Ethics and the conduct of business 8th by john boatright and smith 2017 chapter 10

Learning Objectives 1 of 3• 10.1: Explain how principles of fairness, freedom, and being are challenged by marketing practices and why an well-ethical framework is necessary • 10.2: Anal

Ethics and the Conduct of Business

Eighth edition

Chapter 10

Marketing and Advertising

Modules (1 of 2)

• Introduction: Marketing and Advertising

• 10.1: Marketing Ethics Framework

• 10.2: Sales Practices and Labeling

• 10.3: Pricing and Distribution

• 10.4: Development and Research

• 10.5: Deceptive Advertising

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Learning Objectives (1 of 3)

• 10.1: Explain how principles of fairness, freedom, and being are challenged by marketing practices and why an

well-ethical framework is necessary

• 10.2: Analyze unethical sales practices, the difficulties sales personnel face in avoiding them, and issues with the

sufficiency of information on product labels

• 10.3: Evaluate the nature and effects of unethical pricing

and distribution practices on consumers and the fairness of markets

Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved

Learning Objectives (2 of 3)

• 10.4: Identify the ethical issues with product development and market research and how companies can conduct

these essential marketing tasks responsibly

• 10.5: Describe the difficulties in defining what constitutes deceptive advertising and how it interferes with consumers’ ability to make rational choices

• 10.6: Recognize how different advertising practices use

irrational persuasion techniques to influence consumers’ choices and the ethical arguments against these practices

Learning Objectives (3 of 3)

• 10.7: Assess the potential harm advertising poses to

individuals and society and the responsibility of companies

to consider the consequences of their marketing efforts

• 10.8: Examine how Internet advertising and the online

collection and use of personal information challenge the rights of individuals to privacy, autonomy, and fair treatment

• 10.9: Summarize the significance of social advertising and the ethical issues associated with it

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Introduction: Marketing and Advertising

• Essential function of business

• Advertising is an indispensible marketing tool

• Four Ps of marketing

10.1: Marketing Ethics Framework

Objective: Explain how principles of fairness, freedom, and well-being are challenged by marketing practices and why an ethical framework is necessary

• Fairness

• Freedom

• Well-being

• Four point bill of rights

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Figure 10.1: Ethical Problems in Marketing

10.2: Sales Practices and Labeling (1 of 2)

Objective: Analyze unethical sales practices, the difficulties sales personnel face in

avoiding them, and issues with the sufficiency of information on product labels

• 10.2.1: Deception and Manipulation

10.2: Sales Practices and Labeling (2 of 2)

Objective: Analyze unethical sales practices, the difficulties sales personnel face in

avoiding them, and issues with the sufficiency of information on product labels

• 10.2.3: Labeling

– Information

– How much information should be provided

– GMO labeling

10.3 Pricing and Distribution (1 of 2)

Objective: Evaluate the nature and effects of unethical pricing and distribution practices

on consumers and the fairness of markets

• 10.3.1: Anticompetitive Pricing

– Anticompetitive marketing practices

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Table 10.1: Anticompetitive Marketing

A monopoly (or oligopoly) that can charge higher prices or offer lower quality than in a fair, competitive market

1 Price-Fixing Two or more companies sell goods at a

set, higher price, with or without an explicit or implicit agreement

Rival goods and companies can be driven out of the market, reducing supply and consumer choice.

2 Resale Price

Maintenance

Products are sold on the condition that they be resold at a price fixed by the manufacturer or distributor

Retailers put more effort into promotion and services; products gain prestige from artificially higher prices.

3 Price

Discrimination Sellers give preferential treatment by charging different prices or offer

different terms for the same goods to different buyers Large buyers demand better prices and terms than others.

Same as price-fixing; consumers must shop at preferred retailers or deal with limited choices and higher prices elsewhere.

10.3 Pricing and Distribution (2 of 2)

Objective: Evaluate the nature and effects of unethical pricing and distribution practices

on consumers and the fairness of markets

10.4 Development and Research

Objective: Identify the ethical issues with product development and market research and how companies can conduct these essential marketing tasks responsibly

10.6 Irrational Persuasion

Objective: Recognize how different advertising practices use irrational persuasion techniques to influence consumers’ choices and the ethical arguments against these practices

• 10.6.1: Threats to Free Choice

Conclusion: Marketing and Advertising

• Marketing ethics requires honesty and fairness

• Pricing, labeling, and advertising can be done in ways

unfair to consumers

• Advertising has social consequences