Marketing notes

Modes of Social Control

• Ethics

• Laws

• Formal and informal groups

• Self-regulation

• Media

• Active civil society

Ethics

• Viewed as the standard of behaviour by which conduct is judged

• Consists of personal moral principles

• Consists of unwritten rules that people have developed from their interactions

The Influence of Personal Ethics

• Genetics

• Family

• Religion

• Values

Deontological theory: States that people should adhere to their obligations and duties when

analyzing ethical dilemmas

Utilitarian ethical theory: Founded on the ability to predict the consequences of an action

– Types

• Act utilitarianism

• Rule utilitarianism

Morality and Business Ethics

• Preconventional morality

Based on what will be punished or rewarded

Self-centered, calculating, and selfish

• Conventional morality

Moves toward the expectations of society

Concerned about the legality and the opinion of others

• Postconventional morality

Represents the morality of the mature adult

Concerned if it works in the long run

Decision maker who attains this level of morality will ask “Even though it is legal and will

increase company profits, is it right in the long run? Might it do more harm than good in the

end?”

Firm Goals

• Greed and short term profit seeking

• Serious long term consequences

• Creating value over the long run

• Long term success

The Scope of Marketing Ethics

• Business Ethics

• Marketing Ethics

American Marketing Association

Code of Ethics

• Generally accepted code in marketing

• Flows from general norms

of conduct to specific values

• Subareas within marketing have their own code of ethics to deal with specific issues

A Framework for

Ethical Decision Making

• Step 1

Identify Issues

• Step 2

Gather information and identify stakeholders

• Step 3

Brainstorm and evaluate alternatives

• Step 4