Impact of Ethical Issues on Marketing Planning for Nivea

This report provides an analysis of ethical issues within the context of marketing planning, using Nivea as a case study. It examines the significant influence ethical considerations have on marketing strategies, including their impact on profit margins, brand image, and competitive dynamics. The report details how ethical misconduct, both within the company and from consumers, can negatively affect marketing plans, brand perception, and customer loyalty. It emphasizes the importance of responding to ethical issues through adherence to UK policies, employee training, technological advancements, and strict regulations. The analysis covers key aspects such as the use of quality resources, environmental considerations, and adherence to government regulations. The report also explores the consequences of consumer ethical misconduct, including potential legal issues and decreased sales, offering insights into how businesses can navigate and mitigate these challenges. References are included for further reading.

Marketing Planning
Ethical Issues

4.1 Influence of ethical issues in
marketing planning
It has been spotted that the ethical issues have great impact on the marketing
planning so it is necessary for management of Nivea to understand the ethical factors in
better way.
Ethical issues can influence the profit margin ratio by affecting the overall
operations of Nivea. It can also create some barriers for Nivea while dealing with
competitors in the same industry. Other than this, the unethical work culture can also
impact the brand image in negative manner.

Contd...
 Value of skin care products is essentail otherwise customer will
think negative which will impact operations.
 Value of enhanced well-being is also necessary as it creates better
brand image. It will impact marketing plan in positive manner.
 Use quality resources is also essential as avoidance of quality
resource will impact the market plan in negative manner.

Contd...
For example, the Nivea has used the media channel to promote its
products but it got involved in unethical practice due to some
circumstances then it will impact the brand image in negative
manner.
It can also be understand by another example such as Nivea can
selected pricing of product in unethical way then it will decrease the
sales of business. In this it is necessary for organisation to select the
pricing of products in ethical manner.

4.2 Respond to ethical issues.
It has been spotted that it is necessary for management to resolve the ethical issues by
focusing on various actions. It is necessary for Nivea to have healthy competition by making
sure that the marketing team is developing various strategies and plans as per the
consideration of UK policies and rules of trade unions.
It is also essential to ensure that all members have proper knowledge about the ethical
work practice or standards so that business can be protected from unethical business. It will
provide various benefits to organisation and lead business to impressive success.
Nivea can also provide training to employees in order to make them understand about
the importance of ethical factors in business practice. The improved information about the
benefits of ethical factors will motivate employees to have efforts in ethical manner.

Contd...
 Less use of chemical
 Consideration of environmental issues
 Implemented government rules
 Respect of values of customers
 Use quality material for production
 Followed child labor law
 Optimum use of resources

Contd...
Other than this, the improved focus on technology can also be effective
response towards ethical issues. In this it is necessary for management to make
sure that Nivea is using updated technological equipments which can reduce the
ratio of unethical practice.
Nivea can install computer systems that can detect the hacking and breaching
actions. Organisation can also focus on use of various new technological tools
which can look over various safety and security aspects. Management can also
have strict regulations in order to avoid the unethical business practice.

4.3 Consequence of consumer ethical
misconduct on the marketing plan
 Consumer ethical misconduct also have great negative impact on the
activities which are designed under marketing plan so it is necessary for
Nivea to understand these factors in appropriate manner.
 It has great negative influence on the brand image because loyal customers
may feel that unethical practice have support of staff members.
 It also affect the customer perception in respect of company and its
products. It also decreases the sales ratio because customer feel more
attracted towards competitors products and services.

Contd...
In this support it can be said that the business can also face some legal issues
which may also cause some penalties. Moreover, the decrease in demand of products
can also be identified which will have direct negative impact on the marketing plan of
organisation.
The decrease in demand will also reduce the profit margin ratio of Nivea. Business
can also face issues regarding business failure as it will also lead business to poor
customer loyalty. It will also amend the employee turn over ratio which have direct
impact on the overall operational cost.

References
Mason, R. B., 2007. The external environment’s effect on
management and strategy: A complexity theory approach.
Emerald Group Publishing Limited. 45(1). pp.10-28.
Nicholas and et. al. 2003. Strategic marketing planning: A
grounded investigation. European Journal of Marketing.
37(3/4). pp.430.
Sirgy, M. and Lee, D., 2008. Well-being: An Ethical
Business Philosophy for Consumer Goods and Firms.
77(4). pp.377-403.
Sutherland, M., 2000. Advertising and the Mind of the
Consumer: What Works, what Doesn't and why. Kogan
Page.

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