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Session 14 Ethical issues in marketing - Coggle Diagram

- - - - moral imagination is needed to devise creative responses.
- - - - Price deception
        
        bait and switch (enticing consumers with a low price offer and then persuading them to buy a more expensive model)
      - Surge or dynamic pricing
        
        price of goods or services is optimised using digital data so that it varies in real time according to demand or consumers’ profiles
      - Misleading or covert advertising
        
        puffery or over-promising, under-informing, artificial endorsements; or disguised through the medium (examples include ambush marketing, advertorials, infomercials, fictomercials, product placements, filters on social media)
    - - Predatory pricing
        
        artificially low to drive competitors out of business
      - Negative advertising
        
        discredit competitors
    - - Slotting allowances
        
        suppliers are required to pay or provide free goods as additional compensation to retailers for stocking a new product in their store
      - Unethical purchasing behaviour
        
        Manipulation of the bid process or unfair selection of suppliers
      - Extortion
        
        special considerations are offered by the more powerful partner
  - - - appropriate???
    - - ‘Nudge’ techniques (Thaler and Sunstein, 2008) present a set of choices to a target audience but are configured to encourage the selection of the desirable choice
      - Thaler (2015, p. 6) emphasised that nudges should be used ‘for good’ and should adhere to the following three principles:
        
        be transparent and never misleading
        
        be as easy as possible to opt-out of
        
        there should be a good reason to believe that the behaviour being encouraged will improve the welfare of those being nudged.
    - - Insatiable appetite - eg for power (youre never full)
- - - - individual states (e.g. mood and motivation)
      - individual biophysical characteristics (e.g. age, gender, ethnicity)
      - individual psychosocial characteristics (e.g. cognitive capacity, education, self-concept)
      - external conditions (e.g. discrimination, stigmatisation, distribution of resources).
- - - - check finanical situation of person
    - - checking if person could be potential donor to charity
- - - - Marketers should seek to understand and consider their influence on society and strive to ensure it is beneficial, by not treating any stakeholder group as merely a means to attain profit.
    - - Marketers should exceed the basic legal requirements, because the law is a minimum and often lags behind society’s expectations, so some practices might not be illegal but pose ethical questions.
    - - Marketers will vary in their capacity for moral imagination – ‘that is, the character and ability to morally reason with creative ethical solutions when encountering an ethical question’ (Murphy, Laczniak and Harris, 2017, p. 16). Creative thinking can help to identify a wider range of options for responding to an ethical dilemma (Jones, Cardinal and Hayward, 2006).
    - - An ‘ethical protocol’ consisting of seven steps can help marketers with ethical decision making (see Figure 14.16).
    - - In analysing the ethicality of an action, marketers bear responsibility for the intended means or method and the end or outcomes. There is almost always the potential for unintended consequences and, providing these are minor, might need to be tolerated. While major negative unintended consequences might be difficult to account for, the approach is acknowledged not to be perfect but can still be helpful in considering a marketing decision from multiple perspectives.
    - - Marketing organisations need to formulate and enshrine a list of appropriate ethical guidelines.
    - - Marketing stakeholders include: primary stakeholders who ‘have a continuing and essential interest’ (such as customers and staff); indirect stakeholders who ‘have an abiding but more separated interest’ (such as competitors and the local community); and secondary stakeholders who ‘have a potential interest in the firm’ (such as the media and the public) (Murphy, Laczniak and Harris, 2017, p. 42). Stakeholders should be treated as active participants and marketers should concern themselves with the social and environmental impacts as well as economic outcomes.