The Basics of Marketing Ethics in the Cosmetics Industry - Essay Example

Marketing Ethics Introduction Marketing is the process of creating, distributing, pricing, and promoting goods, ideas, and services with the aim of satisfying the desires of the clients, customers, partners, and the society. Customers are at the focal point of all marketing activities including developing, promotion, distribution, and prices of goods and services. Efforts in marketing are addressed to a particular group of customers known as the target market (Pride & Ferrell 2010, p.4). This text is a discussion on the basics of marketing ethics. It summarizes marketing ethics in the cosmetics industry, emphasizing on Beiersdorf Company. Further, it outlines approaches by body shop to address ethical issues. Basics of Marketing Ethics For every professional, commitment to ethical principles and conduct is vital. Marketers have diverse ethical responsibilities for consequences that may emanate from their actions or decisions that may affect the public: customers and organizations. Based on ethical viewpoints, marketers conduct are guided by laws and regulations and basic rules of professionalism. Among the basic rules of professionalism that guides marketers are honesty and fairness. In essence, marketers must uphold integrity as professionals. They must undertake their duties through honor and dignity when serving their customers. They must not knowingly engage in activities that develop conflict of interest. Further, marketers have the core duty to ensure information about products that they promote are not deceptive to customers. Marketers must reveal all substantial risks associated to a product that they promote or service usage to customers. In relation to honesty, information that is most likely to influence the customer’s decision to purchase should be disclose by the marketer. During promotions, marketers must ensure their conducts are not misleading to the customer. They must not engage in deceptive sales strategies that may cause manipulations to the customer. Further, marketers must not engage in price fixing. In essence, they should disclose all price associated when the customer purchases a product. During promotions, marketers must apply rational balance between the buyer’s demands and seller’s interests. Cosmetics Industry: Beiersdorf Company Background information Currently, the company’s most dominant brands are NIVEA, Euceri and La Prairie. NIVEA is among the global leaving skin care brand of products manufactured by the company. It expanded to international operations during the 1920s and 1930s. It has an estimate of 150 affiliates, globally, although Europe forms its largest market (Beiersdorf, 2015). Key Ethics at Beiersdorf Company Every company has ethical consumption, a consumer philosophy; a market-based approach aimed at helping producers in developing countries and promotes sustainability (Guido, 2009, p 1). In order to ensure sustainable ethical consumption, companies employ individuals with social awareness to evaluate public consequences and private consumption acts. The individuals can actualize their power to enhance social change (Guido, 2009, p. 2). Social consumption in marketing aims at attracting public attention and winning consumers’ preferences for goods and services produced in good social environment compared to other available alternatives. Appeal to ethical consumption increases customer demand for particular goods and services (Carrier & Luetchford, 2012, p. 2). Beiersdorf Company applies the concept of ethical consumption to improve customer preference for its brands and products in the market. it markets its products The success of Beiersdorf Company is based on core values as honesty, respect, and integrity. The three aspects of marketing ethics earn the company trust from consumers throughout its global market. The company complies with and adheres to applicable laws and regulations in any country or region of its application. The commitment involves applicable policies, guidelines, the accepted levels of culture and countries of operation (Mann 2014). The major objective a company is to ensure that its products meet customers’ high-quality expectations throughout the market. Beiersdorf Company is dedicated to quality, safety, and reliability of their product. In addition to the principle, the company also acts in compliance with the acceptable international management systems. Quality is dynamic and constantly improved through constant activities (Beiersdorf 2014, p.9.) Marketing Approaches That Body Shop Integrates To Tackle Ethical Issues Body shop international, a high-quality body and skin care, has established an environmental and social reputation as a responsible company (Mennen 2011, p.3). The strategies of the body shop is based on its five core principles including protection of our planet, defending human rights, support for community trade, activation of self-esteem, and against animal testing (Mennen 2011, p 3). A body shop manager supervises workers on the employer’s behalf. His or her duty involves sponsoring employees’ works, paying salaries, and accommodation arrangements. Body shops coordinate in a given geographical region to provide goods and services to consumer at the time of need (Upadhya 2011, p.4). Body shops connect through fair trade to ensure political stability and safety in countries of operation. Any occurrence of political unrest in a country of trade breaks up relationships of the company (Assenmacher 2011, p.2). Environment and social issues greatly influence consumers, because the two creates an awareness of the company from which they purchase products. Body shops therefore consider the interest of the consumers in sourcing products and ingredients to ensure sustainability (Assenmacher 2011, p.3) Another aspect body shop is providing good deals to the consumer that attract a customer group looking for cosmetic products that are sourced and produced in a socially responsible manner. It is the role of the body shop to integrate the core values of the company into the five principles and use them to make decisions that conform to the existing company principles. In so doing, they are a reflection of the company to the potential consumers (The Body Shop 2009, p.10). Conclusion For any business to prosper, there must be principles and guidelines upon which it must operate. This is the basis of marketing ethics. Marketing ethics is responsible for consumer preference to a particular product in the market. Marketers have an ethical obligation to reveal all information that may affect consumers’ decision to purchase. They should inform the consumer off possible consequences of the product’s consumption. A company with good marketing ethic commands a broad customer base hence its prosperity as in the case of Beiersdorf Company and their popular brand, Nivea. References Assenmacher, K 2011, The Body Shop – An Analysis of the Company’s Actions Towards Sustainability, GRIN Verlag. Beiersdorf 2014, The Beiersdorf’s Group Code of Conduct, Retrieved March 8, 2015 from http://www.beiersdorf.com/~/media/Beiersdorf/investors/corporate-governance/Code-of-Conduct-2014-EN.pdf?download=true Beiersdorf 2015, Support of Ethics and Human Rights in the Supply Chain, Retrieved March 8, 2015 from http://www.beiersdorfusa.com/sustainability/local/us/ethics-and-human-rights Carrier, J. G., & Luetchford, P 2012, Ethical Consumption: Social Value and Economic Practice. Berghahn Books, New York. Guido, G 2009, Behind Ethical Consumption: Purchasing Motives And Marketing Strategies For Organic Food Products, Non-Gmos, Bio-Fuels. Bern, Peter Lang. Mann, R 2014, What Nivea Did Next: The World’s Largest Skincare Brand Targets Travel Retail, The Moodie Report, Retrieved March 8, 2015 from http://www.moodiereport.com/document.php?c_id=33&doc_id=40826 Mennen, M. 2011, The Body Shop Strategic Business Management, München, GRIN Verlag GmbH. Pride, W. M., & Ferrell, O. C 2010, Marketing, Florence, South-Western Cengage Learning. The Body Shop International Plc 2009, Values Report 2009: Living Our Values, Retrieved March 8, 2015 from http://www.thebodyshop.se/services/pdfs/values_report_2009.pdf Upadhya, C 2011, Global `Body Shopping': An Indian Labor System in the Information technology industry - By Biao Xiang. Journal of the Royal Anthropological Institute. 17. Read More