
When it comes to the conduct of ethics in marketing, these are the pulse points that have been subjected to numerous controversial ethical debates: market research, market niches, marketing methods, marketing strategies, advertising and promotion, and pricing.
Market research invades the privacy of a potential respondent or research subject who has the basic right to secure personal information. Research implies the use of sample population that affects the study’s conclusion on trending. This produces the phenomenon of stereotypes that is the result of group approximations. Stereotyping becomes unethical when it leads to the infringement on the basic human dignity of all stakeholders. The role of the marketing intelligence officer is crucial in this regard.
According to Trim and Lee (2006), a marketing intelligence officer plays a crucial role in assisting the marketing strategist. The marketing intelligence officer handles analysis and interpretation of data and information. Senior marketing managers ultimately rely on the marketing intelligence officer’s inside information and expert insight on customer expectations and satisfaction levels. It is also logical to think that the work of marketing intelligence officers is directly linked to corporate security and a company’s vulnerability. Consumer information and insight ultimately comes from the marketing intelligence officer.
The formulation of market niches is another sensitive hotspot for marketing ethics. Some marketers target the vulnerable market segments such as children, the elderly, the mentally handicapped, and developing countries without sufficient psychosocial backgrounds on such. The result may be unethical if stereotypes are created and the subjects are not completely understood. It can also result in exploitation of the vulnerabilities of these niche markets. Since these market niches can prove to be lucrative, overzealous but unethical marketers may flood these target groups with efforts to sell products, thereby influencing unhealthy lifestyles, unhealthy diets, brand-consciousness, and materialism.
Marketing ethics bear on consumer behavior. Brinkmann and Peattie (2008) found that “Consumer researchers and ethicists alike seem interested in how freedom of choice is handled, how information is handled, and how choices are made, using more or less rational criteria.” On the other hand, ethnic marketing is considered legitimate and ethical if it aims to serve the needs and wants of a quickly growing population that comes with diversified cultures. Ethnic marketing is legitimate if within the bounds of what are still considered good marketing strategies and respects minorities in their marketing communications (Hilliard, n.d.).
Ethical issues in marketing methods become controversial when marketing messages are delivered unsolicited. Spam marketing, telemarketing, direct marketing, email marketing, and fake product reviews and advertorials that pose as legitimate literature are some of the potentially unsolicited channels by which marketing efforts are conveyed. These undermine the privacy and self-determination of consumers. The pyramid scheme, viral marketing, guerilla marketing, premeditated obsolescence, bait and switch, search engine optimization, and inclusion of spyware and adware are some of the highly controversial marketing strategies employed today.
The areas of advertising and promotion are the most controversial pulse points of the ethical debate in marketing. False advertising can be so crafty that the issues of truth and honesty become fodder for fierce debate. So-called ‘sin’ products such as tobacco and alcohol have never ceased to be subjects of controversy within the ethics of marketing. Issues of violence, profanity, sex, and gender insensitivity are also ethical danger points in marketing. The attempt of a company to launch negative advertising against a competitor by campaigning against the disadvantages of the competitor’s product is also considered unethical marketing.
Pricing is a creative arena for marketers that may be susceptible to the abuse of ethics. Some unethical pricing tactics are price fixing, predatory pricing, price war, bid rigging, price discrimination, and variable pricing.

Posted by GSerrano on March 5, 2009 in Business, Market Trends · 0 Comment