ethical implications of target marketing: a review

7/21/2019 Ethical Implications of Target Marketing: A Review

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Saleem, Khan and Nazir 1

Ethical Implications of Target Marketing: A Reie!

Asfand Saleem "#$1%&$#&$$'#(

)annat Khan "#$1%&$#&$$*#(

A+esha Nazir "#$1%&$#&$1'$(

E-N **.: /hilosoph+ and Economics

0r Khalid Mir

Ma+ $*, #$1#


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Saleem, Khan and Nazir #

Ta2le of ontents

1 Introd3ction *

# 4iterat3re Reie! '

% Main Thesis 5

%1 Targeting the 6o3ng and the hildren 5

%# Targeting the Ethnic Minorities 1$

%% Targeting the Elderl+ 1%

* 0ierging -pinions 1'

7 oncl3sion 18


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Saleem, Khan and Nazir %

A2stract

This paper deals !ith the ethical implications that arise from the 3se of target marketing

Target marketing is 3sed to cater to the needs of the specific market segments 93t in doing so,

the marketers ignore the ethical dilemmas that s3rface to the foregro3nd This paper eplores

these ethical dilemmas in detail The paper reeals the iss3es at hand from the anal+sis of three

eamples of market segments in detail


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Saleem, Khan and Nazir *

1 Introd3ction

As the !orld contin3es to rapidl+ eole into a glo2al illage, the interactions 2et!een

cons3mers and prod3cers are 2ecoming increasingl+ comple ;ith the deelopment of the

information technolog+ ind3str+ and increased leels of competition in the market, ne!

techni


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risen o3t of the improper planning and implementation of target marketing techni


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Saleem, Khan and Nazir '

cons3mers d3e to their mis3se or simpl+ 2eca3se of the preailing characteristics of that

partic3lar gro3p on !hom the prod3ct is targeted "#( An eample of s3ch an instance is the

targeting of ario3s alcoholic 2eerages at poor inner&cit+ people, !hich is partic3larl+

pro2lematic, as these people alread+ s3ffer from ario3s alcohol&related health and social

pro2lems as compared to other cons3mers in the pop3lation "#( ence, ethical eal3ations that

are related to the marketing of a partic3lar prod3ct need to 2e looked at in great detail as there

are a lot of factors that are interacting !ith each other "#(

Een tho3gh the adent of market segmentation and target marketing p3ts great emphasis

on f3lfilling and catering to the needs and !ants of cons3mers, this promise, in act3alit+, seems

to hae gotten lost or misplaced, res3lting in o3tcomes that are less than desira2le 2+ the societ+

"3i and hodh3r+ 1( A lack of respect for sentiments of people, complete foc3s on profit

maimization and ignorance of the important of ethics in marketing has led to s3ch pro2lems that

ineita2l+ res3lt in 2oth economic and social costs "1(

# 4iterat3re Reie!

;hile researching this topic, !e came across ario3s papers 2+ !ell&rep3ta2le a3thors

Kramer and Schor are the t!o main a3thors that hae talked a2o3t the negatie impacts that

target marketing has on +o3th Kramer in his paper talks a2o3t ho! corporations hae hired

ps+chologists in order to manip3late the +o3th into 23+ing prod3cts that ma+ een 2e harmf3l for

them "#.1( e cites ario3s st3dies to s3pport his claims e goes on to eplain ho! the

American /s+chological Association "A/A( needs to reg3late their code of ethics more strictl+ ad

ma+2e een reise it Schor too, has !ritten prof3sel+ a2o3t the aderse effects of adertising


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and cons3merism for the p3rpose of this paper !e hae looked mainl+ at one of her papers

!hich she p32lished for 6ale and her 2ook B9orn to 23+C

Most of the research regarding ethnicit+ and marketing has 2een taken from /iresC and

StantonCs 2ook In their 2ook the+ talk a2o3t accepting c3lt3ral and ethnic diersit+ in the !orld

and its importance The+ proide a s+stematic eposition of the !a+s in !hich ompanies can

deelop an effectie marketing strateg+ that can 2e 3sed to target ethnic gro3ps in a !a+ that is

not harmf3l to them and does not disrespect them or h3rt their sentiments in an+ !a+ The+

therefore, not onl+ recognize the importance of adertising to ethnic gro3ps 23t the challenges

that come !ith this task

Similarl+ Minkler eamines the stereot+pe that the 23siness sector has perpet3ated of the

elderl+ and ho! the+ 3se this to eploit the gro3pCs !eaknesses She goes on to raise


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%1 Targeting the +o3ng and the hildren

hildren 2et!een the ages of zero and t!ele are a segment of the cons3mer market !ith

rapidl+ gro!ing p3rchasing po!er 9eca3se of this 3nprecedented market po!er, the market that

the+ represent has 2ecome one of the most d+namic and fastest&gro!ing areas of adertising

"Kramer #.*( Innocent children 2ecome ictims of Dmarketing&related diseases "#.%( and

adertising agencies are engaging in a Dhostile takeoer of childhood "Schor #.( Some of the

adertising techni


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Saleem, Khan and Nazir .

Also, disclaimers and eplanations s3ch as Dassem2l+ necessar+ or D2atteries re


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Saleem, Khan and Nazir 1$

Dhigh leels of cons3mer inolement red3ce childrenCs self&esteem in the areas of peer and

famil+ relationships "Schor 15%( and that Dhigher leels of cons3mer inolement res3lt in

!orse relationships !ith parents "15$( !hich res3lts in greater depression and aniet+ The

st3d+ also esta2lished that D2eing depressed or anio3s or haing lo! self&esteem does not ca3se

higher leels of cons3mer inolement "1'8( The st3dies reeal that cons3merism res3lts in all

these pro2lems and not ice ersa

/h+sical effects of harmf3l adertising are also irref3ta2le hildhood o2esit+ has

reached gro3nd 2reaking leels in the last ten +ears and there has 2een a s32se


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As the !orld rapidl+ contin3es to conerge to!ards !hat seems to 2e close to a glo2al

illage, another aspect 3sed in target marketing techni


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Saleem, Khan and Nazir 1#

of addictie prod3cts ma+ 2e more addictie depending 3pon the genetics of the cons3mer

"9eno!itz et al *.(

Target marketing that foc3ses on the ethnicit+ of a gro3p can also often cross oer into

the 2o3ndaries of racism This is another prominent reason !h+ segmentation techni


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Saleem, Khan and Nazir 1%

pro2lems in this demographic, th3s categorizing the cigarettes as !hat are no! kno!n as,

potentiall+ harmf3l prod3cts "//s( for this pop3lation"Elise T Sa3tter, Nanc+ A -retskin

1$11( This case perfectl+ ill3strates ho! disregard sho!n to!ards the al3es and needs of an

ethnic comm3nit+, !hether it is 3nintentional and p3rel+ 2+ chance, has 2een a proponent in the

arg3ment against the 3se of target marketing and its ethical limitations

Een if the information gathered 2+ marketers in order to deelop an adertising

campaign is etremel+ thoro3gh and precise, it is etremel+ diffic3lt to ga3ge ho! the intended

a3dience !ill respond Also, !hile deising a targeted marketing plan another o2stacle that can

often later create pro2lems is that of identif+ing and defining the 2o3ndaries of an ethnic gro3p

The line separating the ethnic gro3p from the sample pop3lation ma+ er+ often 2e thin and

2l3rr+ "=3ilherme 0 /ires, / )ohn Stanton, ##.( Th3s targeted marketing for ethnic gro3ps

remains a er+ trick+ t3rf as there !ill al!a+s 2e some degree of 3ncertaint+ regarding the data

collected and ho! the intended cons3mers ma+ respond to these strategies

%% Targeting the Elderl+

The ageing market is a l3cratie segment of societ+ from the perspectie of marketers

"Minkler 15( The ind3str+ catering to this segment has deeloped from sering a small

cons3mer 2ase to a m3lti 2illion ind3str+ in the ?nited States alone "18( Elderl+ cons3mers are

highl+ 3lnera2le and are er+ receptie to marketing infl3ences "4ee et al #17( The gro!th and

eploita2ilit+ of the elderl+ cons3mer segment has led the marketers to resort to manip3lation

thro3gh the 3se of fear appeals, fra3d3lent schemes and creation of ne!er !ants !hich !ere not

present earlier "Minkler #1( The prealence of s3ch practice calls into


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Saleem, Khan and Nazir 1*

o3seholds of elderl+ cons3mers spend t!ice as m3ch on prescription dr3gs and medical

s3pplies and thrice the amo3nt on health ins3rance as compared to +o3ng ho3seholds "9enet et

al 7#( ence, it makes sense for the health ins3rance companies to target elderl+ cons3mers

o!eer, the !a+ in !hich these elderl+ cons3mers are targeted is chiefl+ thro3gh fear appeals

"*'( The adertisements targeted at this ageing segment contain frightening messages s3ch as:

DMedicare !on@t pa+ all costs toda+Jand +o3 co3ld end 3p !ith ded3cti2les, co pa+ments

totaling tho3sands of dollars> "*7( S3ch messages 2ring to s3rface the iss3e of ethics

Threat&2ased ads openl+ 3se the might of dread to tr+ to mane3er 2ehaior of the elderl+

"astings et al .%#( It has 2een arg3ed that s3ch kind of marketing red3ces free choice and

compromises their a2ilit+ to reach a rational concl3sion ".5#( It has also 2een s3ggested that

these people are eposed to 3psetting images and f3t3re possi2ilities 3n!illingl+ th3s making it

3nethical to do so ".5#( St3dies hae sho!n that s3ch fear appeals can eoke maladaptie

responses ".5*( The+ can ca3se an increase in aniet+, and in t3rn res3lt in ps+chological

responses !hich are meant to help cope 3p !ith the threat and not the act3al risk at hand ".5*(

The+ also ma+ lead the elderl+ to process information in a fla!ed manner and hence ca3sing

them to dra! 2iased concl3sions ".5*( 0eontological theor+ also s3pports the claim of s3ch

marketing appeals 2eing 3nethical on the 2asis that it is morall+ !rong to instill aniet+ and

distress, !hateer the societal conse


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of the fra3d3lent telemarketing firms hae directed their efforts at marginalizing the elderl+

"#$8( Social actiit+ and integration theorists hae arg3ed that the elderl+ are more s3scepti2le

to fra3d3lent schemes and marketing efforts 2eca3se of their openness to!ards s3ch schemes

"#$.( This has 2een primaril+ so 2eca3se the elderl+ feel less linked to friends and famil+ and in

the a2sence of s3pport s+stems, the+ are more likel+ to respond more to the marketers !ho gie

caref3l consideration to them "#$.( Theorists hae also arg3ed that this social detachment has

2een 2ro3ght a2o3t as a ca3se of lost roles, !hich hae 2ro3ght on a critical interr3ption in an

indiid3al@s relationship to societ+ "#$.( G3rther reasons for the 3lnera2ilit+ of elderl+

cons3mer partic3larl+ in relation to fra3d3lent schemes incl3de lo!er ed3cation as compared to

the general pop3lation and an increased concern for getting al3e for mone+ and eceptional

2argains as the reso3rces aaila2le to this market segment are limited "altman et al #*5( The


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Saleem, Khan and Nazir 1'

pop3lar c3lt3re hae incl3ded the adertisements of prod3cts intended at instilling in !omen a

perceied need to look +o3nger than their act3al age s3ch as anti&ageing s3pplements "#$(

Strong ethical concerns emerge o3t of s3ch a sit3ation and one sided drie to modif+, improe,

ann3l, retard or in some !a+ manip3late the liing co3rse of action of 2iological process of aging

leads to the impoerishment of meaning in life instead of facing the nat3ral progression "#1(

Marketers, in their incessant p3rs3it of eer greater profit sometimes reinforce age

separatist approaches to profit off of An eample of the case in point is that of resort st+le life

care comm3nities in the ?S "Minkler #1( Marketers hae p3t a great emphasis on the marketing

on these comm3nities and the n3m2er of s3ch resort operating in the ?S !ent 3p from 88$ in

1.8' to *,*$$ comm3nities in 1..7 th3s creating a L*' 2illion dollar ind3str+ "#1( Ethical

pro2lems arise o3t of s3ch a sit3ation Estes has arg3ed that prom3lgation of s3ch comm3nities

instills the image of the elderl+ as 2eing separate and different and th3s re


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correct 3nderstanding of the needs and al3es of ethnic comm3nities Rossman feels that this is

ke+ if firms !ish to harness an+ f3rther maimization of opport3nities "#$*(

-n the other hand, cons3mers too can 2enefit from proper implementation of ethnic

targeting Ethnic cons3mers ma+ er+ often hae special demands that need to 2e catered to

These er+ specifics cannot 2e recognized and hence met !itho3t the 3se of target marketing

"=eng 3i 1#*( Th3s it has 2ecome increasingl+ important to restr3ct3re the target marketing

phenomenon in light of ethnicit+ related a3diences if it is to 2e 3sed to etract maim3m

2enefits

Not eer+one 2eliees that +o3th marketing is a lost ca3se S3pporters emphasize on the

fact that the same medi3m of target marketing can 2e 3sed for respecta2le and constr3ctie

res3lts s3ch as to gain s3pport for social ca3ses "Kotler and altman %( ence, target marketing

can 2e 3sed to cone+ positie messages to the +o3th as !ell S3pporters of this ie! f3rther

contend that all the negatie impacts of adertising harmf3l prod3cts can 2e co3ntered 2+

co3nter adertising s3ch as anti&smoking and anti&drinking messages A research paper 2+

;akefield et al looks at eactl+ s3ch an anti&smoking campaign and concl3des that it is most

effectie for pre&adolescent kids Similarl+, another paper 2+ 3inn et al disc3sses a st3d+ that

the+ cond3cted !hich !as 3sed for the deelopment of a social marketing campaign that !as

designed to red3ce +o3th iolence among middle school st3dents in a large, 3r2an central Glorida

school district

A st3d+ done 2+ 9enet et al reeals that een tho3gh it is commonl+ perceied that the

elderl+ are 3lnera2le, the mass marketing appeals in the c3rrent market sit3ation do not seem to

effect the elderl+ as it is !idel+ claimed "9enet et al *'( Th3s the pres3mption of the elderl+

2eing a partic3larl+ 3lnera2le gro3p does is not tr3e "*'( These res3lts are f3rther corro2orated


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2+ Gererro and 4a=range !ho arg3e that the elderl+ are not aniet+ prone as it is commonl+

ass3med, and th3s not as ictimized as it is generall+ 2elieed G3rthermore, a report 2+ the

AAR/ sho!s that elderl+ cons3mers are er+ m3ch a!are of their legal rights, and hae not

fo3nd them to 2e prone to reporting a 2ad 23+ing eperience "*8(

Moreoer, it has also 2een arg3ed that targeting the elderl+ has act3all+ 2een for the

2etter 2eca3se of the a2ilit+ of targeted prod3cts and serices to cater to the specific needs of the

elderl+ "Minkler #1( /rod3cts !hich cater to eer+one cannot maimize the satisfaction of

specific cons3mer segments s3ch as the elderl+ "#1( Market s3re+s targeted at the elderl+ help

the marketers to identif+ specific needs of the segment so that 23sinesses can later create

prod3cts and serices !hich are tailored for them "#1( This aoids the iss3e of social ecl3sion

and neglect of the elderl+ in the mainstream media and commercial markets as it had 2een the

case prior to the 1.7$s in the ?nited States of America "#$(

7 oncl3sion

This paper has tried to el3cidate the moral and ethical dilemmas that arise d3e to the

practice of target marketing Target marketing has 2een proen to hae aderse mental and

ph+siological effects on the targeted segments Thro3gh the 3se of sociall+ irresponsi2le tactics,

the target marketers hae de2ilitated the positie aspects of target marketing and 2ro3ght to

s3rface the moral dilemmas that arise !ith it Their disregard for ethics and s32se


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Saleem, Khan and Nazir 1.

creation of preio3sl+ non&eisting !ants G3rthermore, the+ hae resorted to fear appeals to sell

to the elderl+, ignoring social lia2ilit+ and raising aniet+ in the societ+

Een tho3gh man+ scholars are critical of the c3rrent target marketing practices and their

arg3ments hold !eight, !e see that the practice still is prealent in the modern markets The

reason !h+ it has 2een so is 2eca3se of its a2ilit+ to target specific gro3ps and their needs and to

reach o3t to people The practice of target marketing is not inherentl+ eil, !hat makes it

3nethical is the !a+ it is handled Target marketing has 2ro3ght !ith itself tailored prod3cts for

the people, and een tho3gh man+ !o3ld ie! it criticall+, it cannot 2e claimed that these

tailored prod3cts hae solel+ harmed the targeted pop3lation in eer+ !a+ Target marketing has

sered to create ne! prod3cts, and has sered to making the lies of the elderl+ easier as !ell

;hat is needed is an effectie control oer target marketing practices, so as to do a!a+

!ith the ethical dilemmas that it carries !ith itself=oernment sho3ld interene !here it is felt

that the moral code of cond3ct and ind3str+ g3idelines for marketing are 2eing 2reached Man+

!o3ld arg3e that this is not entirel+ possi2le, as all ethical dilemmas cannot 2e resoled thro3gh

goernment reg3lations and p32lic polic+ o!eer, een tho3gh s3ch reg3lations are not the

sol3tion to all the ethical pro2lems that arise from the practice of target marketing, the+ can still

sere to hae an impact on minimizing the negatiit+ associated !ith target marketing The

specifics of the methods of controls and the nat3re of goernment reg3lations that sho3ld 2e p3t

in place is an area open to f3t3re research =oernments sho3ld research and form3late policies

!hich are the most practical, and releant gien their relatie contets and settings

;ord o3nt: *'5$


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Saleem, Khan and Nazir #$

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Saleem, Khan and Nazir #1

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ethical implications of target marketing: a review

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