Page 342 - DMGT408DMGT203_Marketing Management

Unit 15: Sustainable Marketing

2. Ethical formalism is concerned with intentions of an individual associated with a specific Notes
conduct and on the rights of the concerned individual.
3. As the main objective of a business is to make profits, it is ethical for them to use any trick
to achieve the objective.
4. Individual culture and not the organisational culture is also a significant force that influences
ethical decisions.
5. Opportunity refers to a set of conditions perceived as favourable that limit barriers or
provide rewards.

6. Sales people are allowed to make false promises to customers to conclude a sale.
7. Deodorant ads are often at the center of promotion related ethical issues.
8. Marketing people understand the policies that govern ethical conduct and can easily
resolve any conflicting ethical issues.

Case Study Real Juice Company

he company is in the business of producing and marketing fruit juices. Ritu Joshi
and Rohit Jain were looking at the ad copy and turning it over and over again in
Ttheir mind. The copy read, “The best fitness plan for you - real fruit, honest juice
and no sugar.” This was the main copy line. The more Ritu Joshi repeated this line in her
mind the uneasier she became. “Something is wrong in this copy,” she said to Rohit Jain,
the marketing head. “We cannot say ‘best for health’ when we know for sure that the juice
contains preservatives and food colour.”
Rohit Jain said, “I don’t see if anything is wrong in this.” “With food colour and preservatives
added we couldn’t say it is best. This is what is wrong,” replied Ritu.
Rohit said, “But this is hyperbole and permitted by law. There is nothing wrong in saying
this. Haven’t you noticed almost all detergent brands say ‘for best wash’, or ‘whitest
wash’? This is simply a way of putting your claim of brand’s superiority.”
“We are not talking about detergents, washes and fabrics. It is a health and fitness fruit
juice. We could say something like ‘a great way to plan your fitness programme’ or
something like that. We are saying real fruit, honest juice, and no sugar’ … not a word
about food colour and preservatives’. Any consumer can contest our claim.”
Rohit Jain thought for a moment then said, “Let us get the legal opinion from our lawyer,
Amit Soni, to be on the safe ground.”
Amit listened to what Ritu had to say then said, “Companies use advertising to provide
information to consumers and offer alternatives in a competitive market situation.
Advertising is false when it says A = B and that isn’t true. But if the ad is misleading, it falls
under the category of unfair trade practice.” Loudly reading the ad copy, Amit said, “
Hyperbole such as best, newest, most effective way, are permissible and consumers are
unlikely to take such claims with any seriousness. When a brand says its air-conditioner is
best or most efficient, consumers know that this is just a manner of speech and do not truly
believe and put their money on such claims. In case a company tries to accord credibility
to its claims, it goes beyond mere hyperbole. For instance, when the toothpaste says “I am
the best because I score 96% whereas others score 80%, then it is a claim that goes beyond
hyperbole. The marketer is then trying to give it a scientific basis on a particular attribute.
This enters the realm of false advertising and is misrepresentation under MRTP Act.”
Contd...

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