Global leadership and ethical issues in marketing & advertising

0BGlobal Leadership and Ethical Issues in Marketing & Advertising

Christian Adams

February 4, 2007

Adams Global Leadership and Ethical Issues in Marketing & Advertising

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The marketing industry is a very broad industry simply because at its core is a common

business function. Marketing helps companies thrive in the commercial environment by

covering the gamut of customer and business owner needs and goals. Marketing leaders are

responsible for creating the look and feel of a brand, both for companies and products, and

developing strategic ideas of how to engage and inform consumers about the brand. Successful

marketing is about sticking to the fundamentals, but that doesn’t mean that all marketing is the

same. Because this industry is highly competitive it is paramount for leaders to make quick and

informative decisions because change is so quick and frequent it can be the determining factor of

who is on top with room to maneuver. Different marketing scenarios call for different angles

and analysis in order to recognize future trends to mitigate risks. As a leader knowing where

these differences lie can mean the difference between success and failure. It is this pressure to

succeed that has some leaders in marketing taking shortcuts or for lack of a better word being

unethical.

One of the most distinctive areas of marketing is that of global marketing. While

fundamentals still apply, selling a product abroad requires a perspective far different than one

used for domestic business. Domestic marketing often

takes culture for granted, but in foreign markets, culture is

invariably different. It is the marketing industry’s job to be

aware of these differences and how they impact consumer

behavior. However, communications is the bane of

expansion efforts by most companies. It doesn’t matter

whether companies are selling a product or service, the issues are the same. Examples of this

poor culture research done by global marketing firms can usually be seen on the nightly news.

Typically the result is video of consumers showing their displeasure with a company’s attempt to

enter a market without putting the country’s religious or cultural norms into consideration.

Some of this is a result of public relations. Polly Devaney writes, “Concepts of internationalism,

equality and other altruistic values were found to be less associated with American culture in

2004 than they were five years ago. It seems that the American brand has been suffering from a

gradual image decline for some time. (Delaney, pg. 32) Aside from the external issue of global

leadership in marketing there lies the internal challenge of training the global sales force. In an


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y

era of globalization, the dominant culture appears to be corporate culture. However, companies

that are going global will have to take into account more than just the language barrier when it

comes to training international sales forces. Jacqueline Chmielnicki adds that, “Managers who

are creating training content must acknowledge different cultural traditions, country laws, and

business environments.” (Chmielnicki) Marketers need to first identify the target market, then

tailor the marketing to that local market.

Another important issue to an effective leader in the marketing industry is the

understanding of technology as it is used in global applications. Technology is mandatory for

successful expansion and to effectively control the flow of products and information in other

countries. There is the obvious upkeep of knowledge management, but part of that knowledge

management in the technology arena includes identifying new opportunities and forms of

marketing communication vehicles. The internet has been around for awhile, but it is finally

coming of age where more and more companies are figuring out how to use it to their advantage.

If a business leader does not have his or her companies presence on the internet competitors will

pass them by. A great example of this is the startup Netflix.

When they entered the movie rental market Blockbuster was

king, but entrepreneurs saw opportunity in a new business

model by using the internet to their advantage. Now with

Netflix gaining ground by the day Blockbuster is struggling

to keep up. Timothy Mullaney supports this argument b

writing, “Truly ambitious web startups think of making

money merely as a starting point. Real respect goes to companies that change the rules of the

game. Right now, though, it's Netflix that is causing angst for Blockbuster and Movie Gallery,

which lost a combined $1 billion last year. Pressure from Netflix, which doesn't charge late fees,

led Blockbuster to drop most late fees last year, costing it about $400 million. Hastings' small,

tart dig at Blockbuster: His cubicle sports a big chart of his rival's cash-flow collapse.”

(Mullaney)

A great example of marketing industry leaders not seeing potential in technology and the

internet is the long battle the entertainment industry has had with consumers over downloadable


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media files. Shawn Fanning created a simple software program,

called Napster, in college that put the power of change in the

hands of consumers using the internet. It allowed the consumer to

have a voice where it didn’t have a voice with regards to pricing of

music and movies. Instead of embracing this technology by

working with Fanning and others to create new business models

using new technology entertainment associations took them to

court. While Shawn is still going strong with other startup ideas it

is Napster that helped change the business model and the way the marketing industry views

technology. However, it should be noted, by playing devil’s advocate, that because technology

such as the internet was so new a lot of companies did not know how to handle it. Also, the dot

com bubble that burst was proof that business and consumers were not ready and were rightfully

fearful of entering new uncharted waters again.

Many perceive that global marketing strategy is only suitable for giants such as Proctor &

Gamble and Microsoft, which have big budgets to spend and big brands to promote. However,

the advent of the Internet, as the final stage in a process of globalization, gives firms of all sizes

the opportunity to sell their products and services to many countries around the world. If a

leader plans to go this route he or she must also be prepared to deal with new challenges such as

the breakdown of trusted resources, because everyone with a web site, newsletter, blog, e-zine,

mail list or forum is a journalist. This creates an atmosphere for which public opinion makes it

harder for marketers to do their job by giving the power to consumer opinion. Today consumers

can get their information from web sites to do product comparisons and read customer reviews to

make sure it is something they want to purchases. Socially engineered websites like Google,

MySpace, YouTube, Amazon, eBay, and Wikipedia not only have changed the way marketing

leadership views how the business is done, but has become a pervasive part of culture and it is

evident that the new consumer generation to target is Y and Z.

In order for effective leaders in the marketing industry to direct the industry into the

future they must understand the new consumer and how he or she interacts with marketing

vehicles. Some experts like Chief Experience Officer Kelly Mooney, of Columbus, OH based


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e up

s, it

s,

Resource Interactive are calling these new consumers “New Millennials” also known as “Digital

Millennials.” She defines this type of future buyer as, “perpetually connected - doing homework

and shopping online, multitasking and productive – consuming lots of media at once, filtering

for immediacy and control – they process information differently and much faster. They are

critical of ads that get in their way. They are self-expressive, yet assimilative. They consult their

friends on everything. They are optimistic and self-entitled. They believe businesses should ask

them their opinions.” (Resource Interactive)

Knowing what the future consumer’s

preferences are will be essential and it will b

to the leader to cater to them. In saying thi

is consumers who become the creative director

because of the trend for niche markets, can cost

effectively use brands for the consumers

individually customized needs. An example of

this in action is Nike’s ID shoe line. It allows

customers to control the look of 27 footwear

styles and view their final creation before

deciding whether or not they want to purchase the product. It is the idea of monograms on a

whole other level.

This obviously is just the beginning of future implications in the marketing industry.

Rich Thomaselli of Advertising Age predicts some future trends will include: “ramp up of

marketing for commercial space travel, consumers will be more selective about brand loyalty, and

alpha moms will be well-informed, strong, decision-making multi-taskers.” (Thomaselli) Some

of these marketing concepts started to show in 2006, but will be even more apparent in 2007.

Concepts such as consumer generated media, the return of organic foods in a fast food nation,

nanotechnology and organ replacement, etc. The list goes on.

While all these new innovations are helping drive marketing and vice versa, the

underlying issue is the need for ethics and corporate social responsibility. This refers to


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businesses’ analysis of the negative effects that marketing might have on being socially

irresponsible to stakeholders while trying to appeal to the bottom line ideology of the

shareholders. The question becomes whether or not a company’s profits outweigh the side effects

of a product through marketing. Some critics say this is the gap between innovation and

marketing and that in some instances there are no new ideas, but rather just products being

repackaged. One such critic is Gary Hamel who states, “Most leaders create roles or structures

for product innovation: R&D is supposed to work with Marketing, and they’re supposed to

innovate. But when you have a specific innovation role or particular units that focus on

innovation, you tend to end up with innovation ghettos. When innovation is

compartmentalized, everyone assumes, ‘I don’t have to think deeply, profoundly, and creatively

about alternatives. I just do what I do every day because somebody else is worrying about where

we go next.’ “ (Hamel)

In general, fundamental social problems, such as the negative influence upon culturally

affected values, the advancement of conformity instead of individuality and the discrimination

against class, cultural imperialism, and ecological problems caused by production, distribution

and consumption, take center stage when the ethical aspects of marketing practices are discussed.

From drug sales representatives targeting physicians to promote their drugs over the patients

long term viability to marketing to children who have to ask their parents for the money,

marketing has a responsibility to help companies achieve bottom line results. Susan Linn,

Professor of Psychiatry, Baker Children’s Center at Harvard talks about how pervasive marketing

can be. “Comparing the marketing of yesteryear to the marketing of today is like comparing a

BB gun to a smart bomb. It’s not the same as when I was a kid, or even when the people who

are young adults today were kids. It’s much more sophisticated, and it’s much more pervasive.

It’s not that products themselves are bad or good. It’s the notion of manipulating children into

buying the products. In 1998, Western International Media, Century City, and Lieberman

Research Worldwide, conducted a study on nagging. This study was not to help parents cope

with nagging. It was to help corporations help children nag for their products more effectively. ”

(Achbar) Lucy Hughes, VP of Initiative Media defends such action by saying that “Somebody

asked me, “Lucy is that ethical?” You’re essentially manipulating these children. Well, yeah, is it

ethical? I don’t know. But our, our role at Initiative is to move products. And if we know you


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move products with a certain creative execution placed in a certain type of media vehicle then

we’ve done our job.” (Achbar)

Along with being ethical in the way companies market products and services the

marketing leaders of tomorrow will have to direct companies into ecologically friendly

environments to help support a company’s image with

savvy consumers in order to attain a sustainable business

model. Ray Anderson, CEO of Interface and the world’s

largest commercial carpet manufacturer is passionate

about this change in a company’s way of thinking, “For

21 years, I never gave a thought to what we were taking

from the earth or doing to the earth in the making of our

products. And then in the summer of 1994, we began to

hear questions from our customers we had never heard

before: “What’s your company doing for the

environment?” And we didn’t have answers. The real

answer was, “not very much.” At sort of the propitious

moment, this book landed on my desk. It was Paul Hawkins book, “The Ecology of Commerce”

And I began to read the “The Ecology of Commerce”, really desperate for inspiration, and very

quickly into that book, I found the phrase “the death of birth”. It was E.O. Wilson’s expression

for species extinction, “the death of birth,” and it was a point of a spear into my chest, and I read

on, and the spear went deeper, and it became an epiphanal experience, a total change of mindset

for myself and a change of paradigm. Can any product be made sustainably? Well not any and

every product. Unless we can make carpets sustainably, you know, perhaps we don’t have a place

in a sustainable world, but neither does anybody else, making products unsustainably.

One day early in this journey, it dawned on me that the way I’d been running Interface, is

the way of the plunderer. Plundering something that’s not mine, something that belongs to

every creature on earth, and I said to myself “My goodness, the day must come when this is

illegal, when plundering is not allowed”. I mean, it must come. So, I said to myself “My

goodness, some day people like me will end up in jail.” (Achbar)


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Famous comedian Bill Hicks once said in his standup routine that anybody in marketing

should kill themselves because it is an evil profession. Whether this is true or not remains to be

seen, but the fact is that marketing is necessary for the business which in turn helps economies

thrive and survive. This is even more so in the business that is the global leadership and ethics of

marketing. The world is changing in a number of important ways. Television and the Internet

allow all of us to share the same pop culture. International travel is more popular than ever.

Trade barriers are falling and competition is more global. In short, countries and cultures are

bleeding together. As a result leaders are finding that customer needs are converging all over the

world. In order for an effective leader to direct the marketing industry in the fourth wave he or

she will face heavy challenges in communication, technology, culture, ethics, ecology, and

recognizing implications to future trends. A leader who can face these global issues and ethical

challenges head on will be successful not only in the short term, but the long term goals as well.


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Annotated Bibliography

Achbar, M. (Producer), & Achbar, M. (Director). (2004). The Corporation [Motion picture].

United States:

Zeitgeist Films.

One hundred and fifty years ago, the corporation was a relatively insignificant entity. Today, it is

a vivid, dramatic and pervasive presence in all our lives. Like the Church, the Monarchy and the

Communist Party in other times and places, the corporation is today's dominant institution. But

history humbles dominant institutions. All have been crushed, belittled or absorbed into some

new order. The corporation is unlikely to be the first institution to defy history. Based on Joel

Bakan's soon-to-be-published book, "The Corporation: The Pathological Pursuit of Profit and

Power," this documentary is a timely, critical inquiry that examines the very nature of the

corporation-its inner workings, curious history, controversial impacts and possible futures. We

begin by learning that under the law, corporations have all the rights and yet few of the

responsibilities of people. By viewing the behavior of the corporation through the prism of

Diagnostic and Statistical Manual (or DSM III, the gold standard of psychiatric evaluation) the

filmmakers discover that if the corporation were indeed a person, the person would be considered

a psychopath. Featuring candid interviews with CEOs, whistle-blowers, brokers, gurus, spies,

players, pawns and pundits, the chronicle charts the spectacular rise of an institution aimed at

achieving specific economic goals as it also recounts victories against this seemingly invincible

force.

Altilia, T., Breeding brand champions., Marketing Magazine; (4/17/2006), Vol. 111 Issue 15,

p29-29, 1/3p, 1bw

The article informs that it is vital to train passionate brand champions among both marketers

and advertising agencies to build global Canadian brands. As more major brands are managed

from the south, fewer and fewer succeeding generations of Canadian marketers will have the

opportunity to learn the fine art of brand leadership. Roots, The Four Seasons and RIM are


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examples of great Canadian brands, but the list is short and the chance for Canadians to build

brands diminishes continually. Brand champions can clearly articulate the brand's promise and

fight every step of the way to ensure it delivers against that promise.

Amine, L. , The need for moral champions in global marketing. , European Journal of

Marketing; (1996), Vol. 30 Issue 5, p81, 14p, 1 diagram

One might reasonably wonder why well-educated, professionally trained managers, who work for

companies with international reputations, might take decisions that risk provoking censure by

the world business community. Is it just the result of the "profit motive" run rampant? Is it

merely the "ugly face of capitalism?" Or are there other reasons that might explain the apparent

willingness of western managers to run the risk of jeopardizing the health and well-being of

consumers in the developing world? This article discusses these questions by framing the issues

in the context of ethics and social responsibility in global marketing. Of particular interest here is

the "opportunity" for managers to become involved in dubious ethical decisions and practices

when marketing potentially harmful products to consumers in Less Developed Countries. In

order to portray the ethical implications of marketing potentially harmful products to vulnerable

consumers abroad, a new descriptive model is presented that identifies relationships between the

manager, the global company, its home market environment, a host market environment, the

global business environment, and a target consumer.

Atkinson, C., Marketers weigh efficacy and ethics of guerilla efforts. Advertising Age;

(2/16/2004), Vol. 75 Issue 7, p8-8, 1/3p, 1c

Reports on the guerilla-marketing campaign of McNeil Consumer & Specialty Pharmaceuticals

of Johnson & Johnson for its Tylenol brand. Market targeted by the advertisement; Views on the

ethics of stealth marketing; Plan of the American Marketing Association to release the results of

a survey on guerilla marketing.

Benady, D. , The Global Power Struggle. , Marketing Week (3/27/2003), Vol. 26 Issue 13, p24,

4p


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This article examines the role of the global marketing director. Globalization of brands offering

cost savings on marketing spend as well as cross-border synergies; Questions on balancing

international values against local cultures; Impact of globalization in forcing companies to look at

ways to control their international image and to police their marketing service providers.

Chahal, H., Sharma, R. D., Implications of Corporate Social Responsibility on Marketing

Performance: A Conceptual Framework. , Journal of Services Research; (Apr-Sep2006), Vol. 6

Issue 1, p205-216, 12p

Corporate Social Responsibility (CSR) means firm's obligation to protect and improve welfare of

the society and its organization, now as well as in future, through its various business and social

actions, and ensures that it generates equitable and sustainable benefits for the various

stakeholders. As such CSR can serve as an effective marketing tool to compete and sustain

competitive advantage in the present fast changing, hyper competitive environment. Though

there are research studies that provide the domain of CSR and its effects on the business

performance but they have varied viewpoints and are inadequate. Given its broad

conceptualization as such, it's really arduous to define the domain of CSR. Presently, lots of

efforts are being taken to know its domain and its actual impact on the organizational

performance in various settings. The present paper is an effort towards this direction. The main

objective of the paper is to build grounding for analyzing the impact of CSR on various

marketing performance measures through various propositions based on antecedents and

consequences of business and social actions. The authors have described the antecedents of CSR

from comprehensive perspective, which include organization culture, human resources, products

and services, social development activities, and regulatory environment. The impacts of these

activities are correlated with three marketing performance parameters namely, economic, social

and relationship measures.

Chmielnicki, J. , Lost in Translation. , Sales & Marketing Management; (Oct2004), Vol. 156

Issue 10, p20-20, 2/3p, 1c


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This article discusses the need of sales persons' training in this competitive era. In the era of

globalization, the dominant culture appears to be corporate culture. Still, companies that are

going global these days have to account for more than just the language barrier when it comes to

training international sales forces, experts say. Bruce Carocci, vice president of marketing and

sales for Via Training, a developer of customized Web-based and blended training programs,

based in Portland, Oregon, says that training programs are not one size fits all. Managers who

are creating training content must acknowledge different cultural traditions, country laws, and

business environments. In Asia, where instructors tend to do all the talking, trainees are less

accustomed to class participation, says Steff MacDonald, vice president of global services for Via

Training. When developing training programs, managers must still make sure their program's

design is generic enough to suit all locales.

Clegg, A. , Out of the mouths of babes. , Marketing Week, (6/23/2005), Vol. 28 Issue 25, p43-

43, 1p

This article comments on; the expertise of market researchers to discover the desires of children

and their parents on behalf of clients, suppression of talks about the ethics of marketing to young

people; Need for researchers to develop an independent view of ethics and opportunities of

marketing to young consumers; Measurement and tracking of marketing effectiveness.

Costa, J. , Ethics & Marketing (Cover Story), Marketing Magazine (5/22/2006), Vol. 111 Issue

19, p12-14, 3p, 1c

The article focuses on professional ethics in marketing. People are more conscious of ethics in

business. Global research shows that less than half the companies with ethics codes bother with

any employee training. Almost two-thirds of companies that adopt an ethics program in

response to scandal become repeat offenders within two years. Consumers are generally smarter

about ethical considerations yet do not necessarily follow through their concerns or values in

purchase decisions. Marketers and advertisers are by default on the front lines for resolving the

dilemma in ethical expectations.


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Devaney, P. , How the American dream became a global nightmare. , Marketing Week

(6/3/2004), Vol. 27 Issue 23, p32-33, 2p, 3c

Discusses the all-time low perceptions of U.S. brands outside North America and the challenge

of regaining the world's consumer trust. Data issued by global market research organization

NOP World; Brands that have suffered a decline in popularity and international consumer trust;

Impact of U.S. actions in Iraq and abuse of prisoners at Abu Ghraib; Role of U.S. media;

Countries whose consumers felt least aligned with American culture; Corporate scandals;

Economic uncertainty.

Devaney, P. , Who cares wins, but is there a hidden agenda? , Marketing Week; (4/28/2005),

Vol. 28 Issue 17, p34-35, 2p

The article focuses on issues related to social responsibility in corporate world. From the food

people eat to the clothes they wear and the coffee they drink, consumers are becoming more

aware of the origins of the everyday things they buy. As a result, the line between corporate social

responsibility (CSR) policy and marketing strategy is increasingly blurred. Wal-Mart Stores Inc.,

the world's largest retailer, has also been trying to set a better example through socially

responsible actions.

Devaney, P. , Hargreaves, P. , The 'bigger is better' dream of America is getting greener too.,

Marketing Week (10/6/2005), Vol. 36 Issue 40, p32-33, 2p, 1 graph, 4c

Reports on the transformation of American consumers of becoming more aware in choosing

environmentally friendly products. Statistics indicating comparison of sales in environmentally

friendly merchandise and their non-green counterparts; Steps taken by product manufacturing

companies to comply with environmental issue; Growth in the sales of organic products.

Fritzsche, D. , Tsalikis, J. Business Ethics: A Literature Review with a Focus on Marketing

Ethics. Journal of Business Ethics; (Sep89), Vol. 8 Issue 9, p695-743, 49p, 10 diagrams


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In recent years, the business ethics literature has exploded in both volume and importance.

Because of the sheer volume and diversity of this literature, a review article was deemed necessary

to provide focus and clarity to the area. The present paper reviews the literature on business

ethics with a special focus in marketing ethics. The literature is divided into normative and

empirical sections, with more emphasis given to the latter. Even though the majority of the

articles deal with the American reality, most of the knowledge gained is easily transferable to

other nations.

Guggenheim, D. (Producer), & Guggenheim, D. (Director). (2006). An Inconvienant Truth

[Motion picture]. United States:

Paramount Pictures.

Director-producer Davis Guggenheim captures former Vice President Al Gore in the midst of

waging a passionate campaign -- not for the White House, but for the environment. Laying out

the facts of global warming without getting political, Gore makes a sobering impression in this

Oscar-nominated doc on the audiences who hear his message, urging them to act "boldly,

quickly and wisely" ... before it's too late to act at all.

Hamel, G. Innovation Gap, Leadership Excellence; (Dec2006), Vol. 23 Issue 12, p9-10, 2p

The author presents his views about innovation which most leaders affirmed to be a critical

capability. He said that many leaders are paying lip service to innovation and have no purpose of

working hard on it. In order to make innovation a deep capability, one must enlarge his view of

innovation and imagine what could be and devote less time and energy to optimizing what is

present. R&D is supposed to work with marketing and is supposed to innovate.

Holt, D., Quelch, J., Taylor, E. How Global Brands Compete. , Harvard Business Review;

(Sep2004), Vol. 82 Issue 9, p68-75, 8p, 2 graphs, 1c


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It's time to rethink global branding. More than two decades ago, Harvard Business School

professor Theodore Levitt argued that corporations should grow by selling standardized products

all over the world. But consumers in most countries had trouble relating to generic products, so

executives instead strove for global scale on backstage activities such as production while

customizing product features and selling techniques to local tastes. Such "glocal" strategies now

rule marketing. Global branding has lost more luster recently because transnational companies

have been under siege, with brands like Coca-Cola and Nike becoming lightning rods for

antiglobalization protests. The instinctive reaction of most transnational companies has been to

try to fly below the radar. But global brands can't escape notice. In fact, most transnational

corporations don't realize that because of their power and pervasiveness, people view them

differently than they do other firms. In a research project involving 3,300 consumers in 41

countries, the authors found that most people choose one global brand over another because of

differences in the brands' global qualities. Rather than ignore the global characteristics of their

brands, firms must learn to manage those characteristics. That's critical, because future growth

for most companies will likely come from foreign markets. Consumers base preferences on three

dimensions of global brands-quality (signaled by a company's global stature); the cultural myths

that brands author; and firms' efforts to address social problems. The authors also found that it

didn't matter to consumers whether the brands they bought were American-- a remarkable

finding considering that the study was conducted when anti-American sentiment in many

nations was on the rise.

J.G. , Shades of Gray. , Sales & Marketing Management; (Nov 2004). Vol. 156 Issue 11, p26-26,

2/3p

The article discusses the unethical practices employed by sales personnel. "Omission is a

misrepresentation, and it is a method used by many hard closers," says Len Hansen, an author

and expert on mature adults, based in Bellingham, Washington. Salespeople must engage in full

disclosure as a baseline ethical standard. Reps should "reveal every feature of the product or

service that you discuss with the prospect, and every benefit and detriment of each feature," says

Jacques Werth, president of High Probability Selling, a sales training firm based in Media,

Pennsylvania.


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Kathrin, S. , Marketing Ethics in Emerging Markets – Coping with Ethical Dilemmas, IIMB

Management Review; (Mar2006), Vol. 18 Issue 1, p95-104, 10p

Discusses the role of marketing ethics in emerging markets. Criticism on multinational

companies for behavior that only values the principle of profit maximization; Inclusion of pricing

in ethical dilemmas in marketing activities; Incorporation of social responsibility in business to

cope with several ethical dilemmas.

Kessler, C. , Retailing in the global village. , Soap, Perfumery & Cosmetics; (Apr96), Vol. 69 Issue

4, p26, 2p, 2c, 1bw

Examines the pivotal role that point of purchase can play in helping a brand compete. Increase in

the percentage of unplanned brand choices in stores across all categories; Point of purchase as a

useful tool in global marketing; Important aspects of the process; Need for the designers of point

of purchase to be sensitive to the differences in culture and attitudes of consumers.

Klein, T. , Laczniak, G. , Murphy, P., Ethical Marketing: A Look on The Bright Side.,

Marketing Management Journal; (Spring2006), Vol. 16 Issue 1, p228-243, 16p

This article offers an alternative to conventional approaches to ethical analysis in business and

marketing. We submit that studying companies with exemplary records of ethical conduct and

social responsibility offers useful and compelling guidance to marketing students and managers.

It provides another needed perspective beyond simply examining examples of misconduct or

offering normative advice that may not reflect the specifics of corporate situations. Based on

examples presented in a recent text by the authors and Better Business Bureau Torch Awardees,

we present information on thirteen companies of varying size and from several different

industries. That information includes ethics policies, management practices, environmental

practices, and company reputation. From these examples, we draw lessons that should offer

ethical guidance to marketing managers.


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Kramer, R.; Kirby, J.; Bower, J.; Rayport, J.; Bonabeau, E.; Martin, R.; Kalyanam, K.; Zweben,

M.; Merton, R.; Stewart, T.; Sawhney, M.; Caruso, D.; Davenport, T.; Buchanan, L.;

Chesbrough, H.; Lieberthal, K.; Wirtz, J.; Heracleous, L.; Bateson, M.; Rosen, J.,

BREAKTHROUGH IDEAS FOR 2005. Harvard Business Review; (Feb2005), Vol. 83 Issue

2, p17-54, 29p, 1 diagram, 10c

The List is HBR's annual attempt to capture ideas in the state of becoming--when they're

teetering between what one person suspects and what everyone accepts. Roderick M. Kramer

says it isn't bad when leaders flip-flop. Julia Kirby describes new efforts to redefine the problem

of organizational performance. Joseph L. Bower praises the "Velcro organization," where

managerial responsibilities can be rearranged. Jeffrey F. Rayport argues that companies must

refocus innovation on the "demand side" Eric Bonabeau describes a future in which computer-

generated sound can be used to transmit vast amounts of data. Roger L. Martin says corporate

systems such as CRM that are highly reliable tend to have little validity. Kirthi Kalyanam and

Monte Zweben report that marketers are learning to contact customers at just the right moment.

Robert C. Merton explains how equity swaps could help developing countries avoid some of the

risk of boom and bust. Thomas A. Stewart says companies need champions of the status quo.

Mohanbir Sawhney suggests marketing strategies for the blogosphere. Denise Caruso shows how

to deal with risks that lack owners. Thomas H. Davenport says personal information

management--how well we use our PDAs and PCs--is the next productivity frontier. Leigh

Buchanan explores workplace taboos. Henry W. Chesbrough argues that the time is ripe for

services science to become an academic field. Kenneth Lieberthal says China may change

everyone's approach to intellectual property. Jochen Wirtz and Loizos Heracleous describe

customer service apps for biometrics. Mary Catherine Bateson envisions a midlife sabbatical for

workers. Jeffrey Rosen explains why one privacy policy won't fit everyone. Tihamér rvon Ghyczy

and Janis Antonovics say firms should embrace parasites. And Jeffrey Pfeffer warns business-

book buyers to beware.

Krol, C., Maddox, K. Schwartz, M., Special Report: Outlook 2007. B to B; (12/11/2006), Vol.

91 Issue 17, p1-32, 3p, 1 chart


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The article reports on the top 10 marketing trends for 2007 based on interviews with ad

agencies, analysts, marketers, media companies and industry experts. It discusses the rising

influence of chief marketing officers (CMO) at the executive table and how third generation

CMOs are gaining respect and being groomed for leadership of organizations. Marketing trends

also include the explosion of Web 2.0 applications, globalization, boom in online video ads, user

engagement, more sophisticated search marketing programs and the comeback of trade shows.

Lewis, L. , Something’s brewing. , Progressive Grocer; (Sep99), Vol. 78 Issue 9, p30, 2p, 2c

Deals with the global marketing strategy of beer manufacturer Anheuser-Busch International

Inc. Remarks from Anheuser-Busch chief executive officer and president Steve Burrows on the

move; Foreign investments of Anheuser-Busch; Implications of politics and culture on

marketing in foreign countries; International expansion plans of Anheuser-Busch.

Linnett, R. , The humbled persuaders. (cover story), Advertising Age; (8/12/2002), Vol. 73 Issue

32, p1-21, 2p, 4c

This article provides information on the annual conference of the Account Planning Group

(APG) in Washington D. C. in 2002. APG is an organization in the U.S. that represents a job

category within advertising that would probably flourish in a medievalist society. Account

planners do not create advertisements. They are the devisers of brand strategy. They research and

analyze and write marketing plans and they apply the findings of disciplines as wide ranging as

semiotics, quantum forensic mechanics and method acting to the task of determining the essence

of a brand. This discipline is taking some hits as jobs within agencies have been eliminated to a

client's return on investment is questioned. It was a humble group of planners that gathered in

the capitol for the 10th APG conference, which used the images of boxers in the ring as a motif.

Moreover, the theme of the conference was Changing Minds in America: The Art and Science

of Persuasion. Emma Cookson, director of strategic planning at Bartle Bogle Hegarty led a

conference forum. Cookson and David Hackworthy, forum partner and director of strategic

planning at TBWA/Chiat Day of Omnicon Group, presented a list of factors to consider in

account planning. Furthermore, attendance at the APG conference was down by almost half in

2002. Many spent time in practical quantitative research courses and training sessions led by


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consulting agency Headmint. Other sessions explored the ethics of marketing and a presentation

titled From Pennsylvania Ave. to Madison Ave., delivered by Boston University Professor Tobe

Berkovitz. This presentation examined the similarities and differences between brand advertising

and political campaigning.

Mullaney, T., The Mail-Order Movie House That Clobbered Blockbuster., BusinessWeek;

(6/5/2006) Issue 3987, p56-57, 2p, 1c

he article profiles the online DVD rental company Netflix. The company's profits doubled in

2005 and shares rose by 157%. It is largely responsible for the decline of DVD rental behemoth

Blockbuster. Some investors are fearful that Netflix will not be able to stand up to pressure from

movie downloading, but CEO Reed Hastings has a number of new initiatives, including film

production and web distribution, to keep the company on top.

Perry, J., What's really “real”?, U.S. News & World Report; (8/19/2002), Vol. 133 Issue 7, p32,

2p, 1c

Focuses on the 'Real People' advertising campaign of Apple for its Macintosh computers. Impact

of the campaign on retail sales; Use of testimonials from people who say they have abandoned

their old PCs in favor of a Macintosh; Details of the marketing strategy of Apple; Debate about

the ethics behind the campaign.

Resource Interactive, Decoding the Digital Millennials., Litmus Newsletter (Nov2006)

HUhttp://resourceinteractive.com/adx/aspx/adxgetmedia.aspx?MediaID=654U

This newsletter talks about the costumer of the future and what it will take for business leaders

to persuade them to buy products and services.

Schultz, S. & Shapiro, J., Prescriptions: How your doctor makes the choice.,U.S. News & World

Report; (02/19/2001), Vol. 130 Issue 7, p58, 4p, 2c


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Discusses the tactics used by pharmaceutical companies to market products. Impact of

pharmaceutical sales representative visits on what type of drugs doctors prescribe; Promotional

tools used by sales representatives, including free products or paid meals; Dangers of prescribing

drugs solely on the basis of promotion.

Spurlock, M. (Producer), & Spurlock, M. (Director). (2004). Super Size Me [Motion picture].

United States:

Showtime Networks.

Documentary filimaker Morgan Spurlock makes himself a test subject of this documentary about

the commercial food industry. Rigorously eating a diet of McDonald’s fast food, three times a

day for a month straight Spurlock is out to prove the physical and mental effects of consuming

fast food. While doing this, Spurlock also provides a look at the food culture in America though

its schools, corporations, and politics as seen through the eyes of regular people and health

advocates. “Super Size Me” is a movie that sheds a new light on what has become one of our

nation’s biggest health problems: obesity.

Thomaselli, R. Trends to watch in 2007. Advertising Age; (12/18/2006), Vol. 77 Issue 51, p10-

10

The article presents predictions about trends in the advertising industry in the United States in

2007. According to the Luxury Institute, luxury goods and services firms are starting to realize

that African-Americans, Hispanic-Americans and Asian-Americans are profitable demographic

segments of the wealthy population. An uptick in marketing via social networks is a projected

likelihood. It is expected that 2007 will be the year private companies ramp up marketing for

commercial space travel.

Hollywood's ad ethics gap. , Advertising Age; (6/25/2001), Vol. 72 Issue 26, p16-16, 1/4p


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The article focuses on Sony Pictures Entertainment's controversial testimonial movie

advertisements. It is viewed that Sony's creation of phony reviews by a phony critic cannot be

excused. It is also wrong on the part of the company to pass off studio employees as unbiased

film fans in television ad testimonials. There is a need to fix the movie marketing culture and it

should start with the demand for adherence to basic standards of truth.

Leading Men. , Sales & Marketing Management; (Dec2005), Vol. 157 Issue 12, p38-43, 6p, 3c

This article presents the views of several chief sales executives about their leadership challenges in

the year 2006. This year's mantra is to keep the focus on the customer. According to M.

MacDonald, president, global accounts and marketing operations, Xerox Corp., every senior

officer at Xerox and every vice president is assigned specific high-level customer relationships.

They have assigned hundreds of their people to different customers and they'll support from a

high level those sales teams' efforts. T. Kendra, executive vice president, sales and services,

Symantec Corp., says that they use customer advisory councils and partner advisory councils,

which are an absolutely superb way of getting customer input on the company's products and

sales coverage. S. Glasgow of Sony Electronics Inc. says, one of the reasons that they started

their own stores was so they could touch consumers, and they are continuing to do that, not so

much to compete and be a retailer but to understand what consumers like and don't like about

Sony's products.

Promises must be kept. Marketing Week. (1/27/2005), Vol. 28 Issue 4, p41-41, 1p

The article examines why product claims are not borne out by consumers' experience. In order to

demonstrate a difference between the old and the new, advertisers are driven to exaggerate a

product's benefits. They are becoming more product-promiscuous and less loyal to brands as they

are faced with greater choice and product intelligence. Design has become a tool for creating

differentiation. However, if this is carried out in the absence of research into what consumers

really want, it can result in overselling.

Documents

Global leadership and ethical issues in marketing & advertising