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Ethical and Legal Aspects of Marketing

This document discusses some of the key ethical and legal aspects of marketing. It covers topics like ethics, creating environmentally responsible products, examples of ethical conduct from companies, ethical issues in marketing like creation of needs and sugging. It also discusses some important aspects of consumer law in Australia regarding deceptive advertising, price discrimination, implied conditions and warranties, and resale price maintenance.

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Rucha Nimje
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1K views13 pages

Ethical and Legal Aspects of Marketing

This document discusses some of the key ethical and legal aspects of marketing. It covers topics like ethics, creating environmentally responsible products, examples of ethical conduct from companies, ethical issues in marketing like creation of needs and sugging. It also discusses some important aspects of consumer law in Australia regarding deceptive advertising, price discrimination, implied conditions and warranties, and resale price maintenance.

Uploaded by

Rucha Nimje
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Ethical and Legal

Aspects of Marketing

Ian Mejia
Redfield College
2009
‘Being good is good business’ –
Anita Roddick, The Body Shop founder
Ethics
 The general values and morals that
determine the generally accepted
behaviour.

- Some groups have voluntary codes of


conduct or ethical standards.
- A business also has a legal responsibility
to comply with legislation (Mainly the
Trade Practices Act 1974)
Environmentally Responsible
Products
 Business can damage the
environment through:
-depleting natural resources
in production
-creating products or
packaging that is not
environmentally friendly.

How can businesses


overcome these issues?
Examples of Ethical Conduct
 Starbucks – working
with coffee growers
 Hybrid cars –
reducing the use of
natural resources
 The Body Shop – no
testing on animals
 Woolworths – move
to no plastic bags
Ethical Issues in Marketing
 Creation of Needs
 Retail Developments
 Sugging
Creation of Needs
 Marketing can now create a need in a
consumers mind instead of targeting a
demand in customers.
 Issues with advertising to kids
 ‘Impulse buying’
Sugging
 Selling under the guise of a survey or
research.
 Not illegal but highly unethical
 You need to be smarter when filling in
details.
Consumer Law in Australia
 Deceptive and misleading advertising

- This is illegal under Section 53 of the trade


Practices Act 1974.

- Page 208 in the text book


Price Discrimination
 The practice of selling the same product at
different prices in different markets.

 Section 49 states businesses must not


charge different prices for goods, if those
prices do not reflect differences in the
costs of providing those goods to different
businesses.
Implied Conditions and Warranties
 Implied conditions is a condition of sale
that requires a product to be fit to serve
the purpose for which it is purchased.
 Merchantable quality is a condition that
the product is in a condition reasonable
for its advertised condition and price.
Resale Price Maintenance
 Resale Price Maintenance is a practice
which involves a manufacturer making an
agreement with its distributors that a
product be sold at a certain price.

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