This essay takes into consideration the factors that contribute to the development and success of organizations with regard to marketing communication, most especially the adherence of companies to moral standards and ethics.
To further prove the significance of ethical practice in marketing communication, case studies and analyses with regard to two organizations that did not abide to marketing ethics are discussed herewith.
Introduction
Since 1954, it has been said that business has two essential requirements—marketing and innovation ( 2001, ). The responsibility of marketing is to ensure that there is an effective flow of communication and information with regard to the production of goods and services, so as to meet fulfillment ( 2001, ). Managers are aware that it is therefore equally vital to organize both the demand and the supply ( 2001,).
Immediately, one can observe the importance of managed communication: that exchange relations are necessary and ideas must be created and deployed ( 2001, ). In due course, it is the customers or consumers who decide the type of the business that could operate ( 2001, ).
Definition
Marketing communication comprises of messages and other related media which are used to communicate with a market (“,” 2006). Those who perform advertising, direct marketing, branding, graphic design, publicity, sales promotion, public relations, online marketing, and the like are called marketing communication managers, marketing communicators, or marcom managers (“” 2006).
Furthermore, marketing also focuses on the creation and sustenance of equally fulfilling “exchanges of value between producer/ servers and their customers ( 2001, ). Additionally, it possesses both an organizational or social function, and a managerial orientation ( 2001, ). Thus specific conditions are needed so that exchange would occur—all parties must: possess something of value for the other, be able to communicate about the contribution, must be able to make such contribution available, must consider that it is suitable or desirable to do business with the other group, and must sufficiently value the presented benefits so as to balance the efforts and hazards involved in the trade ( 2001, ).
Conventionally, practitioners of marketing communication generate and implement printed marketing security (“,” 2006). Conversely, professional and academic investigations developed the practice to make use of the strategic aspects of marketing and branding so as to guarantee that there is consistent delivery of information within an organization (“,” 2006).
As a result, a variety of trends in business can now be related to marketing communication (“,” 2006). Examples of such are the evolution of customer service to customer relations as well as the conversion of human resources to human solutions (“,” 2006).
Marketing Ethics
Ethics is defined as the set of principles and values of right of conduct that influence the decisions that individuals and organizations make (“,” 2006). With regard to marketing, to practice ethics is to purposefully apply the standards of equality or “moral rights and wrongs” to marketing practice, behavior, and decision making (“,” 2006).
One objective of marketing is to generate a competitive advantage; an organization that could better satisfy the merchandise and service needs of its target market thus achieves such an advantage (“,” 2006). Moreover, companies that develop such competitive advantage could also fulfill the requirements of their consumers and the needs of their own organizations (“,” 2006).
Presently, as the economic system is more able to provide for the people’s needs and wants, there is now a greater focus on corporations’ responsibility to abide by ethical values instead of simple product manufacture (“,” 2006). Such focus resulted from two reasons (“,” 2006). First is that when a certain company acts ethically, its patrons acquire a more positive perspective of the firm, as well as its services and products (“,” 2006). Conversely, when an organization does not adhere to what the society perceives as acceptable, this could result to disappointed customers, lack of confidence, bad publicity, lost business, and even legal action (“,” 2006). Therefore, almost all organizations are currently sensitive to the desires and long-term interests of their customers (“” 2006).
The second reason is that moral misdeeds cause demands for institutions to take on greater responsibility for their deeds (“,” 2006). Consequently, professional organizations, consumer interest groups, and self-regulatory groups considerably influence the field of marketing (“,” 2006). Furthermore, due to appeals for social accountability, marketing practices have been subjected to an array of federal and state policies that exist to encourage trade and to protect the rights of customers (“,” 2006).
Examples of Marketing Ethical Offenses
There are a number of marketing ethical offenses that a number of organizations all over the world are prone to commit. Some of these are unfair or deceptive marketing practices, ethics issues on product and distribution, offensive materials and objectionable marketing practices, unethical marketing focused on children and on the portrayal of women’s image (“,” 2006).
Unfair or Deceptive Marketing Practices A marketing practice is considered deceptive if the consumers think that they acquire more worth from a service or product that they really receive (“,” 2006). Deception could take the form of omission, misrepresentation, or a misleading habit and could happen when a marketing mix is utilized (“,” 2006). Accordingly, customers would then look for a different company or source if the current product and service they experience do not meet the expected value (“,” 2006). The practice of deceptive pricing results to the belief of consumers that the value they pay for a product or service is lower than what it actually is (“” 2006). Examples of such dishonesty are incorrect comparisons of prices, deceptive recommended selling prices, removal of significant requirements of the sale, and the like (“,” 2006). Moreover, products that are greatly exaggerated are also examples of deception with regard to marketing (“,” 2006). This could occur if product containers have purposefully mislabeled size, contents, weight, or use info (“,” 2006). Furthermore, marketing deception could also take the forms of failure to carry out promised services, promotion of dangerous or faulty products without releasing its dangers, and the like (“,” 2006). Ethical Product and Distribution Practices A number of product-related matters that cause unethical marketing concern the standards of the services and products provided by organizations (“,” 2006). Some of the commonly expressed complaints involve unsafe products, products that do not contain what is advertised or are of deficient contents, and products that immediately become outdated before they are replaced (“,” 2006). On the other hand, ethical issues are also involved in the distribution process (“ ,” 2006). Since sales performance is the most common evaluation measurement for sales employees and marketing representatives, performance demands exist, and these could lead to ethical predicaments (“,” 2006). Lastly another area wherein ethical questions may take place is in the field of research (“,” 2006). Data acquired through research are vital towards the success of product and service marketing (“,” 2006). Unfortunately, consumers may consider organization’s attempts to gather information from them as an assault to their privacy; thus they could be reluctant to share personal data that could make them marketing targets (“,” 2006). Misinformation could then occur if the data about the customers or the products are overstated, just to earn a selling point (“,” 2006). Without self-induced standards of ethics in the field of research, an organization could possibly make choices founded on incorrect information (“,” 2006).Offensive Materials and Objectionable Marketing Practices
Sponsored television or radio programs, events, publications, advertisements, and other promotional materials that are observed as offensive often receive strong negative feedbacks from the public (“,” 2006). This is especially true when a specific product is promoted in other nations, where the used images and words may portray dissimilar connotations than they do in the host nation (“,” 2006). For instance, people might be offended when advertisements use sex to promote a company’s product, while others may perceive the promotion of sexual potency as unpleasant (“,” 2006).
As a result of these offenses, people may compel vendors to stop the promotion of the concerned products (“,” 2006). It is therefore important to carefully monitor, test, and choose promotional messages, programming and editorial content, and communication media, so as to match the preferences and interests of the target market and the society in general (“,” 2006).
In addition, direct marketing is also a concern of this issue. Offensive practices vary from simple annoyances to those that are objectionable and illegal (“,” 2006). Examples of such are high-pressure and unrelenting selling, television advertisements that are too lengthy, and irritating telemarketing calls (“,” 2006). Marketing appeals that exploit inexperienced customers or senior citizens may also cause ethical questions (“,” 2006).
Ethical Issues in Marketing to Children
Children, as compared to adults, still do not possess well-developed knowledge about products, the media, and its promotion strategies; as a consequence, they are likely to be more susceptible to psychological influences and intense images (“,” 2006). Ethical questions thus arise when children are subjected to doubtful marketing campaigns and messages (“,” 2006).
Direct marketing, through the Internet, that is focused on children also elicits ethical concerns (“,” 2006). For instance, some dishonest marketers devise inappropriate sites that children could access without adult supervision (“,” 2006). These sites are often objectionable and may even compel children to purchase items through credit cards (“,” 2006). When this occurs, it is possible that social pressure as well as consequent policies will result (“,” 2006).
Ethical Issues and the Portrayal of Women
Through the years and as the global culture changes, a woman’s image has been portrayed in a number of ways (“,” 2006). When marketers represent these images as exceedingly conventional, clichéd, or over-generalized, people, not only women, may see these as insulting and stereotypical (“,” 2006).
For instance images which present women as sparsely dressed, less intellectual, incapable to make decisions, powerless to take on leadership roles, and compliant or obsessed with men are appallingly demeaning to them and to other people as well (“,” 2006). Additionally, detrimental stereotypes also exist in the form of portrayed representations of women who are obsessed with their physical appearances and thus conform to a particular standard of weight, size, or beauty (“,” 2006). Such undignified and damaging impressions would eventually cause the failure and downfall of any organization (“,” 2006).
An Analysis of Distileria Limtauco’s Napoleon Brandy
For more than a hundred years, Distileria Limtauco and Co. Inc. has been acknowledged as one of the Philippine’s oldest and highly esteemed distillery that manufactures renowned products and services of international quality (“,” 2005). Substantiated by experienced and superior distilling and blending, the company presented another pioneering product that was supposed to bring pride and dignity to the mentioned country—the Napoleon Quince (“,” 2005). Unfortunately, what happened was the exact opposite.
Distileria Limtauco’s advertisement reveals the tag line “Nakatikim ka na ba ng kinse años?” which could be literally translated to “Have you tasted a 15-year-old? (“,” 2004)” This suggestive line could be heard in radio advertisements and was also portrayed in billboards and posters that show a representation of the 15-year-old liquor along with pictures of teenage girls that show midriff-baring clothes (“,” 2004).
Evidently, in a country that holds the issues of morality and decency of utmost importance, a number of women’s organizations, civil society groups, and advocates of children’s rights gathered together to demand the removal of promotional materials that carry the aforementioned message (“: ,” 2004).
The campaign endeavors of these individuals and groups comprised of discussions in the media, letter-writing actions, as well as rallies held in front of the factory of Distileria Limtauco (“: ,” 2004). Advocates of child rights even sued the Distileria through the Department of Justice (DOJ), after its advertisement violated the “Act Providing for Stronger Deterrence and Special Protection Against Child Abuse, Exploitation and Discrimination,” or the Republic Act 7610 (“ : ,” 2004). Moreover, Gabriela, an acclaimed organization that promotes the rights and welfare of Filipino women, protested and brought their complaints to the country’s Movie and Television Review and Classification Board or the MTRCB (“ ‘,” 2004).
On the other hand, the people behind the Distileria advertisement, as well as other individuals, retaliated in defense of the company (, . 2004). They declared that they did not intend to inject malice into the tagline; their intention was just to promote a 15-year-old classic brandy. They even asserted that malice “is only in some dirty minds (, . 2004).”
But after much debate and disputes, the Advertising Board of the Philippines (AdBoard) finally ordered the instant pullout of all Napoleon Brandy’s “Kinse Anyos” billboards and radio advertisements (“” 2004).
Distileria Limtauco violated not only one but three ethical marketing offenses, specifically those that concern the ethics of marketing to children, of the portrayal of women, and of offensive and objectionable marketing practices (“,” 2006). Thus, although it is true that the unsightly and unpleasant billboards have been removed, the awful taste of unethical and immoral marketing efforts will always linger in the minds of the people and forever mar the supposedly principled Distileria Limtauco.
Analysis of the Issue of WorldCom WorldCom is a US telecommunications company that stunned the business world after it confessed that it extremely overstated its profits, since 2001 (“: ,” 2002). The excuse of the mentioned corporation was relatively easy. In the years 2001 and 20002, WorldCom faked the .8 billion in standard operating costs qualified as investment (“: ,” 2002). Because of this, the organization was able to extend the cost over several years, rather than to account for it all together (“: ,” 2002). As a result, the company’s value increased and its profits appeared to be much better than they actually were (“: ,” 2002). WorldCom points at Scott Sullivan, its chief financial officer, as one of the people involved in the shameful issue (“: ,” 2002). Other people accountable for the figures and the strategies involved in the company are its senior executives and auditors; even , the former chief executive of WorldCom, could not escape the blame (“: ,” 2002). Evidently, such dishonesty has numerous negative effects. For instance, 17,000 of the employees of WorldCom are going to “get the push (“: ,” 2002).” Then, the investors who bought the shares of WorldCom, that was supposedly on top of the market in 1999, are now furious; when before, the were worth more than , they currently merit no more than around 20 cents (“: ,” 2002). Moreover, the WorldCom deception caused the downfall of consumers’ confidence on technology and telecoms industries, aside from the fact that WorldCom expects to experience bankruptcy within the year (“: ,” 2002). This second case is an apparent example of a deceptive marketing practice. WorldCom misled its consumers and investors, so as to have personal gain for the company. Upon discovery, the company experienced the worst losses imaginable, and it is quite likely that it would no longer be able to recover its losses and, most especially, its corporate integrity and honor.Conclusion
It is true that the development and victory of marketing communication is dependent in the fields of higher education, professional prominence, organizational reinforcement, professional integrity, and the like. Still, proper ethical or moral accountability is one vital aspect that is necessary in a self-sufficient profession such as marketing communication.
This claim is further proven by the aforementioned analyses of two organizations—Distileria Limtauco and WorldCom—that did not adhere to the established ethical standards of marketing communication. All organizations worldwide should therefore remember that observance of the society’s ethical standards should still be their foremost concern, so as to further their existence, for the sake of their company and for the welfare of their consumers.
BIBLIOGRAPHY
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