The impact of ethical issues in marketing Essay Example

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The impact of ethical issues in marketing


Over a considerable amount of time, people have become more aware of the concept of ethics and more so when it relates to the organizations. The ethical problems that arise in marketing can be said to stem from disagreements and conflicts between the concerned individuals. Additionally the dynamic nature as well as the unforgiving economic environments leads to challenges that limit the prospering of firms and thus most of them tend to be struggling to survive. Due to the wide recognition of business, ethics there have been an evolution on the collection representations and more so when it comes to the role that business plays in a society (Kotler, 2004).

Literature review

In the current marketing environment, ethics can be said to be playing a very vital role this has been augmented due to globalization as there have been spread of business beyond the national boundaries and thus marketers have to deal with a number of people from different cultures. A great number of legal entanglements and the scandals results from the pressure of meeting the performance objectives. Companies irrespective of the industry they are operating in need to ensure that they adhere to ethics at all times. A great number of companies such as Nestle and Mc Donald at one time faced many problems and incurred huge monetary fines since they had neglected the ethical issues in their marketing practices (Reddy, n.d). Oyeode, Abdussalam and Ishola 2016, further argues that the marking offices need to come up with programs and more so pay attention to the ethical issues but in doing so they need to be aware of the cultural sensitivity associated with the global village since currently we operate in a global village. Additionally, it has also become compulsory for companies to have inbuilt ethos, values and cultural resemblance.

Conclusion and implication for Australian Business

In regard to the issue of Ethics the Australian businesses needs to consider the aspects of ethics in their business and ensure that they adhere to it at all times. By ignoring ethics and treating it as a much lesser aspect in the organsiation, they are likely to incur huge losses since the consumers may shun away from buying items from them. A great number of consumers nowadays tend to consider other aspects such as ethics when making their purchases. In this regard when they apply and make use of ethics they are likely to benefit greatly as compared to the other businesses. More so they need to consider ethics in the manner in which they conduct their business and interact with the society and the most important thing relates to how they make their advertisements to the public. A single mistake in their advertising can lead to cripple the business and may even force closure of the premises.


Kotler, P. (2004). Marketing Management: Analysis, Planning and Control. Englewood Cliffs, N.J.: Prentice-Hall.

Reviewed articles

Oyeode, A, Abdussalam, F. & Ishola, J. (2016). The Impact of Ethics on Marketing. International Journal of scientific Engineering and Applied Science, 2, 3.

Reddy, H. (n.d). Ethical challenges in marketing. IOSR Journal of Business and Management, 48-50.

Consumer taking a stance against misleading advertising and deceptive marketing practices


The traditional methods of marketing such as the give-away, contests, promotions and advertisement still holds a place and they can also be used so as to sell the product and service effectively. However, with the emergence of the internet, there have been emergence of newer online technologies and tactics and this have offered the marketers with an opportunity to cast a wider net and attract great number of consumers from the global arena. There exist a number of laws that prohibits false and misleading advertising in various countries and this gives room to the judicial bodies in those countries to deal with the marketing issues related to deception (Ferrell, 2010).

Literature review

A great number of the alleged deceptive claims are manipulative rather than being out rightly false. Based on Shanahan and Hopkins 2007, there is a very strong relationship that exists between misleading advertising and deceptive marketing practices and purchase by the consumers. This actually means that the misleading advertising and deceptive marketing practices have a very strong impact on the buying behavior of the consumers. This is because the consumers act on information offered to them and they are more likely to take the information as true. In such cases the buyers usually suffers the dissonance when the purchased product fails to meet the function that have been advertised. Prendergast, Po-yan and Derek 2009, further asserts that advertising credibility differs based on the product that is being marketed. In this regard, it can be observed that advertisements related to weight-loss products, beauty and cosmetics products just to mention a few of them tend to e less credible. The verbal claims that are made by consumers tend ton offer a wider margin for deception than when the numerical claims are used. Cable television, broadcast television and radio were termed as more credible due to the advertising regulations that are in place. The use of direct mails and the internet are categorized as the least credible and this is mainly due to the freewheeling as well as the unregulated nature of internet.

Conclusion and implication for Australian Business

Misleading advertising and deceptive marketing practices in most contexts is illegal however; the advertisers have devised other ways of deceiving the consumers in way that seems to be legal or technically illegal but unenforceable. With the changing nature of a great number of people the Australian business, making use of misleading advertising and deceptive marketing practices mat be on the losing end since consumers are currently being guided by facts rather than by the claims made in the adverts (Shanahan & Hopkins 2007). Therefore, the Australian businesses needs to ensure that they make use of media which is categorized as more credible more often so as to reach and attract a greater number of consumers.


Ferrell, P. (2010). Marketing. Boston: Cengage Learning Inc.

Journals reviewed

Prendergast, G, Po-yan, L. & Derek, T. 2009, A Hong Kong study of advertising credibility.» Journal of Consumer Marketing, 26, 5, 320-329.

Shanahan, K. & Hopkins, C. (2007). Truths, Half-Truths, and Deception: Perceived Social Responsibility and Intent to Donate for a Nonprofit Using Implicative, Truth, and Duplicity in Print Advertising. Journal of Advertising, 2, 33-48.

The impact of globalization on marketing


Globalization of the markets is seen as being the most fascinating development that has taken place in this century. Based on the notion that marketing is a highly dynamic domain and that it is strongly connected to the energetic world there is no way in which marketing soul evade or remain unmoved by the aspect of globalization. Despite the fact that not all companies are willing or aiming at operating in the global arena they are in one-way or another affected by the process of globalization. This is so since they compete with companies that surpasses national markets and the there can also be a change in the consumer demands (Thoumrungroje, 2004). Due to the marketing activities globalization calls for the standardization of the prices, products, promotional campaigns and distribution channels.

Literature review

In relation to the marketing activities in the global arena, there is the unprecedented intensification of competition and numerous, fast and intense changes in almost all areas. Additionally there has been the emergence of global products. Due t the fierce competition marketing activities needs to be carried out in dynamic global environment and this calls for frequent revisions of the various marketing programmes (Naghi & Para, 2013). Through globalization, there has been generation of economies of scale through standardization. Creation of unique brand name and opportunity for market expansion and easier and faster access to new resources and other sources of financing. There are also a number of drawbacks which include the negative effects of centralization, insensitivity to the local markets and high risk management as well as the danger to developing product that are too standardized just to mention a few of them. There have been debates on whether marketing needs to be localized or standardized (Parnell, 2006). Thus in fairness, companies need to acknowledge that both the globalization and localization strategy have their own share of challenges and thus this challenges needs to be minimized to enhance the success of the marketing activities locally and globally.

Conclusion and implications for Australian Business

Australian businesses need to take note of the aspects of globalization since it is here to stay. In this regard, they need to take note of certain aspects to enhance the success of their marketing activities even in areas that surpasses their national boundaries. In this respect to marketing activities, need to ne glocal meaning that it should have some local and global aspects at the same time. This will assist them greatly and ensure that they succeed in their globalization agenda. Instead of the Australian businesses trying to determine whether regional, global and local action is appropriate they need to place great emphasis on the identification of how and which industrial, environmental and organizational factors with the aim of balancing the global and local perspectives.


Thoumrungroje, A. (2004). The effects of globalization on marketing strategy and performance. Washington State University, College of Business and Economics.

Journal reviewed

Naghi, R & Para, I. (2013). The Effects of Globalization on Marketing. Journal on Business Review, 2, 3.

Parnell, J. (2006). Reassessing the “Think Global, Act Local” Mandate: Evaluation and Synthesis, Serbian Journal of Management, 1, 1, 21 – 28.

Importance of culture in marketing


As of now, the differences of countries are very pronounced and a great number of companies achieve the required sales in countries by manufacturing products that meets the needs of individuals. This entails considering the foreign markets as being segments of the global markets and thus act accordingly with adapt marketing programs to a countries cultural values (Wolf, 2000). Therefore, it can be argued that the countries culture is of great importance in the determination of the marketing program that should be used in launching and marketing new products in the markets. Culture is of great importance in doing business in the local markets but it gains more significance when applied in international marketing since people have different nature, believes, language and culture.

Literature review

Based on Kaur & Chawla 2016, the marketing approach of the globalised organizations have been formulated in a manner that conforms with the realities of culture and the differences between cultures in a wide range of areas all over the globe. The aspects of global marketing have affected in a great way the cultures of the various nations and it is playing an essential role in the emergence and cropping up of the global culture. Culture have also been found to have an influence on the marketing mix of products and services and this is due to the changes in the needs of the consumers overtime due to cultural diversification (Kaur & Chawla 2016). Ekerete 2001 further asserts that culture affects the pricing, promotion, distribution and product offering. The consumers ought to be receptive of other individuals way of life and this will lead to inter-cultural socialization and the government have a role to play by ensuring that they engage and promote mass literacy programmes to their citizens. Firms mainly adopt certain strategies with the aim of overcoming competition in the market as they aim to get more shares and deal with the ever-changing trends since they have an impact on supply and demand.

Conclusion and implications for Australian Businesses

In conclusion it is evident that the Australian businesses needs to consider the cultural differences that exists between the various people in the globe prior to deciding the strategies that they will use in marketing their products and services. a major challenge that they should consider is that even people who live in the same area or society also have different customers, religion and traditions thus they should not always judge the customers in a certain geographical area of having the same choices.


Wolf, C.J. (2000). Globalization: meaning and measurement. Critical Review, 14(1), 1-10.

Reviewed journals

Ekerete, P. (2001).The Effect of Culture on Marketing Strategies of Multinational Firms: A Survey of Selected Multi-National Corporations in Nigeria, African Study Monographs, 22, 2, 93-101.

Kaur, M. & Chawla, M. (2016). Impact of Culture on Marketing Strategies. Imperial Journal of Interdisciplinary Research, 2, 3.