A marketing strategy details how a business can offer products and services to satisfy the needs of members of a target market. Ethical marketing ensures that the needs are real and that the products and services meet those needs. Over the long term, an ethical marketing strategy is effective because customers derive the benefits they expect from using the products or services your company offers.
An ethical marketing strategy does not encourage or advertise unsafe applications for a product. If your company offers products that are hazardous under certain conditions, an ethical marketing strategy highlights the dangers and gives clear instructions on how to avoid them. Over time, such a strategy collects data on the use of the product and takes steps to reduce or eliminate the hazards to the consumer. An ethical strategy that supports marketing objectives would emphasize both the dangers and the steps taken to reduce them.
Deceptive marketing practices are unethical. They include claiming qualities for a product that the product doesn't have, advertising lifestyles that a product doesn't support and claiming a product satisfies a particular need when the product is unrelated to it. Ethical marketing presents a product honestly and clearly, highlights the qualities that appeal to a particular market segment and makes it convenient for members of that segment to purchase the product at a price they are willing to pay.
A company employing an ethical market strategy does not engage in manipulation of the markets. An ethical strategy analyzes the target markets for information on how many items customers are likely to buy and makes sure there is an adequate supply. Creating artificial shortages as a tool for driving demand is unethical.
Pricing signals for an ethical marketing strategy are derived from studies that indicate what customers in a target market are willing to pay and the costs of manufacturing and distributing a product. It is unethical to set prices above an appropriate level to increase profits beyond the strategic plan or below such a level to drive competitors out of the market.
Companies engaged in marketing activities collect data on individuals in their target markets and use this data to influence product design and pricing. An ethical approach requires that the company obtains such information with the consent of the individual and keeps it safe, respecting the individual's privacy. Collecting private information without the knowledge or consent of the individual and selling the information to third parties is unethical.
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