Ethics in Marketing

Abstract

As a result of globalization; of markets and production processes, an ever increasing

number of marketers and business people have to deal with ethical concerns in cross-cultural

settings. In this paper, the main approaches in marketing ethics have been reviewed for ethical

analysis and decision making in international settings. The purpose of this article is to

present some guidelines that can serve as a guide for global marketers in the important

areas for marketing ethics. This paper is supposed to assist marketers in their efforts to behave in an ethical fashion. It is assumed that, local conditions of international markets may be

different; but the some global marketing ethics principles should be applicable to all

markets. It is proposed that a uniform code of ethics should be created by WTO and UN

organizations to solve diverse cultural differences to arrive at cooperative strategies in

international marketing. (Geneva 2009)

Introduction

Marketing is a paramount area for business organizations to promote their products and services. The field deals with people having diverse behaviors including customers, investors, media, regulatory agencies, channel members, trade associations and many others. Therefore, a set of trustworthy and honest marketing policies and actions are designed to provide integrity and fairness in the promotional activities of an industry, these standards are known as Marketing Ethics. It helps in providing transparent and visible interface with clients and other marketers so that no deceptive and misleading information about the product could be released.

Marketing is a gateway to build long term reliable relationships with mutual agreement among all parties that are engaged in the marketing cycle. The nature of marketing; spans between multiple phases including sales, advertisements and distributions. All these activities are facing business challenges and threats. In order to avoid any unintended consequences in these dealings, at the end of 20th century, Marketing Ethics have been set up and put into practice. The use of ethical standards has built awareness in marketers. Now they are careful and cautious about running promotional campaigns in a lawful manner.

In depth analysis shows that in any organization, marketing ethics go side by side with business ethics. Marketing decisions overlaps all other organizational domains. Companies don't only focus on their customers, but they also cover all important groups of people that may get affected by its actions. One can say that the marketing part of organizations is a network that links both social and economical processes. Implementing these policies provide fair and consistent transactions in companies contracts. It is an armour that protects internal and external stakeholders from misleading and false representation regarding product, services or any other information.

These ethical standards are actively put into practice in the marketing field. On the other hand, awareness of these regulations are heavily promoted by academics institutes. Colleges and universities teach their students how to conduct marketing practices abiding ethical standards of industries. Special associations are dedicated to develop and promote transparency, respect and fairness in corporation's marketing activities.

Background/Purpose

Marketing, in contemporary times, has seen a tumultuous change in the way it's conducted in developing countries. The oft cited dictum that only change is constant in the marketing genre is an opposite one. Just as the media of social communication themselves have enormous influence everywhere, so advertising and marketing, using media as their vehicles, are pervasive, powerful forces shaping attitudes and behavior in today's world. Four reasons are attributed to the fugacious nature of the way marketing practices are being carried out in developing countries

1. The role of Information and Communication technologies: As ICTs evolve so do marketing practices. If yesterday it was television that revolutionized the way advertisements could create a lasting impact on the consumer, then today the internet and phone text messages are doing just that.

2.The world today is an increasingly global village: Social and ethnic boundaries are fast falling in the wake of cable television and the like.

3. Rapid economic expansions in countries like China and India have meant that marketers have to quickly respond to the changing socio-economic scenarios. Millions of people have entered the middle class and millions more are poised to do so. For marketers, the consequences can be mind boggling-as incomes and spending powers rise, marketers have to respond to increasing demands from consumers.

4. Better and improved marketing research has meant that the entire populace is not seen in totality but rather as a congeries of different types of consumers.

Assumptions Inputs

Marketing ethics have re-conceptualized the idea of marketing. It is now playing a critical role in decision making regarding values, judgments and complex situation evolved in marketing plans. It has suggested a prescriptive model that turned a narrow customer oriented domain to wide stakeholder oriented framework. As a result, professional organizations are forced to exhibit balance approach which demonstrates fair services leading to credibility and health of the respective industry.

It is quite obvious that running marketing ethics is organization's important responsibility. The rules may differ from industry to industry with respect to profession, culture and other environmental behaviors. However the key point is to implement appropriate initiatives and ethical judgments which regulate honest and dignifying conduct of the enterprise. Progress has been made in modernizing its theories and concepts. Practicing these regulations has proved to be an elevation towards higher level of morality and integrity in sensitive marketing areas.

The Upshot: But the outcome of such developments is that a number of ethical issues have arisen. While the globe is indeed becoming a smaller place, marketers have to bear in mind national, local and cultural sensitivities. Very often, in the hope of tapping a larger consumer base, marketers jump headlong in new markets without keeping in mind ethnic and social issues typical