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C-3, SS19

ETHICAL CONSIDERATIONS

I. Terms

Legal – in conformity with society’s values and standards and enforceable in the courts

Ethics – moral principles or values that generally govern the conduct of an individual or a group

Marketing Ethics – deal specifically with how moral standards are applied to marketing decisions, behaviors and institutions

Politically Correct – conforming to the standards of prevailing opinion

II. Morality and Business Ethics

Preconventional – childlike: calculating, self-centered, and selfish; based on what will be immediately punish or reward

Conventional – loyalty and obedience to the organization (or society) become paramount; marketer is concerned with whether the proposed action is legal and how it will be viewed by others

Postconventional – morality of a mature adult: less concern about how others and more concern about how they see and judge themselves in the long run; is it right in the long run

Ethical – in accordance with the standards or values that govern professional conduct (Moral Absolutism vs. Moral Relativism)

Sustainability – …socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time

III. Ethical Guidelines

Code of Ethics

Stanton Ethical Questions

a. Would I do this to a friend?

b. Would I be willing to have this done to me?

c. Would I be embarrassed if this action was publicized?

d. Is this action sound from a long-run point of view?

The Four-Way Test

a. Is it the truth?

b. Is it fair to all concerned?

c. Will it build good will and better friendships?

d. Will it be beneficial to all concerned?

Societal Classification of Offerings – Based on the degree of immediate consumer satisfaction and long-run consumer benefit

1. Deficient Offerings – have neither immediate appeal nor long-run benefits (low immediate satisfaction and low long-run consumer benefit)

2. Salutary Offerings – have low appeal but benefit the consumer (low immediate satisfaction and high long-run consumer benefit)

3. Pleasing Offerings – give high immediate satisfaction but may hurt consumers in the long run (high immediate satisfaction and low long-run consumer benefit)

4. Desirable Offerings – give both immediate satisfaction and high long-run benefits (high immediate satisfaction and high long-run consumer benefit)

Review #1

Review #1

Which of the following best describes a “Pleasing Offering”?

1. Give both immediate satisfaction and high long-run benefits (high immediate satisfaction and high long-run consumer benefit)

2. Have neither immediate appeal nor long-run benefits (low immediate satisfaction and low long-run consumer benefit)

3. Have low appeal but benefit the consumer (low immediate satisfaction and high long-run consumer benefit)

4. Give high immediate satisfaction but may hurt consumers in the long run (high immediate satisfaction and low long-run consumer benefit)