Marketing ethics is defined as the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. Ethical practices in marketing of products affect all aspects of the marketing mix. Marketing ethics is a dimension of social responsibility that involves principles and standards that define acceptable conduct in marketing. Marketers should be aware of ethical standards for acceptable conduct from several viewpoints customers, special interest groups, and society at large. Ethical standards should be upheld all times in company, industry, government and customers . Marketing as a whole is an awareness campaign that touches on the different aspect for its target market. When marketing activities deviate from accepted standards, the exchange process can break down, resulting in customer dissatisfaction, lack of trust, and lawsuits. Marketing ethics goes beyond legal issues. Although we often try to draw a boundary between legal and ethical issues, the distinction between the two is often blurred in decision making. The legal system provides a formal venue for marketers to resolve ethical disputes as well as legal ones.Ethical issues in marketing provide the knowledge to the marketer on the sense of greater good in which the question on ‘what outcome will be developed?’.
An ethical issue is an identifiable problem, situation or opportunity that requiring an individual or organization to choose from among several actions that must be evaluated as right or wrong, ethical and unethical. Marketers must be able to identify these issues and decide how to resolve them. This requires a lot of familiarity with the many kinds of ethical issues that arise in marketing. Product related ethical issues generally come up when marketers fail short of unveiling risks related with a manufactured goods or information concerning the purpose, worth, or use of a product. Ethical issues also arise when marketers fail to inform customers about existing conditions or changes in product quality. An ethical issue in marketing of products thus affects all aspects of the marketing mix. Promotion may also create ethical issues in a variety of ways, among them deceptive advertising and scheming or illusory sales promotion, strategy and media hype. Other ethical issues are linked to promotion, including the use of liberty in personal selling situations. This negatively affects the product involved creating a highly controversial issue in the ethics of marketing as a whole. Some of the major markets affected by the ethical issues in regard to marketing are mainly pharmaceutical companies as their ads strongly influence doctors and consumers, timely and accurate information is important. In pricing, common ethical issues are price fixing, predatory pricing, and failure to disclose the full price of a purchase. Ethical issues in distribution involve relationships among producers and marketing middlemen. Other serious issues include manipulating a product’s availability for purposes of exploitation and using coercion to force intermediaries to behave in a specific manner.
Literature review
Ethical marketing in regards to sports drinks is essential that promoters relay information that is important. Just like the pharmaceutical companies, companies producing this drinks put up ads that are both enticing and have strong influence on their audience. Most of the advertisements feature prominent athletes from golf to rugby who endorse the goodness of the product. Through research in many of the brands it has shown that they not only hydrate the body but may cause harm to different parts of the body. Most advertisements when feature emphasize the fact that it may either reduce the energy used or help the body disengage from fatigue during initial work outs. Numerous trials have been taken to check whether the products have vast effects on different people. In this case marketing the product to youth and children may be unhealthy. The strides taken by the television industries from drafting of codes of practice state that in relation to children “advertisements directed to children for food and or beverages should not encourage or promote inactive lifestyle”.
With such rules and regulations ethical marketing is important in all products so as to examine the need for better promotion of healthy products and relaying important and valuable information on the products. Such a view extends not only to sports drinks which have become a major concern in the market but to other products that are may affect consumers directly. Sports drinks initially were made for athletes and those who do not like the taste of water. It was a hydration drink that would rejuvenate bodily functions and help players continue with their work outs.
In marketing of the sports drinks marketing managers understand the target market. In order for its target market to completely have faith in the product certain issues need to be addressed. Products that are not fit for human consumption are not quite the requirement in sports drink. The survey or research made by Roy J shepherd who blankly writes on the dangers and effects of certain drinks that may cause hyponatraemia (EAH). In which he reviews evidence for the prevalence of both biochemical and clinical hyponatraemia. It concludes that a limited number of cases of EAH occur after a long distance events when performed under cold and wet conditions. These revelations conclude that fluids taken under such conditions causes EAH but this only occurs in long distance races. His recommendation depicts that athletes should be educated on fluid intake as they take on some of the major events. This responsibility solely lies on companies manufacturing sports drinks as an ethical responsibility.
Market research is a part of marketing that is crucial and needs to be undertaken with high ethical standards. The brand manager of Gatorade was keen in market research as a way of evaluating their presence in the market. This led to featuring of grass root marketing as they discovered a small percentage of people use their products. This meant that they needed to rebrand and discovered the people’s need for nutrition thus rebranded their products and put them in the supermarket shelf. This meant they were accessible to everyone with no target at hand. But made efforts to educate retailers on the products even as they sold them.
These isotonic sports drinks are often consumed to offset the effects of hydration and improve endurance performance, but hypotonic drinks are more advantageous. A study was carried out to compare the absorption and effects on performance of a commercially available hypotonic drink, with those of an isotonic drink, a hypertonic drink and a noncaloric placebo. In conclusion, the evidence suggests that a hypotonic sports drink provides minimal to moderate faster fluid absorption than the more concentrated isotonic-hypertonic sports drinks. With such revelations the sports marketing research and advertisers need to be ethical and relay information that would be important to their major clients.
Ethical marketing strategies maybe compared to social responsibility of a company to its clients. By doing so the company is able to share information relevant to the clients without losing the customer. These strategies help the company develop a stronger market making it easier for the clients to believe in their product. Another method that companies may use to safeguard ethical standards in marketing is by enforcing a code of ethics that employees in marketing use. This would be by getting rid of unethical employees and rewarding the ethical employees. This becomes critical especially in the marketing department as they are the most critical team in the organization. With such criterion the managers need to keep a close eye and ensure the smooth operation of the products in the market.
Ethics in marketing of the sports drinks need to be high as they may have adverse effects on the clients. This increases the rates at which different sports perform. Most athletes who use the energy drinks are normally those involved in long distance races or cyclists who need to be hydrated more as they are using and losing more water. Even with such discoveries such as the use of milk as a hydrant many athletes still use the sports drinks to hydrate themselves. The nature of most sports requires stamina and this would help them to determine how fast they are. Ethical marketing strategies may well be affected by major competition which may sway the company to undertake some practice that may not really reflect their vision on the product. This in part is called unhealthy competition and can either build or destroy a company. Another concept that may be derived as ethical reflects from smaller businesses that there may be circumstances where marketing practice is justified for one business and not another. Control of prices without manipulation maybe another ethical way to deal with competitors without slandering or destroying a company name altogether.
Researchers have expanded their discussion of ethical responsibility and commitment to consumers with an emphasis on the concept of global citizenship. Putting corporate commitment to social and environmental responsibility into global practice gives organizations a strategic advantage in their efforts to expand business scope and profitability. According to kotler ethical marketing involves strategic and systematic coordination of the variables of product, price, place and promotion. This will efficiently and effectively manage the various needs and wants of stakeholders. Doing what is right through ethical communication is a strategic direction not for profit and for profit organization. Consequently, consumers trust is earned by organizations which ultimately result in expanded market share.
Ethical commitment and responsibility is an important business practice that should be adequately demonstrated to all stakeholders. Studies indicated that organizations that provide honest information to their consumers reap lasting rewards ranging from brand loyalty, customer satisfaction and retention, to expand market share. The need to practice ethical management strategies in any organization is important as it affects different parts of the organization. Unethical managers may ruin an organization as they may not follow on the code of conducts set for the company.
Methodology
During prolonged exercises in the heat, atheletes typically ingest water or carbohydrate solutions (sports drinks) to benefit from the thermoregulatory, cardio vascular and performance advantages of nutrition and rehydration. Commercially available sports drinks intended for for se during exercise vary in composition. Athletes then realize these differences and inquire as to which sports drink will maximize their performance. In this case few studies have compared the performance of effectiveness of rehydrating during exercise in the heat with currently commercially available sports drinks.
The research findings done show how the amount of sports drink that is voluntary ingested during exercise. This largely depends on it palability, thirst quenching efficacy and bladder filling sensation. Studies and research show sodium in sports drinks is to increase intestinal glucose transport and ultimately promote water absorption. The aim of the study was to assess if rehydration with water or commercially available sports drinks i.e. Gatorade, powerade affects anaerobic exercise performance differently. Research shows that sports drinks result in improved anaerobic performance in comparison with plain water.
The experimental design of the sports drinks explains more on how the concentrated drink affects the body metabolism as it releases energy into the body. This experiment puts in percentage all the ingredients in the drink and how each affects absorption levels in the body. The experiment results focus on the performance responses, fluid and thermal balance, sodium balance and blood analyses. The results found in the sports drinks makes athletes to increase in the concentration of the energy in the sports drink. From the experiment the results show how the composition of the carbohydrate-electrolyte solution. This results show the diverse effects that this drink imposes on the athletes.
One limitation of this study is that by using commercially available sport drinks the separated effects of sodium or carbohydrate in MVC were not tested. The end results in the experiment show the efficacy of the sports drinks and how it affects the body functions after ingested. This results show a contrast from the main function on rehydrating. With this drinks containing concentrated contents it makes it harder to differentiate and discover which the best sports drink is. Through such experiments more information must be relayed and more studies undertaken make it possible for them to realize the importance of the products.
It is evident from the above experiment that most consumers have no idea of the type of ingredients used in the drinks. This type of information should be relayed on the drinks for easy choosing. Ethical marketing is required to be able to educate consumers on the effect of the drink to their performance. This information will help them to choose carefully on their preferred mode of drink during their work outs.
This strategy encourages better management of resources and this will enhance growth of the organization. With these ethical strategies the organizations find that their customer base increases as many customers appreciate honesty when dealing with this organization. In rolling out such instances the organization can skillfully operate their profits without any kind of hindrance. Marketing is the major part of any organization and the eyes in which customers foresee a company it is paramount that it well establishes itself through proper advertising.
Such details may seem small and far reaching but the extent at which an organization embraces the community through media is what sticks in customers minds. For well established companies their main agenda to remain ethical and trusted by their potential and current client is by providing a wider service range making sure that all particular areas are well covered. In the global economy companies have found ways better to improve communication by letting consumers complain directly to them on whether they are satisfied with the service or something can be changed.
The ethical responsibility of any company is mostly visible on the way the clients are treated and the kind of customer service available. A company dealing with sports drinks is liable for that customer if anything happens that would damage their career then the company would have to compensate the customer for damages caused. This may be due to certain chemical used that are not mainly for purpose of hydration and in that case cause death, the company will need to compensate and look into the situation. Ethical responsibility to consumers makes the company prosper as they are well trusted by the clients. This provides a better way to reach the clients for the hard work. This enforces more of a well deserved growth for the company.
Marketing ethics in any company are important companies that do little to deliver quality in their products later collapse. Ethical marketing managers use their ability of truth and honesty to attract and retain customer satisfaction in their jobs. Sports drinks market is a thriving market that is of scrutiny than any other companies. This is because of instances of doping that occur in many athletes and thus they require being ethical to provide products that do not harm their consumers. Ethical marketing is not a facade and can be practiced in any organization making it easier for the client to trust the product. Ethical marketing standards are affected by the marketing concept as its part of managerial philosophy for many marketing executives. This enhances their knowledge and how to distribute to the market.
Ethical marketing strategies are designed by the marketing team and by doing grassroots level as Gatorade did when unrolling to grocery shelves. It provides a better platform for market research and well designed plans for better marketing. These way consumers are able to learn more on the product and execute plans that will benefit the company. This is the best way to go as per the company marketing strategy. Ethical marketing strategy for sports drinks should be adhered to and respected by those working in the company. This will enhance growth and trust in the market and by creating such trends it will provide a better competitive edge in the company.
References
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