Costco's Code Of Ethics Of Marketing

1035 Words5 Pages
February 3, 2013 The Legal and Ethical Considerations of Marketing in America Marketing in today’s world is increasingly difficult as companies are challenged with a fragmented marketplace. Companies are tasked with determining who their target market is, where they are consuming their news and information, and what they will respond to. Consumers have many places to look for information; print, company websites, review websites or search engines, television, direct marketing, magazines, social networks, radio and friends and family. In the world of marketers, the task at hand is to develop a plan to target their audience in the most effective fashion while maintaining the company’s core values. For most, the message is clear and…show more content…
Essentially, a company that has a strong, moral (ethical) foundation will generally conduct business in a transparent and trustworthy fashion. From a marketing perspective, the messages will likely follow the lead of the executives and will be presented to consumers in a transparent fashion. For example, Costco Wholesale has created an environment that is known for taking care of its members on all levels. On its website, Costco’s Code of Ethics states four things: obey the law, take care of our members, take care of our employees and respect our suppliers (Code of Ethics, n.d.). By being transparent in its business practices, marketing their services ethically, and standing behind their code of ethics on all levels, Costco has created a level of trust with their members and ultimately, meets its goals with its…show more content…
Advertisements stated one could “get healthy without ever setting foot in a gym”. Celebrity endorsements helped promote the shoe, and messages went as far as to say you could lose weight and made claims about improved cardiovascular health with the use of their shoes. Claims like the one Skechers made were found to be misleading to the public after an investigation by the FTC. While Skechers USA claimed they had an independent medical study performed, it was discovered that the doctor that performed the study was a chiropractor married to one of the marketing executives at Skechers. In addition, the study he conducted was an independent clinical study and he could not provide the medical documentation necessary to back up any of the medical claims Skechers used in their marketing and promotions. In 2012, as a penalty for their violations, Skechers agreed to pay a settlement of $40 million dollars. Ultimately, ethics in business and marketing go hand in hand. A strong code of ethics that is not just created, but followed, is only one essential step in marketing. The marketers responsible for the company messages must be knowledgeable about their responsibilities and treat consumers with the respect they deserve. When companies violate trust with consumers through the use of misleading or deceptive statements, not only do they lose face in the eyes

More about Costco's Code Of Ethics Of Marketing

Open Document