1. Promotion and Ethical Issues
Marketing I
Competency #94- Describe ethical issues related to promotion

2. What is meant by “ethical issues”?
Moral principles that guide behavior
Decent human conduct
Professional standards
Ethics is prime concern in marketing

3. 5 Examples of Unethical Marketing Practices:
Making false, exaggerated, or unverified claims
Why Used:
to compel potential and existing customers to buy their products or services
Use of false statements, exaggerated benefits, or make unverifiable claims about their offers
Common in the weight loss industry, where marketers convince potential buyers that a particular product can help them shed pounds within two weeks without exercise or dieting!

4. 5 Examples of Unethical Marketing Practices:
Distortion of facts to mislead or confuse potential buyers
Typical Example:
Food processing company claims that its products are sugar-free or calorie-free when indeed they contain sugar or calories
Company is trying to mislead potential buyers, since they are unlikely to buy the products if it is made known that they contain sugar or calories

5. 5 Examples of Unethical Marketing Practices:
Concealing dark sides or side effects of products or services
Typical Example
Commonly used in the natural remedies industry
Most manufacturers deceive potential buyers that their products have NO SIDE EFFECTS
They are “made from natural products” -But in reality, most of these products have been found to have side effects, especially when used over a long period.
In fact, there’s no product without side effects—it’s just that the side effects might be unknown. It’s better to say, “There are no known side effects” than to say “there are no side effects.”

6. 5 Examples of Unethical Marketing Practices:
Using fear tactics
Typical Example
Common unethical marketing practice among snake oil salespersons.
You will hear them saying something like: “This price is a limited-time offer. BUY NOW – price won’t last!” 
Used to prompt the potential buyer to make a decision on the spot.
Why subject someone to undue pressure because you want to make money off him or her?

7. 5 Examples of Unethical Marketing Practices:
Spamming
Typical Example
when the company sends unsolicited s to potential customers
Encourages them to buy your products or services
This is the most common unethical marketing practice done online
The number of times the company sends such s doesn’t matter. Whether you send them once, or on occasions, or frequently, you remain a spammer

8. Consumer Protection Agency
The Federal Trade Commission:
FTC-The largest federal agency that handles consumer complaints
regulate unfair or deceptive trade practices. 
In addition, every state has enacted consumer protection statute
Federal Trade Commission Act (15 U.S.C.A. § 45(a)(1)) 
These acts allow state attorneys to commence lawsuits over false or deceptive advertisements or other unfair and injurious consumer practices 

9. Consumer Protection Agency
Consumer Product Safety Commission:
In 1972, Congress established the Consumer Product Safety Commission (CPSC). It is the job of the CPSC to protect consumers from faulty or dangerous products by enacting mandatory safety st andards for those products 
The CPSC has the authority to:
Ban
Recall
In recent years, the CPSC has fallen victim to Federal Budget cuts
Reductions in the agency's legal staff have prompted the CPSC to rely more and more on manufacturers to voluntarily recall the ir defective or hazardous products
When manufacturers do not cooperate - the CPSC must commence a legal action that may take years to resolve
Unfair or Deceptive Trade Practices

10. Are These Tactics Ethical?
Bait and Switch- advertise significant discount on item but intentionally only stock a few- then “switch” to inferior product to meet supply for customers
Candy distributors place “end cap” in grocery store near check-out at eye level of children

11. Case Studies In a group Read the case study and answer the questions
Provide a brief overview and analysis of how to respond to this issue in an ethical way.