IOM - Ethical issues (truth, accuracy and good taste in advertising

Question 1

what is meant by ethical issues

Answer 1

ethical considerations guide the business towards making marketing decisions that are socially acceptable

ethical issues are not directly covered by the ACL, many businesses engage in self regulation.

Ad standards (funded by businesses) acts as the monitor and regulator of advertising standards in Australia

Ad standards develops codes of conduct and handles complaint from the general public regarding marketing activities that may not be socially acceptable

Question 2

ethical concerns in marketing today

Answer 2

Critics of marketing argue that the industry does not always adopt ethical practices and sometimes blurs the lines between what is ethically right and wrong

o In particular the general public have concerns over:

1. Materialism
2. Stereotypical images of men and women
3. Use of sex to sell products
4. Product placement

Question 3

materialism

Answer 3

o Businesses use sophisticated and powerful strategies to persuade and manipulate consumers to buy things

Question 4

use of sex to sell products

Answer 4

Advertisers use sex appeal to suggest to consumers that the product will increase the attractiveness or charm of the user

Critics would argue there is often an overuse of sexual themes and connotations to sell products

The use of such images sets unrealistic expectations for individuals

Question 5

product placement

Answer 5

also referred to as integrated advertising) is the inclusion of advertising within entertainment

Businesses are keen to use this because it allows them to reach savvy, but advertisement-weary, consumers.

However, critics argue that, because of its ‘concealed’ nature, it blurs the line between what is advertising and what is entertainment

Question 6

so what to do?

Answer 6

Ultimately, marketing managers should never forget that the businesses exists because of its customers

By satisfying customers a business may operate profitability.

However, dishonest or unethical marketing strategies may eventually drive customers away

Accordingly they must be aware of these ethical issues and understand how to navigate them appropriately

Question 7

specific ethical issues include

Answer 7

Truth and accuracy in advertising

Good taste

Products that may damage health

Fair competition

Sugging

Question 8

truth and accuracy in advertising

Answer 8

Whilst we have already seen that false and misleading communication is unlawful, marketers must also observe other word they us so as to be truthful and accurate.

Marketers need to be aware of the different perceptions and interpretations of their marketing strategies

They should avoid language and messages that could have multiple meanings and confuse customers

‘special’ ‘great value’ ‘low fat’ ‘traditional’ ‘home-style’ ‘best’ ‘value’ ‘high protein’

Question 9

what are specific concerns

Answer 9

Untruths about concealed facts - Leaving unfavourable facts out of marketing activities

Exaggerated claims (puffery) - Claims about products that cannot be substantiated/proven by customers

Vague statements - General statements which require assumptions that may not be correct and have the potential to mislead customers

Question 10

good taste

Answer 10

Marketers need to be guided in the formation of marketing strategies by community sensitivities i.e be aware of what is likely to offend people or be considered to be in poor taste

Some examples include: 
	Violence against women 
	Sexualisation of children 
	Humour at the expense of minorities 
	Graphic images

Question 11

products that may damage health

Answer 11

Marketers have an ethical obligation not to disguise the potential undesirable impacts of their products on peoples health and well being

Specific concerns relate to: 
o	Selling junk food to children 
o	Tobacco 
o	Alcohol 
o	Gambling 

BUT businesses still have the right to provide products that can be harmful

The ethical dilemma becomes: how to effectively promote and sell products that have the potential to harm?

Question 12

engaging in fair competition

Answer 12

Businesses have an ethical obligation to engage in a fair fight with their competitors as they attempt to win over customers through marketing communications

Chobani’s behaviour shows us that attempts to secure market share should not harm the image and reputation of their competitors

Therefore particular attention needs to be paid when making direct comparison claims

Question 13

sugging

Answer 13

Sugging or Suging refers to seling under the guise

Is it when a marketer pretends to conduct market research when in reality they are trying to sell the customer a product

It is not illegal but it is dishonest and potentially an invasion of privacy

Sugging also damages the reputation of a genuine market research companies. It also creates a cynicism about the market research process, which is valuable for businesses.