Enterprise Marketing

Ethics in Marketing Definition:  Principles and standards that define acceptable conduct of marketing efforts.

Social Responsibility  Definition:  An organization’s obligation to maximize its positive impact and minimize its negative impact on society

 Marketing Citizenship: The adoption of a strategic focus for fulfilling the economic, legal, ethical and philanthropic social responsibilities expected by stakeholders  Stakeholders: People and groups of people who are affected by the activities of the organization

Who are the stakeholders?  Customers  Suppliers  Owners/Investors  Employees  Management  Community  Governments  Dealerships, distributors commissioned salespeople

Corporate Social Responsibility  Economic: Be profitable. All other responsibilities rest on this  Legal: Obey the law. All business activities are within the boundaries of the law  Ethical: Obligation to do what is right, just and fair.  Philanthropic: Be a good corporate citizen. Contribute to the community.

Examples of un-ethical marketing  Manipulating and/or cheating the customer  Knowingly bringing an unsafe product to market  Making claims about the product that are untrue

Ethical issue  An identifiable problem, situation or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or un-ethical.

How Ethics affect the marketing mix  Product: when marketers fail to disclose risks associated with a product or misrepresent it’s function or value.  Promotion: false or misleading advertising  Pricing: price fixing, predatory pricing  Distribution: Multi-Level Marketing

Examples of Un-Ethical marketing  The recording industry: Payola  The movie studios: Bundling Gone with the Wind and Getting Gertie’s Garter  The Auto industry: Ford Pinto  Multi-Level Marketing: NSA - Canada

Improving Ethical conduct in Marketing  Introduce codes of conduct  Hiring more ethical employees  Eliminating un-ethical employees (bad apples)  Restructuring (bad barrels)

Implement Ethical and Legal compliance programs  Educate employees on code of ethics.  Lead by example  Follow-up and enforce  Resources: E-Center for Business Ethics   American Marketing Association 

Social Responsibility and Ethics are good for business  Cause related marketing: The practice of linking products to a particular social cause  Strategic Philanthropy: The synergistic use of organizational core competencies and resources to address key stakeholders’ interests. Both organizational and social benefits are achieved.

Example of good business ethics  The Body Shop - Canada  Using natural ingredients, The Body Shop has built a successful skin and hair care product line. Responsibility for the environment is also key.  Product Communications, The Body Shop Canada  In 1980, The Body Shop Canada was a single shop hidden under a deli in Toronto's Yorkville district. It's products were hand-labeled and the warehouse consisted of boxes wedged into the basement of a house. Today The Body Shop, respected for its distinctive and honest approach to retailing and its commitment to profits with principles, has 120 shops across Canada selling high-quality skin care and hair care products that are not tested on animals and simply packaged,...

For next class  Read Brand Marketing case study: Guinness  marketing.html marketing.html  The “Intel Inside” brand case study  services/Marketing-services/News/Ingredient- branding-case-study-Intel~466.html services/Marketing-services/News/Ingredient- branding-case-study-Intel~466.html  Also research: Harley Davidson motorcycles

Your Marketing Project  Divide yourself into groups of 4 students  Think about a product that you would like to export to the Canadian market  Develop a marketing plan based on the theory presented in class and the sample marketing plan  More details to come…