Key Definitions • Legal – permitted by law, lawful. • Ethics - that branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions. • Morals - concerned with the principles or rules of right conduct or the distinction between right and wrong; ethical
Legal and EthicalWhats the Difference? • Legal Issues – concerned with legislation (laws) that sets rules on what you can and cannot do • Ethical issues– concerned with something that is legal, but is not necessarily moral
The Trade Practices Act 1974 • Sets out the laws for promotion and advertising • Under the Trade Practices Act it is illegal to make false claims when promoting a product
The Australian Competition and Consumer Commission (ACCC) argued that McDonalds had breached sections 52 and 53 of the Trade Practices Act 1974 when it promoted its ‘grilled chicken burgers’
Ethical issues • School sponsorship arrangements raise a number of ethical issues, these include 1. The over commercialisation of schools 2. Direct marketing to students 3. The promotion of unhealthy food and drink items, and 4. The influence on the school curriculum
Ethical issues • Creation of needs – Materialism • Occurs when you continually desire new things
What do you think? • Do advertising campaigns • A) Satisfy existing needs • B) Make consumers buy something they don’t really need
Ethical Issues • Product placement is the inclusion of advertising into entertainment. Many films include examples of product placement. • Watch the video clips on product placement on the wikispaces page.
What do you think? • Do you consider product placement an ethical or unethical promotion strategy? Explain why
Ethical Issues How you ever had someone come up to you in a shopping centre and ask you to do a quick survey about a particular product. Only to fin that they are trying to sell you that product! You’ve been ‘sugged’ • Sugging is selling under the guise of survey • This is not necessarily illegal but can raise issue about breach of privacy and deception
What do you think? • Why is it sometimes difficult to decide whether a promotion strategy is ethical or unethical?