Download Ethical and Legal Aspects of Marketing

Ethical and Legal
Aspects of Marketing
Ian Mejia
Redfield College
2009
‘Being good is good business’ –
Anita Roddick, The Body Shop founder
Ethics

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The general values and morals that
determine the generally accepted
behaviour.
Some groups have voluntary codes of
conduct or ethical standards.
A business also has a legal responsibility
to comply with legislation (Mainly the
Trade Practices Act 1974)
Environmentally Responsible
Products
Business can damage the
environment through:
-depleting natural resources
in production
-creating products or
packaging that is not
environmentally friendly.

How can businesses
overcome these issues?
Examples of Ethical Conduct




Starbucks – working
with coffee growers
Hybrid cars –
reducing the use of
natural resources
The Body Shop – no
testing on animals
Woolworths – move
to no plastic bags
Ethical Issues in Marketing



Creation of Needs
Retail Developments
Sugging
Creation of Needs



Marketing can now create a need in a
consumers mind instead of targeting a
demand in customers.
Issues with advertising to kids
‘Impulse buying’
Sugging



Selling under the guise of a survey or
research.
Not illegal but highly unethical
You need to be smarter when filling in
details.
Consumer Law in Australia

-
-
Deceptive and misleading advertising
This is illegal under Section 53 of the
trade Practices Act 1974.
Page 208 in the text book
Price Discrimination


The practice of selling the same product at
different prices in different markets.
Section 49 states businesses must not
charge different prices for goods, if those
prices do not reflect differences in the
costs of providing those goods to different
businesses.
Implied Conditions and Warranties


Implied conditions is a condition of sale
that requires a product to be fit to serve
the purpose for which it is purchased.
Merchantable quality is a condition that
the product is in a condition reasonable
for its advertised condition and price.
Resale Price Maintenance

Resale Price Maintenance is a practice
which involves a manufacturer making an
agreement with its distributors that a
product be sold at a certain price.