Question

Response should be between 500 words or more "One lesson that every marketing student should understand s that most companies will engage in some form of misconduct. As Warren Buffet stated, "we just hope it's small and that we find it quickly." Because marketers engage in behaviors impacting many varied stakeholders, their potential to do harm and opportunity to have a very positive impact is great...."

1a. Why do you think marketing is an area that is involved with so many ethical issues? Provide at least 2 reasons to support your answer.

1b. Name any 2 companies from the "Food" industry that received a lot of media attention because of unethical activities in the last 5 years. Discuss those issues. How did such issues impact the organization?

Answer 1

1a. The marketing is the process of selling, promoting and communicating the ideas, concepts and products to the customers end. The process needs the wide range of knowledge of that particular product.

The marketing is done in different way by different organization’s. The presentation impacts the business. So, in order to sell the product, the organization forgets the ethical way of marketing. The ethical issues are as follows:

1. The marketing Exploit the social patterns of the society and culture. For example, a child is used to market the product such as any energy drinks which shows that the product has more number of vitamins and minerals as well as other materials which help in the growth of the children. They compare the children who do not use the product. This would imitate the child and they demand for it. The parents who are well in their economic conditions buys the product but it discourages the parents who are below income group. This can be one reason for the crime if affects in deep. Another example, a woman is projected for the most of the advertisements in the wrong way or any famous personality can be projected for the advertisement or marketing which would impact the mind of the customer. It changes the behavior of the male customers towards the female society or group. It increases the gender discrimination.
2. Manipulating the thinking of the customers – In The marketing process, the customer thinking’s are manipulated. Most of the companies only aim of marketing is to sell the product and generate the revenue. They project the product in such a way that the information convey about the product is not correct as well as not wrong.

1b. Two companies name from the "Food" industry that received a lot of media attention because of unethical activities in the last 5 years are as follows:

1. Nestle Company
2. General Mills Company

Nestle company uses the unethical promotions, manipulating uneducated mothers, pollutions, price fixing and mislabeling the products. In India, the company has violated the food safety standards. The Maggie one of the product of the nestle was marketed well here and captures the whole market. It was unknow by the customers that the contents of the Maggie’s harm the health of their fellows. It was projected by the company that is prepared in 2 minutes which was not exactly. It contains the lead quantity more than what is required. So, the product was banned in the Indian market for a period of time. This dismisses the company image and brand. The trust of the customers also broken towards the product.

Coca Cola company which is most famous among all the beverage companies. The company suffering from the issue that they use the addictive ingredient in the product which harms the people health. While projecting the product, there should be warning or precaution note on the product. As the information given by the company misleads the youth of the countries. They did not project the correct information. Due to this they have the losses in the revenue generation.