Importance Of Marketing Ethics In Marketing

985 Words 4 Pages
Financial Times Lexicon defines marketing ethics as “…a process through which companies generate customer interest in products/services, build strong customer interest/relationships, and create value for all stakeholders by incorporating social and environmental considerations in products and promotions.” Marketing ethics plays an integral role in the success or failure of any business and businesses that are unethical in their marketing operations have destined themselves to fail. This review seeks to analyse the importance of ethics in marketing with respect to the success of a business and the benefits that a business can attain and sustain should they operate in an ethically sound capacity.
Marketing transcends the familiar concepts of
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• Transparency: Any techniques to manipulate and hide facts and information customers need could harm a company.
• Ethical Pricing: Gathering data about your target market will give you information on how much they are willing to pay for your product. The rest of the pricing strategy, in a simplified manner, should be based on overhead costs and supply and demand.
• Respecting Customer Privacy: When customers trust enough to allow you access to their information, selling it to lead companies or obtaining prospective customers’ information without permission is unethical and breaks trust.
A sustainable competitive advantage is one of the main benefits of ethical marketing. The Canadian Institute of Marketing emphasized several advantages that can be procured once an organization engages in ethical marketing practices:
• Consumers are increasingly willing to support organizations and brands that are ethical.
• Ethical practices increase the corporate image and reputation of the organization.
• Ethical practices increase the share value and even the shareholder base.
• Less pressure from external stakeholders and regulatory bodies.
• A sound cororate brand and product
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It is necessary for organizations to have a plan and infrastructure to deal with such issues as overbilling clients, deceptive sales methods and fraud among others. The need to discover, disclose, expose, and resolve these issues as they occur should be a first priority of all businesses. Any forms of unethical dilemmas found within a business can have pejorative effects on the company and lead to long-term adversities. Ferrell (n.d.) stated that, “…the negative publicity associated with an event hurts the reputation of a company more than the legal penalties. Ethical issues are resolved through plaintiff-friendly civil litigation that can destroy reputations and draw intense scrutiny to a company.”
Today’s world is becoming ever-increasingly more “consumer-centric”. The consumer is the focal point of marketing design and delivery, and in a world where choices and options are abundant, consumers have the upper-hand. Ethical consumerism is on the rise, which means that consumers are rejecting organizations and brands that are considered unethical. It is therefore evident that organizations and marketers have to practice ethical marketing, or risk tarnishing their image and identity, which may result in reduced market share and

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