Explain the reasons for/need of ethical behaviour in marketing scenario

Marketing  is  the  most  important  element  of  any  business.  It  influences  sales  and behaviour of customers. The main reasons for ethical behaviour are:-

i)       To  reverse  declining  public  confidence  in  marketing:  Unethical  practice  such  as misleading package labels, false claim in ads, infringements of well establishment trademarks, etc.  not  only  declines  public  confidence  in  marketing  but  also  damages  reputation  of  all marketers. To reverse this situation, Companies must set high ethical standards & enforce them in consumer‟s interest as consumers are lifeblood of business.

ii)      To avoid increase in Government regulation: Most of the governmental limitation on marketing are the results of management‟s failure to live up to its ethical responsibilities at one time or other.

iii)     To sustain the power granted by society: – Marketing executives hold and use a great deal of social power as they influence market & speak out on economic issues. However, there

are  responsibilities  tied  to  this  power  &  if  marketers  do  not  use  their  power  in  a  socially acceptable manner then that power will be lost in long run.

iv)     To protect Image of the organization: – Buyers often form as impression of an entire organization based on their contact with one person & and mostly that person represents the marketing functions.