Why Is Ethical Marketing Important.

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Why are ethical behaviour and government regulation important in marketing? EXECUTIVE SUMMARY The marketing function of a business must apply ethical and legal practices into their operations in order to build a successful business. Legal standards are compulsory requirements business's must comply to that are authorized by parliamentary law whilst ethical standards are prescribed by business's to conduct morally rightful activities in the favor of the consumer. Marketing managers who implement both legal and ethical standards to their practices will succeed in enriching the goodwill of a business, the provision of producing quality products/services, and opportunities in business expansion. ENRICHING THE GOODWILL OF A BUSINESS The goodwill of a business can be can be enriched or diminished by how a business applies legal and ethical practices into their marketing operations. Successful business's are those that are able to flexibly integrate both ethical and legal standards into their practices without risking the loss of goodwill. For example, it is a legal obligation for business's to provide a warrantee for their products. False or misleading statements concerning the existence, exclusion or certain conditions of the warranty are prohibited under the Competition and Consumer Act and could lead to further consequences including the loss of loyal customers. Business's must apply ethical practices into the advertising of their product or service in order to maintain a healthy trustworthy relationship with their consumers. False or misleading advertising can create real ethical situations that could danger the relationship between the business and the consumer. Marketers have the ability to utilise specific misleading terms in their advertisements such as 'special', 'low fat', 'once in a lifetime offer' to draw the consumer's attention unethically.
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