INTEGRATED MARKETING

COMMUNICATION

TOPIC- Evaluation of ethical, regulatory and

environmental

issues

in

marketing

communication

Submitted to: Mr Harshit Maurya

Submitted by: Shreya Modi (Section A)
Nupur Gupta (Section A)
Vibhuti Goel (Section C)
Batch: 2012-2015

INTRODUCTION
Marketing communications are messages and related media used to communicate with
a market. Marketing communications is the "promotion" part of the "marketing mix" or the
"four Ps": price, place, promotion, and product. It can also refer to the strategy used by a
company or individual to reach their target market through various types of communication.
Marketing communication includes advertising, direct marketing, branding, packaging, your
online presence, printed materials, PR activities, sales presentations, sponsorships, trade show
appearances and more. Marketing communications is a subset of the overall subject area
known as marketing. Integrated marketing communications see the elements of the
communications mix integrated into a coherent whole. This is known as the marketing
communications mix, and forms the basis of a marketing communications campaign.

Integrated means combine or amalgamate, or put simply the jigsaw pieces that together make
a complete picture. This is so that a single message is conveyed by all marketing
communications. Different messages confuse your customers and damage brands. So if a TV
advert carries a particular logo, images and message, then all newspaper adverts and point-ofsale materials should carry the same logo, images or message, or one that fits the same theme.
Coca-Cola uses its familiar red and white logos and retains themes of togetherness and
enjoyment throughout its marketing communications.

COMMUNICATION PROCESS
The communication process is sender-encoding-transmission device-decoding-receiver,
which is part of any advertising or marketing program. Encoding the message is the second
step in communication process, which takes a creative idea and transforms it into attentiongetting advertisements designed for various media (television, radio, magazines, and others.
Messages travel to audiences through various transmission. The third stage of the marketing
communication process occurs when a channel or medium delivers the message. Decoding
occurs when the message reaches one or more of the receiver's senses. Consumers both hear
and see television ads. Others consumers handle (touch) and read (see) a coupon offer.
One obstacle that prevents marketing messages from being efficient and effective is called
barrier. Barrier is anything that distorts or disrupts a message. It can occur at any stage in the
communication process. The most common form of noise affecting marketing
communication is clutter.

ETHICAL ISSUES
Ethical marketing refers to the application of marketing ethics into the marketing process.
Briefly, marketing ethics refers to the philosophical examination, from a moral standpoint, of
particular marketing issues that are matters of moral judgment. Ethical marketing generally
results in a more socially responsible and culturally sensitive business community. The
establishment of marketing ethics has the potential to benefit society as a whole, both in the
short- and long-term. Ethical marketing should be part of business ethics in the sense that
marketing forms a significant part of any business model. Study of Ethical marketing should
be included in applied ethics and involves examination of whether or not an honest

and factual representation of a product or service has been delivered in a framework of

cultural and social values. It seeks to promote honesty, fairness, and responsibility in all
advertising. Ethics is a notoriously difficult subject because everyone has subjective
judgments about what is right and what is wrong. For this reason, ethical marketing is
not a hard and fast list of rules, but a general set of guidelines to assist companies as they
evaluate new marketing strategies. Many people buy diet pills even though they are rarely, if
ever, effective. This is because some DIET PILL companies use exaggerated and
manipulative claims to essentially trick customers into buying these products. If that same
company committed to using ethical advertising they would probably go out of business.
However sneaky their business model may be, it is not illegal and it is keeping their doors
open.
For companies looking to improve the image of a brand and develop long-term relationships
with customers, this kind of unethical behaviour can quickly lead to failure. Customers do not
want to feel manipulated by the brands they like. Companies can use ethical marketing as a
way to develop a sense of trust among their customers. If a product lives up to the claims
made in its advertising, it reflects positively on the entire company. It can make the consumer
feel like the company is invested in the quality of the products and the value they provide
customers.
Every company has the opportunity to engage in ethical marketing. Any business, from the
smallest mom and pop store to the biggest multinational corporation can choose to be open,
honest, and fair when they advertise to their customers. When done in a thoughtful way,
ethical marketing can be an economical and effective form of advertising. Similarly, unethical
advertising doesn't guarantee higher sales or lower advertising costs.
Some companies operate according to lofty personal principles. For these companies,
advertising in an ethical way is a natural and necessary extension of their corporate character.
Corporate responsibility can be a major selling point to consumers who are interested in more
than just price and quality. Companies that are known for treating workers fairly, sourcing
sustainable materials, environmental stewardship, and charitable donation have to reflect
these principles in their marketing efforts. .
For other companies, ethical marketing will be little more than an opportunity to boost their
credibility. Domino's pizza, for example, carried out a well known advertising campaign in

which they showed consumers pictures of real Dominos pizzas without the studio
photography that makes them look so perfect. This was a refreshing look behind the artifice
of much advertising, but this did not signal a more open and honest relationship between
Domino's and the pizza buying public. The campaign was considered an attention seeking
stunt at best.

Principles of ethical marketing

All marketing communications share the common standard of truth.

Marketing professionals abide by the highest standard of personal ethics.
Advertising is clearly distinguished from news and entertainment content.
Marketers should be transparent about who they pay to endorse their products.
Consumers should be treated fairly based on the nature of the product and the

nature of the consumer (e.g. marketing to children).

The privacy of the consumer should never be compromised.
Marketers must comply with regulations and standards established by

governmental and professional organizations.

Ethics should be discussed openly and honestly during all marketing decisions.

Types of Unethical Advertising

Surrogate Advertising In certain places there are laws against advertising products
like cigarettes or alcohol. Surrogate advertising finds ways to remind consumers of

these products without referencing them directly.

Exaggeration Some advertisers use false claims about a product's quality or
popularity. A Slogan like get coverage everywhere on earth advertises features that

cannot be delivered.
Puffery When an advertiser relies on subjective rather than objective claims, they
are puffing up their products. Statements like the best tasting coffee cannot be

confirmed objectively.
Unverified Claims Many products promise to deliver results without providing any
scientific evidence. Shampoo commercials that promise stronger, shinier hair do so

without telling consumers why or how.

Stereotyping Women Women in advertising have often been portrayed as sex
objects or domestic servants. This type of advertising traffics in negative stereotypes
and contributes to a sexist culture.

False brand comparisons Any time a company makes false or misleading claims

about their competitors they are spreading misinformation.

Children in advertising Children consume huge amounts of advertising without
being able to evaluate it objectively. Exploiting this innocence is one of the most
common unethical marketing practices.

Ethics in advertising and promotion

Ethical pitfalls in advertising and promotional content include:

Issues over truth and honesty. In the 1940s and 1950s, tobacco used to be advertised
as promoting health. Today an advertiser who fails to tell the truth not only offends
against morality but also against the law. However the law permits "puffery" (a legal
term). The difference between mere puffery and fraud is a slippery slope: "The problem is
the slippery slope by which variations on puffery can descend fairly quickly to lies."

Issues with violence, sex and profanity. Sexual innuendo is a mainstay of

advertising content and yet is also regarded as a form of sexual harassment. Violence is
an issue especially for children's advertising and advertising likely to be seen by children.

Taste and controversy. The advertising of certain products may strongly offend some
people while being in the interests of others. Examples include: feminine hygiene
products and constipation medication.

The

advertising

of condoms has

become

acceptable in the interests of AIDS-prevention, but are nevertheless seen by some as

promoting promiscuity. Some companies have actually marketed themselves on the basis
of controversial advertising. Sony has also frequently attracted criticism for unethical
content (portrayals of Jesus which infuriated religious groups; racial innuendo in
marketing black and white versions of its PSP product; graffiti adverts in major US
cities).

Negative advertising techniques, such as attack ads. In negative advertising, the

advertiser highlights the disadvantages of competitor products rather than the advantages
of their own. The methods are most familiar from the political sphere: see negative
campaigning.

Future issues
Ethical thinking is responding to situations that deal with principles concerning human
behavior in respect to the appropriateness and inappropriateness of certain communication
and to the decency and indecency of the intention and results of such actions. In other words,
ethics are distinctions between right and wrong. Businesses are confronted with ethical
decision making every day, and whether employees decide to use ethics as a guiding force
when conducting business is something that business leaders, such as managers, need to in
still. Marketers are ethically responsible for what is marketed and the image that a product
portrays. With that said, marketers need to understand what good ethics are and how to
incorporate good ethics in various marketing campaigns to better reach a targeted audience
and to gain trust from customers.
Marketing ethics, regardless of the product offered or the market targeted, sets the guidelines
for which good marketing is practiced. When companies create high ethical standards upon
which to approach marketing they are participating in ethical marketing. To market ethically
and effectively one should be reminded that all marketing decisions and efforts are necessary
to meet and suit the needs of customers, suppliers, and business partners. Ethical behavior
should be enforced throughout company culture and through company practices.
However, marketers have been known to market questionable products to the public. These
tend to be controversial products in that they appeal to some while offending others. An
example of such a product that is sold regularly today is a cheap handgun. America is a
country in which its citizens have the right to bare arms, yet these weapons are criticized by
the public because they are sold at a low price making it rather easy to purchase by members
of less affluent communities. Critics have referred to these weapons as " Saturday Night
Specials" referring to the negative connotation that they are purchased to commit crimes. In
defense of the critics opinions, if in fact these guns are purchased with the intent to commit
such crimes, than one must question the ethics behind marketing these products to criminals.
Is the marketer facilitating the crime by appealing to this target market with a weapon that is
easily accessible? While the argument in this case may seem unethical due to the
questionable nature of these cheap handguns, this argument does not apply to the sale of all
guns. That is because weapons that are legally sold to customers at an affordable rate for
safety purposes, self-defense, hunting, and law enforcement are perfectly ethical due to the

fact that they are safe product that is marketed to a responsible consumer. This comparison
supports the fact that ethical marketing can be perceived differently consumers depending on
the nature of the nature of the product that is being sold.

ENVIRONMENTAL ISSUES

Environmental communication is communication about environmental affairs. As with other

forms of communication, environmental communication is both an activity/phenomenon and
a field of study that, not surprisingly, studies the activity/phenomenon.
As an activity/phenomenon, environmental communication is all of the diverse forms of
interpersonal, group, public, organizational, and mediated communication that make up the
social discussion/debate about environmental issues and problems, and our relationship to
non-human nature. Loosely speaking, we can refer to that discussion/debate about
environmental issues and problems as "environmental discourse." And, we can refer to the
even broader social discussion about Nature as the discourse of Nature. Environmental
communication manifests as the discourse of Nature and its subset, the environmental
discourse. From billboards to Twitter to Facebook to Time magazine to Current TV to your
local public hearing to scientific reports, environmental communication is everywhere.
Environmentally friendly

products

can

increase

and

decrease

production

costs;

environmentally friendly production may increase costs for organisations and their suppliers
but this may be offset by lower fuel bills through energy efficiency measures or an increase in
sales caused by a positive product image. An organisation may able to pass increases in
production costs (caused by Environment Friendly products) to consumers. However this will
depend on the level of increase, type of consumer, competitor prices and the strength of the
economy. For example during times of recession consumers will place price above many of
the other factors making up the marketing mix.
All organisations need to carefully time when their product reaches consumers; exact time
of distribution will depend on the product or service being distributed. Such timing may have
an environmental implication.
Some products will need to reach the consumer shortly after production for example fresh
food in order to retain freshness, taste or nutritional value. The fastest method of distribution
may damage the environment. Conversely a more environmentally friendly method e.g. via
canals may impact on speed of distribution and consequently quality of the product. A
method of distribution that combines speed with environmentally friendliness may increase
distribution costs as some of these processes are still under development e.g. electric vehicles.
In addition to the type of transport used for distribution, an organisation will need to review
distribution techniques; For example timing deliveries so that they occur during off peak
hours and do not contribute to congestion. Some organisations attempt to make fewer

deliveries, whilst others promote concentrated products (e.g. fabric conditioner) as they
increase the number of products that can carried in each delivery vehicle.
Even if environment friendly distribution is not at the top of an organisations list of
priorities, government policies may elevate it to the top. Congestion charging and low
emission zones have been introduced in the London. Apart from the obvious increase in costs
involved in following such policies, a failure to observe environment friendly rules and
regulations will lead to fines, sanctions and negative publicity.
After reviewing internal distribution methods an organisation will need to review supplier
and subcontractor distribution as consumers and the media expect organisations claiming
environmental credentials to work with other environment friendly organisations.

REGULATORY ISSUES
What Marketing Communications covers

The Code of Standards for Advertising, Promotional and Direct Marketing applies to
commercial marketing communications and to sales promotions that promote the sales of
goods or services. Section 1 of the Code contains full details of the marketing
communications that are covered.

The Code

Describes what is not acceptable advertising.

Pertains only to content of ads.
Intent is to provide standards for responsible and effective advertising without
minimizing the right of firms to advertise.
Sets standards Clearance.
Used as criteria to assess whether a complaint is legitimate or not.
Supported by member organizations

What Obligations Are involved?

The Code, which is based on the principles established by the International Chamber of
Commerce requires that all marketing communications:

should be legal, decent, honest and truthful

should be prepared with a sense of responsibility to consumers and society

should respect the principles of fair competition generally accepted in business.

The Code contains a set of General Rules and these are supplemented by additional
requirements for particular products or sectors. In general terms, the rules are designed to
ensure that marketing communications do not mislead or cause general offence.
The same principles apply to sales promotions including special offers involving vouchers,
coupons or samples, reduced price or free offers, prize promotions and competitions. In
addition, the detailed rules for such schemes are set out in the section 3. The Code is
applied in spirit as well as in the letter.

For Example
In today's complex commercial world, children are increasingly recognized and behaving
as an independent consumer group. With discretionary income to spend and influence on
family purchases, children are a market force on the rise and consequently, a target

audience for marketing and advertisements. But what messages are being directed at
children and how will these messages affect their cognitive development and shape their
lives?
While children are able to differentiate between marketing and other forms of
communication from a young age, they're more vulnerable to manipulation through
advertising messages and prone to accepting such messages as truthful and unbiased.
Marketing tactics and advertising can lead children to adopt certain consumer behaviour
which can result in negative impacts on children's physical and mental health. One such
negative consequence of child- and youth-targeted marketing is obesity which is increasing
rapidly in both developed and developing countries. Obesity has been linked to the
consumption of energy-dense, micronutrient-poor products that are high in fat, sugar, salt
and which are marketed directly to children.
Yet child- and youth-targeted marketing is more than just commercials in traditional media
channels. Children today have access to countless media outlets that are far more difficult
to monitor than radio or television. Marketing to children has expanded to include
messaging at points of sale, children's clubs, sporting events, concerts, websites, social
networking sites and even in schools. Marketing messages may introduce children to
inappropriate content like violence, sexualization and unrealistic body images.
Regulation of marketing communication by federal agencies.

Deceptive advertising.
Reasonable consumer
Unfair practices
Information regulation
Product labelling
Prescription drug advertising
Media self-regulation
Advertising self-regulation