Greed, Profit and Consumerism
 
GREED       ETHIC
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Unethical marketing managers use misleading advertising, deceptive promotions, false labeling, small print, hidden charges, marketing kids, gouging, and other mean methods to sell the consumer. It is working - there is over-consumption and great waste in one half of the world, and most of us want more.  There is also more social stress. The high intensity and shrewdness of marketing has influenced our society in the wrong way and is shaping the lives of the next generation. Is anybody complaining?

 
The Creeps
 
There seems to be a negative trend in the retailer-consumer relationship. It is the deterioration in the ethic of the seller and the acceptance of this dishonesty by the consumer. It is creeping its way through a number of retail sectors like a virus. It can be the lessening of a products usefulness, safety, or general worth so it can be sold at a better profit. It can also be the increase of marketing deception to sell more product at a better price.
 
As an example, if an unethical food manufacturer is allowed to add or increase an unhealthy ingredient in a product to increase profit the ethical corporations will be pressured to do the same to keep market share.
 
A scenario:
Three corporations sell the same product. Corp A cuts cost and increases profit margin in a way that also increases the health hazard or decreases it's true worth in some other way. The result might even be more appealing, as tastier in the case of food, or prettier in appearance.
 
Corp B and corp C watch their market share begin to shrink but soon both follow suit. In fact Corp C takes it a bit further and cuts costs more in the same way, at the same time increasing the hazard or decreasing the value slightly once again.
 
The competitive cycle goes around again and a new standard creeps its way throughout that industry. Communications marketing comes to mind with this routine.
 
How does it stop? It would require that all parties simultaneously realize that profit is not as important as the welfare and good will of the consumer. This will not just suddenly happen.
 
It seems that in this era of the corporate drive for more profit for executives and shareholders that more and tighter government regulation of business practices are needed.
 
This is unfortunate but necessary if ethics are gradually being moved to the back in retailing to consumers.
 

 
Effective Market Competition Requires Tight Regulation
 
Competition is a method of comparing two or more contenders to see which is better in one or more specific qualities.  To realize this ranking of qualities, the contest must isolate the qualities and provide fair competition.  For example: the 100 meter dash compares running speed, a football game compares athleticism, management and team work, and a beauty pageant compares personal presentation and personality.  In each of these examples, there are strict rules and regulations to isolate the competing qualities.
 
Runners must start at the same time, have equal length of track and have equal track environments, football players must follow rules administered by referees, and beauty contest must follow all pageant guidelines.  Without the enforcement of such regulations, contestants may “cheat” by using qualities that are undesirable and even antithetical to the contest goals. Thus without tight regulation, competition is not effective at discovering which contender has the desired qualities.   
 
If we accept that a most important function of the commercial free-market is to promote competition of goods and services so that those products with the best consumer value come out on top, then we must also accept that market regulation is a necessity.
 
If we accept that our system of capitalism should serve the interests and needs of all private citizens, and not just an elite class of owners, then it can be proved that commercial marketing promotions are an unnecessary element of our system. In theory and in practice, capitalism does not require promotional marketing to sustain effective commerce, and in effect, the competitive market system is corrupted by the irrational messages that are the staple of contemporary commercial promotions.
 
Commercial marketers do not want consumers to be critical of their product or service, they just want consumers to buy it.
 
 
Source: Goods and Services
 

Ten Ways to Have More Responsible Children
 
We'd all like our kids to develop into responsible people. How can we help to ensure that our kids learn the lessons of responsibility? Here are some ideas:
1. Start them with tasks when they're young.
Young kids have a strong desire to help out, even as young as age 2. They can do a lot more than you think if you're patient and creative. This helps build confidence and enthusiasm for later tasks in their life.
 
2. Don't use rewards with your kids
If you want your kids to develop an intrinsic sense of responsibility, they need to learn the "big picture" value of the things they do. They won't learn that if they're focused on what they're going to "get."
 
3. Use natural consequences when they make mistakes.
If they keep losing their baseball glove somewhere, let them deal with the consequences. Maybe they have to ask to borrow one for the game. Maybe they have to buy a new one if it's lost. If you rescue them every time they screw up, they'll never learn responsibility.
 
4. Let them know when you see them being responsible.
Specifically point out what you like about their behavior. This will make it more likely to continue to happen.
 
5. Talk often about responsibility with your kids.
Make responsibility a family value, let them know it's important.
 
6. Model responsible behavior for your kids.
This is where they'll learn it from. Take care of your stuff. Try to be on time. They're watching you very closely.
 
7. Give them an allowance early in their life.
Let them make their own money decisions from an early age. They'll learn their lessons in a hurry. Don't bail them out if they run out of money.
 
8. Have a strong, unfailing belief that your kids are responsible.
They'll pick up on this belief and they'll tend to rise to the level of expectation. And keep believing this even when they mess up!
 
9. Train them to be responsible.
Use role play and talk to them about exactly what kind of behavior you expect from them. It's hard for kids to be responsible when they don't know what it looks like.
 
10. Get some help and support for your parenting.
It's hard to know sometimes whether you're being too controlling or too permissive as a parent. Talk to other parents, read books, join parent support groups, whatever will help you feel like you're not alone.
 
 
Mark Brandenburg MA, CPCC, coaches men to be better fathers and husbands. He is the author of "25 Secrets of Emotionally Intelligent Fathers" http://www.markbrandenburg.com/father.htm Sign up for his FREE bi-weekly newsletter, "Dads, Don't Fix Your Kids," at http://www.markbrandenburg.com.
 
 
Reprinted from Zongoo.com Daily Press & Consumer Information
 

Loud Commercials
 
I know that I am not alone in complaining about loud TV commercials, although it may bother some a lot less than others. They used to say that tests indicated that commercials were not louder than the regular programming. More recently I heard a national television broadcaster discussing loud commercials. A media tech person had explained to him that the sound was not louder but it was enhanced to sound louder.
 
These types of answers are common when confronting someone responsible for answering consumer complaints. Since these TV intrusions must be turned down or off in order to continue a conversation, it is easy to conclude that they are louder. Or sound louder if you prefer. Either way it is promotion ad noxious.
 
Marketers use this purposely to capture the attention of the audience who may not want to pay attention but do something else. During the evening my wife has often said to me, "Mute that thing, I can't concentrate!" or "I can't read the paper!"  Well that's the idea dear, we're not supposed to read, talk, or do anything else but listen to the promotion.
 
An advertiser should not be allowed to invade our homes with deliberately loud television commercials. What can you do if you don't like this insane marketing disturbing you in your personal living area?
 
I understand that the broadcaster can use equipment and procedures to avoid "loud" commercials and background noise. You could contact the stations involved but don't expect to get lucky. Advertisers are their source of revenue.
 
The latest information I have states that, at least in the US, the Federal Communications Commission does not regulate the volume of programs or commercials.
 
Until I can think of something better I will mute the commercials and I will talk about the problem. I have much more reason now to just leave the TV off.  The term  'Idiot Box'  has come to have even more substance.
 
 
"I wish there were a knob on the TV to turn up the intelligence. There's a knob called "brightness, but that doesn't work." - Author Unknown
 

Are Consumer Complaints Worthwhile?
 
In most instances when we have a gripe it is best to complain to someone, but depending on the type of complaint and to whom the complaint is sent, it could be a waste of time.
 
If we think that a retail outlet is marketing unethically or makes a mistake that appears to be a local problem only, a complaint can be made to the manager.
 
When the situation seems to reflect overall company policy, then a complaint to the head office might be in order. Finding an address and contact may not be easy. Customer relations people seem to have disappeared and it's not because everybody is a happy shopper! An internet search or asking at the local outlet might find a person and place to write at the corporation.
 
If this complaint is about a deliberate attempt by the company to deceive or cheat consumers, writing to a government agency or consumer's group is more appropriate.
 
Complaining solely to the corporation or it's related association seems to achieve little satisfaction. After all, if it was planned that way, why wouldn't they defend it?
 
Typical responses are:
 
"...    the advertisement you refer to meets all legal requirements".
" ...  subject to the ethical standards generally accepted by the industry".
" ... our intent has never been to mislead and I believe our practices will bear me out".
 
Check out this site’s Resources page for related information.
 
 
“Liars when they speak the truth are not believed." – Aristotle
 

 

Fibs and Lies
 
Are lies that are obvious lies still lies?
 
Cheap little deceptions in advertising are pretty common but it's annoying to have to sort through the text to weed out the truth. And then there are outright lies that often are well camouflaged in the wordings. Deception seems to have crept widely throughout the marketing world.
 
I don't know when I read the first ad of this type: High Speed Internet $24.95/month. It was really $34.95 after six months and for as long as you did not want to change service providers. When a large communication company uses this method, successfully increasing market share, then it is only a matter of time until others follow. Eventually my long time local independant service provider began advertising the same way.
 
Exagerations and worse can be found in a wide range of marketing areas.
 
In real estate it is well established. New Townhouses - "Minutes From the Beach" even though they were 6 miles away from the water. "15 minutes from downtown" (At 2am and twice the speed limit.)  "360 deg views" (Sure, I just have to buy all the suites on one floor)   "Affordable luxury" ?
 
Vacation marketers have a popular calming name for a 2 hour stop over during your flight. "Touchdown"
 
Even the produce stand might entice you with  Fresh Green Beans – ‘imported’.
 
The new condo purchase was to have "Top Brand Name Appliances". I was unpleasantly surprised that while the brand name was tops the appliances were the bottom of their line.
 
The mainipulation of statistics is a fairly common deceptive method of promoting something.
 
There are many examples in many areas. Mostly little things to be sure, but all nibbling away at consumers' confidence in what they see and hear when considering a purchase. So the deception virus spreads, throughout one industry and later connecting with another. How will this play out years from now? Will everything be marketed with lies?
 
"You can tell the ideals of a nation by its advertisements." - Norman Douglas’ South Wind, 1917
 

 
Fine Print
 
Why is fine print so fine? If an advertisement, statement, or contract has fine print, it is often about what they don't want you to know. Some print is so small it can't be read with average eyesight. To not read this text, even if you must get a magnifying glass or enquire, could result in surprise, disappointment or worse.
 
Fine print can be used to protect the seller of the product, to reduce the cost of service against consumers' complaints. It can also be use to sell the customer something which is less than expected or costs more than is clearly indicated. This stuff is written with profit in mind.
 
There are lots of example uses of small print.
 
Communication services only $24.95 - but the small print clarifies
After six months charges are $36.95
 
Term deposit 5.25% 3 Year Rate* - not really, read the small print
5.25% 3rdYear Rate*- effective yearly rate 3.16%
 
The uses are so varied and are common:
* applies to 3 yr contract . . .
* other conditions may apply . . .
* assumes no responsibility  . . . 
 
Oxymoronic credit conditions notice: "IMPORTANT INFORFORMATION ABOUT YOUR ACCOUNT".
 
The heading is readable. The rest of the print on the back of my credit card statement is small but is also faded and difficult to read.  Fuzzing up what you need to know – not very nice!
 
 
“To know what is right and not do it is the worst cowardice.”  Confucius      
 

 
Social Impacts of Commercial Promotions
 
Disintegration of community: Marketing emphasizes individual materialism over community values and causes people to ignore their common public interests.  The private is given much more attention than the public.
 
Injustice: Marketing promotions use public media to promote trivialities while serious social concerns are ignored.
 
Loss of human values: Promotions drown out the voices that speak of human values, such as empathy and solidarity, which are the basis for a wise and humane society. Marketing teaches us values that serve business and ignore values that serve humans.  They teach us to ignore the needs of our peers and to compete for material status.
 
Promotion of stereotypes: Large-scale promotions usually aim for the largest and/or most profitable target groups.  To effectively convince these mass groups marketers must present ideas with which consumers are already familiar with.  This often means the supporting of common assumptions even if they are negative and/or inaccurate.
 
The objectification of people, (especially women):  Advertising often portray woman as submissive sex objects with little to know reference to their personality, skills or intelligence. The heavy use of models teaches consumers to appreciate people more for their appearance then the inner qualities. Such superficiality is unfair to those without natural idealistic looks and does not encourage the development of pleasant social personalities.
 
Degradation of culture - Public social events are degraded by fabricated associations to a brand, product or service.  Rather then just remembering an event or activity for its social, personal, cultural and/or intrinsic values, corporate messages, whether consciously or not, are forced into our mental scheme, tainting the memory.
 
Consumerism and materialism are short sighted, inhuman and unwise values to base a culture on and will not help us solve global issues such as over population, violent conflict, disease, malnutrition and global warming.
 

 
Stupidity Cards?

I detest using supermarket and department store loyalty cards.

 
We consumers are paying for these systems that mainly benefit the retailer in the collection of our purchasing data. These programs have progressed to such a degree that the consumer often has little choice but to take part in the programs. If there are two large supermarkets in a shopping area and they both have card programs, the choices evaporate.

Some polls might indicate that cards are considered to present a bargain, but is that misleading? Consumers will pay extra or miss out on some benefit if they did not use the card, when in a store that has a card program. So it saves money then and there. This system appears to bring the price down, but probably not to where it should be if there was no card system. I don't look at these cards as saving money at the checkout, but rather as cards to avoid my paying extra.

 
The card is a source of customer information for the retailer, but for what purposes? The collection of this personal data should be a concern, they only need to know product inventory data, not who is buying what.

The loyalty card pricing system at a local supermarket illustrates why shoppers might feel that they must take part in the program:

 
Kellogg Corn Pops
Non-member Price  $6.99
Card price $3.99
Difference $3.00  or  75%
 
Peaches
Non-member Price  $2.99/lb
Card price $1.99
Difference  $1.00  or 50%
 
These are examples of how some product prices are tagged throughout the store. Generally member price differences are much less than that and not all items are priced in this way. However it seems a threat that if you don’t take part in their data collecting card system the grocery tab could be considerably more. The routine culminates at the checkout. The clerk runs up the total so you can see it, then swipes your card and you can see the total come down before your eyes.

Are these savings really savings or are the regular prices simply escalated? It appears to be an unjust charge to us who do not want our personal data collected and to tourists. This seems unethical, and if legal, I think there should be a law preventing this type of marketing.


There is a lot of information on loyalty card pricing issues and privacy concerns at  CASPIAN.

 

Select articles above - all articles archived above right

Article #1
Unethical Marketing is Widespread
 

More and more corporations, including some large retail chains, are using trickery and dishonesty in marketing. Misleading advertisements, deceptive displays and labeling, and other sly tactics are too common. Beating the competitor and the consumer, preferably within the limits of the law, seems to be a retail marketing trend.

There are many ways: Store displays that attempt to sell items that appear to be on sale but aren't. Switch and bait selling. Marketing to kids. The use of shock to increase ratings and sales. Encouraging credit, gouging those that can’t afford exorbitant charges when interest rates are at 45 year lows. Then there is the small print, hidden charges, planned over-consumption, self awarded awards, junk mail, telemarketing, loud repetitive commercials, loyalty card propaganda.

 
It does not help a great deal to complain to these corporations as the processes are deeply rooted. They are in competition to
increase profits and extracting a few extra dollars from the consumer by using deceptive practices is an easy way.  'We aren't breaking any laws', or 'we strictly conform to guidelines set out by our association', are typical responses.
 
Working within the law or self styled guidelines is not good enough, retailers must use strategies that are morally good. An old retailing axiom used to be ‘the customer is always right’. From what I have perceived over recent years, ‘the customer is always ripe for picking’ would be more appropriate.

And we must complain to everyone who will listen, or we will be unable to blame anyone when all truth is gone from the marketplace.

 
 
 

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ARCHIVES this site
 
The Creeps
Marketing Regulation

More Responsible Children
Misleading Advertising Info
Loud Commercials
10 Reasons to Trash Your TV
Greed Defined
Complaints Worthwhile?
Privacy - General Tips
Rise and Fall of Oil Age
Fibs and Lies
Kids and Commercialism
Fine Print
Social Impacts
Greedy Governments
Garbage!
Stupidity Cards?
Annoyance Marketing
Marketing Kids
Trans fat labels
Advertised special?
Shock in marketing
Whole lot of cheating
Life or Lifestyle?
Bait and Switch
What am I eating?
Advertising Goes Too Far
Enough: Saying no to hype
Credit Vultures
Unethical Marketing



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