Marketing Chapter 4

What are Ethics in marketing?

Moral principles and values that guide decisions.
📝 Example: Choosing not to use false advertising even if it could boost sales

What are Laws in marketing?

Values and standards enforced by government in court.
📝 Example: Truth-in-advertising laws that prevent misleading claims

What are the 4 classifications of marketing decisions by ethics and legality?

• Ethical–Legal

• Ethical–Illegal

• Unethical–Legal

• Unethical–Illegal
  📝 Example: Bribery is unethical–illegal; exaggerating claims might be unethical–legal

What is the Consumer Bill of Rights (1962)?

Gives consumers the rights to:

• Safety

• Choose

• Be informed

• Be heard
  📝 Example: Car safety recalls protect the right to safety

What are the two most common unethical behaviors in marketing?

• Economic espionage (stealing trade secrets)

• Corruption (bribes, kickbacks)
  📝 Example: Paying a bribe to get a government contract is corruption

What is Economic Espionage?

Collecting confidential business info without permission.
📝 Example: Stealing competitor documents from their trash

What are the AMA’s 6 ethical values?

• Honesty

• Responsibility

• Fairness

• Respect

• Openness

• Citizenship
  📝 Example: Being honest about product performance instead of exaggerating

What is Profit Responsibility?

Focus on maximizing profits for shareholders.
📝 Example: A company cutting costs to raise profits for stockholders

What is Stakeholder Responsibility?

Focus on balancing needs of all stakeholders (customers, employees, suppliers, shareholders).
📝 Example: Treating workers fairly while maintaining returns to investors

What is Societal Responsibility?

Broader duty to preserve the environment and serve the public.
📝 Example: Donating profits to education or reducing carbon emissions

What is Green Marketing?

Marketing products designed to minimize environmental harm.
📝 Example: Selling biodegradable packaging

What is Cause Marketing?

Tying charitable contributions to sales.
📝 Example: TOMS donates a pair of shoes for each pair sold

What is Sustainable Marketing?

Meeting present needs without compromising future generations.
📝 Example: Toyota’s Environmental Challenge 2050