Page 303 - Encyclopedia of Business and Finance

eobf_E 7/5/06 3:01 PM Page 280

Ethics in Marketing

Marketing of tobacco products, as seen on this billboard along Chicago’s Dan Ryan Expressway, has been the target of government
regulation. AP IMAGES

then encouraged to purchase a more expensive item). False When people feel that products or appeals are offen-
or greatly exaggerated product or service claims are also sive, they may pressure vendors to stop carrying the prod-
deceptive. When packages are intentionally mislabeled as uct. Thus, all promotional messages must be carefully
to contents, size, weight, or use information, that consti- screened and tested, and communication media, pro-
tutes deceptive packaging. Selling hazardous or defective gramming, and editorial content selected to match the
products without disclosing the dangers, failing to perform tastes and interests of targeted customers. Beyond the tar-
promised services, and not honoring warranty obligations get audience, however, marketers should understand that
are also considered deception. there are others who are not customers who might receive
their appeals and see their images and be offended.
OFFENSIVE MATERIALS AND Direct marketing is also undergoing closer examina-
OBJECTIONABLE MARKETING tion. Objectionable practices range from minor irritants,
PRACTICES such as the timing and frequency of sales letters or com-
Marketers control what they say to customers as well as mercials, to those that are offensive or even illegal. Among
and how and where they say it. When events, television or examples of practices that may raise ethical questions are
radio programming, or publications sponsored by a mar- persistent and high-pressure selling, annoying telemarket-
keter, in addition to products or promotional materials, ing calls, and television commercials that are too long or
are perceived as offensive, they often create strong nega- run too frequently. Marketing appeals created to take
tive reactions. For example, some people find advertising advantage of young or inexperienced consumers or senior
for all products promoting sexual potency to be offensive. citizens—including advertisements, sales appeals dis-
Others may be offended when a promotion employs guised as contests, junk mail (including electronic mail),
stereotypical images or uses sex as an appeal. This is par- and the use and exchange of mailing lists—may also pose
ticularly true when a product is being marketed in other ethical questions. In addition to being subject to con-
countries, where words and images may carry different sumer-protection laws and regulations, the Direct Mar-
meanings than they do in the host country. keting Association provides a list of voluntary ethical

280 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION