Marketing Ethics Ethical Marketing Decisions

Question: Discuss about the Marketing Ethics for Ethical Marketing Decisions. Answer: Introduction The recent developments in the area of marketing ethics are exploring various aspects of marketing field that consists of some ethical dimensions. The objective of this article is to research on the same and provide a systematic review of it. In recent years, the literature of ethics related to business and marketing has expanded both in importance and volume. Hence, it has become a necessity to clarify and focus into the area. This paper presents literature review on ethics in business with its mainly focus on marketing. Although, most of the reviews and literature in this articles have been extracted from Australian articles and reality, but maximum part of the information gained are applicable to other nations also. Objective In simple words, moral factors and challenges faced by marketing practitioners are referred to as marketing ethics i.e. what is morally good and bad, right and wrong in marketing. Since last 20 years there has been a noticeable rise in the interest shown in the area of ethics in marketing. This trend in marketing demonstrates the progression of group depictions with respect to businesss role in society (Batory, Neese Batory, 2005). Additionally, out of various zones of administration, marketing is certainly most debateable in regard to ethics (Tsalikis Fritzche 1990). Indeed, often society views ethics in marketing as most abusive and humiliating, due to the fact that it is the primary linkage amid environment and organization (Mercier, 2004). Still, ethical problems in the way of marketing and socializing do not hide the fact that they are moral. The rules, principles and morals confined to marketing which helps and guide leaders, all are physiognomies of ethical behaviour (Ballet De Bry, 2001). As discussed in research questions of assessment 1 the first part of the literature review will concentrate on normative marketing ethics, mainly concerned with how to maintain ethics and make decisions using ethical content. In a summarised way it could be said as what constitutes ethical marketing practice. In the next part we discuss the risks and issues faced by stakeholders in marketing and how the goodwill and credibility of the organization hampered due to unethical marketing research practices i.e. the effects of major ethical issues in marketing. Hence, this paper aims to have a better understanding of the ethics role in the area of marketing. For this, a thorough analysis of the literature was done considering around 25 marketing journals. Normative Marketing Ethics A better way to start the review is using oldest paper in the intact accumulation, Clarence Walton, a long-time conqueror of knowledge about ethics in business and marketing and a former President of American University, presented a paper during an AMA conference in 1990, observing continuous assaults on marketing and business, advised attention on three questions: What actually the market is doing? What should and should not be done? And Away from ethical necessities what should we like the market to do? Walton then came out with three foundations: business ethos, philosophical ethics and theological norms, in disagreement that there is much to be offered by philosophical ethics as a minimum concerning to problems of marketing. Rawls theory of justice, often called as Social Contract Theory (SCT), is a promising theory in reference to issues and risks of ethics in marketing. Ross, Smith and Dunfee introduced this theory in an article published in Marketing Journal in 2001, as a normative context in the area of marketing, exemplified by solicitation to commercial corruption and inducement. SCT was considered predominantly suitable due to its altercation association nature at the core of marketing. Rawlsian analysis was highlighted by Laczniak and Murphy in an article published in the year 2008, on distinct concern of the Macromarketing Journal which was mainly concentrated on distributive integrity. This integrity practiced on marketing deals with How the system of marketing, its practices, policies, structure and honestly allotments of rewards and forfeits amid the distinct organizations, affected by the procedure of marketing exchange. Distributive theory of integrity was advocated as a technique of instituting fairness inside such a distribution. Kohlberg advised that it should be conceded by ethics in marketing that it needs only to ask people to act in their own commercial interest and sincerely obey the law. Gaski replied to Kohlbergs comment and advice in a Journal of Business Ethics in the year 2005, He admitted need and importance of following ethical laws in the field of marketing including, considering own self-interest and obeying the law, but concluded that ethics in marketing has much far-reaching sphere. Gaski summarized Kohlbergs theory as, Acting in own self-interest area and obeying the law can only act as profitable guideline, they have exceptions in the area where ethics contradicts with self-interest and law. Risks and Issues in Marketing A framework was offered by Brenkert Marketing Ethics and Issues. Extensiveness of marketing was not the only aim of Brenkert but he also forced upon how unethical practices might harm Stakeholders and what issues they may come across. The first ethical issue that Brenkert introduced in this area is: Issues in Market Segmentation and Targeting Brenkert, in another article Ethics in Business mentioned the issues and risks connected with providing dangerous products to particular segments. Especially, he explained it by taking the example of story PowerMaster, how Brewing Company of G. Heileman failed in their marketing efforts due to unethical practices and malt liquor supply. Issues in Marketing Research Tybout and Zaltman stated in an article published in 1991 Journal of Marketing Research, possible allegations of rights of research participants might be violated in research. As a result it might result in low and poor worth of research information. Kimmel, Smith and Klein concentrated straight on research in the area of academic marketing and the disciplinary, mythological, and ethical consequences while using deception, in an article Psychology and Marketing published in the year 2011. Kimmel, Smith and Klein showed the reason and method to use deception and then offered an analysis of deception by using normative marketing ethics from both deontological and consequentialist viewpoint. At last they concluded that when ethics were applied to deception it resulted in social contract perspective. Issues in Advertising In the field of Advertising, the first major issue that arises is dishonesty. Kottman(1990) discussed this issue with Becker, who advised that dishonesty in the area of advertising has been exaggerated . Kottman rejected the reply suggested by Becker and worked upon highlighting many concerns in the field of advertising since past 25 years and still exist. He suggested that consumer wants truth while deception, exaggerations and distortions are coming in the way which is adversely affecting the marketing field in the area of advertising. Sixteen years hence, in 2005 Pollay in a journal of Marketing stated the complete synopsis of the literature out from the marketing field concentrating on cultural affects. He concluded that based on the assessments and evaluations advertising emphasizes loss of self-respect, powerlessness, sexual preoccupation, social competitiveness, anxiety, selfishness, irrationality, cynicm and materialism. Privacy Issues Communications in the field of marketing are generally online, which raises a high concern on individuals privacy. Caudill and Murphy observed ethical and legal issues in consumers privacy online in a paper in the year 2008. Federal Privacy Regulation was initially inspected which started in the year 1980s. At that point of time online privacy was a major public issue. An ERC was advised with the use of primary theories related to ethics for the evaluation of public policies, ethical policies and corporate policies. Since late 2000s issues related to online privacy has gained importance and the statement given then hold true today Our aspirations for consumer privacy advices an assimilation of public, ethical and business policy standards to moderate unavoidable loss of privacy seen by some. Effects on the Goodwill and Credibility of Organization Taylor, Skinner and Ingram (2008) stated that if the business activities of some organization are perceived as unethical by its committed consumers, chances are high that the company might lose its trustworthy and faithful customers and eventually the frequency and number of customer automatically shrinks. Ingram (2005) advised that unethical practices in marketing affect the behaviour of consumer in marketplace, as consumers nowadays are clever enough to sense. Consumers identifies organizations behaviour as unpleasant, customers may even deny buying the products and goods from the company (Carpenter, Rashi, and Nakamoto, 1994). The reason of such impulse behaviour could be the violation of ones rights and results of such activities are severe. Alexander (2006) enhances that the commitment of consumer is motivated by emotive and spiritual attachment with a company or brand. Conversely, ethics are judges differently by different individuals, and organizations when introducing some dr ive related to marketing, they must know how the stakeholders understand and has designed their way of judgment (Corey Bone 2001). Carrigan Attalla (2007) stated that unethical practices are referred to that behaviour which is morally unacceptable or illegal to a large society. Consumers make their opinion about some brand by listening about the negative words about the product, number of complaints boarded about the product and similar other ways (Jones 2001). The gravity of concerns presented by social consensus and marketing strategies, impacts the behaviour of consumer to decide whether to buy the product or not (Chen, Ganesan Liu, 2009). Rationally, consumers determinedly evaluate the concealed benefits of marketing initiatives and contribution of company in society welfare. Creyer Ross (1997), stated that when sales executive delivers false information about their product and hides vital facts about it, just to boost up sales of the product, it is considered highly patent unethical practice. Creyer Ross further added that majority of sales executive has a false implication of consumers desire, that they prefer entertainment over science and sports over education. Additionally, executives in marketing their products use sensual sex appeals in advertisements to attract consumers (Pits, Etzel Bello 1993). Ayub (2013) explained creators make use of sex appeal and nudity in advertisements. One more point to be noted is that, during past times another way to manipulate customers choices paradigm was using subliminal messaging. This technique was presented in 1960s for the marketing of products during movies. Rotfeld (2005) states that a firm which has now failed made use of this technique to boost sales of drinks and popcorns during movies. In actual, sales executives tries to take unjustified gain of consumers mental conditions and make them believe that they need the product which was not at all desired. Conversely, sometimes consumers are so passionate about some products that they trust anything what comes in the way (Rogers 2003). Such as, overweight people get obsessed with weight loss products and without checking its durability and consequences they buy the product. Validating it further, Polonsky, Carlson Fry (1997) stated that a harmful product is determined by its characteristics, if it carries any unsafe ingredient it is harmful. An idea harm chain was presented by Smith Cooper (2003) to measure the physiognomies of some product and inform about the harmful ingredients in it, if present any. The organizations that are more famous have the chances of being scrutinized more as well (Sun, Chen and Wang, 2012). Methodology A study focused on stakeholders in an organization, marketing employees, consumers and unethical practices was conducted. The method to choose academic journals specific in marketing to use in the above research, the references and reading provided by AFM in the year 2013 was used. The reason to choose these authors readings is that, there work is well respected amongst practitioners and in academic field. The fundamental reason for this methodology was to incorporate every one of the articles that had an all-around perceived effect in the field in the previous 25 years. To attain more European and international perception as well as being avoided as exclusionary, francophone and European journals were added. Every Journal used in the research and written has been scanned by two judges using a search engine ABI INFORM. As advised by Ballet and De Bry (2005) a keywords list was generated to examine literature review on marketing ethics. Those keywords were: stakeholders, business ethics, marketing, consumers, employees, sales executives and social marketing. The professional title for the paper was the result of analysis and to enhance the validity of readings and journals used to gain the information, proofreading was done twice. Analysis This article has examined studies published since last 25 years. Since 1990, 160 publishes articles has been researched which found out that, 89 of them are empirical while remaining 71 are conceptual. Out of these empirical 89 studies, some around 25 were used to conduct the study. A regression analysis was done to test as perceived magnitude of harm increases, the perceived fairness of the situation decreases, and the results are negative connection amid perceived fairness and magnitude of harm. Also can be said as, higher the magnitude, lower the fairness. As a whole, consumers are in high impact of manipulation by marketing experts, due to their own desires. They are considered as innocent souls and get fascinated by the advertisings and sugar coated words of sales executives, but the organizations that work ethically and market their product without false implications have high demands and better chance to exist in the market. Because once the consumer realises that the product is not worthy and he has been cheated, he loses trust for the brand and organization at that very second and negative word of mouth impacts several others. The outcomes of this research and review underline the fact that still numbers of investigations are needed to make ethics a discipline in the field of marketing. Conclusion In the coming time ethics in the field of marketing will even be more challenging, from different reasons and perceptions. Some of the primary reasons are expansion of various innovations in technology, such as, electronic marketing of books, legal advice, music, medical are some among many that will give ethics a more serious and tough competition . Innovative technologies might be in the market to determine customers interest while visiting a store or these technologies might even change the mood of customer while shopping. Added technology advancements might force a salesman to think about following questions. How much knowledge the executives must have about the customer they are seeking to reach? What are the ethical practices company must adopt while reaching customers? Ethics in marketing are still in the middle of expanding, trying to seek its ideological and conceptual base. The above research and review is a step towards progression of information in the area of marketing ethics. This analysis could be considered as a reference for further research of discipline in marketing ethics. If unethical practices are not stopped in the field of marketing, situation may worsen and no sooner than later the adversity will increase landing the consumer blocks in sheer trouble. References Brenkert, G. (2008). Marketing Ethics, Cambridge, MA: Blackwell. Drucker, P. (1995). The practice of Management, London: Heinemann. Gaski, H. John, F. (1999). Does Marketing Ethics Really has anything to Say? A critical inventory of the literature, Journal of Business Ethics, Pg. 315-334. Kimmel, J., Smith, N. and Klein, G. (2011). 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