The question of whether or not marketing is completely unethical is the question most
critics of marketing seem to be focusing their attention on. Ethics provide the basis
for deciding whether a particular action is morally good or morally bad (Britt 553).
But, each individual develops different opinions, moral standards, and values. So,
marketers will deal with similar issues differently because there is no "correct" way to
handle any given issue. Marketers face various types of ethical issues in their everyday
marketing activities. Such marketing activities that require marketing managers to
utilize their moral values ethically are advertising, packaging and labeling, and global
marketing.
"Advertising is the most criticized of all micro-marketing activities (McCarthy 643)."
What is considered as unfair or deceptive advertising is very difficult to pinpoint,
because times have changed and continue to change on a day to day basis. What one person
may consider unfair or deceptive may not be unfair or deceptive to another person. There
are no clear cut guidelines for marketing manager's to go by, so they must utilize their
own judgement based on their own moral standards. But, in the United States their is an
administrative agency that has the power to control unfair or deceptive business
practices. The Federal Trade Commission (FTC) was created in 1914 to prevent "unfair
methods of competition in commerce (commercial trade) and unfair or deceptive acts or
practices in commerce (Miller 590)". The FTC issues guidelines that define unfair
practices and in some instances the FTC will investigate widespread complaints to seek
settlement of the complaint. The FTC has also set forth specific rules to govern certain
advertising practices such as bait-and-switch advertising. Bait-and-switch advertising
occurs when a seller advertises a product at a very low price to lure in consumers, but
when customers come in to purchase the product; the seller either doesn't have the
product available or the product is of very low quality and the seller then encourages
the customer to purchase a more expensive substitute. The Federal Trade Commission also
enforces laws that govern packaging and labeling.
In the past, there had been much criticism concerning packaging and labeling, so much
that in 1966 the Federal Fair Packaging and Labeling Act was passed. The Act requires
that labels must be accurate and easily understood by consumers. The Act also governs
packaging descriptions and savings information that is disclosed on labels (Miller 529).
Marketers face some morally difficult situation in which they must make ethical
decisions. Such a situation could be:
The marketer's Research and Development department has modernized one of the companies
products. The product isn't really "new and improved", but the marketer knows that
putting that slogan on the package and advertising it would increase sale.
What should the marketer do? This is one type of situation that many marketers may face
in their careers. If the marketer should decide in favor of such a decision his or her
behavior would be considered immoral. But, if he or she doesn't decide in favor of the
act then he she may be considered an inefficient manager.
Marketing managers also face ethical dilemmas about whether their products help or hurt
consumers in less developed nations. The marketer must evaluate the benefit and the
risks of serving such nations, then he or she must weigh those benefits against the risks
by using his or her on judgement based on what they feel is morally right or wrong. The
marketer must also take in consideration the literacy level in such less-developed
nations. Marketing ethics are moral standards that guide marketing decisions and
actions (McCarthy, 26). Today's companies must form clear policies to guide marketers in
their marketing decisions so they can be socially responsible individuals. The decisions
that the marketer makes has a big influence on how others see the company. The employees
must choose between what is in the best interest of themselves, the company, or that of
society as a whole.
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