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Ethics in Marketing

guidelines for companies engaged in direct marketing behavior. This identity is often reflected in the brands or
(available at their Web site at www.the-dma.org). products they consume or the way in which they lead
their lives.
ETHICAL PRODUCT AND The proliferation of information about products and
DISTRIBUTION PRACTICES services complicates decision making. Sometimes consumer
desires to achieve or maintain a certain lifestyle or image
Several product-related issues raise questions about ethics in
results in their purchasing more than they need or can
marketing, most often concerning the quality of products
and services provided. Among the most frequently voiced afford. Does marketing create these wants? Clearly, appeals
complaints are ones about products that are unsafe, that are exist that are designed to cause people to purchase more
of poor quality in construction or content, that do not con- than they need or can afford. Unsolicited offers of credit
cards with high limits or high interest rates, advertising
tain what is promoted, or that go out of style or become
appeals touting the psychological benefits of conspicuous
obsolete before they actually need replacing. An organiza-
consumption, and promotions that seek to stimulate unrec-
tion that markets poor-quality or unsafe products is taking
the chance that it will develop a reputation for poor prod- ognized needs are often cited as examples of these excesses.
ucts or service. In addition, it may be putting itself in jeop-
ardy for product claims or legal action. Sometimes, SPECIAL ETHICAL ISSUES IN
however, frequent changes in product features or perform- MARKETING TO CHILDREN
ance, such as those that often occur in the computer indus- Children are an important marketing target for certain
try, make previous models of products obsolete. Such products. Because their knowledge about products, the
changes can be misinterpreted as planned obsolescence. media, and selling strategies is usually not as well devel-
Ethical questions may also arise in the distribution oped as that of adults, children are likely to be more vul-
process. Because sales performance is the most common nerable to psychological appeals and strong images. Thus,
way in which marketing representatives and sales person- ethical questions sometimes arise when they are exposed
nel are evaluated, performance pressures exist that may to questionable marketing tactics and messages. For exam-
lead to ethical dilemmas. For example, pressuring vendors ple, studies linking relationships between tobacco and
to buy more than they need and pushing items that will alcohol marketing with youth consumption resulted in
result in higher commissions are temptations. Exerting increased public pressure directly leading to the regulation
influence to cause vendors to reduce display space for of marketing for those products.
competitors’ products, promising shipment when know- The proliferation of direct marketing and use of the
ing delivery is not possible by the promised date, or pay- Internet to market to children also raises ethical issues.
ing vendors to carry a firm’s product rather than one of its Sometimes a few unscrupulous marketers design sites so
competitors are also unethical. that children are able to bypass adult supervision or con-
Research is another area in which ethical issues may trol, or sometimes they present objectionable materials to
arise. Information gathered from research can be impor- underage consumers or pressure them to buy items or pro-
tant to the successful marketing of products or services. vide credit card numbers. When this happens, it is likely
Consumers, however, may view organizations’ efforts to that social pressure and subsequent regulation will result.
gather data from them as invading their privacy. They are Likewise, programming for children and youth in the
resistant to give out personal information that might cause mass media has been under scrutiny recently.
them to become a marketing target or to receive product In the United States, marketing to children is closely
or sales information. When data about products or con- controlled. Federal regulations place limits on the types of
sumers are exaggerated to make a selling point, or research marketing that can be directed to children, and marketing
questions are written to obtain a specific result, consumers activities are monitored by the Better Business Bureau, the
are misled. Without self-imposed ethical standards in the Federal Trade Commission, consumer and parental
research process, management will likely make decisions groups, and the broadcast networks. These guidelines pro-
based on inaccurate information. vide clear direction to marketers.

DOES MARKETING OVERFOCUS ON ETHICAL ISSUES IN MARKETING
MATERIALISM? TO MINORITIES
Consumers develop an identity in the marketplace that is The United States is a society of ever-increasing diversity.
shaped both by who they are and by what they see them- Markets are broken into segments in which people share
selves as becoming. There is evidence that the way con- some similar characteristics. Ethical issues arise when mar-
sumers view themselves influences their purchasing keting tactics are designed specifically to exploit or manip-

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