CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Marketing can be seen as an organizational function and a number of processes for creating, communication and value delivery to the clients and the relationship with them in advantage of the organization and its shareholders”. From this definition apparent role in society of those involved in marketing activities is: to be responsible for carrying out actions to persuade consumers in different markets segments, that, for a price, to benefit from products and services that meet their needs and fulfill their expectations and desires.
The Marketing ethics should be considered from an individual and organizational perspective. From the individual perspective personal values and moral philosophies are the key to ethical decisions in marketing. Honesty, fairness, responsibility, and citizenship are assumed to be values that can guide complex marketing decisions in the context of an organization. From an organizational perspective, organizational value, codes, and training is necessary to provide consistent and shared approaches to making ethical decisions (Ferrell and Ferrell, 2012). Accordingly, in marketing exchanges the relationship between a customer and an organization exists because of mutual expectations built on trust, good faith, and fair dealing in their interaction (Ferrell, 2010). However, marketing ethics also requires avoiding the unintended consequences of marketing activities by taking to consideration the stakeholders and their relevant interests and the society (Fry and Polonsky, 2009). Marketers today face big challenges as they try to make their marketing messages heard. Practitioner estimates suggest that consumers are exposed daily to thousands of marketing communications. This proliferation of marketing communications not only has created unprecedented levels of perceived disorder, it also has led to heightened contempt for corporations by many consumers who actively seek to avoid marketing communications from any source.
Ethical marketing is about making marketing decisions that are morally right. Ethical issues in marketing and in society as a whole have increased in recent years. This reflects the increasing wealth and education of society. In future, goods and services will be sold less on a needs basis and more as part of a value judgment. A company that responds to ethical concerns is likely to enjoy a stronger reputation, greater market share and add more value to its products than a less ethically aware rival.
This research therefore, examines and highlights the various ethical problems in marketing and the steps for improving standards of marketing ethics by firms.
1.2 STATEMENT OF THE PROBLEM
Every business relies on marketing to attract customers and to sell products or services. The problem is that marketing can sometimes promote products or services in unethical ways. What can businesses do to follow ethical standards in their marketing strategies?
Market research is the collection and analysis of information about consumers, competitors and the effectiveness of marketing programs. With market research, businesses can make decisions based on how the responses of the market, leading to a better understanding of how the business has to adapt to the changing market. It is used to establish which portion of the population will or does purchase a product, based on age, gender, location, income level, and many other variables. This research allows companies to learn more about past, current, and potential customers, including their specific likes and dislikes.
There are different group of bodies that are affected by unethical market research, they are the public, respondents, client and researcher
Approaches to privacy can, broadly, be divided into two categories: free market, and consumer protection. In a free market approach, commercial entities are largely allowed to do what they wish, with the expectation that consumers will choose to do business with corporations that respect their privacy to a desired degree. If some companies are not sufficiently respectful of privacy, they will lose market share. In a consumer protection approach, in contrast, it is claimed that individuals may not have the time or knowledge to make informed choices, or may not have reasonable alternatives available. Stereotyping occurs because any analysis of real populations needs to make approximations and place individuals into groups.
1.3 OBJECTIVE OF THE STUDY
1. To investigate the role of marketing ethics in business organization
2. To examine the relationship between marketing ethics and organizational productivity
3. The research tries to investigate issues involves when addressing marketing ethics.
4. To research whether the organization under study adopted the best marketing ethics among her competitors
1.4 RESEARCH QUESTIONS
1. What are the roles of marketing ethics in business organization?
2. Are there significant relationships between marketing ethics and organizational productivity?
3. What are the issues involves when addressing marketing ethics?
4. Has the organization under study adopted the best marketing ethics among her competitors?