MktgEthics112K_Stream001Male 1 and 2, Female 1Male 1Page 1 of 6Hi, I’m Bill Perreault.

MktgEthics112K_Stream001Male 1 and 2, Female 1Male 1:Page 1 of 6Hi, I’m Bill Perreault.

Marketing ethics has to do with the moralstandards that guide marketing decisions and actions. Surveyssuggest that most marketing managers feel that they have struggledwith the issue of right and wrong in their business dealings. Andnot surprisingly ethical norms are sometimes violated. By theirvery nature, ethical problems are grey areas. Situations in which avalue judgment must be made. In some cases, there may bedifferent perspectives on the rightness or wrongness of possiblesolutions to a problem. And that also adds complexity to thesituation.

MktgEthics112K_Stream001Male 1 and 2, Female 1Male 1:Page 1 of 6Hi, I’m Bill Perreault.

So, how do marketers go about making the right choice?Sometimes marketers can look to the legal environment forguidance. Laws represent the minimum standards for ethicalbehavior in a society. Professional codes of ethics also offerdirection. For example, the American Marketing Association’sCode of Ethics for Professional Conduct provides marketers withconceptual guidance regarding ethical values such as honesty andfairness and the rights and duties of parties in the exchangeprocess.The AMA code at its core, asks members to apply the basic rule ofprofessional ethics which is to not knowingly do harm. It also asksmembers to follow all applicable laws and regulations. Recently,the AMA added a special section for marketing on the internet.One provision of this section requires members to be aware of newand emerging laws and regulations regarding this fast pacedindustry.

MktgEthics112K_Stream001Male 1 and 2, Female 1Male 1:Page 1 of 6Hi, I’m Bill Perreault.

Members are encouraged to actively ask consumers forconsent to receive promotional email and to protect the consumer’sprivacy.Other relevant professional codes of ethics for marketers includethe ones developed for advertising, public relations and marketingresearch. Some industries have ethical codes of conduct whichrely on voluntary compliancy by industry members. The liquorindustry, for example, asks that liquor manufacturers anddistributors not advertise on TV. EOA members are managers ofethics, compliance and business conduct programs. The EOAprovides training courses and sponsors conferences to facilitate theexchange of ideas between and among members.Its newsletter, available online, promotes these exchanges as wellas ethics news and information resources.www.escriptionist.com

MktgEthics112K_Stream001Male 1 and 2, Female 1Male 1:Page 1 of 6Hi, I’m Bill Perreault.

Page 1 of 6MktgEthics112K_Stream001Male 1 and 2, Female 1Page 2 of 6Finally, changes in society, in consumer attitudes and values andthe whole business environment provide insight into emergingethical issues and the various perspectives surrounding them.Male 2:Marketers come face to face with issues involving ethicalquestions in every aspect of the marketing mix. The product, itsprice, distribution and promotion. Ethical issues regarding theproducts and its package center on product quality and safety,truth, full disclosure and the product’s impact on the physicalenvironment and society. Some consumers consider the productitself to be unethical because it is harmful to the user and tosociety. Pornography, gambling, alcoholic beverages and tobaccoproducts have received harsh criticism from Americans whoquestion whether such products should be legal. Some toys andvideo games have been heavily criticized for their negative impacton children’s values and attitudes.The food industry is currently the focus of consumer scrutiny andseveral ethical issues have received a great deal of publicity. Firstis the problem of obesity. Ever since the Surgeon General’s reportsaid 61 percent of American adults and 13 percent of kids areoverweight, American consumers and special interest groups havemade fast food chains and food processors a target of ethicalinquiry.The McGriddles breakfast sandwich launched in June 2003 byMcDonalds measured at 550 calories, 33 grams of fat and 260milligrams of cholesterol, McGriddles was put in the hall of shameby E-diets.com. Which suggested that the syrupy M on top stoodfor murder. McDonalds’ burgers and fries are also on the list fortheir contribution to obesity. Both McDonalds and Burger Kingare scrambling to react in a positive way by introducingMcDonalds is currently testing the Go Active meal that includes asalad, an exercise booklet and a pedometer. Burger King recentlylaunched a new line of low fat, made to order baguette stylechicken sandwiches. Product labeling in the food industry also hasreceived criticism. The labels for bottled water have beencriticized for using words, deceptive phrases and images thatsuggest bottled water is extraordinarily pure and uncontaminatedor that the source is natural or denotes a premium quality.A second major ethical issue which has beset the food industryconcerns the treatment of animals.

MktgEthics112K_Stream001Male 1 and 2, Female 1Male 1:Page 1 of 6Hi, I’m Bill Perreault.

PETA, people for the ethicaltreatment of animals, has targeted Kentucky Fried Chicken andother fast food chains with a campaign against the cruel treatment www.escriptionist.comPage 2 of 6MktgEthics112K_Stream001Male 1 and 2, Female 1Page 3 of 6of chickens raised and killed for their restaurants. Pricing in themarketing mix raises a number of ethical issues.Many common pricing strategies appear to be unethical to theconsumer. What about frequent price changes in rapidly changingmarkets such as gasoline? Should gasoline cost more on theweekends than during the week? But few pricing issues are moreinfuriating to consumers than hidden fees that inflate the price theypay for products. Companies that cannot raise prices withoutlosing business are charging fees and raising surcharges.Are the following fees and surcharges ethical? Target and BestBuy make customers pay a restocking fee of 15 percent for theprivilege of returning electronic items. Several of the airlines havestarted charging passengers for food on flights. Air travelers alsopay airport security fees, landing fees and fuel surcharges. Andwhat about shirking package sizes which effectively raise price tothe consumer? Some ice cream makers are quietly reducing thesize of half gallons to 1.75 quarts. The size reduction isn’t obviouseven though the new weight is stated on the package because thephysical package doesn’t look different.From a consumer’s perspective this is cheating. Shouldn’t a halfgallon be the standard size for ice cream? From themanufacturer’s perspective, shrinking the package size keeps theproduct affordable in the face of cost increases. But look whathappened to the case of Eddy’s Grand. Package size was reduced12 percent to 1.66 liters from a half gallon which is equal to 2quarts or 1.89 liters without cutting the package price. The effectwas to actually increase the price per quart 14 percent. Similarresults have been observed for coffee, laundry detergents, yogurt,candy bars, chips, cookies, crackers, and frozen vegetables.Ethical issues in the area of distribution tend to focus on channeldecisions, product placement and relationships with suppliers anddistributors. Wal-Mart, the world’s largest retailer, controls a largeand rapidly increasing share of the distribution of entertainmentproducts like popular music, games, movies and magazines. WalMart has resolved several product placement issues in theseproduct categories by removing racy men’s magazines from theshelves, obscuring the covers of provocative women’s magazines,and refusing to sell CDs with explicit lyrics or computer gameswith mature ratings.Elsewhere in the store Wal-Mart declines to sell Previn, a morningafter contraceptive pill. Such decisions are seen by some as moralwww.escriptionist.comPage 3 of 6MktgEthics112K_Stream001Male 1 and 2, Female 1Page 4 of 6victories. By others as ad-hock, knee jerk reactions to theconservative right. After all, Wal-Mart sells cheap firearms whichis an important ethical issue to many Americans.An ethical problem between the Coca-Cola Company and BurgerKing recently came to light when an internal auditor for Coke fileda wrongful termination suit against Coke. The issue concerned theimproper influencing of a marketing research test by mid-levelCoke managers for a Frozen Coke promotion that was tested inselected Burger King restaurants. If the coupon increased the saleof value meals, and enough people redeemed the coupons, BurgerKing would take the promotion national.Coke managers funneled money to Boys and Girls club tostimulate a buying spree for Burger King Value meals. BurgerKing spent roughly 10 million dollars for a national promotion inthe summer of 2001. The promotion was a disappointment. Whenthe facts of the deception came to light a year later, Coke issued apublic apology to Burger King and agreed to pay the company andits franchisees up to 21 million dollars to make amends.Another ethical hot button in the area of distribution concernsinternational marketing. US manufacturers have been criticizedfor selling products in foreign markets that have been banned inthe US. Decisions about advertising, sales promotion, personalselling and publicity are highly visible to consumers. Ethicalissues in this area center on deception, full disclosure, highpressured tactics, the individual’s rights to privacy and unfairbusiness practices that harm competition.A recent ad that drew the anger of industry observers and healthexperts as well as the attention of the Federal Trade Commissionconcerned Kentucky Fried Chicken as a healthy alternative to aBurger King Whopper. The Whopper is considered to be one ofthe most fat and calorie laden burgers in the fast food category. ABK Whopper contains 43 grams or 65 percent of the daily value offat and 13 grams or 65 percent of the daily value of saturated fat.Two KFC Original Recipe breasts have 38 grams or 58 percent ofthe daily value of fat and 12 grams or 60 percent of saturated fat.The claim that two Original Recipe chicken breasts have less fatthan a BK Whopper does not make it a healthy alternative. The adthen states that a skinless chicken breast has only three grams offat. How many people eat KFC’s fried chicken without itsbreading and skin?www.escriptionist.comPage 4 of 6MktgEthics112K_Stream001Male 1 and 2, Female 1Page 5 of 6Thanks to the World Wide Web and powerful new technologies,today’s sales people are just as pushy, invasive, and disruptive astheir door to door counterparts in the 50s. Although consumershave complained fiercely to state and federal law makers, spam,telemarketing, paid inclusions and other forms of direct marketinghave some protection under the First Amendment of the USConstitution.The ethical conflict is between a consumer’s right to privacy and amarketer’s right to disseminate information. Both sides havepowerful arguments. Everyone agrees, however, that for theinternet to realize its full potential, it has to become moretrustworthy.Male 1:Doing the right thing can be difficult for even the most wellintentioned marketer. In any given situation, there are manyconflicting interests to balance. Customers, share holders,employees, suppliers, distributors, the community and society as awhole. Who do you please? Who do you listen to? How do youbalance the needs of the company for revenue growth and profitwith the need to honor relationships with suppliers anddistributors? How do you best serve customers and society’sinterest at the same time? What about the long term survival of thecompany? Unfortunately, some managers put moral issues in theback seat when they face the pressures to achieve short-termfinancial goals. They rationalize and say, “If its’ not illegal, who’sto say it’s wrong?”Male 2:Some companies do take the moral high road even in the face ofnumerous ethical issues and environmental constraints. MakersMark, a well known brand in the alcohol industry is an example ofa product that is guided by ethical concerns.Male 3:__________ has a global marketing and advertising code. Inaddition to that, our trade association, Distilled Spirits Council ofthe United States, has a discus code of responsible practices. Andthis sets standards here in the United States which we comply with.The latest research demonstrates that 65 percent of the alcohol thatis obtained by those young people that want to drink alcoholillegally, they get it from parents, friends, families and peers. Andwe launched a campaign that basically tries to educate parents totalk to their young people, to their children, about the problemsassociated with illegal, underage consumption.Male 2:In response to ethics issues and concerns about ethical conduct,some companies have written codes of conduct and appointedwww.escriptionist.comPage 5 of 6MktgEthics112K_Stream001Male 1 and 2, Female 1Page 6 of 6ethics officers to head up training and compliance programs.Ms. Deborah Severs is director of global ethics at EatonCorporation. A global, diversified industrial manufacturer with2003 sales of 8.1 billion dollars.Female 1:My role as chief ethics officer is to ensure that Eaton’s ethics andvalues remain front and center to all employees and in our businesspractices. I’m also responsible for our global ethics office whichwas created to provide guidance, education and training to all ofour employees and to help them comply with our code of ethics intheir work environments.We also have an 800 number that employees can use to reportmisconduct or to ask questions. We have one code of ethics for allemployees, officers and directors. A code of ethics consists of 11principles that we expect employees to follow when they conductbusiness on behalf of Eaton. The principles range from conflict ofinterest to obeying the law to competing ethically.At Eaton well tell employees that it’s not just about achieving greatresults, it’s about how we get those results. One of our ethicalprinciples is that we do not engage in unethical or illegal tradepractices. Virtually every one of our 51,000 employees receivedethics training by their leaders in their home country. Everyemployee received a copy of the ethics guide and a copy of thecode of ethics in their native language.The ethics guide provides examples and guidance on howemployees can get help with ethical dilemmas. What we’refinding is that as employees apply the code of ethics to their workenvironments they’re coming back to us with questions andrequests for help. And we’re finding ways to make our examplesfit their work environments in the countries where they’re locatedso that our code of ethics remains the same. It is one code ofethics. But we’re using our examples so that employees, no matterwhere they’re located, understand what it means for them and theirwork environments.Sometimes employees view the ethics officer as the policy but wewant our focus to be on is not how many employees we can catchdoing something wrong, but on how many employees we can help.[End of Audio]www.escriptionist.comPage 6 of 6 https://charteredessay.com/mkt-421-final-exam-2016a-__-is-a-road-map-for-the-marketing-activities-of-an-organization/

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