Is Marketing Evil?

A634.5.4.RB

The business of marketing is highly lucrative, which can increase the potential for unethical practices as in other competitive fields. The need for industry ethical standards and regulation has grown significantly over the years as technology has made it easier for markers to reach current and potential new customers. According to Dr. Linda Ferrell (n.d.), “Well-meaning marketers often devise schemes that appear legal but are so ethically flawed that they result in scandals and legal entanglements” (p. 2).

Indeed, the pressure on marketers to “push” products and services on customers can be enough to compel ethical people to behave unethically. For example, Wells Fargo Bank is currently in the process of being held accountable for erroneous (fraudulent) accounts opened by bank employees to inflate company numbers by customers and government regulators. Furthermore, bank employees were pressuring their customers to purchase additional products and services as well. “Former Prudential employees filed a lawsuit in December alleging that Wells Fargo customers were sold Prudential insurance products at bank branches that they didn't want” (Egan, 2017).

This week’s assignments focus our attention on ethics in our work environment:

1. Do you feel ethical guidelines make a difference to marketers?

I believe it is important that ethical guidelines exist and are practiced in the marketing world because marketing has a unique place in our everyday lives. For example, on many occasions, marketers have the challenging task of convincing potential customers that they need their product or service. Marketers must do this by knowing and understanding the strengths and weakness of their product/service. If a marketer is aware a known harm or defect and attempts to act ethically by informing the consumer; they may never sell anything. To meet quotas, a marketer may choose to downplay the issues or outright omit the fault to make a sale. Moreover, since marketers represent a company, their marketing and sales tactics can affect the company’s bottom line, reputation, and/or future legacy. “Because marketers engage in behaviors impacting many varied stakeholders, their potential to do harm and opportunity to have a very positive impact is great” (Ferrell, n.d., p. 10). Ethical guidelines are necessary to reinforce appropriate behaviors and to ensure the industry at large operates on a professional and respectable level.

2. How can companies balance the need to win with being ethical?

There are short term wins and long term wins. The companies that are mainly concerned with making a quick buck by engaging in unethical behaviors are playing a dangerous game of roulette. In other words, it is only a matter of time until their unethical practices are brought into the light (i.e. Wells Fargo Bank & Enron). One a company’s reputation is associated with such practices, it is extremely difficult for companies to regain customer’s trust and business.

When a company is committed to their product, customer experience, and ethical behavior, winning is what occurs over a period-of-time. They become a trusted brand/company. Furthermore, when a company is view as being ethical and a mistake does happen (as it sometimes will), customers are more likely to pardon a company knowing that such a mistake is uncharacteristic of their business practice.

Take for example the Tylenol scare in the early 1980’s. With customers staying away from the pain relief medication because of poison contamination, many believed it was the end for the brand (Johnson & Johnson). However, because of the proactive communication with customers and cooperation with investigators and regulators, the company was able to win back the trust of the customers and regulators. “Critics who had prematurely announced the death of the brand Tylenol were now praising the company’s handling of the matter” (Markel, 2014). Companies concerned with winning according to the “big picture,” ensure that ethical behavior is associated and practiced. “The value of a positive reputation is difficult to quantify, but it is an important intangible asset that all marketers understand” (Ferrell, n.d., p. 8).

3. Is it ethical to track your buying habits or web visits to target you for marketing purposes?

Tracking consumer buying habits have important pros and cons. Many consumers enjoy when their technology learns their habits. It makes searching for products easier and convenient. Furthermore, new products may be introduced passively without the consumer actively searching for a product. Where this could be problematic is when personal habits tread into the personal privacy realm. Many consumers are required to input personal and financial data in many of the consumer sites. As they become active in searching and purchasing, there information has the potential to be spread many systems. The possibility that a company could sell this information to other marketers could be a major concern. Furthermore, noted above with Wells Fargo Bank, they could use a person’s information maliciously (fraudulent accounts).

I believe marketing companies should handle such tracking capabilities responsibly. That federal and state regulators ensure that legislation exist that clearly states what is acceptable and what is not acceptable practices. Moreover, and most importantly, I believe that the consumer should have the ability to opt out or ensure that such tracking is limited as to prevent undue solicitation or compromise of private information.   

4. As a leader, how will you manage the ethical aspects of your marketing efforts?

I believe that building ethics into the fabric of an organization is essential. In other words, ethical behavior should be prevalent in the organization’s mission, goals, performance evaluations, and highlighted publicly. Furthermore, I also feel that organizations should also have systems and procedures in-place to effectively deal with unethical behavior in a timely manner. Transparency should also be an important discussion point. Leaders are important to ensuring organizations are and remain transparent by word and deed. When an organization understands that ethical practices are woven into daily operations, the company at large is more likely to have a trusted brand and is better suited to deal with potential issues.

References

Egan, M. (2017, March 13). Wells Fargo still faces over a dozen probes tied to fake account scandal. CNN Money. Retrieved from http://money.cnn.com/2017/03/31/investing/wells-fargo-investigations-fake-account-scandal/

Ferrell, L. (n.d.) Marketing Ethics. University of Wyoming. Retrieved from http://college.cengage.com/business/modules/marktngethics.pdf

Markel, H. (2014, September 29). 1982 changed the way we consume medication. PBS. Retrieved from http://www.pbs.org/newshour/updates/tylenol-murders-1982/