Top young Filipino corporate trainer and fast-rising motivational speaker, Myron Sta. Ana shares his knowledge and experience regarding the ethics of marketing.

1. THE ETHICAL ASPECT
OF MARKETING
MYRON S. STA. ANA

2. WHAT IS ETHICS IN
GENERAL?
Ethics refer to moral principles defined by social standards
that guide people and groups’ concept of right and wrong.

3. HOW ABOUT MARKETING
ETHICS?
 Marketing Ethics refers to the manner in which a business
presents its products to the consumers.
 Refers to principles and standards that define acceptable
conduct in the marketplace.

4. WHY DO WE HAVE TO
KNOW MARKETING
ETHICS?

5. BASES OF MARKETING
ETHICS

6. The
individuals
affected
The values
violated
The section
of marketing
focused on
Bases of
Marketing
Ethics
Who has
more power
or control
over the other

7. STAKEHOLDERS THAT ARE
AFFECTED BY OR BENEFIT
FROM MARKETING
 Consumers
 Consumers’ rights
 Society
 Environment
 Employees

8. STAKEHOLDERS THAT ARE
AFFECTED BY OR BENEFIT
FROM MARKETING
 Suppliers
 Regulators
 Company
 Management
 Media

9. FIVE P’S OF MARKETING
 Product Safety
- compliance to both advisory and compulsory standards that ensure the
safety of products and services
 Product Liability
- a company’s accountability for any form of injury caused by a product or a
service.
 Packaging
- enclosing, protecting, and presenting products or services for distribution,
storage, sale, and use.

10. FIVE P’S OF MARKETING
 Product Impact
- a product or service’s effect on the stakeholders.
 Pricing
- a company’s distinct process of determining what will be
received as gross and net profits in exchange for products
and services.

11. FACTORS THAT INFLUENCE
ETHICAL JUDGMENT
 Society’s culture and norms
 Business or corporate culture
 Industry’s practices
 Personal moral philosophy

12. MARKETING USUALLY
BECOMES UNETHICAL WHEN:
 When consumers’ right to make own choices (selfdetermination) is infringed.
 When competitors’ right to fair competition is infringed.
 When consumers’ personal and social values are
manipulated.
 When the environment is adversely affected.

13. MARKETING USUALLY
BECOMES UNETHICAL WHEN:
 When companies fail to deliver the supply goes against the
demand or the customers’ needs.
 When companies fail to deliver on promises.
 When companies conduct greedy and short-term
profiteering as opposed to adding long-term value.

14. CATEGORIES OF MARKETING
WHERE ISSUES OF
UNETHICAL MARKETING ARE
PRESENT
 Marketing Research
 Invasion of Privacy
 Absence of Transparency
 Stereotyping
 Market Audience Determination
 Selective Marketing or Market Exclusion
 Targeting of the Vulnerable

15. CATEGORIES OF MARKETING
WHERE ISSUES OF
UNETHICAL MARKETING ARE
PRESENT
 Pricing
 Bid rigging – a bidding is just for formality’s sake but the bid had
already been awarded to a party.
 Dumping – exporting of a product at a price below what it’s charged
in the home market.
 Predatory Pricing – setting a price very low to drive away
competitors.
 Price Discrimination – assigning different prices to similar products
in different markets.
 Price Gouging – pricing products at a level much higher than usual
or what is considered reasonable.

16. CATEGORIES OF MARKETING
WHERE ISSUES OF
UNETHICAL MARKETING ARE
PRESENT
 Pricing
 Price Fixing – is pegging products or services at a fixed price by
controlling the demand and supply.
 Price Skimming – setting products at a relatively high price at first
but eventually lowers it.
 Price War – repetitive cutting down of prices below others in the
competition until the others give up and exit the market.
 Supracompetitive Pricing – is pricing above what can be sustained
in the market.
 Variable Pricing – constant changing of prices.

17. CATEGORIES OF MARKETING
WHERE ISSUES OF
UNETHICAL MARKETING ARE
PRESENT
 Content
 Puffery – marketing statements and claims that communicate
subjective views and should not be taken literally.
 False Advertising
 Controversial Advertising – use of sexual or erotic imagery,
violence, or perceived religious blasphemy.
 Negative Advertising – directly or indirectly attacks competitors by
highlighting their disadvantages.
 Legal Disclaimers

18. CATEGORIES OF MARKETING
WHERE ISSUES OF
UNETHICAL MARKETING ARE
PRESENT
 Delivery Channels
 Electronic SPAM/Unsolicited Emails
 Telemarketing/Cold Calling
 Shilling – is pretending to be a stranger or unrelated to the person
who is marketing just to help in the campaign
 Astroturfing – is concealing the sponsors of a message to make it
appear as though it originated from the grassroots participants.
 Native Advertising
 Advertising to Children

19. KNOWN UNETHICAL
MARKETING PRACTICES
 Bait-and-Switch – is a fraudulent form of marketing in
which merchants lure customers with a promise of a low
price but suddenly reveal that the goods are out of stock
and resort to cross-selling to other similar items that are
priced higher.
 Use of child labor
 High-pressure selling – use of relentless psychological
pressure to gain a fast sale.
 Overbilling clients

20. KNOWN UNETHICAL
MARKETING PRACTICES
 Deceptive Sales Methods
 Fraud
 Antitrust – any illegal business or marketing practice
purported to monopolize.
 Price Fixing

21. TWO ACTIONS TO
COMBAT UNETHICAL
MARKETING
 PROACTIVE APPROACH
 REACTIVE APPROACH

22. PROACTIVE APPROACH
1. Form, understand, communicate, and inculcate values of
INTEGRITY, HONESTY, TRANSPARENCY,
RESPONSIBILITY, FAIRNESS, RESPECT, AND
CITIZENSHIP among marketers and marketing
managers.
2. These values must be integrated with leadership and
management strategies and employee performance.
3. Monitor performance and balance positive reinforcement
and discipline.

23. REACTIVE APPROACH
1. Delay production
- Review production to:
- put controls
- send people to training
- have people sign on a code of ethics
2. Continue production
3. Stop production

24. ORGANIZATIONS THAT
GOVERN ETHICAL
MARKETING IN THE
PHILIPPINES
Philippine Marketing Association
The principal purposes of the association are to promote
marketing as a science and as a profession guided by universal
principles of ethics, corporate citizenship and corporate social
responsibility and to serve as a policy-making and
recommendatory arm of the government on marketing-related
issues.

25. ORGANIZATIONS THAT
GOVERN ETHICAL
MARKETING IN THE
PHILIPPINES
Trade Marketing Association of the
Philippines
Provides multiple venues for learning about trade marketing best
practices and developments and for promoting supplier-retailer
collaboration to trade marketing professionals, our key trade
partners, and other organizations involved in the practice and
study of trade marketing.

26. ORGANIZATIONS THAT
GOVERN ETHICAL
MARKETING IN THE
PHILIPPINES
Bank Marketing Association of the
Philippines
Is an organization of banking institutions, which seeks to
upgrade the practice of bank marketing in the country.

27. ORGANIZATIONS THAT
GOVERN ETHICAL
MARKETING IN THE
PHILIPPINES
Internet and Mobile Marketing
Association of the Philippines
IMMAP members—professionals and practitioners of the industry—
grouped together in 2007 to address the need to push the wonders of
the internet and mobile. As an association, IMMAP sees these
opportunities, and recognizes the urgency of harnessing its potential for
economic development, not just for the industry, but for the national
economy as well. IMMAP has embarked on working towards educating
and providing the necessary digital tools for advertising and integrated
marketing professionals to make better communication decisions.

28. ORGANIZATIONS THAT
GOVERN ETHICAL
MARKETING IN THE
PHILIPPINES
Sales and Marketing Institute
Philippines
Is the premiere professional body of sales and marketing practitioners
in the Philippines. Through its global network and affiliates, the SMI
Philippines provides a dynamic forum for sales and marketing
professionals to advance their careers through certifications,
research, professional development, networking, and advocacy of the
highest ethical and practice standards. The SMI Philippines aims to
deliver world-class support to empower its members with the
knowledge and skills they need to excel in the profession.

29. “I notice increasing reluctance on
the part of marketing executives to
use judgment; they are coming to
rely too much on research, and they
use it as a drunkard uses a lamp
post for support, rather than for
illumination.”
David Ogilvy – The Father of
Advertising

30. REMEMBER THIS,
―Your intelligence and competencies may you
take far but it is INTEGRITY that will take you
THERE.‖
Myron Sta. Ana
www.facebook.com/MyronStaAnaTCS
@MyronStaAna