Ethics and Marketing - Assignment Example

Introduction Ethics in marketing are very important because marketing is a discipline that interfaces with diverse stakeholders in a society. Marketing is a pivotal aspect of any business that not only extends a discernable and visible interface with customers, but also with a plethora of other entities such as dealers, business associations, shareholders, investors, trade unions, media, etc (Houston, 1994). Hence, marketing is a facet of commerce that has three vital dimensions that are individual, organizational and societal (Houston, 1994). In that context, to talk about ethics in marketing is utterly unfeasible from any singular or narrow perspective. A true understanding of the ethical domain of marketing necessitates a broader and holistic perspective. There exist multiple crucial reasons to facilitate an understanding into and development of most relevant approaches as to inculcate ethics in marketing operations. Most of the organizations existing today are vulnerable to committing ethical foibles and to face an ethical misconduct perpetrated by staff and managers. Even the most well intentioned marketers do face the possibility of taking steps that appear to be ethical on the surface, but are in fact replete with ethical scandals and repercussions, giving way to infamy and legal hassles (Andreasan, 2001). So there exists a dire need to identify the possible risks and chances of misconduct inherent in the marketing operations. At the same time there must exist an attitude of ethical propriety and a commensurate infrastructure within organizations to challenge the ethical misconduct as it springs up, rather than covering up or hiding ethical scandals (Andreasan, 2001). To achieve such propitious objectives, it is imperative that the discipline of marketing readjusts itself in the realm of “focus, techniques and goals” to accommodate the immediate changes taking place in the society and the resultant challenges that require an empathic attention (Kotler, 1972). It goes without saying that the scope for ethics in any discipline is to a great extent dependent on the way its practitioners perceive. It has also to do with the development of reciprocal techniques used by the practitioners to identify and mitigate the ethical problems. The purpose of this paper is to delve on the existing and emerging definitions of marketing and the way they cater to the scope and need for an ethical conduct in the marketing operations. The paper also delves on the ways and means in which the marketers can quantify and evaluate the ethical conduct in the strategies adopted by them. Origins of Marketing Traditionally speaking, marketing is associated primarily with trade or exchange. To put it in simple words, marketing in a way existed since the time mankind learnt to or managed to produce a surplus (Bartels, 1976). Again in a historical context, in the beginning, the generated surplus existed in the form of agricultural produce that was mostly exchanged or bartered for manufactured goods like pottery or textiles (Bartels, 1976). Eventually this exchange of goods got centred on certain specific locations that eventually evolved into what is today known as markets. The concept of trade, as it evolved, allowed and stimulated people to specialize in the production of specific goods and services that they could take to markets to exchange with goods and services required by them (Bartels, 1976). The concept of trade got further transformed with the onset of Industrial Revolution. The economies started to rely less on agricultural produce and the emphasis gradually begin to shift towards industrial production (Bartels, 1976). In the pre Industrial Revolution era, the goods and services were produced on a small scale. However, industrialization resulted in a tremendous boost in productivity due to the mechanization of production operations (Bartels 1976). As a result of these developments, the producers were placed in a position where the local economies could not consume all the goods produced by them. Hence the producers were required to sell their goods and services in the markets spread over large geographical areas. This gave way to a situation where the producers stopped having an immediate contact with the markets in which their goods and services were consumed (Tadajewski & Jones, 2008). To assure that the goods and services produced by them would fulfil the needs of the markets that were widely dispersed, it became imperative for the producers to understand and interpret the needs and requirements of the consumers hailing from varied markets (Tadajewski & Jones, 2008). This led to the foundation of the discipline of marketing. According to one discipline the norms associated with the origins and geneses of the discipline of marketing are ethical and intend to serve the society in a just and organized way (Thompson, 2002). Going by the agricultural markets of the late 19th century the primary problem before the discipline of marketing was to take care of the manipulation of the markets by the middlemen that encroached upon the interests of both the producers and consumers of agricultural products (Thompson, 2002). The crux of the studies from which the discipline of marketing emerged had to do with the creation of civic frameworks which could allow for affective marketing operations that fairly served the interests of both the producers and consumers (Thompson, 2002). So according to Thompson, the early developments in marketing were primarily aimed at making optimal contribution to the good of the society (2002). Therefore, as per a school of thought, the discipline of marketing right from the start had a close association with the concept of ethics and social good. Ethics are not something new in the realm of marketing, but were an integral component of the discipline of marketing right from the days of its origin. Ethics and a Generic Concept of Marketing Though marketing has its origins in commercial exchange or trade, the contemporary challenge before the discipline of marketing is to decide as to whether it has any applications in the non-business are, at a level that is proportionate if not more to its relevance in the non-business area (Kotler, 1972). There exists a wide range of research that safely leads to the conclusion that the marketing concepts are as well applicable in the non-business areas like health services, politics, charities, fund raising, organized religion, policing, etc (Kotler 1972). As per Kotler, these developments are indicative of the fact that it is possible to develop a more generic concept of marketing (1972). In a post industrial world, the traditional concept of marketing alluding to commercial exchange and trade has a very limited and narrow role to play (Drummond & Ensor, 2005). Over time, the concept of marketing has emerged through varied stages of marketing consciousness. As per one marketing consciousness that is very traditional and conservative, marketing is primarily and fundamentally a business discipline that has only to do with the buyers and sellers of economic products and services (Kotler, 1972). Thus this marketing consciousness regards market transactions to be the hub of all marketing operations. As per this school of thought, the discipline of marketing has to quintessentially do with the transfer of ownership of economic goods and services in exchange for a payment (Kotler, 1972). Such marketing consciousness hesitates to include within its ambit, nonmarket operations. So, as expected, the scope of ethics in such a marketing consciousness primarily revolves around retaining fairness and sanctity of market exchanges, thereby focusing on the immediate customers, without having a discernable regard for other individual, institutional or societal affiliations (Drummond & Ensor, 2005). Certainly in proportion to the limited vision of this consciousness, the scope for ethics in it is also highly constrained and narrow. Then there exists a more evolutionary second marketing consciousness that does not hold a payment as a necessary or sole criterion for determining the scope of marketing (Kotler, 1972). As per this consciousness, marketing and its associated tools are not limited to businesses and corporations, but do have an application in all the organizations assembling and producing products and services to be offered to a specific consumer segment, irrespective of the fact that whether they pay for it or not (Kotler, 1972). The exercise of commonsense corroborates to the fact that the products and services offered by non-business organizations like museums, churches, political parties, police, etc could as well be priced and sold. Just because these organizations offer their products and services for free does in no way mean that the things they offer do not qualify to be labelled as products (Kotler, 1972). Simply speaking, a product is something that is of value to a person or a group. Whether an organization charges its customers for its products or offers them for free is a purely incidental aspect of the value of that product (Kotler 1972). Thus it goes without saying that non-business organizations do face marketing issues when it comes to distributing their products or while dealing with their customers. It is a must for non-business organizations like political parties, churches or charities to design and distribute their products so that they cater to the needs and requirements of their customers (Kotler, 1972). Hence, even non-business organizations are required to exploit the marketing tools like apt communication and distribution strategies, and feedback systems to optimize the levels of satisfaction of their customers (Kotler, 1972). This second consciousness of marketing has both its benefits and flaws in an ethical scenario. On the one side by declaring the price charged for a product to be incidental, it allows for the incorporation of non-monetary and intangible entities like ethics within the scope of marketing (Lazer & Kelley, 1973). At the same time, a drooping out of price related considerations, it could make the marketing managers serving the non-business organizations go smug and complacent into believing that as they are not charging anything for the products and services being offered by them, perhaps they are adhering to all the ethical and normative considerations (Lazer & Kelley, 1973). A fool proof ethical approach towards marketing necessitates a further widening and extending of the scope of marketing. This clears the way for the third stage of marketing consciousness. The third stage of marketing activity is very catholic and holistic. The proponents of these consciousness hold that it is not a must that the scope of marketing remains confined to the transactions between an organization and its clients. This consciousness believes that an organization and its marketing personnel indulge in marketing activities not merely with its customers, but with all the publics existing within its environment (Kotler, 1972). The management in an organization is required to engage in marketing activities with all the varied stakeholders like suppliers, staff, customers, statutory and regulatory bodies, dealers, general public, etc. Thus in the context of this consciousness, an organization is required to carry out marketing activities with all the stakeholders associated with it. Thus, the third stage of marketing consciousness obliterates the notion of structure and brings in the concept of function within the ambit of marketing (Kotler, 1972). This places the marketers under the obligation to not to perceive the discipline of marketing as a structure, but rather as a set of activities (Kotler, 1972). As is happening in other disciplines like political science, marketing could also embrace a functional approach, rather than adhering to a narrow structural context (Kotler, 1972). Adherence to this stage of marketing consciousness impressively broadens the scope of marketing. And even if one decides to be a stickler for the core marketing concept of transaction, a truncation basically involves an exchange of value between two social entities (Kotler, 1972). These things of value have not to necessarily be goods, services and money. The value in this case may also mean intangible entities like time or attention (Kotler, 1972). This third stage of marketing consciousness is highly conducive for an ethical approach towards marketing (Quelch & Jocz, 2008). It gauds the marketers to practice ethics not in a narrow sphere comprising of their customers, but to be reasonable and just towards all the publics that they have to relate to in their business operations (Quelch & Jocz, 2008). Ethics and Criticism of a Generic Approach towards Marketing Varied scholars have criticized a generic approach towards marketing. They intend to retain a definition of marketing that relies on a structural approach towards things. They believe that any attempt to come out with a definition of marketing that makes its scope universal, is bound to make the discipline of marketing lose its identity (Luck, 1969). Such an approach towards marketing in a way limits the scope of marketing by defining it in terms of business transactions. The notion here is that marketing is primarily related to markets that are essentially characterized by a buying and selling of goods (Luck, 1969). The overall idea is to curtail the vagueness and ambiguity inherent in a generic concept of marketing, by coming out with and supporting a firm specific definition of marketing fixated on the buying and selling of goods and services (Luck, 1969). Anything contrary to this that has nothing to do with the purchase of goods or services by agreeing on a price cannot be considered to be in the purview of the discipline of marketing (Luck, 1969). Though marketers can render their services to non-business operations, yet such an option does not qualifies to be classified as marketing. Even while staying within the domains of market transactions, the discipline of marketing is left with much challenges and problems to retain its relevance and charm (Luck, 1969). The critics of a generic approach towards marketing claim that by hinging marketing with societal causes, the adherents of a generic approach are making the professional marketers seem guilty of being associated with profit making commercial activities (Luck, 1969). The problem with such criticism is that it in a way also curtails the ethical scope of marketing. By associating marketing solely with market transactions and price, the marketers are always in a danger of viewing everything by wearing the goggles of monetary gains (Sidiropoulous, 2005). In such a scenario, governed by the market transaction approach of marketing, the marketers are bound to define the scope of ethics always in terms of fairness of price and customer satisfaction (Sidiropoulous, 2005). This makes them utterly oblivious of a larger picture which includes all the publics and stakeholders with which they interact. Since these publics lie outside their vision of marketing so they are not theoretically and conceptually bound to be fair and just to these publics. Marketing Ethics- A Utilitarian Approach As per the conventional approach towards marketing, it has evinced a more than justifiable predilection for utilitarianism (Nantel & Weeks, 1996). The thrust of this approach is to satisfy the needs and aspirations of the customers through the exchange of goods and services. The problem with the utilitarian approach towards marketing is that it classifies the objective of satisfying the needs and wants of the customers as a top priority (Nantel & Weeks, 1996). Now, assuring customer satisfaction by itself is a worthy ideal. Yet, it does also have the ability to make the marketers go myopic. Driven by a utilitarian view of marketing, the marketers may limit the scope for ethics in their vocation by stubbornly relating them to the single purpose of achieving customer satisfaction, without delving or reasoning on the details as to through what means and methods, such customer satisfaction is achieved (Nantel & Weeks, 1996). This tendency is characterized by ethical lacunas observable in most of the aspects of marketing like the study of consumer behaviour, products and services management, and advertising, marketing research, price management and international marketing (Nantel & Weeks, 1996). By faithfully sticking to a narrow version of the utilitarian values, the marketers oft do not hesitate to stretch the scope of marketing ethics to its limits, by tampering with and misusing all the marketing tools at their disposal (Porter & Bailey, 2008). Going by the inevitability of ushering in a healthy attitude towards ethics in marketing, it is desirable that the way is made for the inculcation of a deontological approach within the scope of marketing (Nantel & Weeks, 1996). A single minded utilitarian approach towards marketing creates multiple problems for both the consumers and the society. To allow for such an initiative it is imperative that business organizations not only adopt an ethical code of conduct, but also that this code of conduct gets formalized within organizations in a deontological perspective (Nantel & Weeks, 1996). Even if one goes by the conventional utilitarian approach towards marketing that has to do with the satisfaction of customer needs, a deontological perspective makes the marketers transcend the immediate constraints and objective, to delve on the long term consequences of their actions (Nantel & Weeks, 1996). This approach can also be used to formulate a conceptual framework that can be used as guide by the marketers to delve on the ethical consequences of their actions and strategies. A deontological approach towards marketing also enables the marketers realize the broad spectrum of ethical duties that their actions are required to satisfy. The marketers do have a duty to honesty and exactitude and need to honour their commitments (Nantel & Weeks, 1996). Marketers are also bound by a need for showing gratitude to all the stakeholders that helped them at one time or other (Nantel & Weeks, 1996). Marketers also have a duty to justice that is they must abide by the law of the land in which they operate (Nantel & Weeks, 1996). Also marketers should not take any step that endangers the health and safety of others (Nantel & Weeks, 1996). The real beauty of a deontological approach towards marketing is that it makes the marketers look at the larger picture and makes them question their actions and practices from varied perspectives (Porter & Bailey, 2008). Ethical Marketing is not Merely about Marketing Ethics Social and environmental considerations on the part of the businesses have made it impossible for the marketers to ignore or sideline these aspects of business. The enhanced consumer activism and the surmounting pressure from the environmental lobbies are today acting as dedicated watchdogs that have succeeded in bringing about the desired regulations and statutory changes, which the sustenance minded businesses need to follow. In fact businesses are fast responding to the changes wrought in this context (McGregor, 2007). Hence the marketers are more than ever under pressure to retain a consumer orientation. In addition the marketers today are also required to give due consideration to the long term social and environmental implications of the strategies being pursued by them (McGregor, 2007). Still, there is no denying the fact that such developments to some extent have failed to inculcate a thoroughly and ethical mindset in the contemporary businesses. Over the years, the marketers have developed varied ways to deal with the ethical issues attending their businesses (Brennan, 1991). Some of the marketers tend to deny the moral dilemmas by claiming some sort of an immunity status for their businesses (Brennan, 1991). They tend to hold that ethics and business are simply incompatible. Then there is one other school of marketers who grapple with moral issues by justifying the tactics adopted by them and hence denying the concomitant responsibilities and obligations (Brennan, 1991). There also exist marketers who profess the ethical credentials of their businesses by citing the success of their business (Brennan, 1991). There exist varied reasons for ethical misconduct in the field of marketing. One factor is that the marketers tend to design their short term and long term strategies by keeping an eye on the profitability motives (Brennan, 1991). Thus, any scope for concern for the consumer and societal considerations is sacrificed by them on the altar of profitability. The language and semantics of business is one other big problem. Businesses do sometimes get defined by the usage of terms like ‘war’, ‘competition’ and ‘targets’ that are much aligned with the notions of power and control and lead to the dilution of all moral and ethical considerations in marketing (Brennan, 1991). Pragmatically speaking, marketers can pursue various strategies to deal with the problem of unethical conduct. Businesses should evince a more than average concern for organizational values and morals and must foster an organizational environment that is conducive to ethical conduct and value based decision making (Lefkowitz, 2003). Besides business people and marketers should be extended ample exposure to different types of normative principles and systems of ethical analysis (Brennan, 1991). This enables them to analyze a marketing situation from varied ethical vantage points. In addition, the marketers can resort to varied rule of thumb principles and checklists to evaluate the ethical moorings of their decisions (Brennan, 1991). The marketing students should be encouraged to take courses in humanities and social sciences (Brennan, 1991). This stimulates them to get proactively involved with the day to day ethical issues rather than being a detached observer (Brennan, 1991). Conclusion It is essential to inculcate the concept of ethics in the area of marketing as it is a discipline that is directly connected with all facets of contemporary life. The origins of marketing had their basis in the vision of a just and moral society. However, to usher in an ethical approach in marketing it is a must that the marketers scale over the traditional utilitarian notions of marketing and allow for a definition of marketing that accommodates non-business activities. A deontological perception of marketing readily allows for a broad based and holistic ethical approach towards marketing. Going by the contemporary consumer activism and environmental concern, marketers simply do not afford to ignore the ethical repercussions of their decisions. This calls for an ability to evaluate the marketing decisions from varied ethical vantage points. It also requires a commitment on the part of the business organizations to allow for an ethical and moral organizational culture. Reference List Andreasan, Alan R 2001, Ethics in Social Marketing, Georgetown University Press, Washington D.C. Bartels, Robert 1976, The History of Marketing Thought, Grid Publications, New York. Brennan, Mike 1991, ‘Is there More to Ethical Marketing than Marketing Ethics?’, Marketing Bulletin, Vol. 2, pp. 8-17. Drummond, Graeme & Ensor, John 2005, Introduction to Marketing Concepts, Elsevier Butterworth Heinemann, London. Houston, Franklin S 1994, Marketing Exchange Relationships: Transactions and the Media, Quorum, Westport. 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