Ethical and Legal Ethical and Legal Aspects of MarketingAspects of Marketing

Ian MejiaIan Mejia

Redfield CollegeRedfield College

20092009

‘‘Being good is good business’ –Being good is good business’ –Anita Roddick, The Body Shop founderAnita Roddick, The Body Shop founder

EthicsEthics

The general values and morals that The general values and morals that determine the generally accepted determine the generally accepted behaviour.behaviour.

- Some groups have voluntary codes of Some groups have voluntary codes of conduct or ethical standards. conduct or ethical standards.

- A business also has a legal A business also has a legal responsibility to comply with responsibility to comply with legislation (Mainly the Trade Practices legislation (Mainly the Trade Practices Act 1974)Act 1974)

Environmentally Responsible Environmentally Responsible ProductsProducts

Business can damage Business can damage the environment the environment through:through:

-depleting natural -depleting natural resources in productionresources in production

-creating products or -creating products or packaging that is not packaging that is not environmentally environmentally friendly.friendly.

How can businesses How can businesses overcome these issues?overcome these issues?

Examples of Ethical ConductExamples of Ethical Conduct

Starbucks – working Starbucks – working with coffee growerswith coffee growers

Hybrid cars – Hybrid cars – reducing the use of reducing the use of natural resourcesnatural resources

The Body Shop – no The Body Shop – no testing on animalstesting on animals

Woolworths – move Woolworths – move to no plastic bagsto no plastic bags

Ethical Issues in MarketingEthical Issues in Marketing

Creation of NeedsCreation of Needs Retail DevelopmentsRetail Developments SuggingSugging

Creation of NeedsCreation of Needs

Marketing can now create a need in Marketing can now create a need in a consumers mind instead of a consumers mind instead of targeting a demand in customers.targeting a demand in customers.

Issues with advertising to kidsIssues with advertising to kids ‘‘Impulse buying’Impulse buying’

SuggingSugging

Selling under the guise of a survey or Selling under the guise of a survey or research.research.

Not illegal but highly unethicalNot illegal but highly unethical You need to be smarter when filling You need to be smarter when filling

in details.in details.

Consumer Law in AustraliaConsumer Law in Australia

Deceptive and misleading Deceptive and misleading advertisingadvertising

- This is illegal under Section 53 of the This is illegal under Section 53 of the trade Practices Act 1974.trade Practices Act 1974.

- Page 208 in the text bookPage 208 in the text book

Price DiscriminationPrice Discrimination

The practice of selling the same The practice of selling the same product at different prices in different product at different prices in different markets.markets.

Section 49 states businesses must Section 49 states businesses must not charge different prices for goods, not charge different prices for goods, if those prices do not reflect if those prices do not reflect differences in the costs of providing differences in the costs of providing those goods to different businesses.those goods to different businesses.

Implied Conditions and WarrantiesImplied Conditions and Warranties

Implied conditions is a condition of Implied conditions is a condition of sale that requires a product to be fit sale that requires a product to be fit to serve the purpose for which it is to serve the purpose for which it is purchased.purchased.

Merchantable quality is a condition Merchantable quality is a condition that the product is in a condition that the product is in a condition reasonable for its advertised reasonable for its advertised condition and price.condition and price.

Resale Price MaintenanceResale Price Maintenance

Resale Price Maintenance is a Resale Price Maintenance is a practice which involves a practice which involves a manufacturer making an agreement manufacturer making an agreement with its distributors that a product be with its distributors that a product be sold at a certain price.sold at a certain price.