UNETHICAL MARKETING PRACTICES IN SRI LANKA
When it comes to marketing there is only a thin line between ethical marketing and unethical marketing. In this scenario organisations must be extra-careful to avoid this pitfall. They must ensure that their messaging is always ethical and honest to maintain a good brand reputation amongst their competitors, suppliers and customers. Deceptive messaging or claims can lead to legal problems and reputational loss. There is no excuse for sharing unethical marketing messages. With a little hard work organisations can always build an ethical and honest brand that the customers will trust.
Unethical marketing practices refer to actions or strategies that violate moral principles, laws, or industry standards, often with the intent of gaining an unfair advantage or misleading consumers. These practices can harm consumers, competitors, and the integrity of the industry as a whole.
What Are The Pitfalls of Unethical Marketing? –
When unethical behavior is exposed, there is a high risk it will be publicized. The negative impact of unethical marketing can range from loss of consumer trust and loyalty to legal and financial consequences. This in turn can cause your company to lose its credibility, resulting in customers forsaking in patronizing your establishment, criticizing your business, and not respecting your organisation anymore.
Some organisations use unethical practices to manipulate consumers and drive sales. As a consumer, it is important to be aware of these practices and to make informed decisions when buying products or services. Unethical marketing practices are on the rise in Sri Lanka, with many organisations and brands deceiving consumers during these tough economic times. Let me elaborate further on these unethical practices carried out by some corporate and brands in Sri Lanka.
1. One of the most damaging practices of unethical marketing is sharing of misleading information. False advertising is rampant, with consumer promotions promising discounts up to 40% but delivering only up to 20%. Consumers are being lured and deceived by such promotions.
2. Another tactic used is the pervasive phrase “Conditions Apply,” which is often used to hide unethical practices. What do Marketers mean by “Conditions Apply”? It’s time for marketers to be transparent and accountable to consumers. Consumers should do well to demand clear explanations and honesty in advertising.
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Beware of credit card promotions that seem too good to be true! Many banks advertise “20% off on credit cards,” but fail to mention that the discount only applies to certain card categories or is stated in small print. Do not be fooled by the fine print. As a consumer, it is frustrating to encounter this situation in stores and end up leaving without the merchandise. It is high time for consumers to demand transparency from banks and make informed decisions about the purchases.
Many Sri Lankan corporates and brands are guilty of “Greenwashing” claiming environmental protection initiatives 5. 6. 7. 8. without taking any action. This is a serious ethical issue, since brands are gaining unfair advantage. It deceives consumers into believing that they are environmentally friendly, when they are not.
Are you tired of seeing corporates and brands claiming to be “100% recycled,” “sustainable,” “eco-friendly,” and “carbon-neutral” without any evidence to back it up? There are many instances where these claims are made! It is infuriating to see these terms used without taking responsibility to substantiate the claims being made.
Have you ever noticed how mass media advertising (TV, Radio, and Newspapers) promises certain results that their products cannot deliver? Claims like ‘eliminate dandruff ’ or ‘get fair and beautiful skin’ are often misleading. While shampoos and skin creams can certainly help control dandruff and improve skin appearance, the results are often temporary. Let us be mindful of the promises made by advertisers and make informed decisions about the products we choose to use.
Certain corporates and brands increase the prices of their products and then reduce it back to its original value, deceiving customers into thinking there is a discount. This unethical practice is called “Hogwashing.” This is a way of deceiving consumers in an unethically deceptive manner which can easily cost people a lot of money if they are not aware of this kind of sales ploy.
It is becoming increasingly apparent that some product categories are sacrificing quality in order to compete on price, which can have damaging effects both for the consumer and manufacturer. This has been seen to be a wide problem across many product categories 9. in Sri Lanka due to the usage of low quality raw materials and packaging material. Many customers are unknowingly becoming “guinea pigs” as they purchase these goods without being aware of the effects or conditions, thus making them victims of inferior quality items.
Another interesting aspect is how some companies keep offering large discounts for long periods of time. Such incentives contradict what professional marketing tells us; brand value can be damaged and consumer trust in the product also suffers as a result of these types of deals. The customers get used to these low prices which can lead to them expecting it all year round and thus impacting profits. Is price the only element of the marketing mix and is it being abused in an unethical manner?
10. Certain Sri Lankan organizations may try to gather sensitive customer information, such as names and contact details, under the guise of building loyalty with customers or providing benefits through rewards programmes. It is unacceptable that customers are being asked for sensitive and private information, specially if there is no legitimate need. Unfortunately in Sri Lanka a lot of organisations do not follow the concept of “Permission Marketing”, where permission must first be given before marketers contact potential clients.
11. False advertising is another unethical method used by Sri Lankan corporates and brands. Not only is it important for companies to tell the truth about their claims, but they should also provide tangible scientific evidence backing up those claims with reliable data. This is specially crucial when it comes to supplements that are used by people and which can affect a person’s health and overall wellbeing if not produced according to certain standards or specifications. Remember that your product must match your message.
12. Sri Lankan Corporates and brands often choose to omit negative information from advertisements, which is just as bad as lying. Additionally, they sometimes use ambiguous or intentionally unclear language in an attempt to persuade customers - something that should be strongly avoided at all times. This is specially true when it comes to health products. Potential side effects should be made available to consumers before they purchase the product. It is their right to know!
13. Another unethical marketing practice followed by Sri Lankans organisations is poor after-sales service and customer support. This breach of trust can be seen as a deceptive marketing tactic, as the company may prioritise acquiring customers over maintaining a satisfactory post-purchase experience. When it comes to after-sales service, the organisations do not seem to have the same urgency they had as when they were canvassing a sale.
What is Unethical Marketing?
Conclusion
It is essential for Sri Lankan marketers to understand that consumers need to be respected at all times. It is important to maintain a high level of conduct and ethical behavior to ensure the success of a company. By knowing the consequences of what unethical misconduct can do to your organisation, you must limit this behaviour from happening. There is no room for unethical marketing practices and professional marketing bodies must play a more pivotal role in this regard. Marketing is more than just making profits. It is about people, planet and progress and finally it is a humanistic discipline. Ethical marketing practices is a cornerstone of “Professional Marketing”