Lecture 10 Marketing and Ethics Dr. Lucy Ting

Agenda Morality and Ethics –Define the Scope What is Marketing? –Marketing Evolution –Value of Marketing Ethical Issues of Marketing –STP Process –Branding

Agenda Ethical Issues in Advertising –Deception –Manipulation –Exaggeration

Morality “Morality refers to those basic and constitutive features of the lives of reason- giving beings that provide action-guidance with regard to the well being of sentient life and the integrity of their world.” “Morality is concerned with social practices defining right and wrong.” Brenkert (2008) Beauchamp et al. (2009), “Ethical Theory and Business,” 8 th Edition, Pearson: London

Ethics “Ethics…attempt(s) to take the measure of morality in some critical and evaluative manner.” “Ethics point to reflection on the nature and justification of right actions. (It) refers to attempts to introduce clarity, substance and precision of argument into the domain of morality.” Brenkert (2008) Beauchamp et al. (2009), “Ethical Theory and Business,” 8 th Edition, Pearson: London

Personal Opinions? Too broad –“Some of our beliefs and values are moral, but others religious, aesthetic, self-interested…etc.” Too narrow –“Without moral systems in which we agree, at least in general, life would not only be a much less bearable experience, it would also be utterly changed.” Brenkert (2008)

What is Marketing??

Marketing as a Process 1. Understanding Marketplace and Customers 2. Customer Oriented Strategy (STP) 3. Integrated Marketing Program (Marketing Mix) 4. Build Customer Relationship 5. Capture Value and Profit Kotler and Armstrong (2009)

Marketing Evolution Solomon et al. (2008) “Marketing: Real People, Real Choices,” Pearson Prentice Hall, Chapter 1 Production Era 1870~ 1930 emphasise the most efficient way to product and distribute products Demand > Supply; consumers have no choice Sales Era 1930~ 1950 emphasis on aggressive selling to move products out of warehouses Supply > Demand; consumers are pushed to buy

Marketing Evolution Consumer Era 1950~ 1990 focus to satisfy customers’ needs and wants Supply > Demand; consumers are taken care of New Era ?1990~? focus to benefit the stakeholders Supply > Demand; individuals and society together as customers Solomon et al. (2008) Chpt 1

The Value of Marketing Marketing is about Exchange relationship –The process by which some transfer of value occurs between at least two parties (1) willing to make a trade; (2) agreeing on the value of exchange; (3) agreeing on how its carried out. –The supply and demand model of economics Solomon et al. (2008) & Bagozzi (1975), “Marketing as Exchange,” Journal of Marketing, 39(Octorber), pp

The Value of Marketing Marketing is about Meeting Needs –marketing identify stakeholders (ie. consumers) needs and provide the products that satisfy those needs to ensure the firm’s long-term profitability Solomon et al. (2008) & Bagozzi (1975), “Marketing as Exchange,” Journal of Marketing, 39(Octorber), pp

The value of Marketing Marketing is about Creating Utility –Utility creates value and is the sum of the benefits and usefulness consumers receive from using a product Solomon et al. (2008) & Bagozzi (1975), “Marketing as Exchange,” Journal of Marketing, 39(Octorber), pp

What is Marketing? Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. American Marketing Association (accessed Nov 2008)

Ethical Issues of Marketing For instance, 1. Segmentation and Target Market 2. Branding