BMGT 496 - Marketing Ethics: Ethical Issues in Business

This report delves into the ethical dimensions of marketing, encompassing a wide range of activities from product design to advertising campaigns. It begins by outlining the core concepts of marketing, including segmentation, targeting, and positioning, using Apple Inc. as a case study to illustrate these principles. The report then explores different consumer perspectives, such as wary, contracting, protected, renegade, and capable consumers, to understand their roles and responsibilities in the marketplace. A significant portion of the report is dedicated to the ethical principles that govern marketing practices, focusing on issues like truth in advertising, consumer privacy, and the ethical implications of product quality and environmental impact. The report also analyzes Apple Inc.'s privacy policies and ethical challenges, including intellectual property theft and environmental concerns. The conclusion emphasizes the importance of ethical conduct in marketing for long-term business success, highlighting the need for transparency, integrity, and consumer respect.

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Running Head: THE ETHICAL ISSUES IN MARKETING AND BUSINESS
THE ETHICAL ISSUES IN MARKETING AND BUSINESS
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THE ETHICAL ISSUES IN MARKETING AND BUSINESS
Introduction
The term marketing encompasses diverse activities that are connected with selling the
goods or the products of the company to the consumer. Advertising is an obvious activity of
marketing; however, the research and studies which link the products to the wants and needs of
the consumer. The designing of the product is one aspect of marketing as it assists to match the
services and the products of the company to the needs and requirement of the known customer.
Strategic marketing identifies the requirement of the customer and modify the existing goods or
innovate new goods that match the needs of the consumer. The marketing campaigns initiated
which is based on determining the efficient method of attaining the needs of the consumer and in
addition to that assist in preserving consumer relationship through the loyalty programs and sales
campaign. Marketing determines the requirements of the consumer and also help in creating the
need of the consumer.
Product selection and typical consumer
The segmentation of Apple Inc, positioning and targeting signify the core efforts of
marketing. The segmentation designates demarcation of the population according to typical
characteristic however targeting implicate selecting a particular group that is determined to result
from segmentation to vend goods( Muranty et al., 2015). The customer segment that is the target
by Apple Inc. involves rising design, performance or quality of services or technology products
over their values. Positioning indicates marketing mix selection that is appropriate for the
segmentation of target consumer (Zhang, 2019). Apple Inc. under the governance of late Steve
Jobs applies mono segment category of positioning alluring the wants and needs of the segment
of a particular consumer (Keller, Markert & Bucher, 2015). The company has consistently

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enhanced its products and shifted from mono segment category of positioning to the positioning
that is multi-segmented. The positioning that is multisegmented initiate to target the segments of
multiple consumers with different service package or products.
Demographic target segment In terms of the demographic target segment, Apple is
catering to the age groups between 20 and 45 as the
primary target segment. This is due to the reason that
younger and professional generations are seeking the niche
benefits of Apple products.
Geographic target segment In terms of geographic segmentation, majorly the
customers from the tier I and II cities are targeted. This is
due to the reason that customers from these areas are
having affordability to avail Apple products.
Psychographic target segment In terms of the psychographic segmentation, customers
seeking expensive and lifestyle products are targeted.
Moreover, customers seeking to have aesthetic value are
also being targeted.
Behavioural target segment In terms of the behavioural segmentation, customers
seeking to have an active lifestyle is targeted by Apple.
This is due to the reason that Apple is offering the
customer electronics that are aligned with the active
lifestyles of the customers.

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The purchase decision of the consumer
The ethical issues that surround the business industry mainly concentrate on the
consumer mistreatment, gullibility, and address the mistreatment (Silvestri, Cirilli, Zecchini,
Muleo & Ruggieri, 2018). The question that evolves is how much liberty is exercised by the
consumers to spend and how much responsibility is taken by the suppliers for the services and
goods. The method is to formulate five conceptions regarding the consumption of the products
(De Hooge, 2017). The five methods that arrange the obligation and liberties surround the act of
expenditure comprises of wary consumer, contracting consumer, protected consumer, renegade
consumer and the capable consumer.
The wary consumer
The doctrine of caveat emptor indicates that consumer is liable for product quality they
purchased. The caveat emptor capitalize the consumer’s esteem by positioning all obligation in
the hands of the consumer at the utmost standard of freedom and dignity is contributed to the
purchaser.
Contracting consumer
The contractual opinion of consumer views the transaction as the passing of consideration
one hand and services or goods to other hands. The transaction is the establishment of an implicit
arrangement.
Protecting consumer
The commercial transaction does not endangered grave loss even they went wrong. The
liability of the manufacturer cultivates consumer liberty to bring suit against manufacturers for
the harm or injuries that are caused by damaged goods.

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Renegade consumer
The renegade consumer irrespective of cost seek out justice as against the deficiency of
the products by getting out of the structure. This consumer in spite of creating ethical claims as
against producers is based on the concept of implicit arrangement in addition to that seeks retreat
underneath the protection of governmental agencies this category of consumer enters in the
barred battle that is no hold against dirty venders.
Capable consumer
The capable consumer is the ideal of the free market. The role of the market place is to
apply purchasing decision to encourage a good corporation that is one produce enhanced
products at less expense while punishing the corporation that produces substandard products.
the apple is suited for marketing to the conception of contracting consumer as this category of
consumers views the arrangement as contractual terms which emphasize in freedom, information
and honesty( Meyerding & Merz, 2018). The protected consumer is suited as the apply company
upheld the quality of the product and marked as a renowned company in the marketing business.
The renegade consumer is suited as they are the reflection of the consumers of caveat emptor.
The capable consumer is not targeted by the apple company as it provides better goods but with
higher cost.
ETHICAL PRINCIPLES
The ethical principles that govern Apple Inc are to guarantee that the employees and
employers exhibit appropriate action in all cases. It centres its success on products that have high
quality, creating innovative and demonstrating integrity in the interaction of business. According
to Apple Inc., the four core principles are respect, honesty, compliance and confidentiality. The

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method to enter an ethical debate about the claim of doubtful products is to construct the subject
as conflicting rights (Atik, Atik & Karatepe, 2016). The producers on one side have the right to
discuss the product that they are vending and also they are liberal to motivate the consumer to
attain credit need. The ethical principles involve free speech that embodies the right exercise by
the individual to say what they desire does not terminate as because someone is attempting to sell
the product (Clarke & Boersma, 2017). The consumer has primary ethical liberty to have
information of what they are purchasing in addition to that marketing technique that is mild
ambiguous that intervene the liberty. The advertisers in the marketing industry are bound by the
ethical obligations to speak out the truth. The responsibility trumps the obligation for selling the
products and also assist the corporation in making profits. Furthermore both the manufacturing
corporation and the advertisers are bound to treat the individuals including customers as tops and
not as methods (Campana & Ouimet, 2015). The fundamental ethical guidelines are that no
individuals should be treated as machine as the means of getting something else. There exist no
issues in advertising the products of Apple and permitting the consumer to make the decision of
what they desire however when there is a deceptive advertisement the customers are not treated
with the dignity they are treated as a method to make a profit. Although Apple Inc. won as the
most admired corporation as witnessed by various ethical concerns within contemporary years.
The concerns have an intense effect on the future success of the company. The sterling reputation
of Apple could be hampered by severe misconduct or inability to resolve the threat appropriately.
One of the ethical issues involves the quality of the products. The apple company hinges upon
the quality of the products so errors can cause severe ethical dilemmas. The new products
introduced in the electronics industry every year it is hard to identify mistakes before the
initiation of the products. The consumer can face reception issues after the introduction of the

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Apple iPhone. Privacy is identified as a significant issue for Apple Inc. governmental officials
and consumers view it as a violation of the privacy of the user. It is announced by the company
that the consumers have the choice to disable the characteristic on apple phone. The apple has
taken initiatives for becoming greener corporation such as reduction of impact on the
environment at its services. Nevertheless it is attempted by the apple company significant portion
of releases come from products. The Apple in the year 2009 announced that its functioning
added 9.6 millions metric tons of metric gases being emitted. The theft of intellectual property is
the key issue of the apple company, a concern that is aggressively pursued by the company. The
apple company is grave about maintaining the privacy of proprietary data to eradicate other
competing companies from stealing the information. The apple also takes initiatives to protect
the technology from stealing. The aggressiveness of apple company regarding the protection of
patent has inclined to initiate litigations against the powerful companies.
PRIVACY POLICIES
The privacy policies of Apple is significant that embodies the method of collection,
application, storage and transfer of personal information. Furthermore, in addition to the policy
of privacy, we contribute privacy and data information that is stemmed in the products linked
with the privacy and data icon. The apple company long with its affiliates shares personal data
with one another and apply it consistently with the policy of privacy. The company may
amalgamate it with other data to enhance services, product, advertising and content. The apple
may disclose the information to the third party regarding personal information to improve
services and products that includes delivery of products at the appeal of the consumer and to
assist consumers (Sunyaev, Dehling, Taylor & Mandl, 2015). The apple company does not vend
the personal data and personal data is never communicated with the third parties for the purpose

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of marketing. For instance when the individual activates and purchases iPhone the individual
sanctioned apple to exchange data that is provided by the customer during the procedure of
activation for executing service that includes information regarding the device. If the service is
sanctioned by consumer then the consumer’s account is regulated by Apple and the respective
policies regarding privacies of the consumer’s carrier. The apple exchange personal data with the
corporation that facilitates facilities such as extending credit, information processing, attaining
the orders of the consumer, enhancing and managing customer data. In addition to this, it
provides services to the customer, ascertaining the interest of the consumer in the products and
conduct satisfaction surveys or research on consumer. The corporation is responsible to
safeguard the personal information of the consumer and apply in the place where there is an
operation of the apple company. The apple safeguard the personal information very earnestly.
The online services of Apple such as iTunes Store and Apple online store safeguard the personal
data of the consumer during transition applying encryption for instance layer security during
transport. The company make it simpler to maintain personal data complete, accurate and
current. There is the retention of personal data for the time necessary to satisfy the
determinations that is laid in privacy policy along with the privacy summaries that are service-
specific.
Conclusion
The success of Apple Inc. in the area of marketing business embedded from an amalgamation of
various features that includes the skills of remarkable leadership of CEO Steve Jobs an
innovative and enthusiastic corporate culture and the products is characterized of high
technology for which apple is known in the industry. The combination of these qualities has
permit Apple to bring revolution in the retail industry and technology. The ethical principles of

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apple Inc. embody that it attempts to guarantee to the consumer respect, honesty, compliance and
confidentiality. The code of conduct in the business organization that is framed by Apple Inc
inapplicable to the functioning that includes worldwide. The paper is concentrated on the
segment of consumer that attract the particular product, the ethical principles and the privacy
policies of the company.

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References
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