Ethical Issues in Marketing

1.0 Introduction

        Since decades business ethics and social responsibility have gained extraordinary importance in marketing practices, promoting hones, particularly in societal marketing practices. Businesses vastly battle to indicate their commitments and contributions to society. Consumers are the one, who evaluate this contribution and commitment. False decisions by consumers and unethical advertising applications can influence purchasing behavior. Especially extreme rivalry, globalization and societal consciousness change businesses into social organizations and lead them into marketing and promoting endeavors offering social values and quality. Despite the fact that business ethics and social responsibility of organizations have increased more consideration lately, characterizing customers' discernments on ethical issues is still insignificant. This report exhibits an observational research on the current ethical issues in the market with examples.

        Ethical marketing and advertising is about settling on promoting choices that are ethically right. The profound quality of the showcasing choice can incorporate any piece of promoting including sourcing of crude materials, staff business and item publicizing and estimating. Every individual's perspective of profound quality is distinctive, it depends on individual values and encounters. This makes a test for organizations who need to seek after moral showcasing in a way that will speak to clients. Every firm must have ethical marketing policies and regulations to guide their advertising, pricing, research and competitive strategies.

        The aim of this report is to explore current ethical issues in marketing practices nowadays and to reveal possible influences of these factors on consumers’ ethical decision making. To discuss the elements and factors that give birth to unethical practices by organizations and to provide examples of such practices. All sort of business firms have to consider business ethics practices as business ethics policies play a vital role in the success of the business firm in terms of firm growth and maximization of profit.

2.0 Discussion

        In this section, we will highlight current ethical issues in marketing and will try to figure out the reasons that give birth to such ethical issues, and what companies are trying to do to overcome ethical issues.

2.1 Ethical issues in Advertising and Promotion

        Advertising and promotion are the basic tools of marketing. Advertising and promotion plays important role in marketing field. Earlier in 19th century, tobacco used to be advertised as promoting health. At present, if any marketer will do tell a lie or will not speak truth offends against morality, ethics and in addition to law also. However the law licenses puffery (a lawful term). The distinction between negligible puffery and extortion is a dangerous slant.

        Sexual insinuation is a pillar of promoting substance, but then is likewise viewed as a type of lewd behavior. Violence and savagery is an issue particularly for kids' publicizing and advertising and promoting liable to be seen by kids.

        The advertising of specific items may emphatically irritate and offend a few individuals while being interest to others. Examples are Hemorrhoid, constipation and feminine hygiene products. The advertising of condoms has ended up worthy in light of a legitimate concern for AIDS-aversion, yet are in any case seen by some as promoting promiscuity.

        Through negative promoting methods, the advertiser highlights the drawbacks and disadvantages of competitor’s products and services as opposed to the upsides of their own. These techniques are particularly utilized as a part of political and legislative issues.

Example (VOLVO)

        Some time ago, at one of those creature truck energizes, the goliath trucks squashed every one of the autos with the exception of a Volvo. Volvo's advertisement organization thought this would be an incredible thought for a business. In any case, to make the promotion, the film organization expected to shoot a few takes. So they strengthened the pillars inside the auto to stand rehashed strikes by the creature truck. When this turned out in the press, Volvo was pilloried and the promotion office got let go, at last leaving business. The car maker and its New York ad firm have each agreed to pay a $150,000 penalty for a misleading TV spot. In real life, a Volvo would not stand up to one squashing by a monster truck. The ad featured a structurally reinforced Volvo withstanding the weight of an oversized truck rolling over it. Rival vehicles that was also in the ad were structurally weakened to be crushed by the truck.

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Example (Hardees)

        Fast food chain Hardees, a sister brand of American brand Carl’s Jr. is well known for the juicy burgers and shakes. It is globally famous and started its operations in Pakistan in 2009. Their newly launched TV advertisement is much controversial and its hot issue in the media right now. In the advertisement, two buns neatly placed together and women’s hand firmly grabbing one. The ad reads “fresh beans”. The innuendo can hardly be missed. Thus this newly launched ads indicated vulgarity and controversy.

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Example (DOLCE & GABBANA)

        DOLCE & GABBANA is of the top branding clothing firm that also fails to promote ethical standards, some of their advertisements promote nudity and sex. The effects that sexual imagery are having on young adults alone give reason to deem their excessive use as being unethical. It is totally unethical to intentionally target vulnerable adolescents in order to make sales and profit.

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2.2 Ethical issues in Pricing

        Nowadays mostly firms operating in the competitive business sphere might be tempted to try a variety of unethical pricing practices to maximize profits and market shares. But if firms just operate in terms of their self-interest, it will lead to decreased trust by consumers and lawsuits that consume company time and money to defend such lawsuits.  Companies should set ethical policies since beginning to avoid such situations.

        Pricing plays an important role in terms of selling the products and services. The price decides how well the product will be sold. Producers should provide ethical pricing for the products and services to earn money without defrauding the consumers and competitors. Even though competitors’ products prices are different because of different services, convenience and other factors effects consumer’s thoughts about fair pricing. Business laws give protection to consumers in terms of pricing, like if any organization try to attempt different pricing strategy.