Research three to five (3-5) ethical issues relating to marketing and advertising, intellectual property, and regulation of product safety.
Marketing and advertising are the main channels that all companies use to get access to the customers and present their products to the potential customers. These have a very huge impact on the sales and the overall profit that the company will get. Every company must put into consideration all the legal and ethical issues to ensure that they attract more customers to buy their products hence maximizing their overall profits. Failure to put into consideration the ethical and legal issues in marketing will repel the customers from the company hence low sales and this may put any company out of business.
The legal issues related to marketing and advertising include the laws and regulations that are laid down regarding marketing and adverting. Every state has statutes and general laws that dictate how marketing and advertising has to be carried out. From whatever area that the company operates, it has to follow the laws about marketing and adverting. Failure to follow the laws may put the company in legal problems which may be very costly and affect their profit margins. Such legal problems may also destroy the reputation of a company making the potential customers as nobody wants to be involved with the products of a company that has legal problems concerning their marketing and advertising strategies.
Ethical considerations regarding marketing aim at regulating exploitative marketing techniques which most competitors use to outdo their rivals. For instance, a company can reduce its costs of the products to a very low amount which means the other firms may not be able to manufacture more good as the cost of production will have increased. More so, some advertising strategies can paint the image of a rival firm and this can have an adverse effect on the firms’ profitability. It’s the governments’ responsibility to ensure that the best practices take place in the dynamic market structure.
Regulation of intellectual property rights will motivate and safeguard the works and creativity of business oriented people which is a sign of progression. In every state, there are laid down regulations, laws and procedures that aim at protecting intellectual properties. Every company must put into consideration all the legal regulations that have been laid down to protect intellectual property. Failure to do this may put the company in legal problems. Ethical issues that cover intellectual property expect every company to respect the inventions of other people. Copying the intellectual idea of another person is deemed as unethical and should be avoided by all companies. All this ethical standards will be beneficial to all individuals in the sense that the markets will be stable; consumers will get safe products at reasonable prices and the businesses gain desirable profits.
Argue for or against Direct-to-Consumer (DTC) marketing by drug companies.
Most drug companies have formulated different strategies to create awareness of their products to the general public. Drugs are one of the most sensitive products in our markets. They can affect the health of consumers if wrong prescriptions are made. The issue of drug marketing by various drug companies is a dilemma which is hard to be clearly narrowed to a specific option. This is so because DTC increases awareness of drugs to patients who can go the doctors after recognizing their sickness are curable. “Direct marketing refers to promoting a product or service straight from the seller to the consumer, without intermediary advertising such as television commercials, radio ads, or public displays” (Wolski, 2013). More advantages fall to the companies because the demand for the products increases and this boosts sales and hence increment in profitability. There is however identifiable effects of DTC. It can create awareness to the wrong...
References: Halbert, T., & Ingulli, E. (2012). Law and ethics in the business environment. (7th ed., p. 21). Mason, OH: Cengage Learning.
Hurd, R. (2012, August 9). Oakland roofing company president sentenced for tax fraud. Retrieved from http://www.mercurynews.com/top-stories/ci_21278051/oakland-roofing- company-president-sentenced-tax-fraud
Wolski, C. (2013, December 7). What is direct to consumer marketing? Retrieved from http://smallbusiness.chron.com/direct-consumer-marketing-788.html
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