Tuesday, January 27, 2009

Tuesday Ethics Talk @ 11am

Welcome to our first online Advertising Ethics discussion of the semester!

To get started, read the following Ethical Dilemma and provide your ethical input...


ETHICAL DILEMMA
Bradley has just graduated with degree in Advertising and has been hired as an account manager at a large advertising agency. In talking with some of his new colleagues, he heard of a practice that concerned him.

Several account managers had an assignment to do some research on the competitor of one of the agency’s major clients. The account managers decided to conduct a telephone survey, but when they identified themselves as agency employees, important sources refused to participate in the study.

The deadline was quickly approaching, and the managers desperately needed the information. Then one of the managers, who had also recently graduated from university, suggested that they identify themselves as “university students who were doing research for a class project.”

This approach worked like a charm. Everyone was willing to help the “students” out, and the agency secured the important competitive information that it needed. The research was finished on time and within the budgeted cost. The client was immensely pleased.

Bradley is concerned about the manner in which the managers deceived the respondents, but he thinks that this might just be part of doing business. In addition, as the newest account manager, he does not want to rock the boat, and he very much wants to win the respect and acceptance of his new co-workers.

QUESTION
Do you consider the account managers behavior to be ethical or unethical?

44 comments:

  1. I am torn between the account managers behavior about being ethical or unethical in their decisions. My reasoning, would be looking at the situation in different perspectives. Yes, it was unethical for the account managers to stretch the truth and down right LIE, but it was also unethical for the client's to give up their information so easily. There are other ways to go about obtaining information. Some advertising companies have a listing on their website about who they have done work work, others you have to buy the information online to extend your knowledge on how and what a company does.

    In a professional setting to win and advance in a business practice, a small lie might be considered harmless since nobody is really getting hurt, and business is business. Now, when it comes to personal ethics, that is when a person might feel more affect by the sneaky handed practices to obtain the upper hand.

    The new account manager had the right to feel uncomfortable but it was his decision to keep his mouth shut and help the company succeed. If I were him, I would bring it up anonymously to the higher authorities, if not, transfer to another company that might have better business practices.

    no company/place/business runs on honesty. there is some unethical practices, even small unnoticeable ones, but still unethical nevertheless. We as people, clients, and employees have to decide how this will affect the picture as a whole and who will be affected the most in an unethical manner.

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  2. I do not believe that what the company conducted business unethically. This approach was SMART. This employee was creative in using his resources. There are many ways to go about obtaining information and how you present your self is commonly used. Had Bradly's company gone in and stolen files or set up a spy than that I would consider that to be sneaky and poor unprofessional conduct. No harm no foul, what they don't know wont hurt em.

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  3. Frankie your dancing on the fence, pick a side. Is it ethical or unethical? =)

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  4. To Correne

    but are you saying that calling over the phone, changing your identity to obtain information is still okay if the situation was tweaked? Lets say they had an employee have a duel identity at the other company as a "spy" and gathering information like that. no papers would have been stolen, just word of mouth of what their competitors are doing. is that still an okay and ethical approach?

    I will agree, it is a smart move and a company loves attention, especially when it comes to students who are interested in research, but that still doesn't deny the fact that it was a mischievous move regardless if nobody got hurt because they didn't know about. "no harm, no foul." if the situation was taken out of a business setting and put into something more personal or close to family and friends, would that change up the ethical and unethical view?

    And to answer you question Correne, I will say its unethical. simple as that.

    ps-i like my dance moves ;)

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  5. No, I said I think spies would be unethical and unprofessional. Had one of my employees gave out information under those context, well that's how the game goes. Many companies use this approach. Really not much more information could be given on a "student interview" than would be available on the internet or something. Family is a whole different ball game, loyalty and emotions are involved, were talking strictly business.
    P.S. Ill have to see those moves.

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  6. Hey guys! You started before 11am. Let's wait until 11am next time and for everyone, including Ariel, to be online.

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  7. From Victoria (having tech issues):
    Okay, let's get started. Great discussion already! Frankie - can you elaborate on what you mean by "no company runs on honesty"? Do you feel that any companies out there are honest, or are most doing something, even something small, dishonestly/unethically?

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  8. Victoria, Ariel,Frankie??? u guys here?

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  9. Can you guys read those from me? My computer's been acting up?

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  10. I think we have to constantly refresh page to see comments

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  11. Frankie - Any additional thoughts to the question re: "no company runs on honestly". Can you elaborate on that statement for us?

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  12. Let's move on. Frankie must be experiencing tech issues.

    Correne - Your thoughts... Do advertising agencies have the responsibility to engage in ethical behavior EVEN if it means losing a client?

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  13. Absolutely they have a responsibility to display ethical business to all employees and those who they engage in business with. What is ethical or unethical is where it may become gray or subject to opinion.

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  14. How does an advertising agency decide what is ethical/unethical then? Do they rely on governing agencies like the American Advertising Federation or do they rely on management's personal/professional code of ethics?

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  15. No I think this decision must be backed by laws and information provided by governing agencies such as the American Ad. However I think personal opinions and conduct often do leak into business decisions.

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  16. Frankie - Do you have an opinion?

    I would agree, Correne, that agency management must and should make business decisions based on both their own personal/professional code of ethics as well as those rules set out by governing agencies.

    NOW, if you were Bradley, how would you handle gathering information for a client if the information was hard to come by?

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  17. I AM SOO SORRY!!!!

    i'll explain later.
    as to answer the question, yes I do think some companies do act out in some unethical manner. but as correne said "no harm, no foul." nothing drastic like the Enron fiasco that happened but minor things to get up on the edge of the competition. for example, in a business setting, say a person doesn't qualify for a loan, but that person has a good record, a sincere personality and overall not difficult to talk or deal with, the banker or whomever is doing the loans may change up some data or gather and outside source instead of sticking to guidelines to help a person out. some rules are bent, nothing it performed perfectly in the work setting but the ethical standards will try to be met.

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  18. I would try the "school interview approach" that's a good one. I would also exhaust all public information, net annual reports, investors ect...Hopefully well learn more in Advertising research...

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  19. Frankie - Same question. How would you handle gathering information for a client if the information was hard to come by?

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  20. thanks for letting me catch up ^_^.

    I agree with what Correne said about the laws and having both professional/personal ethics play a part in how we go about in a company or corporation.

    now, as for the question about how a person might go about in another way of obtaining information without having to make a false identity, they could just purchase online statistics and other things available directly through the company if not esle where to get a "feel" of how things are performed and opporated. this would be legal, no rules would really be bent, and the world keeps moving.

    ps-i did have technical internet problems and another phone call.

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  21. ps-sorry for the typos. I'm multitasking and being on the phone dealing with my electric company and typing does not go hand in hand.

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  22. Great ideas, Ariel. We'll learn more in Adv. Research about the various resources available for ethically obtaining information and data.

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  23. TAKE A FEW MINUTES TO READ THE FOLLOWING CASE STUDY...

    Buzz marketing is a relatively new marketing technique. Its objective is to seek out trendsetters in each community and subtly push them into talking up the brand to their friends and admirers. These people are hired to generate favorable word of mouth. This approach builds on the well-known “opinion leader” concept and the influential nature that some individuals hold over their reference group. With teenagers, companies strive to seek out individuals who are “cool”. Buzz marketing is catching on with many marketers, particularly those selling sneakers, jeans, cars and certain packaged goods. This technique is a special favorite of cigarette and liquor manufacturers for which advertising is restricted.

    Buzz marketing is different from other forms of marketing in that the consumer usually does not know that the product endorser is being paid (in money, free goods, or some other item) by the company to promote its product. The marketers “plant” the product in areas of high traffic and use these salespersons to create a “buzz” about the product. While some consumers think these are spontaneous encounters, most situations are carefully orchestrated by the marketers.

    An example is Ford’s introduction of the Focus. Rather than spend a lot of money on 30-second commercials, Ford recruited several opinion leaders in a few markets and gave them each a Focus to drive for six months. The responsibility of these individuals was to hand out Focus trinkets and talk up the car to anyone who expressed interest in it but not to tell them that Ford had given them the car to drive.

    QUESTION:
    Is this an ethical technique? Why or why not?

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  24. I was just on the phone with the electric company too! But were in class now.

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  25. I would say it has no unethical issues with it. How does that differ from Guerilla advertising where many times we don't know we are being advertised to. We all have become savvy consumers to some degree, and obvious to many bombarding ads. These new tactics are innovative and necessary to sell a product.

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  26. You make a good point, Correne, about buzz marketing being similar to guerilla or stealth marketing techniques that we learned about last semester.

    HOWEVER...

    Do companies have an obligation to tell the truth to consumers or does the goal of selling the product override any ethical concerns?

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  27. The technique is a good approach and I believe it is ethical. The people being paid to use the Ford Focus I would consider a personal focus group. They are getting paid for their time using the automobile and having a 6 month opinionated review. The feel or setting of promoting the new product was suppose to be casual and not flashing. If people are comfortable then people will listen and be curious. What they did was not a bad technique at all. The selective individuals, however, were probably took a vow to not admit they are part of a study/selling strategy, but when I look at it in a different point of view, I just see it as another car sales man or a person who is very enthusiastic about the automobiles of today.

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  28. No the truth must be told about the product in regards to what it in tales, how it performs or any other business or product information.
    However, to not tell them that they are being advertised to or enticed to buy a product is the very foundation that advertising sits on and is many times necessary.

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  29. to answer the second part of the question, the consumer does have a right to know IF they ask. that is the only loophole I see, but if a person looks suspicious or otherwise ingaging in a conversation for other reasons then they more or less asked to be asked more questions and get to get answers from. I see it as the right to know the truth. Its like saying this new brand of car is the safest thing in world. a company can only back it up with facts and if the facts came from a paying source then a person has the right to know what they are being apart of.

    now, I have a question, if the individual finds out they are part of a study, can they argue payment for beind decieved or is this a volunteered position of giving up information?

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  30. It sounds like a Catch 22 from what you're saying, Correne. As advertisers, we know we must be honest with our consumers about the details of a product/service, but how we go about getting that information across to them does not need to be revealed.

    Frankie - your thoughts?

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  31. To answer your question, Frankie, you have to be told you are part of a study. There are usually legal forms one signs before participating in any type of study or focus group.

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  32. Last question of this session...

    As consumers, is it your responsibility to be aware of advertising strategies and not allow yourself to be manipulated?

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  33. Not a catch 22, but a line of ethics. You must uphold all claims about your product, you must back your sell. But how you get the message out there or how you get people to pay attention is a matter of creative advertisement

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  34. well that was a swell lesson today. i do like how it is an online interactive way of doing things. its comfortable and i think so far effective. now. how do I go about posting this thursdays ethics article? do i email you or do I post it here as a comment? how would you like me to go about it?

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  35. Frankie - You can send me the article and your questions for the class, and I'll post it on the blog.

    Before we sign off, one last question to answer:

    As consumers, is it your responsibility to be aware of advertising strategies and not allow yourself to be manipulated?

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  36. In today's world, Yes. We all have been so over exposed to advertisements and have become aware of many tactics used. We all have a good idea when we are being sold to. Many times people interested in a product want to be sold. It is our responsibility as 2009 American consumers to make up our own minds.

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  37. Frankie - your thoughts...

    As advertisers, does this make our job harder with consumers knowing what we're up to?

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  38. as a consumer, I do believe we have the right to know what is behind the advertising whether it be traditional or untraditional methods. however, a great advertising stategy will bring no questions but comments if not bring the person to think deeply about whether or not the product/service is for them.

    overall, i do not think there is harm in manipulation to a consumer with advertising. either the advertising technique works because they are truely interested and it has gained their attention or it does not. I think the main objective is to make a person remember, think, and consider the product/service as a future "maybe" thing for their lives

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  39. Great discussion Frankie & Correne! Please bring your thoughts to class on Thursday for how we can continue to perfect this online chat.

    HOMEWORK REMINDER FOR THURSDAY:
    -Ethics: Chapter 1 for Thursday, Jan. 29th
    -Ethics: Finish personal code of ethics
    -Ethics: Article Journaling answers for Wednesday, Jan. 28th at 12pm
    -Frankie: post article on blog by Thursday, Jan. 29th
    -Research: Chapter 1 for Thursday, Jan. 29th

    THANK YOU! SEE YOU AT 1PM ON THURSDAY in ROOM C6.

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  40. as advertisers, we always have to have the upper hand when dealing with consumers. they have been exposed to so many advertisements, both at a conscious and subsconscious level, and we have to acknowledge the fact that they know our objective is to sell. It does become difficult when we compete with other forms of advertisements out there, the world becomes cluttered with ads and word of mouth that the consumer ignores it because it is whats expected. Gaining their attention i think is a major first step accomplishment. what they do with what they become intersted in is the next step.

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  41. i know this is late, but I AM xdreamxclownx. It's my aol account, its not Ariel's.

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