Marketing (4th Edition) by Grewal & Levy, McGraw-Hill - Irwin, 2014.

1. Principles of Marketing
MKT3010
Chapter 4
Marketing Ethics
Patricia Knowles, Ph.D.
Associate Professor
Clemson University
1

2. 2
Principles of Marketing
MKT3010
2
Marketing Ethics
These are the learning objectives guiding the chapter and will be explored in more detail in the
following slides.
Identify the ethical values marketers should
embrace.
Distinguish between ethics and social responsibility.
Identify the four steps in ethical decision making.
Describe how ethics can be integrated into a firm’s
marketing strategy.
Describe the ways in which corporate social
responsibility programs help various stakeholders.
LO1
LO2
LO3
LO4
LO5

3. 33
Firm Goals
Profit is important to the success of the firm. But how the firm makes that profit can have a
dramatic impact on the firm’s future.
Principles of Marketing
MKT3010
Greed and short
term profit seeking
Serious long term
consequences
Creating value
over the long run
Long term success
Javier Pierini/Getty Images

4. 44
The Scope of Marketing Ethics
Principles of Marketing
MKT3010
This YouTube video is a Miller ad for responsible drinking.
Business Ethics Marketing Ethics

5. 55
Attitudes About the Ethical Standards of
Various Professions
Marketing is a very visible part of business. Often practices that are the result of other business
functions will be attributed to marketing. Marketers need to stress the good things that they do
and the value that the add to society. Also, by policing practitioners and sanctioning those who
violate the various codes of ethics, etc., marketers can demonstrate that they are serious about
ethical standards.
Principles of Marketing
MKT3010
• Why do you feel marketers
(advertising practitioners &
salespeople) rank so low on
this scale?
• What can marketers do to
improve their ranking?
Jeffrey M. Jones, “Nurses Top Honesty and Ethics List for 11th Year,” Gallup, November 19–21,
2010, http://www.gallup.com/poll-145043/nurses-top-honesty-ethicslist-11-year.aspx

6. 66
Creating an Ethical Climate in the Workplace
A strong ethical climate requires a commitment from the top down within the firm. Everyone
within the firm must agree to a system of controls that rewards appropriate behavior and
punishes inappropriate behavior.
Principles of Marketing
MKT3010
Values
• Establish
• Share
• Understand
Rules
• Management commitment
• Employee dedication
Controls
• Reward
• Punishment
Stockbyte/Getty Images

7. 77
American Marketing Association Code of
Ethics
Principles of Marketing
MKT3010
Each sub-area within marketing, such as marketing research, advertising, pricing, and so forth,
has its own code of ethics that deals with the specific issues that arise when conducting
business in those areas.
Generally accepted code in marketing
Flows from general norms
of conduct to specific values
Subareas within marketing have their own code of ethics to
deal with specific issues

8. 88
The Influence of Personal Ethics
In many cases, ethics is in the eye of the beholder.
Principles of Marketing
MKT3010
Genetics Family
Religion Values
Corbis/Jupiter images
Photo Disc/Getty Images ©Digital Vision Ltd.
©Royalty-Free/CORBIS Getty Images

9. 99
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MKT3010
Why People Act Unethically
Are all the individuals who engage
in questionable behavior just
plain immoral or unethical?
What makes people take actions
that create so much harm?
Decisions often have conflicting outcomes, where both options have
positive and negative consequences

10. 1010
Principles of Marketing
MKT3010
Compelling Outcomes
Dangerous flaw in
new model
Delay
production
Delayed
revenue
Possible
layoffs
Loss of bonuses
Continue
production
Potential injury
to consumers
Loss of revenue
Digital Vision/Getty Images

11. 1111
The Link Between Ethics and Corporate Social
Responsibility
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MKT3010
Socially Responsible Socially Irresponsible
EthicalUnethical
Both ethical and socially
responsible
Neither ethical nor
socially responsible
Questionable firm
practices, yet donates a
lot to the community
Ethical firm not involved
with the larger
community

12. 1212
A Framework for Ethical Decision Making
This concept is broken down in the next slides.
Principles of Marketing
MKT3010
Step 1
•Identify
Issues
Step 2
•Gather
information
and identify
stakeholders
Step 3
•Brainstorm
and evaluate
alternatives
Step 4
•Choose a
course of
action

13. 1313
Step 1: Identify Issues
In a marketing research firm, ethical issues might include:
• Data collection methods—not informing respondents that they are being observed
• Hiding the true purpose of a study from respondents—telling them they are an independent research
company, but actually doing research for a particular politician.
• Using results to mislead or even harm the public—results of a pharmaceutical study.
Principles of Marketing
MKT3010
Marketing
research
firm issues
Using results
to mislead or
even harm
the public
Data
collection
methods
Hiding the
real purpose
of the study

14. 1414
Step 2: Gather Information and Identify
Stakeholders
Principles of Marketing
MKT3010
Identify all ethical issues and
relevant legal information
Identify all relevant
stakeholders and get
their input on any
identified ethical issues

15. 1515
Step 3: Brainstorm and Evaluate Alternatives
Principles of Marketing
MKT3010
The alternative solutions depend on the type of ethical issue and how the stakeholders are
affected.
• Halt the market research project?
• Make responses anonymous?
• Instituting training on the AMA Code
of Ethics for all researchers
Ryan McVay/Getty Images

16. 1616
Step 4: Choose a Course of Action
Principles of Marketing
MKT3010
Alternatives are then evaluated and a course of action is chosen. The chosen course represents
the best solution for the stakeholders using ethical best practices.
Weigh the alternatives
Take a course of action
Digital Vision/Getty Images

17. 1717
Check Yourself
Principles of Marketing
MKT3010
1. Identify the stages in the ethical decision-making
framework.

18. 1818
Integrated Ethics into Marketing Strategy
Principles of Marketing
MKT3010
As marketers, you must ask questions specific to each stage and examine those questions
carefully before moving on to the next stage.
Planning Phase
Implementation Phase
Control Phase

19. 1919
Planning Phase
Principles of Marketing
MKT3010
By incorporating ethics into the firm’s mission statement, the firm sets a standard for its
subsequent ethical decision making. The mission statement signals the firm’s strategic priorities.
• The mission or vision statement sets
the overall ethical tone for planning.
• Mission statements can be used as a
means to guide a firm’s SWOT
analysis.
©M Hruby

20. 2020
Newman’s Own: Donating Over $200 Million
Since 1982
The adding value 3.1 box features Newman’s Own Organics.
Principles of Marketing
MKT3010
©Newman’s Own, Inc.

21. 2121
Implementation Phase
Principles of Marketing
MKT3010
Should the firm be
targeting
this market with this
product?
Should the firm be
selling its product in
this market in this
manner?
Should the firm be
relocating
production to another
country?

22. 2222
Control Phase
Principles of Marketing
MKT3010
1. Check successful
implementation
2. React to change
Barbara Penoyar/Getty Images
Any plan requires constant evaluation and revision, and this truism applies particularly to the
evaluation of ethical issues.

23. 2323
Check Yourself
Principles of Marketing
MKT3010
1. What ethical questions should a marketing
manager consider at each stage of the marketing
plan?

24. 2424
Corporate Social Responsibility
Principles of Marketing
MKT3010
•Employees
•Their families
Employees
•Current
customers
•Potential
customers
Customers
•Community
•Environment
Society
•Partners
•Competitors
Marketplace

25. 2525
Check Yourself
Principles of Marketing
MKT3010
1. How has corporate social responsibility evolved
since the turn of the twenty-first century?
2. Provide examples of each of the stakeholders
that firms should consider in their corporate
social responsibility efforts.

26. 2626
Glossary
Principles of Marketing
MKT3010
Corporate social responsibility describes the voluntary actions taken by a company to
address the ethical, social, and environmental impacts of its business operations and the
concerns of its stakeholders.