Ethical issues in marketing research and advertising to children

Ethics in Marketing

There are a number of ethical issues in marketing today. These range from the messages that advertisers send -- especially to children -- to the ethics of marketing research. Marketers must be aware of all of these different issues, and be guided by high standards of ethics in order to fulfill their objectives without violating prevailing ethical codes.

Research Ethics

Akaah and Riordan (1989) outline the issues of ethics in marketing research. They point out that there are a number of issues in marketing research, including the preservation of anonymity, the implication of bias and other such issues. There is no external set of standards to which marketers can follow, so in general each organization must set its own standards. The authors note that there are three factors that influence how organization's approach the issue of marketing research ethics -- the extent of ethical problems within the organization in general, top management attitudes about ethics and the role in the organization of the market research department.

A code of ethics in the company should be established at the corporate level, and the research department should follow this code, while developing its own standards and guidelines. For example, minors should not be research subjects. Protocols should be followed with respect to informed consent. In addition, there needs to be procedures in place with respect to protecting the privacy of individuals in the research. If the company is to gather personal information, it needs to ensure that information is protected. Another issue is with respect to the payment of research subjects, which can create bias and perverse incentives. Marketing researchers must be aware of these issues and work to mitigate any potential negative outcomes from the work that they do.

Children

One of the major ethical issues in marketing today is with respect to marketing to children. Children do not have fully developed minds and are therefore subject to marketing pitches to a greater degree than adults. This is not always an ethical issue, but when the product is not good for children -- be it cigarettes or fast food -- it creates an ethical dilemma for the marketer charged with reaching that market. Shrubsole (2012) notes that company's efforts to reach children have become more sophisticated and therefore harder to govern. The problem has become so bad that it is a political issue, and even the United Nations is getting involved, having now issue a set of business principles and children's rights that serve as a framework for marketing ethics with respect to selling to children.

Horovitz, (2011) notes that as restrictions are developed with respect to marketing to children, such a blending games and advertising content, in order to suck children into the marketing. This is tricky enough with adults, but children stand very little chance of resisting, and the result is usually the economic exploitation of the children for the gain on the company that is doing the selling.

Developing Rules

In order to create a code of ethics where there are no laws to provide guidance, there are bodies that have taken the lead. A company should begin, for example, with a statement of ethical norms from the American Marketing Association (2012). There are three ethical norms that are mentioned: do no harm, foster trust in the marketing system and embrace ethical values. These norms should be the starting point for approach ethical dilemmas in marketing.

The AMA also publishes a set of values. These are honesty, responsibility, fairness, transparency, respect and citizenship. That honesty is at the top of the list is no accident, and it clearly makes the point that dishonesty in marketing is a violation of the basic ethical tenets of the profession. Fairness, respect and transparency are also important as well, since these things create a framework for positive dialogue between marketers and the world.

These industry guidelines highlight that the marketing industry and its professionals should take a long-term view of the issue of ethics in marketing. There is no benefit to violating these ethics in the pursuit of short-term gains. Instead, marketers need to focus on establishing their credibility with consumers. When they do that consumers will trust in the marketing system and be more open to the different pitches out there.

Additionally, the marketing association recognizes that when marketers behave in an ethical manner they are inviting government to introduce more legislation that constrains their ability to do business. This is especially true with respect to hot button issues like marketing to children. There is an understanding among professionals in the business that if ethical guidelines are not followed, they are risking greater levels of government intervention in the industry.

Additionally, when consumers are mistrustful of marketers, the approaches that marketers use become less effective. Marketing in today's oversaturated world is hard enough as it is; if consumers learn not to trust marketers at all the challenge will only get greater. The AMA guidelines, of course, are just a starting point. Each company will want to build on these guidelines to create their own high standards for marketing integrity. It is especially important that there are guidelines for specific ethical situations that the company is likely to see in its everyday operations.

Ethics in marketing is a critical issue for marketers today. They must always be aware of the different issues in marketing. Guidance for resolving ethical dilemmas can come from stated policies, based on the AMA's principles, but expanding on them to create guidance that marketers can utilize in their day-to-day operations.

Works Cited:

Akaah, I. & Riordan, E. (1989). Judgments of marketing professionals about ethical issues in marketing research: A replication and extension. Journal of Marketing Research. Vol. 26 (1) 112-120

Shrubsole, G. (2012). Marketing and advertising that respects children's rights. The Guardian. Retrieved November 24, 2012 from http://www.guardian.co.uk/sustainable-business/marketing-advertising-respect-childrens-rights

Horovitz, B. (2011). Marketing to kids gets more savvy with new technologies. USA Today. Retrieved November 24, 2012 from http://usatoday30.usatoday.com/money/industries/retail/2011-07-27-new-technolgies-for-marketing-to-kids_n.htm

Smart Consulting Group. (2009). Dishonest marketing in pharmaceuticals demands a big price to pay. SCG. Retrieved November 24, 2012 from http://www.smartconsultinggroup.com/2009/11/dishonest-marketing-in-pharmaceuticals-demands-a-big-price-to-pay/

AMA. (2012). Ethical norms and values for marketers. American Marketing Association. Retrieved November 24, 2012 from http://www.marketingpower.com/aboutama/pages/statement%20of%20ethics.aspx