Transcript Ethical
Enterprise Marketing Ethics in Marketing Definition: Principles and standards that define acceptable conduct of marketing efforts. Social Responsibility Definition: An organization’s obligation to maximize its positive impact and minimize its negative impact on society Marketing Citizenship: The adoption of a strategic focus for fulfilling the economic, legal, ethical and philanthropic social responsibilities expected by stakeholders Stakeholders: People and groups of people who are affected by the activities of the organization Who are the stakeholders? Customers Suppliers Owners/Investors Employees Management Community Governments Dealerships, distributors commissioned salespeople Corporate Social Responsibility Economic: Be profitable. All other responsibilities rest on this Legal: Obey the law. All business activities are within the boundaries of the law Ethical: Obligation to do what is right, just and fair. Philanthropic: Be a good corporate citizen. Contribute to the community. Examples of un-ethical marketing Manipulating and/or cheating the customer Knowingly bringing an unsafe product to market Making claims about the product that are untrue Ethical issue An identifiable problem, situation or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or un-ethical. How Ethics affect the marketing mix Product: when marketers fail to disclose risks associated with a product or misrepresent it’s function or value. Promotion: false or misleading advertising Pricing: price fixing, predatory pricing Distribution: Multi-Level Marketing Examples of Un-Ethical marketing The recording industry: Payola The movie studios: Bundling Gone with the Wind and Getting Gertie’s Garter The Auto industry: Ford Pinto Multi-Level Marketing: NSA Canada Improving Ethical conduct in Marketing Introduce codes of conduct Hiring more ethical employees Eliminating un-ethical employees (bad apples) Restructuring (bad barrels) Implement Ethical and Legal compliance programs Educate employees on code of ethics. Lead by example Follow-up and enforce Resources: E-Center for Business Ethics http://e-businessethics.com American Marketing Association www.marketingpower.com Social Responsibility and Ethics are good for business Cause related marketing: The practice of linking products to a particular social cause Strategic Philanthropy: The synergistic use of organizational core competencies and resources to address key stakeholders’ interests. Both organizational and social benefits are achieved. Example of good business ethics The Body Shop - Canada Using natural ingredients, The Body Shop has built a successful skin and hair care product line. Responsibility for the environment is also key. Product Communications, The Body Shop Canada In 1980, The Body Shop Canada was a single shop hidden under a deli in Toronto's Yorkville district. It's products were hand-labeled and the warehouse consisted of boxes wedged into the basement of a house. Today The Body Shop, respected for its distinctive and honest approach to retailing and its commitment to profits with principles, has 120 shops across Canada selling high-quality skin care and hair care products that are not tested on animals and simply packaged, ... For next class Read Brand Marketing case study: Guinness http://www.fastcompany.com/magazine/58/ marketing.html The “Intel Inside” brand case study http://www.intangiblebusiness.com/Brandservices/Marketing-services/News/Ingredientbranding-case-study-Intel~466.html Also research: Harley Davidson motorcycles Your Marketing Project Divide yourself into groups of 4 students Think about a product that you would like to export to the Canadian market Develop a marketing plan based on the theory presented in class and the sample marketing plan More details to come…