Essay Example on Marketing Ethics: Making the Right Choices in a Dilemma

This refers to marketers in different organizations demonstrating adherence to societal moral and ethical principles in all marketing efforts. It encompasses upholding key values such as honesty, integrity, fairness, equity, embracing diversity, dignity, and non-discrimination (LaMarco, 2018). There is a huge dilemma on what constitute to be "right" or "wrong" in respect to ethical behavior in marketing. Despite the topic being subjective and the differing ideologies, organizations ought to put in place guiding principles that ultimately protect and convey right information the stakeholders including customers, shareholders, employees, and community in general. This paper will focus on discussing the importance of ethical behavior specifically for marketers.

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Different marketing regulators in different jurisdictions design values that govern practices of marketers. For example, in the USA, the American Marketing Association (AMA) clearly outline values to guide them when advertising and marketing products across the different states (Akaah & Lund, 1994). Such values include upholding transparency, fairness, integrity, respect, ethical pricing and a sense of responsibility which involves accepting the effects of any of its marketing actions (Akaah & Lund, 1994). Ethical behavior should ideally integrate social responsibility and the any gains derivation in the process of marketing.

To start with, practicing ethics promotes mutual trust between the organization and its customers which in turn enhances a positive brand image to the company (LaMarco, 2018). Customers associate with brands that do not employ manipulation to lure them to purchase their products. For this reason, marketers should ensure that they convey accurate information to them to develop the trust. False advertising which is a major unethical practice, leads to mistrust and damage to corporate image. For example, a company like Nestle for decades has been dealing with boycott of its products and reduction in sale as a result of predatory and false marketing of baby foods especially to unsuspecting buyers in developing countries with aim to make high profits. When products fulfil the characteristics of what is conveyed when advertising, there is a positive reflection to the company and vice versa (Hunt, Wood, & Chonko, 1989). It becomes a win-win situation where the customer feels the company clearly focuses on their value and also there is enhancement of the organization's value.

Also, there is an increase in customer loyalty when marketers demonstrate ethical behavior (Bhasin, 2018). A firm that upholds the principles of ethics in marketing derive the advantages of having repeat customers and even refers the brand to new customers. The loyalty will allow the business to remain a going concern even during its hard times. Management should therefore ensure that the marketing department presents the firm's features and products' characteristics as true and accurate in every aspect.

Third, the company enjoys long-term gains. Although in some cases, ethical behavior could slow down the progress of penetrating a given market for certain products, in the long run it derives a lot of advantages such as a stable clientele base, boost in market share, brand recognition, and increased sales (LaMarco, 2018). Most businesses that rely on unethical behavior which is necessarily not illegal only gain in the short term and more often than not there is a threat to their likelihood to continue as a going concern in the future(Bhasin, 2018). For example, for many companies that advertise slimming pills or tea often exaggerate the results of the use of such products whereas in most cases they prove to be ineffective. Customers are more likely to abandon their use and not purchase them thereby reducing sales which affect the survival of such businesses.

In addition, there is a spike in a company's credibility when it upholds ethical behavior in marketing. The business is able to gradually develop its distinctive market niche as a genuine and reliable brand that deliver what it promises (Bhasin, 2018). Applying ethics consistently in all marketing and advertising campaigns builds a brand consistently across the industry and distinguishes it from its competition hence giving it a competitive advantage.

Also, another importance of practicing ethical marketing behavior is that it reduces government scrutiny and strict regulations to marketers (Fritzsche & Becker, 1983). In most jurisdictions, when organizations fail to adhere to required or expected ethical responsibilities in its practice, it attracts government to impose tough rules to protect the consumers. It limits the freedom of marketers to apply dynamism and creativity in their campaigns to promote the company and its products or services. They have to follow rules and laws that govern marketing activities or else they face lawsuits, threat to license withdraws, and heavy penalties.

It is also important as it helps organizations attain high degree of social power and gives them the ability to influence the market (Bhasin, 2018). Such organizations are used as a benchmark against socially acceptable ethical behavior which means that other organizations look up to them as market leaders to define what is right. The company's stakeholders often get the chance to speak in forums for ethical practices since they are trustworthy and highly reputable. Also, they get to receive awards for setting an example in the industry when it comes to ethical standards of marketing. In 2019, Ethiosphere which is a global frontrunner in describing ethical business standards named 3M which is an industrial manufacturing company in the USA as the most ethical companies in the world.

Another vital role is that it fulfils the basic wants and desires. The main factors include honesty, trust, and faith which customers keen to observe from brands when buying different goods and services. Lack of these virtues results in a strained relationship between the customer and the business. It negatively affects the organization especially where a customer uses the social media platforms to air their grievances against a particular brand. Ultimately, there is a reduction in market share and damage to the reputation of the business.

Also, the organization enjoys benefits of displaying a rich culture and attract the right talent in the market. The employees adopt an ethical culture which is well defined and there is an alignment of internal operations with how the brand to the external environment. Staff remain committed to meeting the company's objectives as there is clear and honest ethical principles that guide how everyone conduct activities.

Lastly, a company through application of ethical behavior can compete fairly in the market. It conducts sufficient and responsible research of its target audience and sets the ideal price for its product quality without having to undercut to draw customers from competitors in an unethical manner (Fritzsche & Becker, 1983). There is healthy competition where organizations are able to price products correctly and maintain a customer value mindset.

Conclusion

In conclusion, marketers should be careful and avoid demonstrating unethical behavior when marketing. The most deadly types include surrogate advertising, exaggeration, subjectivity, failure to verify information, sexist stereotypes where women are portrayed as sex objects, exploiting children, and false accusations against the company's competitors (LaMarco, 2018). Given that unethical behavior is not illegal, in the short term it could be beneficial but in most cases it proofs harmful to a brand's image and reputation in the long-term. Management should be aware of all its marketing department's activities and campaigns and how they are demonstrating and representing the brand.

References

Akaah, I. P., & Lund, D. (1994). The influence of personal and organizational values on marketing professionals' ethical behavior. Journal of Business Ethics, 13(6), 417-430. doi: 10.1007/bf00881450

Bhasin, H. (2018, August 2). Importance of Marketing Ethics - Definition of Marketing Ethics. Retrieved from https://www.marketing91.com/importance-of-marketing-ethics/Fritzsche, D. J., & Becker, H. (1983). Ethical behavior of marketing managers. Journal of Business Ethics, 2(4), 291-299. doi:10.1007/bf00383187

Hunt, S. D., Wood, V. R., & Chonko, L. B. (1989). Corporate Ethical Values and Organizational Commitment in Marketing. Journal of Marketing, 53(3), 79-90. doi: 10.1177/002224298905300309

LaMarco, N. (2018, November 27). Ethical Practices in Sales & Marketing. Retrieved from https://smallbusiness.chron.com/ethical-practices-sales-marketing-64319.html