ethical issues in sales and marketing
Take the case of diet pills, for example many people buy them, even though they are hardly ever effective. This article explores three articles dealing with the issue of the exploitative ethical issues in target marketing. The paper examines the ethical questions, the target groups susceptible to exploitation and how they are exploited and evaluates the regulatory mechanisms recommended by the three articles that are needed to provide solutions to the ethical issues raised in consumer marketing. Marketers will comply with standards and regulations set by professional organizations and the government. Unfortunately, the drive to sell or pressure from management to increase sales volume often leads salespeople to use unethical sales techniques to bolster short-term numbers. Key public and ethical issues include: ^ Irritation: Many people find the increasing number of hard-sell, direct-marketing solicitations by phone, television, and e-mail to be a nuisance. For example, the Uniform Commercial Code (UCC) determines when a sale is a sale. Typically, a sale is a sale when the product is delivered and accepted by the buyer. What it does do, though, is put your company’s viability at risk. Unethical marketing activities, in contrast, can destroy your business’s reputation and possibly lead to legal troubles. What Are the Ethical Decisions That Impact Any Organization? She's been published in several business publications, including The Employment Times, Web Hosting Sun and WOW! The paper examines the ethical questions, the target groups susceptible to exploitation and how they are exploited and evaluates the regulatory mechanisms recommended by the three articles that are needed to provide solutions to the ethical issues raised in consumer marketing. In addition to the work he has done with Richardson for almost 20 years, Andy blogs and speaks regularly on leadership development and personal ethics. Everyone, at some time or the other, must surely have been sold a product that he or she did not need. This article will outline some of the common ethical and legal issues in marketing. The question of ethics in business has been formalized in the discipline of corporate social responsibility, or CSR. Time and again, the research and data proves that if you structure your sales team around ethical sales practices, your company, its brand reputation, and your sales are positively impacted. Privacy Policy, Insider Trading & Strategies to Combat it. This is when an advertisement claims to deliver results without any scientific proof to back up their claims. Your code of ethics might simply be a statement of principles defining the way you operate, make decisions and treat your customers, suppliers and industry peers. Ethical marketing is aimed at the benefit of society as a whole. They do it by finding roundabout ways to remind customers that these products exist without referring to them directly. Ethical Issues in Sales and Sales Management. In fact, such character can be an important selling point for a company when it tries marketing to consumers who care more about the quality and price of the product. The common standard of truth will be observed in all forms of marketing communication. In such a scenario there are bound to be multiple players and a clash is inevitable. There is competition for resources, customers and price etc, which breeds ground for activities that may not get ethical sanctions. If you’re looking to build a positive brand image and develop good relationships with your customers, such unethical marketing practices can lead to your downfall. ETHICS SALES ETHICS MARKETING ETHICS CUSTOMER RIGHTS & MARKETER DUTIES UNETHICAL MARKETING ADS 2. Marketing is the heart of all businesses and all other functions depend upon the same for keeping the business moving. You just have to commit to it. Unethical practices will not guarantee you more sales or necessarily cut costs in the long-term. What Is the Most Common Criticism of Advertising? First to mention is false, deceptive or misleading advertising. © Management Study Guide This field examines ways that large corporations are responsible to their communities and to the environment in ways that don't fall within the dictates of a free-market profit system. The visual channels of communication used for marketing sometimes lead to closure of knowledge, opinions, ideas and beliefs. In order to develop trust among your customers, therefore, you should consider using ethical marketing. Examples of Ethical Failures in Marketing. Ethical sales and marketing, or simply ethical marketing practices, isn’t really a marketing strategy.It’s more a school of thought that guides marketing efforts. The company ran an ad that featured supposedly real models. Bill Donaldson. Jacobson's ethical behaviorwill p… Selling is a profession that has been widely criticized for the unethical dimensions associated with it. Dr. Andy Neillie has extensive expertise in leadership development and developmental coaching, sales and negotiations training and strategic relationship management. It tricks people 4. For example, the Uniform Commercial Code (UCC) determines when a sale is a sale. But like other ethics there is also the difficulty of deciding the agency responsible for ethical practice. Problem: Sales Follow-Up Is Ineffective or Non-Existent. Ethics are the moral principles and values that govern the actions and decisions of an individual or group. The main ethical issues in advertising are puffery, bad taste, stereotyping, targeting children, promoting unhealthy products and subliminal advertising. Such clash leads to malpractices like hoarding, price competitions, brand wars and use of unfair tactics, which is precisely where marketing ethics come into play. In this chapter, we discussed the ethics and social responsibility of an organization. If such companies advertised their products in an ethical way, they wouldn’t last very long. The consumer will feel like you care about the value you provide them. We are a ISO 9001:2015 Certified Education Provider. Without sales, businesses die. Markets present a clash of interest between various players. Operating an ethical sales team isn’t just a spiritually and morally sound sales methodology. Each facet of marketing has ethical danger points as discussed below. Consumer privacy will be respected and upheld at all times. Advertisements are a great way to spread knowledge about a product or service, but sometimes the messages in advertisements are questionable. Back Matter. Ethics is quite often neither black nor white but a sea of varying shades of gray. Parties involved in marketing transactions have a set of expectations about how the business relationships will take shape and how various transactions need to be conducted. Unethical actions in advertising can destroy the trust that customers have in the company. Irresponsible Market Research: Improper market research and grouping can lead to stereotyping that shapes undesirable beliefs and attitudes and consequently affect marketing behavior. While their business model might make you angry, however, it’s not illegal and so they continue to sell. We give our customers and suppliers honest, accurate information. How to Determine Marketing Facts Vs. Fiction. For example, the Uniform Commercial Code (UCC) determines when a sale is a sale. 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