Download Product promotional strategies: Ethical and Legal issues

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Legal – permitted by law, lawful.
Ethics - that branch of philosophy dealing
with values relating to human conduct, with
respect to the rightness and wrongness of
certain actions and to the goodness and
badness of the motives and ends of such
Morals - concerned with the principles or
rules of right conduct or the distinction
between right and wrong; ethical
Legal Issues – concerned with legislation
(laws) that sets rules on what you can and
cannot do
Ethical issues– concerned with something that
is legal, but is not necessarily moral
Sets out the laws for promotion and
Under the Trade Practices Act it is illegal to
make false claims when promoting a product
The Australian Competition and Consumer
Commission (ACCC) argued that McDonalds
had breached sections 52 and 53 of the
Trade Practices Act 1974 when it promoted
its ‘grilled chicken burgers’
School sponsorship arrangements raise a
number of ethical issues, these include
1. The over commercialisation of schools
2. Direct marketing to students
3. The promotion of unhealthy food and drink
items, and
4. The influence on the school curriculum
Creation of needs – Materialism
Occurs when you continually desire new
Do advertising campaigns
A) Satisfy existing needs
B) Make consumers buy something they don’t
really need
Answer A
Answer B
Product placement is the inclusion of
advertising into entertainment. Many films
include examples of product placement.
Watch the video clips on product placement
on the wikispaces page.
Do you consider product placement an ethical
or unethical promotion strategy? Explain why
How you ever had someone come up to you
in a shopping centre and ask you to do a
quick survey about a particular product. Only
to fin that they are trying to sell you that
product! You’ve been ‘sugged’
Sugging is selling under the guise of survey
This is not necessarily illegal but can raise
issue about breach of privacy and deception
Why is it sometimes difficult to decide
whether a promotion strategy is ethical or