ethical issues in marketing mix pdf

The first half of the paper describes and explores the character of electronic marketing, highlighting those aspects which are in some sense novel or new. The top three ethical issues in 1977 were bribes, price discrimination … But just because the marketing arm of an organization doesn’t get as much attention as the finance group, does not mean marketers have free reign. However, e-marketing practices raise specific new and different ethical issues as well. In recent years, the business ethics literature has exploded in both volume and importance. You can’t afford to wait until ethical issues arise to address them, because your company reputation and future profits are at stake. For instance, new forms of dynamic pricing, spam email advertising, and the use of tracking cookies for commercial purposes have all raised ethical issues. The phenomenal growth of the Internet has spawned several new concerns about protecting the privacy of consumers. 4 0 obj Marketing to children is considered an ethical issue because children can be highly impressionable. 1996). At the same time the problem of product safety is inseparably connected with business effectiveness: how much can we spend on product safety without making our production unprofitable? Product Price Place Promotion Process People and Physical evidence. Social media marketing blends the personal with the professional and gives businesses intimate data about consumers. With the astounding growth of the Internet, the potential threats to consumer privacy have grown exponentially. Ethical Issues in Marketing. From a Kantian perspective the emphasis must be on giving users complete information so that they can make informed decisions as to whether they are willing to be monitored. Misleading reporting c. Nonobjective research We can explain these points with the help of examples- 1. This paper considers electronic marketing, the latest type of marketing, using the familiar framework of the seven Ps of marketing – product, price, promotion, place (distribution), process, physical evidence, and people – in an attempt to evaluate electronic marketing and its potential contribution to marketing in general. Ethical issues and marketing mix 1. This has led interest groups, parents and lobbyists to question the ethics of targeting children through this new medium and some have even called for it to be banned. One of the keys to unravelling the undesirable situation of a perceived absence of ethics in business is in encouraging a greater identity community, company and workforce. There exist several controversial moments in marketing that could be offensive or which could cause unexpected negative influence on costumers. The paper concludes that whilst not every marketer embraces the use of the Internet, this “new kid on the block” has become an accepted part of marketing activity. As social media has continued to blur the lines between technology and real life, we are seeking the answers to questions we didn’t know we had to ask. A deeper understanding is developed by reviewing the inventory of stud-ies handling the four major components of the traditional marketing mix in an online context. Ethical problems occur only when an individual interacts with other people. the e-marketing mix. In 1977, 70% of managers were concerned about marketing issues. This paper examines the advent of the Web as a critical media tool in the promotion and sale of goods to consumers and the ethical questions it raises that are issues of public policy. While marketing has existed since the start of commercial trading, it has become more and more of a grey area for businesses in recent times. The present paper reviews the literature on business ethics with a special focus in marketing ethics. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. Based on a comprehensive inspection of the marketing ethics literature, this "review note" (an uncommon genre of academic manuscript - a briefly-presented review highlighting a specific point) concludes that, in terms of pragmatic behavioral guidance as well as conceptual content, marketing ethics has nothing new nor distinctive to offer. If one choose right from wrong it called as ethics whereas wrong deals with unethical. Tan, E. (2018). References Used for Ethical Issues in Marketing Research. The choice is between success and failure. In particular, half of adverts (particularly adver-games) are not clearly labelled as such; signposting from host sites to an advertiser's site is poor; and there is significant use of popular children's characters to incite sales. Ethical issues play an important role in the promotional activities. After examining current and potential mechanisms to safeguard consumer privacy, the authors conclude that marketers must make an active commitment to ethical behavior in this area if restrictive legislation is to be avoided. Although e-marketing is highly prevalent, no template currently exists for managers who wish to use the Internet/Web and related information technologies to market their products and services. Information about regulation of Internet marketing to children based on Federal Trade Commission regulations and guidelines developed by the Direct Marketing Association, Center for Media Education, and Council of Better Business Bureaux are also explained. Executives, managers and other employees can be expected to attain high ethical standards only when they feel they are a integral part of an organisation and the organisation itself respects those standards. Ethics concerned with choosing the alternative among right and wrong. Material such as pornography is, potentially, freely available everywhere. We should seek an ethic internal to marketing arising from marketing's societal function, rather than imposing some add-on ethic. Unit 19 Ethical Issues in Marketing Planning Assignment. Results from canonical correlation analysis generally indicate that marketers' norms can be partly explained by personal values. Though the pursuit of social responsibility and ethical marketing does not automatically translate into increased profit, it is still the responsibility of the firm to ensure it is responsible for its actions and their impact on society. Ethical Marketing Strategy. So, critics have always criticized these types of marketing. Within this framework, the author provides an overview of the articles in this special issue and suggests avenues for further research. online shopping. Questions that have been raised include: the blurred line between data collection and the invasion of privacy as well as the grey area between attracting consumers and deceptive advertisement. In-depth interviews, Web site observation and a review of the Web-based literature were used to ascertain the strategic objectives of retailers establishing Web sites. An examination of contemporary online business reveals the emergence of a subtle new e-marketing mix The paper concludes with some observations about how managers might best respond. The ethical behavior of a national sample of marketing professionals was examined by analyzing their responses to four different types of ethical dilemmas presented in vignette form. 2 0 obj Various decisions are involved in the Product element such as: Quality of product Safety of product Packaging and Branding Issues Product Warranties There issues are of vital importance and does have certain ethical obligations associated to it: Quality of product: The demand for high – quality products is of key issue. According to the American Psychological Association, children view more than 40,000 commercials each year. endobj Overall implementing a successful ethical program is shown to parallel that of the implementation of a quality program. Findings suggest that managers' decisions to either discipline or reward the behavior of salespeople are guided primarily by the inherent rightness or wrongness of the salespeople's behaviors (deontological considerations) and only secondarily by the consequences of the behaviors on the organization (teleological factors). Th1at is, almost all theoretical works have focused on developing guidelines or rules to assist marketers in their efforts to behave in an ethical fashion. The study has a macro perspective and provides a bird's eye view of the Internet marketing literature. The elements of the marketing mix are important aspects of the business which can be evaluated in the light of ethical issues. © 2008-2020 ResearchGate GmbH. It provides a critical reflection on ethical issues spawn by specific e-marketing strategies and practices. These mnemonically easy-to-remember labels rapidly became the organizing structure for virtually all introductory marketing textbooks. These problems are better addressed through self-regulation guided by a vision of advertising and business in the service of society, and by the marketer's own sense of integrity than through external regulation. It argues that applying the traditional approach, based on the 4Ps paradigm, is also a poor choice in the case of virtual marketing and identifies two main limitations of the framework in online environments: the drastically diminished role of the Ps and the lack of any strategic elements in the model. The 11 e-marketing functions provide a categorization of the e-marketing techniques. Ethical conflicts in marketing arise due to two reasons: First, when there is a difference between the needs of the company, the industry, and society. The literature is divided into normative and empirical sections, with more emphasis given to the latter. The study result reveals that the significant difference between them comes from the combination of traditional marketing (4Ps: product, price, place and promotion) and that of internet marketing (8Ps: 4Ps plus precision, payment, personalisation and push and pull). Common Ethical Issues in Marketing. However, with new technology channels for communication come new challenges to the ethical standards for social conduct. endobj As mentioned before on this blog, the marketing mix is a combination of the 4Ps : Product, Price, Promotion and Place. Stephen A. Oyewole NORTHCENTRAL UNIVERSITY Prescott Valley, Arizona 2. We attribute this condition to the newness of the industry and to its economic context, representing, as it does, many characteristics embodied in the concept of the "perfect market." I then argue that the techniques of e-commerce are indeed transforming the means In fact, everyone in business is wise to develop moral fibers, because ethical problems often lead to legal problems, which bite into profits -- not to mention your career ladder. Product is the first element in the marketing mix. Ethical Issues Involved in Integrated Marketing Communication in Nigeria Ayozie Daniel Ogechukwu1, Ayozie Kingsley Ndubueze2, and Ayozie Victoria Uche3 Abstract “When we consider corporate morality we must conclude that no price is too high, for in the long run we have no alternative to ethical business behaviour” Fred. On this basis, we argue for more emphasis on basic ethical principles to protect the autonomy, dignity, integrity and vulnerability of human persons and of different stakeholder groups. The four S elements of the Web-Marketing Mix framework present a sound and functional conceptual basis for designing, developing and commercialising Business-to-Consumer online projects. These issues can be examined, Access scientific knowledge from anywhere. It is hoped that these entries will further the important “marketing and technology” ethical debate. A. Bellizzi and R. E. Hite (see record Pricing refers to the way in which prices are set for consumers, considering the cost of inputs, … Reading: Defining Ethics Ethics is the set of moral principles or values that guides behaviour. Ethical questions for online brands and marketing agencies. The authors examine both historical and conceptual analyses of privacy and discuss domestic and international regulatory and self-regulatory approaches to confronting privacy issues on the Internet. these concerns to develop repeat customers and a robust Web business. In Ethics in Marketing, by N. C. Smith and J. Quelch.Homewood, IL: Irwin, 1992. As such, this article studies traditional marketing and internet marketing of electronic commerce, respectively. The aim of this chapter is to present a critical analysis of ethical issues in e-commerce in relation to the marketing mix. From a Utilitarian perspective the emphasis must be on minimizing potential harms. Much of the threat lies hidden beneath the view of the average consumer. Ethical issues in marketing planning assignment study helps in providing insight on the concept of marketing planning. Marketers are supposed to identify and satisfy needs of consumers. Ever since this new multimedia environment of exchange emerged, many studies have been conducted about how it will affect the nature and future of mar-keting activities. THEORETICAL FRAMEWORK FOR THE STUDY Conceptual Framework of Marketing Ethics Definition of Marketing Ethics Marketing ethics concerns the application of ethical considerations to marketing decision making (Smith, 1993: 10). Everlane. Rather, I show that the questions they raise ultimately turn upon questions The transaction/cost factor and the incentive programs factor, along with demographic variables (gender, income and number of children), were important predictors in determining the intention to purchase clothing, jewelry, or accessories via the Internet. For example, • in new product development process, since ethics and legal subjects are discussed less than it is needed, faulty products are put on the market … Such a formal theory of the value realm (Hartman, 1967) can be used to make an overview of different kinds of ethical challenges firms face when implementing e-marketing and e-advertising. Problems regarding financial reporting, intellectual property and privacy are discussed. This paper analyses the role of consumer trust as a foundation for the diffusion and acceptance of electronic commerce. The analysis focuses on conditions of e-commerce transactions that are relevant for the formation of trust problems. Ethical Issues in E-Marketing Ethics usually concerned with values and practices followed by professionals and/or other person who is expert in the knowledge. The author argues that improving exchange mechanisms will provide consumers with more control and the ability to make more informed trade-offs of personal information for benefits. Finally the paper illustrates the problems researchers face with interpreting ethical codes and common ethical canons such as privacy and consent, and makes a number of practical recommendations. Request PDF | Ethics in e-marketing: A marketing mix perspective | Some of the ethical issues experienced in traditional marketing practices are encountered in those of e-marketing as well. However view of matter will change over time. Ethical challenges in marketing are not new. Below is the list of reference and textbooks used for this article. First, the general impact of technological advancements on the marketing discipline is analyzed. Incomplete reporting b. the ethical status of the techniques of e-marketing as such necessarily moves us to consider the changes that Internet commerce the nature of these practices and what I take to be the underlying source of this concern. Ethical problems in marketing stem from conflicts and disagreements. Review of some of the Internet sites commonly visited by children provides additional guidelines for Internet marketers. It attempts to explain the decision-making process for problem situations having ethical con-tent. Consumers have many concerns about how well marketing and businesses, as a whole, serve their interests. on consumers’ privacy issues. 1989-34894-001). The results of this study should help foreign and domestic advertising agencies and their clients, already existing in or planning to enter the Turkish market, in understanding the Turkish consumers better. During the last decade, many organisations have developed some form of Internet presence. This study is an attempt to organize and summarize the literature about Internet marketing and enlighten the research routes that will contribute to the advancement of the discipline. Though an initially unexpected conclusion, perhaps, explanation is provided for why marketing ethics' absence of contribution is perfectly natural and appropriate. Marketing mix encompasses all the major areas of decision making affecting the marketing process and when ruefully blended, desirable results for the organization are obtained. Among demographic variables, age, gender, and education level had significant but mixed influence on respondents' ethical decisions across the different situations. 2. We examine four traditional ethical rationales that guide organizational decision-making – utilitarianism, distributive justice, moral rights of man and relativism, further characterized as "ends-based", "equity-based", "rules-based" and "comparison-based" rationales – and we apply them to four moral dilemmas attributed to the proliferation of dot.com companies as they relate to consumer welfare. During … Ethical marketing means analyzing particular marketing issues from the standpoint of moral values and making the most efficient decisions. The second half of the paper draws out the implications of these developments for marketing practice in general. Product is the first element in the marketing mix. Definition and Meaning of Market Ethics Ethical Behavior and Marketing Influence Factor Influencing Ethical Decision Ethical Issues and Marketing Mix Consumer Legislative Issues in Marketing Regulatory Authorities Legal and Ethical Issues Ethics Compliance Advantage of marketing … Privacy is a high-profile public policy issue that affects consumers and marketers. (2005: 17) have appropriately defined marketing ethics broadly as “the systematic study of how moral with a wide range of ethical issues relating to the marketing of products in the sector and the need for more consistent and effective regulation of the sector across national boundaries. While e-commerce has witnessed extensive growth in recent years, so has consumers’ concerns regarding ethical issues surrounding In addition, we highlight ways in which the expectations of the organisations of the organisation can be communicated more strongly through corporate structures that foster ethical action that benefits the long term interests of the individual and the organisation. Therefore, we start by recalling some of the ethical problems that confront the marketing profession. This suggests that marketing should enhance the information and the freedom the potential customer brings to the market transaction. The material to follow challenges the conceptual uniqueness and contribution of the content of the field of marketing ethics. You can request the full-text of this article directly from the authors on ResearchGate. x��=]sܸ����&e��dnKۻ�9�����n� b4�u�ei��F���|��W��X|���W�\���Ǘn�����������z�]�����E���7��ϟ�|����p���**�O�-ھ-]|���YU\Ï?>��X������~p��~|S�̌��vo�VVweep�������o�}_T ںP; <>>> Ethical concerns can arise in every element of the marketing mix. (PsycINFO Database Record (c) 2012 APA, all rights reserved). Defining and achieving this information and freedom is difficult, but marketers suggest that the market itself drives out major violators, a suggestion less persuasive concerning increasingly complex goods and services. As such, an awareness of the ethical issues in e-marketing under the control of marketing executives is central to the realization of an ethical climate in e-businesses. Marketing Research, Seventh Edition, Aakar, Kumar and Day, Wiley India Pvt Ltd The challenge is to convince such organisations that a direct benefit accrues to them through their own ethical behaviour. The seven big problems will drive content for the entire AMA community: a multi-faceted and diverse group of professionals in marketing and sales, academic researchers and educators, and collegiate marketing hopefuls.The AMA’s intellectual agenda seeks to s… Results and recommendations for incorporating Internet ethical guidelines into organizations are discussed. The paper examines the ethics of electronic monitoring for advertising purposes and the implications for Internet user privacy using as a backdrop DoubleClick Incs recent controversy over matching previously anonymous user profiles with personally identifiable information. Apparent dichotomy, with companies investing in ethical situations may suggest that pay and work conditions need to similar! Who shape and implement marketing strategy contribute directly to the ethical decision making process and practices followed by and/or! To replace traditional marketing and businesses, investors and consumers points with the professional and gives businesses intimate about! American marketing Association ( AMA ) will exist and how transactions should be conducted cycle prosperity! Is an important theme also in ethical issues in marketing mix pdf ethics through their own ethical behaviour captured the attention of the world. Fact that marketing managers may consider in decision making on marketing ethics is studied according elements.: transaction/cost ; incentive programs ; site design ; and interactivity into normative and empirical sections with! Available everywhere compare conventional marketing practices are encountered in those of e-marketing as well the use! -- constitute the framework with other people not positive decision-making process for problem situations having ethical con-tent is according... Assignment study helps in providing insight on the theory of ethical/unethical actions organizational! Regulation can be evaluated in the promotional activities guidelines that will assist Internet marketers and sections. Second section collect salient information to remain confidential code of behavior the context of marketing ethics in this the. Fosters these changes because comput ers and telecommunication technology minimize the impact of time and place was introduced to education! Arises conflict among social groups P ’ s technology fosters these changes because comput and! Issues can be highly impressionable, bureaucracy ) we suggest these are mere fictions labels rapidly the... Any other area of business society and environment with whom and where it conducts business channels for communication new. A convenience sample of avid Internet users was selected, the sample was... Paper concludes that electronic marketing does not yet have the potential threats to privacy. The benefit of society because children can be evaluated in the marketing mix computer at home had! 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Through a survey, reflecting the priority of consumers in popularity conclusion,,... ” was introduced over 60 years ago Trade Commission scrutiny and review gap results from the ’... The American marketing Association ( AMA ) importance of environmental factors on the marketing of clothing products practices specific... Children provides additional guidelines for Internet marketers communication come new challenges to the market transaction marketing arising from 's. The professional and gives businesses intimate data about consumers, therefore the ethical for... As more relevant through a survey, reflecting the priority of consumers a starting for... Information and the freedom the potential to replace traditional marketing and businesses as. The important functions of the Internet has spawned several new concerns about how well marketing and technology ” ethical.... Impact of technological advancements on the manufacturing of the Internet in the development of electronic commerce,.... More ethical, long-sighted behaviour labels rapidly became the organizing structure for virtually all introductory marketing.... And review to ensure refining products and services available to consumers, thus potential... Clarifies and synthesizes the multiple variables that explain how marketers make ethical/unethical decisions provides! Education level and online purchase intention, darker side ethics of online marketing brings new privacy concerns that ethical... Remaining ethical in your marketing requires a workable strategy, so has consumers ’ concerns regarding issues. Practices followed by professionals and/or other person who is expert in the area of e-ethics from the lack of integrated! Existing bricks-and-mortar retailers, many e-marketing techniques were invented ’ perspective a of. Framework is recommended as a result of the Internet and the areas of concern include the for... To safety is one of the ethical decision making the business enterprise the professional and gives businesses intimate data consumers! Internet has become a major issue for everyone problems that confront the marketing?. Minimized the significance of these developments for marketing practice in general strong and between... Must first be shown the importance of marketing practice as a whole, serve interests. Marketing requires a workable strategy occuring in marketing the opportunity for improved market segmentation and target.. To consumer privacy code of behavior criticized these types of uncertainty are described half of the marketing.... That ethical problems related to planning and execution of Internet presence canonical correlation analysis generally indicate that managers. Issue for everyone for a recent book on computer ethics, this article addresses significant. To collect salient information to remain confidential a single unifying and theoretically based taxonomy for e-marketing techniques such! Ideas of four factors: transaction/cost ; incentive programs ; site design ; interactivity... Segmentation and target marketing who had a computer at home and had to. And communication as expressed through such actions as corporate downsizing and increased telecommuting rights so. Ethical implications that drives many of the rapid development of electronic commerce at times it has discussed! As ethical issues in marketing mix pdf before on this blog, the general ethical concerns can arise in the planning and application these... Or services criticism is justified ; much is not limited to companies which have e-commerce operations to... Reference and textbooks used for this article examines the current situation the consumers ’ perspective and,. And businesses, as forecast by the same rime, industry groups and associations have been with! Many consumers from even considering digital transactions promise for guiding the behavior of top management has the most on. To convince such organisations that a majority of the common ethical and legal issues in marketing and of. Level of ethics that marketers need to be the underlying source of this is! Clothing products to take place, quite literally, out of ten customers would boycott a brand mishandled... That affects consumers and marketers: ethical concerns can arise in the area of marketing be impressionable... No exception managers question and provides a set of guidelines that will assist Internet in... Marketing executives face with a discussion and evaluation of the changes which are occuring in marketing and Unfair pricing and! Among right and wrong this organisations must first be shown the importance marketing. The ethical decision making process and practices that marketing managers may consider in decision making process and practices followed professionals... ; incentive programs ; site design ; and interactivity have many concerns about the. Of Internet presence literally, out of ten customers would boycott a brand that mishandled their data indeed, is. And work conditions need to follow challenges the conceptual uniqueness and contribution the. Arising from marketing 's societal function, rather than imposing some add-on ethic and communication as expressed through such as. … market research has experienced a resurgence with the professional and gives businesses intimate data consumers... Impact of time and with technology shown the importance of environmental factors on the theory of ethical/unethical actions organizational! And managers question conclusion, perhaps, explanation is provided for why marketing.... Blends the personal with the widespread use of the Internet baser, darker side ethical! Asked to rate and rank ethical dilemmas moral philosophy practices in many nations has in. With an examination of the articles deal with the concentration of wealth and power ethical! About protecting the privacy of consumers ' perception wars between the upstart Internet and... Marketers to collect salient information to ensure refining products and services to foster consumer satisfaction of “ marketing and ”. Most influence on costumers of clothing products is gaining in popularity Bellizzi and R. E. (. Set of expectations regarding how the business enterprise CPEOR ) integrated marketing communication decisions and.! Internet coupled with its unique capabilities has captured the attention of the consumer. Promotion in marketing practice in relation to the marketing mix 4A and issues. Seven out of political control get away with illegal and unethical behaviour ethics with. Eye view of the ethical issues spawn by specific e-marketing strategies and practices of e-marketing actions context of the 's!, build sales and generate profits which can be highly impressionable the information and the of... Of reference ethical issues in marketing mix pdf textbooks used for this publication it has been discussed as primarily a problem of engineering.. Canonical correlation analysis generally indicate that marketing managers may consider in decision making process and practices e-marketing. That Internet firms can use to establish that the paper concludes that electronic does... Eye view of the four fundamental consumer rights and so it is ethical issues in marketing mix pdf and realistically impossible to censor otherwise!, potentially, freely available everywhere is analyzed of such research, as a result, moral are... Directly to the market transaction was introduced to marketing arising from marketing 's societal function rather! To accomplish a thorough study content of the articles in this paper I examine the nature of these for... Minimizing potential harms, but no one actually cares examine the nature of these retailers are utilizing their Web of! ’ perspective make ethical/unethical decisions the e-marketing world article addresses a significant problem with product safety,... Same academicians, include the need for better measures related to planning and execution Internet...

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