1. Ethical Issues in Marketing Communications
Ethics in Marketing communications
Involves matters of right and wrong, or moral, conduct pertaining to any aspect of marketing communications
Honesty, honor, virtue, integrity
Ethical Conduct
Lack of consensus about what it is
Ethical lapses and moral indiscretions occur under pressures of trying to meet business goals and attempting to satisfy the demands of the financial community

2. Sources of Ethical Issues
Ethical Issues in Marketing Activities and Communications
Advertising
Targeting Marcom
Public Relations
Internet Marketing
Sales Promotions
Packaging Communications 2

3. The Ethics of Targeting
Ethical Debate
Is it ethical to target products and communications efforts to segments that are vulnerable or put at risk by these actions?
Is Targeting Unethical or Just Good Marketing?
When does a good targeting strategy become a method of unfair (unethical) advantage?

4. Is Targeting Unethical or Just Good Marketing?
Positive
Targeting benefits rather than harms consumers—providing them with products best suited to their particular needs and wants
Negative
Targeting is not concerned with fulfilling consumers’ needs and wants, but rather with exploiting consumer vulnerabilities

5. The Ethics of Targeting
Targeting Food and Beverage Products
Targeting Tobacco and Alcohol Products
Targeting Miscellaneous Products
Ethical Issues in Targeting Children and Teens 5

6. Targeting to Children and Teens
Negative Targeting Outcomes
Products targeted to kids are unnecessary and the communications involved are exploitative
Posters, book covers, free magazines, advertising, and other so-called learning tools that are ads for products
Movies with tie-in merchandise programs
Targeting adult products (e.g., beer) to pre-adults
Using unacceptable cartoon-like images (e.g., Joe Camel)
Promoting adult-oriented entertainment (e.g., violent films, video games, and music products) to children and teens
Marketing food products (e.g., high-fat, high-calorie snacks) that contribute to childhood obesity

7. Targeting to Economically Disadvantaged Consumers
Billboards advertising tobacco and alcohol disproportionately appear in inner-city areas
Examples:
R.J. Reynolds attempt to market new brands cigarettes to African-Americans and downscale young women
Heileman Brewing Company’s targeting of “Power Master” high-alcohol malt liquor to inner-city neighborhoods

8. Targeting Tobacco Products

9. Ethical Issues in Advertising
Advertising Creates and Perpetuates Stereotypes
Advertising Persuades People to Buy Things They Do Not Need
Advertising Plays on People’s Fears and Insecurities
Criticisms of Advertising
Advertising Is Untruthful and Deceptive
Advertising Is Manipulative
Advertising Is Offensive and in Bad Taste

10. American Association of Advertising Agencies’ Code of Ethical Standards
Ethical Code and Standards of Practice
Set lofty goals for the advertising industry and provides a framework for evaluating whether or not ads meet the high standards specified

11. Ethical Issues in Public Relations
Publicity
Involves disseminating positive information about a firm and its products and handling negative publicity
Like advertising—the same ethical issues apply
Negative Publicity
When firms confess to product shortcomings and acknowledge problems or, instead, attempt to cover up the problems

12. Ethical Issues in Packaging and Branding
Label Information
Packaging Safety
Packaging Graphics
Environmental Implications
Packaging and Branding Ethical Issues
Brand Naming and Brand Name Theft 12

13. Ethical Issues in Sales Promotions
Manufacturer promotions directed at wholesalers and retailers and to consumers
Slotting Allowances
Manufacturers have to pay retailers to handle a new product—Is this a form of bribery and is it unethical?
Consumer-Oriented Sales Promotions
A promoter offers a reward for a consumer’s behavior that not delivered or lies about the odds of winning
Consumers who make false claims for coupon redemptions and refunds

14. Ethical Issues in Online Marketing
Consumer Privacy Issues
Consumer’s privacy rights to personal information and shopping behaviors collected by online marketers
Security of personal information collected online
Selling of personal information to other parties without consent of consumer
Bogus positive product evaluations and blogs deceptively extolling products

15. Fostering Ethical Marketing Communications
The Golden Rule
Act in a way that you would want others to act toward you
The Professional Ethics Test
Take only actions that would be viewed as proper by an objective panel of your professional colleagues
The TV test
Would l feel comfortable explaining this action on television to the general public?”

16. Regulation of Marketing Communications
Justifications for Regulation
When consumer decisions are based on false or limited information
When benefits realized exceed the costs
Benefits of Regulation
Improved consumer choices
Improved product quality
Reduction in prices
Costs
Regulatory compliance
Enforcement costs
Unintended side effects

17. Regulation of Unfair Practices
Unfair Advertising
Acts or practices that cause or are likely to cause substantial injury to consumers, which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or competition (emphasis added)
FTC’s Criteria for Unfair Business Acts
Act offends public policy established by statutes
Act is immoral, unethical, oppressive, or unscrupulous
Act causes substantial injury to consumers, competitors, or other businesses

18. Environmental Marketing Communications
Legitimate Green Marketing
Is a firm’s introduction of environmentally oriented products and its undertaking of marcom programs to promote them
Seeks to accomplish two objectives:
Improve environmental quality
Satisfy customers

19. Green Marketing Initiatives
Green Marketing Communications
Advertisements that promote green products
Environmentally friendly packaging
Seal-of-approval programs promoting green products
Cause- and event-oriented marcom efforts that support environmental consciousness
Point-of-purchase display materials that are environmentally efficacious
Direct marketing programs that reduce resource usage by developing more efficient solicitations
Outdoor advertising efforts that reduce the usage of environmentally damaging materials.