Book Title
Marketing 5th Edition

978-0077729028 Chapter 4 Slides

April 8, 2019 Powerpoint Slides With Teaching Notes
Power Point Slide Teaching Notes
4-1: Marketing Ethics
4-2: Learning Objectives These questions are the learning
objectives guiding the chapter and will
be explored in more detail in the
following slides.
4-3: Fishing Using your mobile phone can provide
personally identifying information to a
massive data repository, accessible to
various marketers and government
Ask students Should firms and/or the
government have the right to gather
specific information (e.g., recordings)
or only metadata (e.g., general
information about the number called,
when, and for how long)?
4-4: Firm Goals Profit is important to the success of the
firm. But how the firm makes that profit
can have a dramatic impact on the
firm’s future.
4-5: The Scope of Marketing Ethics This YouTube video is a Miller ad for
responsible drinking (always check
YouTube links before class).
Ask students how it compares to other
ads they see for drinking.
They might note that they use a lighter
fear appeal.
Ask them if they think Miller is doing
their job to promote responsible
Group activity: Ask students to
brainstorm the ethical issues unique to
They should start with the marketing
mix by proceeding through each of the
Each group should write one issue for
each element on the board, and then
discuss what they have produced as a
4-6: Attitudes About the Ethical Standards of
Various Professions
Marketing is a very visible part of
business. Often practices that are the
result of other business functions will
be attributed to marketing.
Marketers need to stress the good things
that they do and the value that they add
to society.
In addition, by policing practitioners
and sanctioning those who violate the
various codes of ethics, etc. marketers
can demonstrate that they are serious
about ethical standards.
4-7: Citibank Addresses Identity Theft These ads on YouTube (always check
YouTube links before class) are part of
a campaign Citibank ran for identity
They are interesting ads as they show
the victim with the voice of the thief
talking about the products the thief
plans to buy.
They are effective because they speak
directly to a consumers fear of credit
card theft and the contrast between the
character in the ad and their voice
attracts attention.
4-8: Creating an Ethical Climate in the Workplace A strong ethical climate requires a
commitment from the top down within
the firm.
Everyone within the firm must agree to
a system of controls that rewards
appropriate behavior and punishes
inappropriate behavior.
Ask students about the ethical climate
on their campus. Pick a topic such as
honor code violations or pledging
procedures of sororities and fraternities.
Then ask them to evaluate the topic
based on values, rules, and controls.
4-9: American Marketing Association Code of
Each sub-area within marketing, such
as marketing research, advertising,
pricing, and so forth, has its own code
of ethics that deals with the specific
issues that arise when conducting
business in those areas.
Group activity: Have the students
develop a Code of Ethics for their
college or university.
Ask students: What ethical behaviors
should you include? Why are those
chosen behaviors important?
4-10: The Influence of Personal Ethics In many cases, ethics is in the eye of the
Ask students: Think about a time you
believed an ethical violation had
occurred but a friend of family member
did not think it was an ethical issue.
What happened?
4-11: Why People Act Unethically Ask students: Why might a salesperson
lie to a young couple about the
condition of a new home?
This will bring out issues such as
self-interest for the welfare of the
salesperson and his/her family.
Remind students there are no definitive
answers to these questions. Ethics is a
difficult topic, and many people
struggle to find answers to questions
such as these.
4-12: Domestic Surveillance Debate This clip explores privacy law and the
legality of the government to obtain
personal records such as phone records
of consumers.
Note: Please make sure that the video
file is located in the same folder as the
PowerPoint slides.
4-13: Competing Outcomes Ask students: Which option would you
choose? How do you think various
people make such choices?
4-14: The Link Between Ethics and Corporate
Social Responsibility
Ask students: Can a firm be socially
responsible and not ethical, or ethical
and not socially responsible?
A firm can give money to charity
(socially responsible), but be unethical
(engage in deceptive advertising).
Ask students: Can you think of a firm
that may be either ethical or socially
responsible, but not both.
Group activity: Students should create
a list of firms reputed to be socially
responsible. In what ways do these
firms demonstrate their commitment?
Do the students consider these factors
when purchasing goods?
4-15: A Framework for Ethical Decision Making This concept is broken down in the next
4-16: Step One: Identify Issues In a marketing research firm, ethical
issues might include:
data collection methods—not
informing respondents that they are
being observed
hiding the true purpose of a study
from respondents—telling them
they are an independent research
company, but actually doing
research for a particular politician.
using results to mislead or even
harm the public—results of a
pharmaceutical study.
Ask students – why would a company
do this?
4-17: Step Two: Gather Information and Identify
Ask students: What are the
ramifications of publishing misleading
research findings for a new
pharmaceutical product.
Answer: there could be real harm to
Then ask: Why might this happen?
Answer: The pharmaceutical industry
wants the product to come to market to
meet sales goals.
They might be paying the researchers to
do the project.
4-18: Step Three: Brainstorm Alternatives The alternative solutions depend on the
type of ethical issue and how the
stakeholders are affected.
4-19: Step Four: Choose a Course of Action Alternatives are then evaluated and a
course of action is chosen.
The chosen course represents the best
solution for the stakeholders using
ethical best practices.
4-20: Check Yourself Stages 1: Identify Issues
Stages 2: Gather Information and
Identify Stakeholders
Stages 3: Brainstorm Alternatives
Stages 4: Choose a Course of Action
4-21: Integrating Ethics Into Marketing Strategy Remind students that as marketers, they
must ask questions specific to each
stage and examine those questions
carefully before moving on to the next
4-22: Planning Phase By incorporating ethics into the firm’s
mission statement, the firm sets a
standard for its subsequent ethical
The mission statement signals the
firm’s strategic priorities.
4-23: Newman’s Own This is a good opportunity to discuss
Newman’s Own Organics.
4-24: Implementation Phase Group activity: For each question
related to the implementation phase, see
if students can think of examples for
each of the questions.
Many students will use examples such
as tobacco, alcohol or other
controversial product companies.
Point out that other products also
encounter the same issues, even if the
products themselves seem less
4-25: Control Phase Any plan requires constant evaluation
and revision, and this truism applies
particularly to the evaluation of ethical
4-26: Most Sweeping Overhaul of Business
This clip explores corporate fraud and
sweeping regulation to reform including
directives issued by the Security
Exchange Commission.
Note: Please make sure that the video
file is located in the same folder as the
PowerPoint slides.
4-27: Check Yourself 1 Answers will vary, may include
question concerning:
a. Planning – what are the ethical
standards of the company,
b. Implementation – how should
the ethical standards be
reflected in the marketing
c. Control – check whether each
potentially ethical issue raised
in the planning process was
actually successfully addressed.
4-28: Corporate Social Responsibility Explain to students that companies are
involved in a host of activities.
Ask students: Why might some social
commentators suggest that CSR is
unnecessary? Students will realize that
some say the main objective of a
company should be to make money.
But, an understanding of CSR moves
many beyond a shareholder perspective
to recognize that they must appeal to a
vast variety of stakeholders including
countries, suppliers, the environment,
employees and customers.
4-29: Top 20 Admired Companies and Illustrative
CSR Programs
Social responsibility is even one of the
key measures that Fortune magazine
uses to create its list of the most
admired companies.
4-30: Check Yourself 1. Today, companies are
undertaking a wide range of
corporate social responsibility
initiatives, such as establishing
corporate charitable foundations,
supporting and associating with
existing nonprofit groups, supporting
minority activities, and following
responsible marketing, sales, and
production practices. Social
responsibility is even one of the
eight key measures that Fortune
magazine uses to create its list of the
most admired companies.
2. Inputs and outputs are both
consumer, company, and cause.
4-1: Understanding Ethics Using
Click on each scenario to bring up the
picture and questions.
4-2: Scenario 1: R.J. Reynolds An alcohol company cannot promote
excessive drinking but a tobacco
company has no such regulation.
4-3: Scenario 2: Car Manufacturer How do the business units compete if
bribery is standard business practice in
the country?
4-4: Scenario 3: Retailers Lack Ethical
If Marilyn is correct about the brides’
goal of everyone gasping when they
first see her, is she doing the right
4-5: Scenario 4: Giving Credit Where Credit
Isn’t Due
Lower-income consumers often are
denied credit, and when they get credit
then pay it off, they build their credit.
Rent-to-own and check cashing firms
use this argument to justify their
exorbitant fees and interest rates.
Opponents argue that encouraging
non–credit-worthy consumers to take
credit cards harms them by making
them responsible for debts they likely
cannot pay off.
4-6: Scenario 5: The Jeweler’s Tarnished Image When the owners learn about the
deception, should they immediately
stop using the distributors? Why or why
4-7: Scenario 6: No Wonder It’s So Good Many people believe that legal actions
de facto must be ethical, but are they
If the chance of harm is very low,
should the firm disclose the presence of
the alcohol to avoid any potential
4-8: Scenario 7: Bright Baby’s Bright Idea Avoiding a large loss often creates the
potential for ethically questionable
actions. Would the Scenario change if
some infants had died from this
4-9: Scenario 8: Money from Mailing Lists Sports Nostalgia Emporium must weigh
the short-term gain of increased sales
versus the long-term negative impact of
customers who may be upset once they
discover that their online behavior is
being tracked.
4-10: Scenario 9: The Blogging CEO Burdick must weigh the short-term
impact of his anonymous blogging
against the long-term negative impact
of customers who may be upset once
they discover his relationship with
ACME Bubblegum.