Ethical marketing is important to company profitability because a growing number of consumers are buying from companies that are socially responsible. Ethical marketing requires the company to make moral decisions when it comes to product packaging and messaging. Every marketer should understand the company code of ethics and adhere to it when putting together a marketing strategy.
Review current marketing strategies and determine if they are ethical. The Learn Marketing website says you should ask whether your company markets to children, if suppliers use child labor, if product benefits are exaggerated and if high-pressure selling techniques are used. Today’s consumer wants to buy from a company that has high ethical standards.
Segment the market you sell to so you can provide targeted offers that meet the needs of each segment. The Business Dictionary website defines market segmentation as the process of dividing a total market into identifiable groups of people with similar needs. Marketing segmentation allows companies to specialize their marketing messages to be more persuasive. When planning an ethical marketing strategy, it is important to research which segments may be interested in the fact that you adhere to ethical standards. You can then include this information in your marketing messages to them. For example, a cosmetics company might state in a newsletter for pet owners that it does not test on animals.
Include corporate social responsibility in your marketing strategy. “Forbes” states that CSR means demonstrating a concern for human rights, the environment, community development and employee rights. CSR is part of an ethical marketing strategy and appeals to consumers who care about the environmental and social records of companies. For example, Starbucks is known for being a socially responsible company due to its commitment to coffee farmers who adhere to environmental best practices.
You can enjoy a higher rate of brand loyalty from consumers who care about ethical factors if you let them know you do, too. “Fast Company” says consumers may discriminate against a brand because of ethical concerns. Avoid offending this market segment, and win their loyalty by being the company that adheres to high ethical standards. Promote the fact that you do, and enjoy a competitive advantage because of it.