Literature Review
The purpose of this report is to enlighten the reader about the ethics related in the process of marketing. In the current business environment every organizations wants to achieve a dignified position in the target market, the marketing activities of the companies helps them in creating an image in the minds of the customers. The aspects of marketing help the customers in attaining information about the products and services offered by the company and creating a brand image as well. Further, the below mentioned paper explains a review of literature on the ethics in marketing. It also explains about the types of unethical market along with its impact and various examples. Ethics plays an important role in the process of marketing as looking the marketing initiated by the companies; the customers create an image of the products and services they offer in the market (Palmer 2015). More details about the paper are discussed below:
Whether a company is selling its products and services or it has hired the marketers to advertise its products, it is very essential to understand very thin line between marketing practices with and without ethics. Considering the importance of ethics, each and every company should incorporate ethics in their marketing practices. However, the ethics in marketing does not covert into increased revenues and profits; it is the responsibility of company to make sure that it is accountable for its activities and their effects on customers and society as a whole (Haberstroh, et al, 2017).
According to Vitell, and Hunt, 2015, business ethics is looked as one of the most controversial subject in the external environment as it evaluates the relationship between doing good activities and making money as well. Some companies follow the path of ethics in initiating marketing activities however, some believes that they cannot earn well without influencing the customers for the product. So, this is considered is as unethical marketing where the organization influences the prospective customers by providing them wrong information about the products and the company. Ethical marketing is less of a strategy and more of a philosophy or code of conduct of the business as it talks about working with honesty and fairness in the business (Nill, 2015).
Ethics in marketing states that the organization should not advertise or promote their product in such a way that it negatively affects the sentiments of people. The company should circulate the information that is true and it should not post such information in the market to attain trust and long term relationship with the customers. Ethical marketing only explains that the company should carry on their marketing activities without promoting any nuisance or wrongful information to customers in the market. This type of marketing plays a major role in managing the public image of the company (Murphy, Laczniak, and Harris 2016). Tanga Cement Company has used social responsible and ethical behavior rather than a legal system on ethical issues. The company develops a code of conduct to regulate all its marketing activities and communicate its brand message to targeted customers.
Benefits of Integrating Ethics in Marketing Processes
Nowadays, marketing is an important process to approach the targeted customers and improve brand image in the market. As stated by Kotler et al (2015), good ethics is the foundation for the sustainable and effective marketing. In the long term, marketing without ethics can harm company’s customers and society. A company can achieve long-run customers, marketing objectives and business welfare via ethical marketing practices. In this context, DiPiazza (2009) stated that each and every company needs to embrace, communicate and use basic values which can enhance the confidence of consumers in the integrity of company’s marketing exchange system. There are some specific values which should be included in a firm’s marketing practices such as responsibility, fairness, honesty, citizenship, openness and respect. As per Murphy, Laczniak and Harris (2016), ethical marketing efforts and decisions should focus and meet the demands and needs of suppliers, business partners and customers. Unethical behaviors like selective advertising, price wars and misleading advertisement can have adverse impact on the relationships of company with its external and internal stakeholders. It can be analyzed by looking at the current trends that most of the customers prefer to purchase their required products and services from ethical firms. As an outcome of this, ethics itself becomes the selling factor and a foremost component of company’s brand image (Murphy, Laczniak and Harris, 2016).
For some of the brands, ethics in marketing is more than an opportunity to increase their credibility. Domino’s is the biggest example of this which implemented marketing campaign in which it has displayed the pictures of real pizzas. They do not use the studio photography which can make in more perfect. It was an uplifting look behind the marketing trick. It has developed honest and open relationship between the brand and pizza buyers. It was the best marketing to get the attention of targeted customers. Ethics plays a significant role in the marketing practices and processes (Ferrell, et al, 2014).
According to Nill (2015), there are various benefits of integrating the ethics in marketing processes. The author stated that ethics is specifically significant in the situations of economic downturns, when the unethical processes become appealing. Moreover, the emphasis on the consumer value can enhance the value of organization. If the company will use ethics in its organization and marketing practices, it will be able to enhance the quality of recruitment and retention rate. Ethics is a significant factor which can assist the companies to attract suppliers, customers, investors and employees. Ultimately, it helps the company to attain its overall business objectives (Rawat, et al, 2015).
Examples of Unethical Advertisement and Marketing
Dokoupil (2015) stated that there are various companies who engage in the unethical marketing and advertisement. The impact of unethical advertisement is totally opposite of the above benefits of ethics in marketing. The biggest example of unethical marketing is Diet Coke where Coca Cola Company has made false advertisement claims to customers. In order to advertise its product, the company has attracted the people by delivering a wrong message. They are told that obsessive dieting is adaptable and this product is the best way to become beautiful and thin. It was very harmful for the young girls because it had adverse effects on their body image and self-esteem. Coca Cola should not use these ways to promote its product. It has affected the brand image of Coca Cola among its targeted customers.
According to (Jackson, et al 2015) there are different situations where the companies do not integrate ethics in marketing. Many times, the marketers over exaggerate about the advantages of products in a diplomatic way that customers go emotionally under pressure of the influence of advertising and they decide to purchase respective product. They use false claim about the popularity and quality of their product. For example, a tagline like; “have coverage anywhere on the globe” markets the features which cannot be provided to the final consumers. Karasheva and Tilekeeva (2015) explained that other ethical issues in market include hidden perception, women exploitation, deceptive marketing, marketing to kids and other issues that can cause moral weakening of the society and its people (Jackson, et al 2015). The firms without using ethics in marketing may face various issues and monetary fines also. For example, Apple has agreed to pay $2.25 million fine for advertising its iPads “4G” even these products do not support the 4G networks in Australia. Additionally, the companies emphasize on the negative aspects of the competitors’ products so that they can turn their customers towards own products (Nusca, 2012).
Along with the monetary penalties, it had an adverse impact on the sales of Apple. In this way, it is clear that marketers think that they can earn benefits by using unethical advertisement and marketing but it has opposite impact on company’s brand image. This affects both financial and strategic position of company. The major impact of this advertising is on the brand image of company in the eyes of targeted customers (Palmer, 2015). In this way, it is very important for all the companies to integrate ethics and developing ethical practices in their marketing and promotion processes.
Conclusion
Thus, in the limelight of above mentioned events the fact should be noted that ethics in marketing is one of the most important aspects that help the business in managing long term relationship with the customers and managing good public image as well. The above mentioned review of literature states that the marketing concept helps the business in attracting customers in the company and ethics in marketing helps the business in satisfying the customers and creating good brand value as well. The paper covered the benefits of ethics in marketing along with its role and impact of unethical marketing as well. The above mentioned illustrations explain the impact of unethical marketing on the image of the company. Ethical activities are important for the business to follow and it can help the company to run and maintain sustainable growth in the target market.
References
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Australia: Pearson Australia.
Dokoupil, T., 2015, Coca-Cola’s misleading anti-obesity campaign also targets kids, Available from https://www.msnbc.com/msnbc/coca-colas-misleading-anti-obesity-campaign-also-targets-kids [accessed on 1 September 2018].
Ferrell, O.C., Niininen, O., Lukas, B., Pride, W.M. and Schembri, S., 2014, Marketing Principles, Cengage Learning.
Haberstroh, K., Orth, U.R., Hoffmann, S. and Brunk, B., 2017. Consumer response to unethical corporate behavior: A re-examination and extension of the moral decoupling model. Journal of business ethics, 140(1), pp.161-173.
Jackson, M., Harrison, P., Swinburn, B. and Lawrence, M., 2015. 17. Marketing ethics in context: the promotion of unhealthy foods and beverages to children. Handbook on Ethics and Marketing, p.354.
Karasheva, A.A. and Tilekeeva, U.M., 2015. Manifestations of Unethical Marketing In Health Care of The Kyrgyz Republic. Clinical Therapeutics, 37(8), p.e131.
Murphy, P.E., Laczniak, G.R. and Harris, F., 2016. Ethics in marketing: International cases and perspectives. UK: Taylor & Francis.
Nill, A. ed., 2015. Handbook on ethics and marketing. UK: Edward Elgar Publishing.
Nusca, A., 2012, Apple penalized $2.22 million for misleading iPad 4G ads, Available from https://www.zdnet.com/article/apple-penalized-2-22-million-for-misleading-ipad-4g-ads/ [accessed on 1 September 2018].
Palmer, D.E., 2015. Conceptions and Misconceptions of Virtue in Marketing. Handbook of Virtue Ethics in Business and Management, pp.1-9.
Rawat, S.R., Bhatia, K., Hegde, M., Bhat, N. and Tewari, S., 2015. The Importance of Ethical Marketing Practices. Journal of Business Management and Economics, 3(2), pp.23-30.
Vitell, S.J. and Hunt, S.D., 2015. The general theory of marketing ethics: the consumer ethics and intentions issues. Handbook on ethics and marketing, pp.15-37.
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