UNETHICAL PRACTICES IN MARKETING

Ethical marketing is a process through which companies generate customer interest in products/services, build strong customer interest/relationships, and create value for all stakeholders by incorporating social and environmental considerations in products and promotions. Avoiding unethical marketing practices can also help a business avoid other consequences, such as losing the good faith and loyalty of customers, and jeopardizing profitability. The worst practices of the bunch are:

Misleading statements, which can land a business in legal trouble with the Federal Trade Commission and its truth in advertising provision. The FTC expects advertising claims to be supported by evidence, which proved to be a tough standard for some cigarette manufacturers when they originally promoted their products as being “healthy.” Of course, not all claims are provable, and this is where some marketers deliberately try to blur the line with exaggerated claims and puffery, which are other forms of unethical marketing. Consumers may turn a deaf ear to a product that claims to be “the best,” and they're known to disdain marketing that promises to “transform their life” or “make them the envy of all their friends.”Distoring facts to intentionally confuse or mislead consumers. A classic example: stamping a product as sugar- or calorie-free when it does in fact contain some sugar and calories, or touting a product as “healthy” when it is loaded with carbohydrates and sodium.

Making false or deceptive comparisons about a rival product. Much more prevalent 20 years ago among general consumer products, you still might see this crop up in the tech sector. (Think smartphones.) Competition tends to be fierce when rivals resort to side-by-side comparisons. And consumers may find such a technique helpful, as long as the information is accurate and truthful.

Inciting* fear or applying unnecessary pressure. “Limited time offers” are notorious for the latter, which is fine if a deadline really exists and the tone doesn't sound threatening.

Exploiting emotions or a news event. Such instances pop up every once in a while, then make a quick exit when consumers complain about feeling manipulated. Such was the case after the September 11 terrorist attacks, when some advertisers tried to evoke sympathy – for New Yorkers, firefighters and survivors – while also selling their products.

Stereotyping or depicting women as sex symbols merely to draw attention to a product. "While it might be intuitive to use models in adverts for beauty products and cosmetics, having half-naked models in adverts for generators, heavy machinery, smartphones and other products not strongly related to women is both nonsensical and unethical,” says Profitable Venture.

Disparaging references to age, gender, race or religion. Many professional comics have learned the hard way that the line between humor and bad taste can be painfully thin. It might be easier to see if the humor packs an insult or a put-down that makes you grimace.Doctoring photos or using photos that are not authentic representations. Most people expect professional photographers and videographers to make the most of lighting and close-ups. But the finished products should be accurate depictions that are free of touch-ups and other enhancement techniques that are designed to mislead.Plagiarizing a competitor. For a small-business owner, discovering that a competitor has copied or impinged on a tagline, blog post or promotion can be painfuI.

Today's enlightened consumers do more than register a disapproving “Tsk-tsk” over such unethical practices in marketing. Ninety percent of consumers in a 10,000-person survey conducted by Cone Communications said they would boycott a company if they learned it was engaging in unethical or irresponsible behavior. And about the same percentage said they expect companies to “operate responsibly” – perhaps much like their own mothers taught them.