CHAPTER Day 5 BUS 222

Copyright 2005 Prentice HallCh 1 -2 Agenda Class roll call Questions Assignment 1 Due Assignment 2 will be posted soon Quick review Quiz 1 on Feb 13 Marketing Ethics Con’t

Check Yourself 1. According to the American marketing Association Code of Ethics, what are the six ethical values 2. Identify the four stages in the ethical decision making framework 3-3

According to the American Marketing Association Code of Ethics, what are the six ethical values? Answer: The six ethical values are honesty, responsibility, fairness, respect, openness, and citizenship. Identify the four stages in the ethical decision making framework. Answer: The four stages in the ethical decision-making framework are: identify issues; gather information and identify stakeholders; brainstorm and evaluate alternatives; and choose a course of action.

Integrating Ethics Into Marketing Strategy Planning PhaseImplementation PhaseControl Phase 3-5

Planning Phase The mission or vision statement sets the overall ethical tone for planning. Mission statements can be used as a means to guide a firm’s SWOT analysis. ©M Hruby 3-6

Newman’s Own Donating over $200 million since 1982 ©Newman’s Own, Inc. 3-7

Implementation Phase Should the firm be targeting this market with this product? Should the firm be selling its product in this market in this manner? Should the firm be relocating production to another country? 3-8

Control Phase 1.Check successful implementation 2.React to change 1.Check successful implementation 2.React to change Barbara Penoyar/Getty Images 3-9

The Six Tests of Ethical Action Would I want to see this in the media? The Publicity Test Would the person I admire the most do this? The Moral Mentor Test Would I want the person I admire the most to SEE me doing this? The Admired Observer Test Could I give a clear explanation for the action The Transparency Test Would I be able to look in the mirror and respect myself The Person in the Mirror Test Would I like to be on the receiving end of this action? The Golden Rule Test 3-10

Most Sweeping Overhaul of Business Deregulation 3-11

Check Yourself 1. What ethical questions should a marketing manager consider at each stage of the marketing plan? 3-12

Evaluating an Ethical Situation

Understanding Ethics Using Scenarios 4 Groups, 2 Scenarios each 1 Scenario 1: R.J. Reynolds: Promotions to Youth 2 Scenario 4: Who Is on the Line? 3 Scenario 5: West Virginia T-Shirts 4 Scenario 6: Giving Credit Where Credit Isn’t Due 1 Scenario 7: The Jeweler’s Tarnished Image 2 Scenario 8: No Wonder It’s So Good 3 Scenario 9: Bright Baby’s Bright Idea 4 Scenario 10: Money from Mailing Lists Scenario 11: The Blogging CEO 3-14

Scenario 1: R.J. Reynolds What are the ethical issues – Mailings to young adults – Candy flavored cigarettes Is it wrong? Why or why not? Back to list of scenarios ©Brand X Pictures/PunchStock 3-15

Scenario 4: Who Is on the Line? What are the ethical issues in this scenario? Why would a firm use this service? How do you think consumers will respond to firms who use this service? Would you advise purchasing this service? Back to list of scenarios GRANTLAND® Copyright Grantland Enterprises;

Scenario 5: West Virginia T-Shirts What are the ethical issues in this scenario? If you were the retailer how would you have responded? Does a history of previous inappropriate business practices impact your opinion of the retailer? Back to list of scenarios Wetzel and Company 3-17

Scenario 6: Giving Credit Where Credit Isn’t Due Is this an inappropriate target market? Could you argue that the firm provides a valuable service to this market? Would you advise the cataloger to pursue this new strategy? Back to list of scenarios ©Royalty-Free/Corbis 3-18

Scenario 7: The Jeweler’s Tarnished Image Is the manufacturer responsible for the acts of independent sales people? How do you feel the Billing’s should respond? Back to list of scenarios GRANTLAND® Copyright Grantland Enterprises;

Scenario 8: No Wonder It’s So Good Is the legal non disclosure of the alcohol content and ethical issue? Should the firm be required to disclose the alcohol content? What would you do if you were Mia? Relax with Enjoy Cola Back to list of scenarios Nick Koudis/Getty Images 3-20

Scenario 9: Bright Baby’s Bright Idea Is the potential for injury enough to merit removal of the product from the market? Do you feel it is ethical to move the product to a less regulated market? What would you have advised the CEO? Back to list of scenarios Caroline Woodham/Getty Images 3-21

Scenario 10: Money from Mailing Lists Should Mangold continue to use the Marketing Metrix mailing list? Should he tell his new customers how he got their names? Do customers need to give consent before companies collect information on their online behavior? Back to list of scenarios ©Brand X Pictures/PunchStock 3-22

Scenario 11: The Blogging CEO Should Burdick be allowed to praise his company anonymously? Should he be allowed to attack his competitors? How would you feel if you knew a blogger had personal interests in the topic? Back to list of scenarios ©Royalty-Free/CORBIS 3-23

Corporate Social Responsibility 3-24

What are customer’s concerns? Photography and advertisement courtesy of Siemens 3-25

Check Yourself 1. How has corporate social responsibility evolved since the turn of the 20thCentury? 2. Identify the inputs and outputs of the corporate social responsibility framework? 3-26

Return to slide Corporate social responsibility describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders. Glossary 3-27