In the information age, consumers are more critical and better informed about the products they buy and the actions that companies take to manufacture and sell them based on marketing strategies.
In fact, a study reveals that over 90% of consumers would boycott a company if they perceived it to operate with unethical practices. So that, consumers are demanding that companies work under a code of ethics with which they can identify.
If you really want to connect with your customers and build long-term relationships, it is essential that you know the concept of ethics in marketing.
What is ethics in marketing?
Let’s kick things off by clarifying what ethics is and how it relates to marketing.
According to the RAE, ethics is “the part of philosophy that deals with the good and brings together the moral norms that govern the conduct of the person, in any area of life”. This includes business and entrepreneurial activities.
So, applying ethics within a company is far from being a marketing or advertising strategy. On the contrary, it must be a philosophy that permeates all actions and people within it.
In simple terms, ethics in marketing consists of making morally correct marketing decisions, taking into account not only the business benefit but also the moral perspective and the social scope of their actions.
How to create a marketing code of ethics for your company?
The American Marketing Association (AMA) and the Institute for Advertising Ethics (IAE) have implemented codes of ethics that provide guidance for any organization of this type, mainly in a society that values information and transparency.
Meet them below and get inspired!
- marketing communications must be based on truth and integrity;
- the consequences of the company’s actions are the responsibility of the directors, therefore, they must encourage their collaborators to be ethical and responsible;
- marketers must act professionally;
- the company must fulfill its duties in the commercial exchange, that is, deliver its products and services according to the promised characteristics, prices and times;
- advertising must be clearly differentiated from news, educational or entertainment content;
- marketers must strive so that their actions satisfy the company’s interest groups or stakeholders: customers, employees and suppliers;
- the company must protect the privacy of its consumers;
- marketing actions must adhere to the legality of each country;
- the company must give a timely response to customer complaints;
- the values of the organizational culture must be lived and communicated with its stakeholders.
How to apply ethics in marketing?
So how can your company manifest its marketing ethics? Below, we present 5 practices that your business must implement to externalize its code of ethics.
Avoid illegal business practices
Practices such as price discrimination, Bait and Switchpredatory prices, price cartels or false promotions reduce the credibility of a brand.
Design original products in perfect working order
Design products with their own original specifications, perfectly assembled or programmed, avoiding planned obsolescence, for example.
Understand the needs of your client
Rather than closing a sale because it’s what your business needs, try to sell your customer a product that actually solves their problems.
Avoid misleading advertising and the use of stereotypes
Exaggerating the benefits of your product creates unrealistic expectations about your items, something that consumers will notice once they have purchased the product. This generates damage to the image of your brand.
Do not use bad practices of Digital Marketing
What are the benefits of ethics in marketing?
Now, applying ethics in marketing brings benefits to your business. Meet 5 of them below.
1. Build relationships of trust
Maintaining ethical behavior within the company gives you credibility, which facilitates the connection between consumers and the brand.
2. Capture good customers, suppliers and employees
By conveying an image of professionalism by communicating with truth and integrity, you will attract people who are looking for a brand with which they can share those values.
3. Protects against negative publicity
No business is exempt from receiving negative comments, whether they are customer complaints or supplier complaints. When this happens, the ethical reputation that precedes you will be your best defense.
4. Add value to your product
Working ethically allows your clients to see that your practices are correct, coming to identify with what you do.
This will undoubtedly favor your business, improve your brand image and, consequently, improve sales.
5. Produces personal satisfaction
By acting under solid ethical principles, the directors and officers of your company feel a satisfaction that will drive them to continue working correctly.
As you can see, applying ethics in marketing and building a code with principles and values is implement a philosophy of action in your company that will inspire, not only your customers, but all your collaborators.
If you liked this article, you will surely love our Marketing Guide with valuable information on Marketing strategies that will complement your code of ethics and take your business to a new level. Download it for free and receive it in your mail!
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