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Ethics in IMC Campaigns

Nuša Fain

Learning objectives

• Understanding the problems associated with

ethical marketing

• Understand the relationship between self-

regulation and legislation

• Be aware of ethical considerations related to

different communication tools

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What are Ethics?

• involve matters of right and wrong (moral) conduct in

regard to any aspect of marketing communications.

• The principle of ethics can be considered and applied

to each area within Marketing Communications.

• Simply being in bad taste does not equate to breaking

ethical codes.

• Ethics are not regulated; they can be encouraged by

codes of conduct.

Ethics are attracting increased

attention

• All stakeholders becoming increasingly interested and

concerned with ethical issues relating to marketing

communications (and business and organisations

generally).

• Cynicism, scepticism, loss of credibility, educated

consumer, disinterest, increasingly educated,

Generations X and Y, consequence of relational

marketing approaches.

• Magnified, not created by current global economic and

social concerns.

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Two views on Ethics in MC

1. MC in itself is undesirable

2. The activity in principle is justifiable, just some

aspects of MC are undesirable

Particular environment for ethics

and marketing communications

• MC (and advertising in particular) are

considered as:• Promoting materialism

• Wasting resources

• Creating unwanted needs

• Encourages stereotyping

• Causes people to use harmful products

• Inhibits media coverage

• Delivers subliminal messages.

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Communication responses

Are ethics in marketing

communications an oxymoron?

General Issues:

• Advertising as mass manipulation

• Truth-telling, misrepresentation and puffery

• Targeting of vulnerable groups

• Privacy and respect for persons

• Taste and decency

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Truth-telling

• Telling the truth as a general ethical requirement, but…

• Both buyer and seller are representing their interests in the

exchange process.

• Misrepresentation and puffery – condemned by codes

of practice, but…

• Enthusiastic use of language and images to convey the

most optimistic views of the product

• Exaggerated images have a greater potential to delude

Targeting vulnerable groups

• Children are a key target: primary market; market

influencers and future markets.

• Children lack the ability to distinguish between

advertising and programmes until the age of 6-8.

• The most unsophisticated of all consumers; they have

the least and therefore want the most

• Special people in their own right, not mini-adults.

• Need for regulations protecting children?

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Some e.g. of covert Marketing

Techniques targeting Children

• Children's Clubs: Disney Club, Barbie Club.

• Sales Promotion Techniques: free toys with breakfast

cereals etc.

• Character merchandising: McDonald’s Happy Meals.

• Sponsorship of children's TV programmes.

• In-school marketing (mostly US).

• Sponsorship of children’s sports clubs and activities.

Considerations for Ethical

Advertising to Children

• Recognise children’s varying levels of knowledge,

sophistication and maturity.

• Do not unfairly exploit the imaginative quality of

children.

• Advertise only those products and contents which are

appropriate for use by children.

• Avoid stereotyping: Gender and Ethnicity.

• Do not portray violence or aggression.

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Privacy and respect for persons

• Avoiding annoyance and harassment that can result

from inappropriate application of high-pressure sales

techniques

• Respect the wish for privacy

• Referring from causing unwanted distress by ensuring

the content of MC remains within generally accepted

boundaries

Taste and decency

• Advertising images may carelessly stereotype

people, groups, cultures and regions for

narrow commercial purposes.

• Use of shocking images needs to be

considered carefully.

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ETHICS AND PARTICULAR

MARKETING

COMMUNICATIONS

Advertising: Key Ethical Issues

• Deception: consumers may believe the false

representation of a product to be true.

• Manipulation: Persuasion (legitimate) can turn into

manipulation (illegal).

• Offending: insulting, vulgar and offensive for the

tastes of many consumers.

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Advertising: Key Ethical Issues

• Stereotypes: Advertisements tend to portray certain

groups/minorities in a restricted manner.

• People buy things they don’t really need: consider

needs, wants and demands.

• Play with fear and insecurities: negative

consequences of not buying a product.

Ethics in PR

• Publicity is concerned with promoting good information

and handling negative information.

• Should be: legal, ethical, in good taste.

• Same ethical principles as Advertising are relevant.

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PR : Ethical Issues

• Editors giving publicity priority to those who advertise

with their publication.

• Bribing TV/radio/newspaper to run positive stories.

• Hiding information rather than addressing it (e.g.

BMW)

• Misrepresentation of information.

Personal Selling & Telemarketing:

Ethical Issues • Much possibility for unethical behaviour. e.g. medical

sales.

• Easier to make unsubstantiated claims and

undeliverable promises.

• Unethical practices can result in lost customers,

dissatisfied with questionable business practices.

• Problem of untargeted calling and calling at odd hours.

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Guidelines

• Sales force managers should have a means of voicing

concerns about corporate conduct.

• Adequate training and recognised procedures.

• State sales offers clearly and honestly.

• Train telemarketers in applicable laws.

• Restrict untargeted calling and timing of calls.

• Monitor all calls.

Online Communications:

Ethical Issues

• Similar to all direct communications.

• Cookies –issues of privacy.

• Obvious potential for market research.

• Pop-ups–captive audience.

• Spam–unsolicited bulk email.

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Packaging: Ethical Issues

• Label information:

• do not mislead about content;

• Packaging graphics:

• ensure images match actual product;

• Food labelling current concern: traffic light system of

retailers own?

Packaging: Ethical Issues

• Packaging safety:

• ensure dangerous products are safely

packaged.

• Environmental implications of packaging:

• reduce, recycle, reuse!

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Sales Promotion: Ethical Issues

• Manufacturers pay retailers for their willingness

to handle a new product.

• Promoter offers rewards which are never

delivered.

Self regulation

• Advertising Standards Authority: details of all

specialised codes to guide the production of

acceptable marketing communications:

• Decent, legal, honest, truthful

• Prepared with a sense of responsibility to consumers

and society

• Visit www.asa.org.uk for more details.