Chapter 6

Ethics in Marketing
Content
• Unethical issues in offline and online marketing

• Rights of marketers and consumers

• Unethical advertising

• Measures to stop unethical marketing practices.

Marketing ethics

Marketing ethics is a form of applied ethics and is involved in marketing

activities from planning to production to pricing to promotion to
distribution.
 Unethical issues in offline and online marketing activities and the
factors influencing the ethical/unethical behavior of marketers
• Unethical practices in online shopping
Manipulative discount.
Manipulative draw or contest.
Unethical marketing practice using CRM data and AI.(Wrongly using Social Media
influences, Leaking of personal Information, Sending Spam messages, Copyright
Infringement).
(https://growthanimals.com/5-growing-ethical-issues-in-online-marketing-you-need-to-be-
aware-of/
)

• Element influencing ethical and unethical behavior of the marketers

a) Individual factors: marketer’s beliefs, attitude, knowledge, values, etc.
b) Reference group: manager, peers, competitors, etc.
c) Opportunity: scope and opportunity available.
Rights of marketers and consumers
• Rights of the marketer:
The right to take decisions regarding the product to be offered in the
market, such as their design and style
The right to determine and set the price for one’s product
The right to make decisions about how products will be made
available to customers at different locations
The right to promote the products in any way(s)
Rights of marketers and consumers
• Rights of the consumers:
Protection against the marketing of such goods which are found
injurious and hazardous to the life and property of the consumer
Required information about goods such as quality, quantity, standard,
and price to protect against unfair trade practices, if any.
Assurance to have access to an authority of goods at competitive
prices prevalent in the market.
Assurance that consumer’s interest will receive due attention and
consideration at the appropriate level
Redressal of complaints by the appropriate forum
Opportunity to have required information and education on
consumer education
Unethical practices in marketing
• Unethical practices can happen the following ways:
a) Product
b) Pricing
c) Advertising and promotion
d) Place or distribution
Unethical practices in marketing- Product
• Some of the unethical practices involved in the marketing of products
are:
False information about the product
Spurious and adulterated product

► https://www.cseindia.org/pesticides-in-soft-drinks-527
► https://recipes.timesofindia.com/articles/features/maggi-has-poison
ous-lead-in-it-admits-nestl-after-sc-ruling/photostory/67381858.cms
► https://timesofindia.indiatimes.com/city/vijayawada/cadbury-fined-r
s-50000-for-chocolates-with-bugs/articleshow/61236944.cms
► https://www.livemint.com/Companies/1JKHsutTXLWtTcVwdIDg0H/T
he-Maggi-ban-How-Indias-favourite-twominute-noodles-lost.html
Unethical practices in marketing- pricing
• Some of the unethical practices involved in the pricing of products
are:
Deceptive pricing
Manipulative pricing
Unfair pricing
Price discrimination
Price fixing
Horizontal price fixing (setting prices artificially high by the competitors)
Vertical price fixing (setting prices by the manufacturers or retailers)
Unethical advertising
• Any advertising activities that cause harm to society in one form or
other directly or indirectly are considered unethical advertising
• Unethical advertising has the following:
Misleading customers
Harmful to customers
Attack on competitors
Unethical advertising
• Surrogate advertising: surrogate advertisement is the advertisement
of a new product under a same name of an existing ban
product/brand category that may cause harm (for example, tobacco,
alcohol, etc.)
• According to the Advertising Standard Council of India (ASCI)
surrogate advertising is harmful.
• https://casereads.com/surrogate-marketing-the-only-way-for-brands-t
o-promote-banned-products/
Unethical advertising
• How to stop surrogate advertising?
The government of India has put certain regulations and legislation to
prohibit surrogate advertising
Unethical practices- Place
• There can be unethical practices in the distribution of goods and
services:
Distribution discrimination on the basis of countries (vaccines)
Supply of adulterated goods based on location
Trade discrimination based on nationality or place
Dumping
Unfair pricing based on location-based.
Measures to stop unethical marketing
practices
Measures to stop unethical marketing
practices
• The following are some of the measures taken by the government to
stop unethical marketing practices:
The role of the Consumer Protection Act 1986
https://byjus.com/commerce/what-is-the-consumer-protection-act/

The role of the Consumer Affairs Ministry

https://consumeraffairs.nic.in/vision-and-mission
• Fake news vs. fact
• https://youtu.be/UM1ZAFcu1Vc
• Fake news
• https://youtu.be/frjITitjisY
• Famous Companies that use Slavery
• https://youtu.be/P2tYoWqHe10
• High cost of cheap clothing
• https://youtu.be/ni9gQn5rsLA
• By supporting Nike u r supporting child labor
• https://youtu.be/ZYnFKGqiOEU