L17 Ethics and marketing

Question 1

what is the difference between legal and ethical behaviour in marketing

Answer 1

Laws
Definition: Laws are formal rules established by governments or regulatory bodies. They are enforceable, and breaking them can lead to penalties like fines or imprisonment.
Marketing Example: A law in many countries prohibits false advertising, which means brands cannot make untrue claims about their products. For instance, if a skincare company falsely claims that its product will “cure” a skin condition, this would be illegal and could lead to lawsuits or regulatory penalties.
Ethics
Definition: Ethics are moral principles that guide behavior, but they are not legally enforced. Ethical standards can vary and are often guided by social expectations or the company’s values.
Marketing Example: Suppose a company markets a sugary drink to children in a way that encourages frequent consumption. Although this might not be illegal, it may be considered unethical due to the health risks associated with high sugar intake for children. Ethical concerns in marketing often focus on issues like honesty, respect for consumer rights, and promoting social good.
In marketing, adhering to both laws and ethics builds trust and fosters a positive brand image, while breaching them—especially ethical standards—can harm a company’s reputation even if no legal action is taken.

Question 2

what are the factors that influence ethical and unethical marketing decisions

Question 3

what is the difference between marketing ethics and ethical marketing

Answer 3

• marketing ethics are a framework for good practice in marketing regardless of the product or market sector
• ethical marketing is an approach to marketing in which companies set high ethical standards and communicate those positively

Question 4

what is the fair trading act

Answer 4

• promotes fair competition
• makes sure consumers get accurate info before buying
• promotes product safety

Question 5

what are the 2 main points in the advertising standards code

Answer 5

1. social responsibility
2. truthful presentation

Question 6

what are the social responsibilities of organisations

Answer 6

• sustainable marketing; meet todays needs without sacrificing the future
• green marketing; environmentally sensitive products
• cause marketing; firms charitable contributions tied to its revenue
• triple bottom line; people, planet, and profit for long term growth