Ethical marketing & societal effects

2. Marketing ethics and
Societal Marketing
Concept

3. Marketing ethics is the area of applied ethics which deals with the moral
principles behind the operation and regulation of marketing.
Societal marketing refers that marketers should satisfy the needs and wants
of their target market as such that they enhance the well being of
consumers and society as a whole with fulfilling the objectives of the
organization.
Definition

4. According to research…
• In 2002, approximately $15 billion was spent in the U.S. on
marketing communications directly targeted at children.
• Estimates suggest that today’s children spend an average
of 4 hours per day watching television and are exposed to
about 5 hours of commercials per week, which amounts to
40,000 commercials in a single year.
• Approximately 88% of children between the ages of 5 and
14 use computers, and 53% have access to the Internet.
• According to a 2006 study , within the 4 to 6 year-old age
group of children own a DVD player, a portable hand held
videogame player, and aTV set in their room.

5. According to research…
• Recent estimates suggest that children account for about
$30 billion in direct spending annually and influence an
extra $600 billion in family purchases.
• marketers view children as the market of the future and
often direct campaigns at them with the intent of forging
brand loyalties at an early age.

6. Consumer Decision Making Model

10. THE ROLE OFTEENS IN FAMILY DECISION MAKING
• Children play an important role in influencing purchase decisions.
• Marketers across the world and in India are targeting children for
marketing of their products.
• Kids represent an important demographic to marketers because they have
their own purchasing power, they influence their parents' buying decisions
and they're the adult consumers of the future.
• The Internet media, print and visual is an extremely desirable medium for
marketers wanting to target children.
• "Pester power" refers to children's ability to nag their parents.

11. UNETHICAL MARKETING PRACTICES
• Marketing ethics is the area of applied ethics which deals with the moral principles behind the
operation and regulation of marketing. Some areas of marketing ethics (ethics
of advertising and promotion ) overlap with media ethics.
• Unethical marketing practices means not conforming to approved standards of social or professional
behavior in business marketing practices.
• Unethical practices in marketing - examples
 Lack of clarity in pricing
 Dumping - selling at a loss to increase market share and destroy competition in order to subsequently
raise prices
 Price fixing cartels
 Encouraging people to claim prizes when they phoning premium rate numbers
 High pressure selling - especially in relation to groups such as the elderly
 Copying the style of packaging in an attempt to mislead consumers
 Deceptive advertising
 Unethical practices in market research and competitor intelligence

12. Some of the Unethical marketing practices are
as follows:
• Selling a sub-par product or service.
• Contacting people without their consent.
• Deliberately misrepresenting what a purchaser will get/achieve/become with a product or service.
• Refusing to respond to and correct customer complaints.
• Not having a clear and easy-to-understand privacy policy.
• The consequences of unethical marketing practices involving targeting especially vulnerable or
unaware consumers are as follows:
 Dissatisfied customers
 Bad publicity
 A lack of trust
 Lost business
 Sometimes, legal action.

13. How they target?
• Estimates suggest that today’s children spend an average of 4 hours per
day watching television and are exposed to about 5 hours of commercials
per week, which amounts to 40,000 commercials in a single year
• About 83% of commercials during the most popular shows for children
ages 6 through 11 advertise snacks, fast food or sugary treats.
• Approximately 88% of children between the ages of 5 and 14 use
computers, and 53% have access to the Internet.
• Thousands of marketing messages – from licensed cartoon characters on a
favorite website.

15. Effect?
• Survey by the American PsychologicalAssociation, children 8 years old and
younger tend to accept advertising claims as being truthful and process
them as legitimate information.
• Marketing aimed at children triggers feelings of discontent and
inadequacy, promotes undesirable social values, such as materialism, and
causes health problems.
• The more children are exposed to consumer culture, the likelier they are to
become depressed, suffer from anxiety, or experience low self-esteem.
• G.I. Joe ,Barbie, Size- Zero Kareena

16. Future?