MKTG 7050/7056: Social, Legal & Ethical Environment of Marketing
A focus on "misplaced marketing"

Herbert Jack Rotfeld
246 Lowder Hall
Auburn University
http://www.auburn.edu/~rotfehj
http://www.auburn.edu/~rotfehj/essays.html

Class time, Spring 2010: Tuesdays and Thursdays, 2-3:15
Office hours during Spring classes: Tuesdays & Thursdays, 7-7:30 a.m.; Tuesdays & Wednesdays, 9:30-10:30 a.m.; plus whenever the door is open
  (On campus most weekdays from before 7 a.m. to around 3 p.m.)
Course Prerequisite: MKTG 3310 or equivalent

REQUIRED TEXT
* Adventures in Misplaced Marketing, by Herbert Jack Rotfeld (Quorum Books, 2001) ISBN: 1-56720-352-3; ISBN-13: 978-1-56720-352-3
* article packet available at SOFY Copy Center, 145 W. Magnolia 

Web sites of suggested reading or periodic review
American Council on Consumers Interests (http://consumerinterests.org)
Consumer Law & Policy Blog, sponsored by Public Citizen's Consumer Justice Project (http://pubcit.typepad.com/clpblog)
The place where "shoppers bite back" (http://consumerist.com)
Adbusters magazine, for criticisms of advertising and our consumer culture (http://adbusters.org)
John W. Hartman Center for Sales, Advertising & Marketing History (http://scriptorium.lib.duke.edu/hartman)
Medicine and Madison Avenue homepage (http://scriptorium.lib.duke.edu/mma)
Government information on recent product recalls (http://www.recalls.gov)
Advertising critic Bob Garfield's running commentaries on advertising & other stuff (http://adage.com/garfieldtheblog)

COURSE DESCRIPTION & GOALS
Many marketing decisions have repercussions on society as a whole and societal forces increasingly intercede in decisions that were at one time solely internal to the firm. This course focuses on these social, legal and ethical issues encountered in marketing practice. Class meetings will consist of general discussion on assigned readings and videotapes of current issues. Conflicting views between students are likely and personal opinions are encouraged, freely expressed and challenged by thoughtful discussion from classmates, guest speakers and faculty.

The goal of this course is to enhance your understanding of the relationships of marketing in society and the concerns of business' critics, which may or may not be an impetus for government actions, trying to understand the different points of view about business activities beyond what you might presume. There are limits to what the law can regulate and proscribe, business people often feel that government and self-regulation activities unfairly go too far, while consumerists often express the belief that they do not go far enough. Issues will be explored from a number of different perspectives, including:

  1. The perspective of an individual, both working within the corporate environment and as a "customer" of the firm's products, services and secondary output (e.g. advertising; pollution).
  2. The perspective of corporate policy. Many issues deal with strategies that firms have adopted for dealing with broad public issues. Whether public concerns "should" influence decisions would also be a topic of discussion.
  3. The perspective of public policy. It is important to understand how public policy operates and how the mere existence of government regulation, even if not carrying criminal sanctions, influences business decisions.
  4. An ethical perspective. Many of the issues may have ethical dimensions.
  5. A public interest perspective. Many business decisions have an impact on the public at large and what is in a firm's best interests is not necessarily the best decision for the greater society.
The core problem of "misplaced marketing" is that it requires you to frequently shift perceptual focus. You can no longer view marketing activities as part of the audience (as you do when you watch television commercials), nor can you simply try to presume how to maximize effectiveness of a marketing strategy as a manager. Instead, you must take into account the views of the public, consumer activists and government regulators, as well as that of the customers and the marketing decisions makers. What this means is that, since not all "publics" (if any) are people like you, and since we will discuss marketing for products you might not buy, we will be covering some "problem" topic areas and using in-class examples that you might find offensive. This is unavoidable. Managers often find they are in no way in the target, so you must learn how to put aside your personal tastes.

In preparing for each class, it is not enough to generally "scan" the reading assignments. To understand the lectures, you need to read an assignment and the study questions before the class in which it will be discussed. Employers expect you to be able to read and think about ideas before business meetings, and, like a business meeting, you are expected to come to classes prepared. Therefore, there is no need to have the readings with you in class.

COURSE REQUIREMENTS
The main grade concerns for the class are the term paper (30%), mid-term exam (30%) and the final exam (40%).  Another requirement thfor the class will be a commentary note on the subjects. Students will email to the instructor comments on one or more of the articles and chapters for each topic area marked after watching the taped lectures on the topic. These should be composed of intelligent, thought-provoking comments or questions on the articles and their related discussions (and give logic for why they disagree with on campus students or the instructor). These should be about 500-100 words each and serve as a substitute for "discussion."  This will only be graded S-U, but you must have satisfactory work on all of them to receive a grade in the class.

For the video outreach students, do the readings before watching the taped program -- while watching, periodically stop the tape and jot down how you would respond to some of the items under discussion, turning the tape back on to see if your questions and potential responses were answered. The goal of this course is not to simply build a body of information needed to pass the exams, but more generally, to develop your abilities to think, share your ideas in discussion and present your perspectives on situations covered in the course.

TERM PROJECT ASSIGNMENT
The following section provides complete details of the term project assignment. It is a paper of research and analysis, applying the materials from the legal, self-regulation and ethical sections of the course to the real and pragmatic problems faced by a business organization of your choice.

The purpose of this assignment is to investigate the effects of a current issue of public interest and concern. You will choose: (1) an issue and (2) a real for-profit business organization for which the issue poses a potential problem, and/or basis for ethical self-analysis. This could be a manufacturer faced with criticisms of marketing practices, a retailer who products, services or marketing practices raise ethical concerns, or whose basic product mix finds it dealing with questionable products or services, or a distributor caught between practices of manufacturers and demands of other firms in the channels of distribution. However, it must be a real business. It also can't be your current employer or one of your employers competitors. In other words, the analysis must be based on your research, not your job. Activist groups, trade associations and other non-profit organizations are not to be used. You are then to conduct a detailed, objective and thoughtful research of the literature on the issue, and based on the research, present a set of recommendations for the firm and reasons why the recommendations should be implemented.

You do not need to be expert on the business. You are only using it for a hypothetical focus and application of the issue, so general consumer-available information is all you need for this.

You must select an issue for your paper and have it approved by me by January 29. Every student must be addressing a different issue.

Your research is not to focus on news reports of a firm under criticism, but rather, on the relevant basic research and other literature related to an issue that has relevance for the firm. In basic terms, you are to become an expert on the consumer criticism of a business practice or situation: why people think say those things; what is supported by consumer behavior or economic research; how law or regulations are responding to the criticisms; etc. Then you have to say what you would recommend to a relevant company to deal with it.

You will use the following outline, with a clear sub-head for each: The first section will be a one page executive summary and will briefly describe the issue, its relevance for the organization and a summary of recommendations for organizational action. This section should be on its own page (numbered one). The second section will briefly describe the organization for which the issue brief is being written and why it applies. Obviously, this will be a short paragraph.. The third section, based upon the nature of the organization as described in section 2, will describe the issue in general -- including the relevant history and current status (that is status and history of the issue, not of the company). The fourth section, based upon the preceding discussion, will explore how the issue may evolve in the future. The fifth section, logically flowing from the first 4 sections, will tie the perspectives of the problem and its evolution to a discussion of the relevance of this problem for the organization. The sixth section, based upon the preceding analysis, will list and defend any recommendations for action. In other words, each section should logically flow from the ones that came before, leading to the conclusions. The recommendations should be the logical result of the discussion, not an example of creative writing. And the issue is one of legal or social conflicts, not one of marketing (i.e. profitability) analysis in terms of which marketing option could work best.

With the exception of the second section, write the report as if it is being written for senior management. Sections two though six should be clearly delineated from each other by sub-heads but should not begin on fresh pages.

The maximum length of the text of the issue brief is a total of twenty (20) double-spaced pages (reference lists and appendices are not part of the ten pages). Be complete but concise. In addition to pure content you should be concerned with how well the paper reads. Spelling errors, grammatical mistakes, typographical errors, etc. will lead to a reduced grade.

The issue brief must be an original research paper written for this class and the text must be in your own words. When in doubt, quote opinions directly and cite factual information from secondary sources properly. You must give the reference citations for all assertions originating from somewhere other than the confines of your cranium.

You also need to be wary of yours sources. The internet, while a wealth of opinions and statements, is not an authoritative resource since anyone can freely distribute all sorts of garbage without any oversight, review or analysis. Opinions, rumors and conspiracy theories abound. Newspapers and news magazines give current information, but they, too, have their limitations. Research reports in academic journals present all materials for scientific peer reviews, but even then, since the topics are controversial, interpretations can vary from the same data. Your analysis must not make the mistake of over generalizing from questionable resources and you must be able to distinguish facts from opinions in assessing the issue. Remember, an opinion does not become a fact simply because you can cite someone who says it!! For example, if you come across a prediction that "the GNP will grow at an average rate of 5% per year for the the next three years," you must still cite the source. And even with the citation, it is still just someone's opinion.

The preferred method for citation is to include the name of the author, date and page in parentheses in the text and the complete reference in a "References" section at the end of the brief (that will not count as part of total pages). For example: "One recent study contends that all new net job creation came from firms with less that $5 million in sales (Jones, 1986, p. 17)." Then in the References section the complete bibliographic citation will be listed (in alphabetical order.)

Depending upon the issue, you should use a variety of sources, a mix of books (for background) and articles from academic research journals, as well, as the class assignments in the final sections of the syllabus. For many of the issues, you can find relevant articles in:

  1. Current periodicals such as: Advertising Age, Business Week, The Wall Street Journal, Marketing News, Consumer Reports, Fortune, U.S. News and World Report, Mother Jones and so on.
  2. Current academic journals such as: Journal of Public Policy & Marketing, Journal of Current Issues & Research in Advertising, Journal of Consumer Affairs, Journal of Business Ethics, Harvard Business Review, Journal of Marketing, Journal of Advertising, Journal of Advertising Research, and other journals specializing in the topic areas.
This should be a pdf file and will be turned in by email to the instructor which can then be shared with other members of the class. Number all the pages beginning with the executive summary. 

A PARTIAL LIST SUGGESTED OF ISSUES are under topic 12 of the assignments, giving some possible readings in the packet that could be a starting point for your work. These and other possible topics could include: child-oriented marketing; weightloss marketing (such as Weight Watchers or Jennie Craig); cigarette marketing/advertising; pharmaceutical marketing to either doctors or directly to consumers; product safety; uses & abuses of new technologies; choosing who does the work (NAFTA versus overseas sweatshops versus racism at home); telemarketing; covert marketing; product defects and/or product recalls; condom marketing; financial services marketing, such as loans or credit cards; privacy, on the internet or in purchasing in stores; etc.

The papers will be distributed/shared with all members of the class and will be referenced in final lectures on the topics.

Reading Assignments
The reading assignments are grouped by topics, but daily assignments and "speed" of coverage of different areas will be announced in class.  AiMM is shorthand for the book, and the other articles are from the article packet.  Additional articles will be distributed via handouts or email to students of files or links to new publications.The online topic-by-topic study questions will be updated during the term, and they are provided as guidance that you should consult as you read the assigned articles & chapters -- originally prepared and updated by past students in the class, the are to be used to compose  required discussion emails. 
    1. History & Perspective on Consumer Protection
      Herrmann, "The Consumer Movement in Historical Perspective"
      Beem, "The Beginnings of The Consumer Movement"
      Beem, "The Consumer Movement, 1930 to World War II"
    2. The Modern Marketplace and Competition
      Wolburg, "Double Cola and Anti-trust Issues"
      "Slapping Down Dangerous Information"
      "Depending on the Kindness of Strangers"
      "The Consumer as Serf"
      Palast, Best Democracy Money Can Buy, p. 125-130
      AiMM, Preface
    3. A Marketing Perspective on Consumer "Rights"
      AiMM, ch. 1
      Houston, "The Marketing Concept:..."
      Mueller, "St. Phineas"
      Bhide and Stevenson, "Why Be Honest If Honesty Doesn't Pay"
    4. The "Lost" Marketing Perspective
      AiMM, Ch. 2 and 3
      optional: Ch. 6
      "Movie Theater's Suicide-by-Advertising Wtih Income from Abusing Consumers"
    5. Marketing Myths: The Case of Advertising
      AiMM, Ch. 4 and 5
      Wolburg, "The Need for New Anti-Smoking Adv Strategies... "
      Broyles, "Subliminal Advertising & the Perpetual Popularity of Playing to People's Paranoia"
    6. Perspectives on Modern Government Regulation
      AiMM, Ch. 7
      McConnell & Dubas, "Marketing Experts' Misplaced Expertise..."
      "Do-Not-Call as US Gov't Improvement to Telemarketing..."
      Galloway, "The First Amendment and FTC Weight-loss Advertising Regulation"
    7. Business Self-regulation
      AiMM, ch. 8
      Garrett, "The Types of Information Contained in Company Reliability Reports from the Better Business Bureau"
      "Desires Versus the Reality of Self-Regulation"
    8. Risk: Regulation, Self-Regulation and Marketing
      "Risky Business"
      "Dangerous Supplements"
      Garfield, "Softly Lit or Blunt"
    9. Marketing Abused
      AiMM, ch. 9
      Wright, "How Moral Men Make Immoral Decisions"
      Davidson, "Consumer Goods Marketing: A Zero-Sum Game?"
      Stein, "Choosing Among Evils"
      "Mistaking a Marketing Perspective for Ethical Analysis"
    10. Marketing and Its Paranoid Critics
      AiMM, ch. 10
      Bang, "Impact of Liquor Industry's Lifting Ban on B'cast Advertising"
      "Imagine the Television Commercial:..."
    11. When Customers Aren't Right
      AiMM, ch. 11 and 12
      "The Largest Segments That Should Not Be Served: ... the Growing Slacker Market"
    12. Specific Issues, Criticism & Consumer Protection
      Choosing Who Does the Work: AiMM, ch. 13
      Uses & Abuses of New Technologies: AiMM, ch. 14
      News "Management" and Bad Publicity: AiMM, ch. 15;  Jevons & Carroll, "Misleading Voters..."
      Covert Marketing:  "Stealth Influence of Covert Marketing and Much Ado of What May Be Nothing"
      Direct to Consumer Pharmaceutical Advertising: Thomaselli, "DTC Ads..."; Paul, Handlin & Stanton
      Pharmaceutical Marketing to Doctors: Avorn et al
      Health Care Marketing: "It Hurts. Fix It."; "Mine is the Blue One on the Left"
      Weightloss Advertising, Galloway (Listed above under topic #6)
      Financial Services:  "Don't Get Taken By Hidden Fees"
      Privacy, Sheehan & Gleason, "Online Privacy"; Turow, "Consumers Understanding of Privacy"; "Privacy Crimes and Annoyances..."
      Child-oriented Marketing/Advertising,
      Lee et al, "Playing With Food..."
    13. It Isn't "Just Marketing"
      AiMM, Ch. 16 and 17