ETHICAL ISSUES IN MARKETING

1.Emerging Ethical Problems in Market Research

Market research has experienced a resurgence with the widespread use of the Internet and the popularity of social networking.

2.Grouping the Market Audience

Unethical practices in marketing can result in grouping the audience into various segments. Selective marketing may be used to discourage the demand arising from these so-called undesirable market segments or to disenfranchise them totally.

3.Delivery Channels

Direct marketing is one of the most controversial methods of advertising channels, especially when the approaches included are unsolicited.

4.Anti-Competitive Practices

There are various methods that are anti-competitive. For example, bait and switch is a type of fraud where customers are "baited" through the advertisements for some products or services that have a low price; however, the customers find in reality that the advertised good is unavailable and they are "switched" towards a product that is costlier and was not intended in the advertisements.

UNETHICAL ISSUES IN MARKETING

1. Misleading advertising.

Misleading ads are more than just unethical—they’re illegal. The Federal Trade Commission (FTC) regulates “truth in advertising,” mandating that businesses make accurate statements in their advertising campaigns and, when possible, back their claims with scientific evidence. 

2. Black-hat link building.

Media exposure is almost always a good thing for businesses, and earning inbound links to your company website is the single best way to boost your organic search rankings.

3. Contacting people without consent.

Have you ever thought about buying a list of email addresses so you can bulk up your company’s subscriber list? You’re not the first one. Many businesses have used this tactic to contact people who they otherwise wouldn’t have known. Remember our friends at the FTC? They also enforce a law called the CAN-SPAM act, and under it, you’re legally allowed to email people without their consent—but for one time only.

4. Emotional exploitation.

One of the most effective ways to advertise a business is to call to people’s emotions. Making them laugh or evoking a sense of nostalgia helps consumers forge a small bond with your brand.