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Use resources and reading found in your Student Handout and Activities along with the information contained in the slides (including speaker notes) to respond to the questions.

You may also utilize any outside resource as well.

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Unit 5

Promotion

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5.4 Describe the Use of Business Ethics in Promotion

Opening Discussion:

You buy a 24-pack of fruit juice that offers an $8.00 cash rebate.

A week later, you find the rebate has expired.
You are the victim of a short rebate deadline.

Response Question:

How is this an example of an unethical promotional practice?

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Promoting Products Ethically

Apply ethical standards to all forms of promotion.
Use honesty and �transparency.
Avoid misleading �or taking advantage �of consumers.
Treat competitors �fairly.

PR:099 Describe the use of business ethics in promotion

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Ethical Issues in Promotion

Truth in advertising
Cultural sensitivity
Marketing to children
Consumer’s personal information

PR:099 Describe the use of business ethics in promotion

Is the promotion of �vaping to teens ethical?

Give examples of misleading promotions that they have fallen victim to.

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Truth in advertising, representing a product accurately, is the foundation of ethics in promotions.

Marketing messages should accurately describe a product, its benefits, warranties, price, and availability.
When marketers create messages that contain inaccurate information, they are misleading and harming consumers.
Marketers should also avoid using promotions that take advantage of human weaknesses and tendencies such as buying on impulse, failing to pay attention to details, procrastination, and psychological fear.

Marketers should use cultural sensitivity to make sure their messages are not promoting offensive or harmful messages.

Sexist, racist, and culturally insensitive messages should be avoided.
Sometimes, a company may inadvertently create an inappropriate marketing message.
To prevent the release of unacceptable messages, an organization should have a strict approval process in place to make sure that offensive messages are not produced or released.

Marketing efforts aimed at children, in particular, should be carefully created with the children’s best interests in mind.

Since children do not have the critical-thinking skills needed to analyze marketing messages, they are more susceptible to persuasive messages used in advertising.
Companies promoting candy to children that use cartoon characters, for example, should perhaps find a better food product to promote, and/or avoid the use of cartoons in their marketing efforts aimed at children.

Marketers also have an ethical obligation to protect the personal information of their customers.

A company should make it clear how any information collected will be used and allow customers to deny the use or sharing of their personal information for additional marketing efforts and with third parties.

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Unethical Promotional Techniques

Tricky giveaways and rebates
Fear-based advertising
Green washing
Stealth marketing
Promotions in �exchange for �personal information

PR:099 Describe the use of business ethics in promotion

Greenwashing for profits alone is unethical.

Explain how you feel about providing personal information in exchange for the use of an app.

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Businesses should avoid unethical promotional techniques.

Tricky giveaways and rebates are unethical because they mislead customers to buy a product based on a false promise that they will receive a free item or save money.

Many giveaways are small, inexpensive items that encourage impulse buying and offer very little real value to a customer.
And, “buy-one-get-one-free” promotions are actually a 50% discount on two items that encourage consumers to buy more.
Cash rebates that require the customer to quickly complete and mail in a rebate form are problematic because many consumers fail to complete them in time and, therefore, are not compensated.

Fear-based advertising is used to target consumers’ fears to convince them to buy a product.

Some marketers, for example, use the fear of being friendless or lonely to promote everything from breath mints, acne treatments, and fashionable clothing.
Makers of antibacterial soaps and organic food often use the fear of disease to promote their products.
Fear-based advertising is unethical because it uses psychological manipulation to convince consumers to buy a particular product.

Green washing occurs when a company develops marketing messages for the sole purpose of creating a “green” image to boost its image to consumers.

Marketers should only promote a company or its products as environmentally friendly when a company has developed real corporate objectives such as using sustainable sourcing or eliminating the use of harmful substances.
It is dishonest to promote products with an image that is only “green” on the surface.

Stealth marketing is a technique used to advertise a product without consumers being aware that they are being subjected to advertising.

Some companies pay actors to use their products in public to encourage consumers to adopt the product and create “buzz” by spreading positive word-of-mouth messages.
Since the product appears to be promoted by real life citizens, consumers are not aware they are being influenced by marketing.
The deceptive nature of stealth marketing makes it an unethical practice.

Promotions offered in exchange for personal information often have complex use agreements that allow information to be shared or sold to numerous third parties.

Marketers should avoid these types of promotions because it is widely known that few consumers actually read the terms of use agreements or that they grudgingly sign them to take advantage of the offers.
Persuading consumers to provide their personal information in such a way is unethical.

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5.4 Activity

Commercials:

Each student should watch television advertisements and identify five deceptive techniques that s/he sees. Students should discuss their observations with the class, identifying the product being advertised and what they consider deceptive.

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5.4 Activity (Alternative)

Ethics Case for Students:

Stella has a popular food blog and has thousands of followers on social media. One day, a local smoothie shop sends Stella a free smoothie. Stella is used to posting pictures of her favorite foods online, but she feels that she is being dishonest if she does not tell her followers that she received the smoothie for free.

Is it unethical for Stella to promote products that she receives for free?