Unethical Marketing
- Week 11 -
Marketing Management
Ryan Abramowitz 756363
Marco Cersosimo 773626
Anisha Ann Koshy 668815
Stephen Khalek 538235
Saptarishi Nandy Purkayastha 668940
Johanna Winarjo 547480
Childhood Obesity
1 2 3 4 5
Is TV advertising
responsible for childhood
obesity in Australia?
TV Advertising
How does product labeling
affect the perception of
consumers?
Labelling
Would an anti-obesity tax
decrease childhood obesity?
Anti-Obesity Tax
Ethics: Is childhood obesity
the responsibility of
Marketers?
Ethical Marketing
Ethics: Is childhood obesity
the responsibility of Parents
& Children?
Ethical Consumption
Today’s Journey
Is the regulation of media
marketing, in a democratic,
free market economy ethical
or does it violate the notion
of democracy?
The Higher Perspective
Taking a Step Back From Ethics
Chilhood Obesity and Unethical Marketing
Increasing Overweight
Numer of overweight children in
Australia has doubled in recent
years
Increasing Obesity
1 in 5 children in Australia is no
considered obese
Increasing Sedentary Activities
Children watch an avergae of 2.5
hours of television every day
Obesity
Drivers of Obesity
Obesity is increasingly becoming one of Australia’s largest healthcare
issues, and the prevalence will only increase.
Ethics
Ethical Consumerism and Marketing industry
What is Ethical Consumerism?
The political, religious, spiritual, environmental, social or other motives for
choosing one product over another
• Ethical Consumerism is a burgeoning social movement
• Relative and Subjective
• Develops chronic decisions become lifelong battles
Ethical marketing is a philosophy that seeks to promote honestly, fairness
and responsibility in the advertising.
Part 1
The Role of Mixed Media Marketing in the Creation of Obese Children
TV advertising affects our kids more than we think…
Television Advertising
Threat ofTV Advertising
Out of 13 developed
countries investigated,
Australia has the Highest
amount of food ads per
hour
20% 30% 81%
Australian
Children are
obese
Australian Ads
in Child
Programming
is Food related
Food related
programming
promotes low
nutritional
value
#1
Advertising to children is easy.
The ‘nag-factor’ makes advertising
to children (consumer) an effective
means to have parents purchase
the product (buyer)
Role of Regulation
Mediating Media
Code of Conduct Restraints Classifications
The type of foods that can be advertised is currently
unregulated in Australia.
Commercial TV Code
state ads should not
persuade unhealthy habits
and must accurately show
the dietary value
A maximum of 10
minutes/hour of ads can
be shown during children
programming
No ads are allowed during
P classified programs
Kellogg’s TV Advertising
Bombardment of Information
Children under 8 consider the
advertising as ‘entertaining and do
not understand the persuasive
intention.
Mass Media
It’s not justTV…
Media Saturation
Labeling
Labeling Affect to Perception
Warn and educate
consumers on the origins
and health content
Educational Functions
Misinformed packaging
creates misleading
statements
Transparency
Help consumers build a
positive awareness around
consumption habits
Potential Benefits
Affecting the Bottom-Line
How can organisations align
their values to build trust with
their consumers?
Anti-Obesity Tax
Interventionist Methodology
Incentivise
Encouragement to
choose healthy
options
Societal Discourse
Raises discussion in
media and general
conversation
Alternate Revenue
The Government can
generate capital to
inject into healthcare
Discrimination
Low socio-economic
demographics priced
out of market
What’s Healthy?
No definable
boundaries exist
on health
Other Factors
Obesity is influenced
by quantity, quality,
genetics & exercise
Part 2
The Balance of Responsibility between ‘Marketers’ and ‘Parents & Children’
Corporate Social Marketing
(Carroll, 1979)
1. Build Brand Awareness
2. Enhance Brand Image
3. Establish Brand
Credibility
4. Evoke Brand Feelings
5. Create a Sense of Brand
Community
6. Elicit Brand Engagement
Economic
Baseline
Legal
Requirement
Ethical
Behaviour
By surpassing the Economic and Legal requirements, organisations can enhance their brand
TV advertising affects our kids more than we think…
Consumer Psyche
Intention-Behaviour Gap (Carrington, Neville & Whitwell, 2014)
89%
30%
3%
Consumption Enactments
- Modes of Shopping -
A. Spontaneous Shopping
B. Effort decision making
at point of purchase
C. Pre-meditated & Rapid
Shopping behaviour
Understand the
Concept of
Ethical
Consumption
Only 3% of consumers purchase ethically.
27% of consumers are biased by external factors.
Integration into Lifestyle
Commitment & Sacrifice have
been integrated to the
consumers lifestyle
Plans & Habits
Plans & Habits exist that make ethical
consumption inherent to the individual
Intend to
Purchase
Ethically
Purchase Ethically
Legislative change keeps
the free market in check
but removes consumers’
freedom of choice
Legislation
Consumers will
purchase what is easily
available not what
portrays their values
Customer Apathy
To affect a free market,
consumers should boycott
disagreeable products
Standing for Beliefs The Free-Market Paradox
Without the drive from
consumers to change,
organisations will not change
Meeting Customer Satisfaction
The Paradox of Free Markets (Quester, et al., 2007)
Conclusion
Free markets are not conducive to regulation
Australian Bureau of Statistics (2013). Australian Health Survey: Updated Results, 2011-2012. Media Release. Retrieved October 11,
2015, from http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/4364.0.55.003Chapter12011-2012 .
Carrington, M. J., Neville, B. A., & Whitwell, G. J. (2014). Lost in translation: Exploring the ethical consumer intention-behavior
gap. Journal Of Business Research, (1), 2759.
Kotler, P., & Keller, K. L. (2012). Marketing management. Upper Saddle River, N.J. : Prentice Hall, c2012.
Parliament of Australia (2011). Marketing Obesity? Junk Food, Advertising and Kids. Research Paper. Retrieved October 11,2015, from
http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1011/11rp09#_Toc282609508 .
Paul N. Bloom, Steve Hoeffler, Kevin Lane Keller, and Carlos E. Basurto, “How Social-Cause Marketing Affects Consumer Perceptions,”
MIT Sloan Management Review (Winter 2006), pp. 49–55
Pride, W. M. (2006). Marketing : Asia - Pacific edition. Milton, Qld. : John Wiley & Sons, 2007
Quester, P., McGuiggan, R., Perreault, W. D., & McCarthy, E. J. (2007). Creating and Delivering Value, 5th ed., Sydney, Australia:
McGraw-Hill.
Williams, J. (2012). Ethical and Responsible Food and Beverage Marketing to Children and Adolescents. Retrieved from
http://www.changelabsolutions.org/sites/default/files/EthicalFoodMarketing_FINAL_20121005.pdf
http://danielsethics.mgt.unm.edu/pdf/Childhood%20Obesity%20DI.pdf
http://www.jhsph.edu/research/centersandinstitutes/teachingthefood-system/curriculum/_pdf/Marketing_and_Labeling_Background.pdf
Bibliography
Increase Awareness
of advertising
1-1-1 Approach
Enhance User
Capability – Online
Shopping, Food App
Making Weekly
Plans
Healthy Living
Campaign (Jump
Rope for Heart)
Health Star Rating
System
Appendix: Recommendations
Changing Australian Obesity

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Chilhood Obesity and Unethical Marketing

  • 1. Unethical Marketing - Week 11 - Marketing Management Ryan Abramowitz 756363 Marco Cersosimo 773626 Anisha Ann Koshy 668815 Stephen Khalek 538235 Saptarishi Nandy Purkayastha 668940 Johanna Winarjo 547480 Childhood Obesity
  • 2. 1 2 3 4 5 Is TV advertising responsible for childhood obesity in Australia? TV Advertising How does product labeling affect the perception of consumers? Labelling Would an anti-obesity tax decrease childhood obesity? Anti-Obesity Tax Ethics: Is childhood obesity the responsibility of Marketers? Ethical Marketing Ethics: Is childhood obesity the responsibility of Parents & Children? Ethical Consumption Today’s Journey
  • 3. Is the regulation of media marketing, in a democratic, free market economy ethical or does it violate the notion of democracy? The Higher Perspective Taking a Step Back From Ethics
  • 5. Increasing Overweight Numer of overweight children in Australia has doubled in recent years Increasing Obesity 1 in 5 children in Australia is no considered obese Increasing Sedentary Activities Children watch an avergae of 2.5 hours of television every day Obesity Drivers of Obesity Obesity is increasingly becoming one of Australia’s largest healthcare issues, and the prevalence will only increase.
  • 6. Ethics Ethical Consumerism and Marketing industry What is Ethical Consumerism? The political, religious, spiritual, environmental, social or other motives for choosing one product over another • Ethical Consumerism is a burgeoning social movement • Relative and Subjective • Develops chronic decisions become lifelong battles Ethical marketing is a philosophy that seeks to promote honestly, fairness and responsibility in the advertising.
  • 7. Part 1 The Role of Mixed Media Marketing in the Creation of Obese Children
  • 8. TV advertising affects our kids more than we think… Television Advertising Threat ofTV Advertising Out of 13 developed countries investigated, Australia has the Highest amount of food ads per hour 20% 30% 81% Australian Children are obese Australian Ads in Child Programming is Food related Food related programming promotes low nutritional value #1 Advertising to children is easy. The ‘nag-factor’ makes advertising to children (consumer) an effective means to have parents purchase the product (buyer)
  • 9. Role of Regulation Mediating Media Code of Conduct Restraints Classifications The type of foods that can be advertised is currently unregulated in Australia. Commercial TV Code state ads should not persuade unhealthy habits and must accurately show the dietary value A maximum of 10 minutes/hour of ads can be shown during children programming No ads are allowed during P classified programs
  • 11. Bombardment of Information Children under 8 consider the advertising as ‘entertaining and do not understand the persuasive intention. Mass Media It’s not justTV… Media Saturation
  • 12. Labeling Labeling Affect to Perception Warn and educate consumers on the origins and health content Educational Functions Misinformed packaging creates misleading statements Transparency Help consumers build a positive awareness around consumption habits Potential Benefits Affecting the Bottom-Line How can organisations align their values to build trust with their consumers?
  • 13. Anti-Obesity Tax Interventionist Methodology Incentivise Encouragement to choose healthy options Societal Discourse Raises discussion in media and general conversation Alternate Revenue The Government can generate capital to inject into healthcare Discrimination Low socio-economic demographics priced out of market What’s Healthy? No definable boundaries exist on health Other Factors Obesity is influenced by quantity, quality, genetics & exercise
  • 14. Part 2 The Balance of Responsibility between ‘Marketers’ and ‘Parents & Children’
  • 15. Corporate Social Marketing (Carroll, 1979) 1. Build Brand Awareness 2. Enhance Brand Image 3. Establish Brand Credibility 4. Evoke Brand Feelings 5. Create a Sense of Brand Community 6. Elicit Brand Engagement Economic Baseline Legal Requirement Ethical Behaviour By surpassing the Economic and Legal requirements, organisations can enhance their brand
  • 16. TV advertising affects our kids more than we think… Consumer Psyche Intention-Behaviour Gap (Carrington, Neville & Whitwell, 2014) 89% 30% 3% Consumption Enactments - Modes of Shopping - A. Spontaneous Shopping B. Effort decision making at point of purchase C. Pre-meditated & Rapid Shopping behaviour Understand the Concept of Ethical Consumption Only 3% of consumers purchase ethically. 27% of consumers are biased by external factors. Integration into Lifestyle Commitment & Sacrifice have been integrated to the consumers lifestyle Plans & Habits Plans & Habits exist that make ethical consumption inherent to the individual Intend to Purchase Ethically Purchase Ethically
  • 17. Legislative change keeps the free market in check but removes consumers’ freedom of choice Legislation Consumers will purchase what is easily available not what portrays their values Customer Apathy To affect a free market, consumers should boycott disagreeable products Standing for Beliefs The Free-Market Paradox Without the drive from consumers to change, organisations will not change Meeting Customer Satisfaction The Paradox of Free Markets (Quester, et al., 2007)
  • 18. Conclusion Free markets are not conducive to regulation
  • 19. Australian Bureau of Statistics (2013). Australian Health Survey: Updated Results, 2011-2012. Media Release. Retrieved October 11, 2015, from http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/4364.0.55.003Chapter12011-2012 . Carrington, M. J., Neville, B. A., & Whitwell, G. J. (2014). Lost in translation: Exploring the ethical consumer intention-behavior gap. Journal Of Business Research, (1), 2759. Kotler, P., & Keller, K. L. (2012). Marketing management. Upper Saddle River, N.J. : Prentice Hall, c2012. Parliament of Australia (2011). Marketing Obesity? Junk Food, Advertising and Kids. Research Paper. Retrieved October 11,2015, from http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1011/11rp09#_Toc282609508 . Paul N. Bloom, Steve Hoeffler, Kevin Lane Keller, and Carlos E. Basurto, “How Social-Cause Marketing Affects Consumer Perceptions,” MIT Sloan Management Review (Winter 2006), pp. 49–55 Pride, W. M. (2006). Marketing : Asia - Pacific edition. Milton, Qld. : John Wiley & Sons, 2007 Quester, P., McGuiggan, R., Perreault, W. D., & McCarthy, E. J. (2007). Creating and Delivering Value, 5th ed., Sydney, Australia: McGraw-Hill. Williams, J. (2012). Ethical and Responsible Food and Beverage Marketing to Children and Adolescents. Retrieved from http://www.changelabsolutions.org/sites/default/files/EthicalFoodMarketing_FINAL_20121005.pdf http://danielsethics.mgt.unm.edu/pdf/Childhood%20Obesity%20DI.pdf http://www.jhsph.edu/research/centersandinstitutes/teachingthefood-system/curriculum/_pdf/Marketing_and_Labeling_Background.pdf Bibliography
  • 20. Increase Awareness of advertising 1-1-1 Approach Enhance User Capability – Online Shopping, Food App Making Weekly Plans Healthy Living Campaign (Jump Rope for Heart) Health Star Rating System Appendix: Recommendations Changing Australian Obesity

Editor's Notes

  • #2: N.B. LINE OF ARGUMENTATION: Although marketers are responsible for the provision of ethical information, the decisions and ultimate responsibility for childhood obesity relies on the parents and children because it’s a god damn free market economy!
  • #16: Introduction to part 2: Where does the responsibility fall? Marketers? Or Parents and Children? Due to the nature of a free market economy, all players have the freedom of choice. The marketers will produce products desired by customers and consumers will purchase products that they want. By understanding this, we must acknowledge that both ‘marketers’ as well as ‘Parents and Children’ will have some degree of responsibility. Although it is ideal that Marketers act with ethical behaviour, the problem is there is no obligation to do so. Carroll (1979) discusses that organisations’ first priority is to suffice their baseline: to be economically profitable. Once they have done this, they have the choice to meet the legal requirements. Regulation by law enforcement agencies ensure that corporations act morally. However, the third level of corporate social responsibility is to provide ethically driven behaviour. This is a grey area. As there is no obligation to do so, this is often seen as an undesirable external costs that undermine the economic bottom line of corporations (to maximise profits). This demonstrates that Marketers are technically NOT responsible for the provision of ETHICAL MARKETING, as they have met their legal requirements set by the regulations (as Marco previously discussed). And Ethical Marketing would significantly hinder the sales of their products in a business that boasts a lucrative bottom line (highly profitable). However, It has been argued that if Marketers DO engage with Corporate Social Marketing there are 6 strongly identifiable BENEFITS that their corporations would receive. (LIST AND BRIEFLY DISCUSS THE 6 BENEFITS) Drawing conclusions from this, it is possible to argue that there are BENEFITS to organisations to engage with Corporate Social Marketing, however, as they are not OBLIGED to do so, society does not hold them RESPONSIBLE for the provision of ethical marketing. Therefore, by default the RESPONSIBILITY of CHILDHOOD OBESITY falls to the PARENTS & CHILDREN. *SLIDE*
  • #17: The Problem with the Consumer Psyche is that there is the Intention-Buyer Gap. This shows that although consumers have the intention of purchasing ethically, only 3% actually do.
  • #18: The problem of Consumer Psyche is further propagated by the paradox of the free market. Customers are apathetic to organisation’s provision of unethical products, or in the case of this, in the provision of foods that create Childhood Obesity. If they stop engaging then by the law of free markets, organisations would cease to have any demand for their products and they would cease their production. However, in the case that a legislative body did step in to represent the views of the consumer, they in turn would be voiding the underlying and fundamental principles of a free market economy, whereby people have a choice to choose what they consume and organisations choose what they produce. Conclusively, the problem of Australian Childhood Obesity is not going away any time soon. At the rate we are going, the marketers will still market unethical products, legislation won’t step to sufficiently constrain the production and advertising of food and beverages contributing to Childhood Obesity. Finally, this relies on the Parents and Children. Although the responsibility of choice in a democratic society falls upon themselves, Carrington, Neville & Whitwell (2014) demonstrate that even of the 30% of the population who do intend to purchase ethically, only a very few % will commit to do so fully. Therefore responsibility seems to be the one thing that Australia does not poses in abundance when it comes to the growing problem of Childhood Obesity.