Ethics in Global Advertising & Click to edit Master subtitle style Marketing

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Ethics in Marketing

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Role of ethics in international marketing

Given the complexity of the world in which we live, maintaining ethics in the business is challenging in many ways. Businesses face ethical challenges when conducting business abroad. Companies must be must be of ethical standards and acceptable behavior. Ethics play an important role in the relationship between the company and the public.

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 This

awareness means the marketers most recognize the viewpoints of three key players : the company, the industry and society. It helps to build corporate social responsibility.

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Ethical Principles
1. 2. 3. 4. 5.

Understand the basic arguments for and against free markets and central planning. Recognize how these arguments are based on ideology. Understand the effect of new technologies on free market. Understand the major criticisms of free market theories. Show how considerations of justice and fairness enter into ethical considerations.

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6. Understand how the ethics of care and ethics of virtue respond to modify other ethical problems. 7. Evaluate the ethical choices involved in economic growth.

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International Marketing Ethical Problems

Bribery Violating some official duty or responsibility To speed routine government actions.

Bid Rigging It involves an agreement in which one party of a group of bidders will be designated to win the bid.
Pricing
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in Political Affairs Combination of marketing activities and politics . Activities in the Host Country Polluting the environment eg Coca Cola water intensive bottling plants. Maintaining unsafe working conditions Short weighting overseas shipments
Products/Technology
Selling

Involvement

Illegal/Immoral

banned product in the host country.

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business ethics problems in five guidelines: 1. Do not direct intentional harm.

2. Produce more good than harm for the host country. 3. Respect the rights of employees and of all others affected by one`s actions or policies. 4. To the extent consistent with ethical norms, respect the local culture and work with it and not against it. 5. Multinationals should pay their fair share of taxes and cooperate with the local governments in developing equitable laws and other background institutions.
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ETHICS COMPLIANCE PROGRAMS

Development of code of ethics: Guidelines developed by companies to help employees to make ethical decisions Consumerism Social movements that protect consumers from harmful business practices

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Green marketing Marketing of products and packages that are less toxic and recyclable. Corrective advertising Advertising that clarifies previous deceptive claims

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ETHICS IN ADVERTISING
Click to edit Master subtitle style

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 Advertising

is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Consumers are bombarded with more than 1500 commercial messages a day . Aim of ethical professionals Subtle shade of truth : Volvo

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Unethical advertising when:

1. Violates Consumers' Right to Information: Use of untrue paid testimonials to convince buyers, quoting misleading prices, disparaging a rival product in a misleading manner are some examples of misleading. Advertisers of anti-aging creams, complexion improving creams, weight loss programs, anti-dandruff shampoos, manufacturers of vitamins or dietary supplements are usually guilty of making exaggerated product claims.
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EXAMPLES
Parle

G Glucose biscuit Bhupesh Khurana vs Vishwa Buddha Parishad Advertisements by some financial companies such as doubling money in a given time without base to justify claim are deceptive in nature.
Shaadi.com

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2. Violates Consumers Right to safety Misrepresenting the facts Electronic goods Food products Children, sick, elders
Example:

Sharbat

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3. Comparing your products/ services with those of competitors Indirect Direct

Cadillac Seville STS

BMW 540

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4. Advertisements directed at children Childrenlack independent judgement and experience. Advertisers rely on the children's pester power on their parents. Advertise products that are not conducive to their health.

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5. Puffery Exaggerated promotional language Use of best, finest etc.

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Use of Sex Appeal

Gaining

consumers attention Irrespective of the product/service

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Bait Advertising
means taking advantage of consumer psychology and depriving consumers of a choice. - For example, a consumer is lured into a retail outlet by an advertisement for a low cost item and then is sold a higher priced version or to be defective.
It

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Advertising of harmful products

Surrogate

advertising In-film advertising

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Presented By
J Surbhi J Apoorv C Ritika B Lakshmi C Shraddha C
Naman

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