Ethics in Marketing.

1. “ETHICS
IN
MARTEKING”

2. What is ethics?
Ethics is the art and science of determining
good and bad or right and wrong moral
behavior.

3. What is MARKETING?
Marketing is the science and art of exploring,
creating, and delivering value to satisfy the
needs of a target market at a profit.
- Philip Kotler

4. Marketing Ethics:
Marketing ethics is an
area that deals with the
moral principles behind
marketing. Ethics in
marketing applies to
different spheres such as
in product, pricing,
Placing (Distribution),
promotion & advertising
etc...

5. Why we need Ethics in Marketing?
We can give many reasons but will notify some:
• 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.

6. Nestle’s Case Study
• Nestlé boycott
• The Nestlé boycott is a boycott launched on July 7, 1977, in
the United States against the Swiss-based Nestlé
corporation. It spread quickly throughout the United States,
and expanded into Europe in the early 1980s.
• In Canada, the controversy lasted from 1978 to 1984. It was
prompted by concern about the Nestle's promotion of
breast milk substitutes (infant formula), particularly in less
economically developed countries (LEDCs), which
campaigners claim contributes to the unnecessary suffering
and even deaths of babies, largely among the poor.

7. Ethical Issues in Marketing:
We discuss Marketing issues by using 4P’S OF
MARKETING:
• PRODUCT & PACKAGING
• PRICE
• PLACING (DISTRIBUTION)
• PROMOTION (ADVERTISING & BRANDING)

8. Product
• Consumer safety
• Product liability and reliability
• Designing for special needs

9. Packaging
 Label information
 Packaging graphics
 Packaging safety
 Environmental
implication of
packaging

10. Price: Second P of Marketing
• Bid rigging
• Supra competitive pricing
• Price fixing
• Price skimming

11. • Predatory pricing
• Price war
• Dumping (pricing policy)
• Variable pricing

12. PLACING (DISTRIBUTION)
 Product distribution (or place) is one of the
four elements of the Marketing MIX.
 Distribution of product or service is
transporting them from manufacture to
stockiest, wholesalers, retailer and then to
consumers.

13. Ethical issues in distribution
• Ethical questions may also arise in the
distribution process.
• Because sales performance is the most common
way in which marketing representatives and sales
personnel are evaluated.
• performance pressures exist that may lead to
ethical dilemmas. For example: pressuring
vendors to buy more than they need and pushing
items that will result in higher commissions are
temptations.

14. Many retailers sell products that have crossed
expiry date is unethical.
Exerting influence to cause vendors to reduce
display space for competitors' products is
unethical.
 promising shipment when knowing delivery
is not possible by the promised date is also
unethical.

15.  Paying vendors to carry a firm's product rather than
one of its competitors are also unethical.
 Most drug stores would give too many drugs
without prescription from a qualified doctor are also
unethical.
 Products are moved in unsafe vehicles ,are also
unethical.

16. PROMOTION (ADVERTISING
&BRANDING)
• Promotion is one of the four elements of
marketing mix (product, price, promotion, place).
It is the communication link between sellers and
buyers for the purpose of influencing, informing,
or persuading a potential buyer's purchasing
decision.
• To present information to consumers as well as
others
• To increase demand
• To differentiate a product

17. Ethical Issues in Advertising
• Puffery
• Advertising to Children
• Promoting Unhealthy Products
• Subliminal Advertising
• Deceptive Advertising

18. THANK YOU!!!!