successful
implementation of marketing strategies (Homburg,
Krohmer, and Workman, 2004).
DIFFERENCE BETWEEN AN ORDINARY
DECISION AND AN ETHICAL ONE-
 One difference between an ordinary decision and an
ethical one is that accepted rules may not apply and the
decision-maker must weigh values in a situation that he
or she may not have faced before. Another difference is
the amount of emphasis placed on a person’s values
when making an ethical decision. An ethical dilemma
evolves when the choice between alternative actions with
moral content is unclear. Whether a specific behavior is
right or wrong, ethical or unethical, is often determined
by the concerned stakeholders and an individual’s
personal ethics. Consequently, values, judgments, and
complex situations all play a critical role in ethical
decision making.
HISTORICAL DEVELOPMENT OF MARKETING ETHICS

 The historical background for marketing ethics is

derived from early concerns during the turn of the 20th
century concerning antitrust and consumer protection,
especially adulterated food products. From the beginning
of advertising, there have always been concerns about
misrepresentations and purposeful deception of
consumers. Frank Chapman Sharp started teaching a
course in business ethics at the University of Wisconsin
in 1913 and Sharp and Fox (1937) published a textbook
on business ethics.
 
KEY ISSUES IN MARKETING ETHICS
 By its very nature, marketing ethics is controversial, and
there is no universally accepted approach for resolving
questions. Ethical issues address a problem, situation, or
opportunity that requires an individual, group, or
organization to choose among several actions that must
be evaluated as right or wrong (Ferrell, Fraedrich, and
Ferrell, 2005). The organization and stakeholders define
marketing ethical issues that must be identified and
resolved to build trust and effective relationships with
stakeholders. Because marketing ethics sometimes deals
with subjective moral choices, this requires decisions
about the moral standards to apply and the definition of
ethics issues.
A FRAMEWORK FOR UNDERSTANDING ETHICAL DECISION
MAKING IN MARKETING

 Ethical decision making in marketing parallels ethical

decision making across all organizational domains.
There is much overlap between marketing ethics and
business ethics because the basic frameworks that
describe ethical decision making in an organization
include decisions that encompass marketing. In other
words, within the context of an organization, there is an
ethical component to business decisions, regardless of
whether it is marketing or some other functional area
component. External stakeholder interests, concerns or
dilemmas help trigger ethical issue intensity.
CONCLUSIONS

 Much progress has been made in advancing theory and

research in marketing ethics. In addition, the practice of
marketing has been elevated to higher levels of ethics
from professional codes of conduct provided by the
American Marketing Association, Direct Selling
Association, Direct Marketing Association, Marketing
Research Association, American Federation of
Advertising and the National Advertising Division of the
Council of Better Business Bureaus. In addition, most
corporations have developed comprehensive codes of
conduct that address specific ethical risk areas in
marketing practice.
CONCLUSIONS CONTINUE-
Recent regulatory changes that require boards of directors
to be responsible for oversight on all ethics issues within
an organization elevate the importance of marketing
ethics. It is clear that marketing ethics is part of
organizational responsibility and individuals cannot
make independent decisions about appropriate conduct.
There is recognition through academic research and
regulatory initiatives that corporate culture plays a key
role in improving marketing ethics.
THANK
YOU