The ethical consumer movement has challenged marketers on the underlying assumption that brands are selling for maximum profit, not for the common good. So how do brands adopt the best approach to this large and growing customer base that can increase (or decrease) revenue?
Most effective ways to improve your marketing strategy is to follow certain ethical principles consistently. Some marketing strategies can attract customers using shady methods (such as sending spam that no one appreciates), but the cost here is high.
By using questionable marketing tactics, you are damaging the long-term reputation of the company. Brand image should not be taken lightly as it attracts loyal customers. Instead of focusing on ethical marketing, you can maximize customer satisfaction and maintain consumer trust and brand credibility.
Ethical marketing should always be honest and fair. Unethical practices do not guarantee increased sales or reduced costs in the long run.
Professional ethics is one of the most challenging and controversial issues in human history. Both academics and business leaders have studied the relationship between doing the right thing and making money over the years, but no consensus has been reached. 43% of respondents believe their leaders lack moral integrity. A key question surrounds many business practices: What is the ethical way to sell things?
There has never been a satisfactory answer to this question, but it has become an ser problem in recent years. According to Bureau of Economic Analysis, corporate profits soared to record highs in 2011. Simultaneously, the world was suffering from a devastating economic recession, exacerbated by unfair trade practices. The massive disparity between corporations and their customers has made ethical business practices extremely relevant.
Companies recognize the importance of acting more ethically and communicate this change to their customers. The easiest way to achieve this is through their marketing techniques. If a company attempts to promote more ethical advertising, it will positively affect each area of its business.
Five Principles of Ethical Marketing
Be transparent
Whenever you sell a product or service to customers, make sure that you are completely transparent about them, including important information about their safety and effective use.
Protecting consumer data and privacy
Consumers are increasingly concerned with trusting companies with their data. For this reason, it is essential to emphasize the company’s commitment to consumer privacy.
Commitment to sustainability and human rights
Ethical consumption is becoming an increasingly high priority for many customers. People want to make sure that what they buy is manufactured in an environmentally sound and ethical manner. Be honest about materials, product components, and supply chain.
Target consumer concerns
If customers are concerned about a product or service’s safety, it should be considered a top priority. Always try to protect consumer rights and investigate any complaints immediately.
Maximize profit and minimize risks
The objective of every ethical marketing strategy should be to benefit as many people as possible while generating as little harm or cost as possible. The goal should always be to provide a holistic and lasting positive impact.
Five Rules of Ethical Marketing
Not an exaggeration
When you increase the benefits of a product or service, you are making a false statement. You promise to give the customer a level of quality that cannot be delivered.
Do not make false comparisons.
These are inappropriate tactics that include inaccurate, inaccurate, or misleading statements about a competitor’s products.
Do not make unverified claims.
This includes the promise of giving results (such as skin improvement) without giving back any scientific evidence.
Not a stereotype
This includes promoting stereotypes (for example, portraying women as sex objects) to sell a product. The disadvantage is that such marketing helps to maintain a sexist culture.
Do not use emotions
One of the most effective ways is to get emotional feedback from consumers to generate interest. However, if you raise negative feelings like anger, fear, sadness in a tasteless manner, it can be considered exploitative. Customers want their emotions to be healthy, not cunning.
Examine your current marketing strategy and see how it can be changed according to these ten ethical principles. If you change the planning, implementation, and monitoring of your strategy ethically, you can succeed by maintaining a solid reputation.
Essential Strategies to Attract Ethical Buyers
1. Understand what is essential to your customer and accept it.
Companies need to determine what ethical issues are important to their customers and ensure that they are satisfied with their position on these issues. According to a recent study, 92% of respondents had a more positive image of a company that supports what they care about, and 15% said they pay more for a product or service related to their essential business Are likely to do.
Conversely, consumers will continue to buy goods from unethical firms, but only at lower prices.
Get feedback from your consumers as they may have great ideas about how you can effectively attract ethical consumers’ attention with your business and marketing methods. Consider offers with a grain of salt, noting that the discrepancy between purchase intent and actual behavior may be significant. Whenever possible, approach your product or service from a local perspective, as it can significantly affect the decision-making process, especially during an epidemic.
2. Focus on culture.
Research does not support return on investment in ethical marketing, as unethical companies continue to be rewarded and consumers punish ethical companies. Corporations need to be philanthropists and philanthropists because it is part of their culture. Do not expect an ethical consumer initiative to directly increase sales, mostly if your corporate values are not aligned with ethical consumers. Brands like Levi Strauss and Johnson & Johnson are reaching ethical consumers because their culture encourages their business behavior. Consumers are particularly likely to be loyal to a brand if their deeply implicit values are included in the purchase.
An effective marketing strategy is partnering with Trestle platforms, which are focused on aligning consumer and corporate values.
3. Train Your Customers
Increase consumer interest in issues that communicate your position and support the initiative. Tell them what a difference it would make to buy them because consumers usually don’t believe they can make a difference.
It is also important to educate customers about your position in your industry and market. Consumers view business ethics from a macro level. They rarely have specific knowledge of individual companies, which means that there is a need for the brand to differentiate itself, especially in complex industries such as energy, telecommunications, apparel, and food processing. If you work in one of these industries, you need to be more active in marketing and positioning.
4. Consumers love cats.
Consumers are more sympathetic to animal rights (especially animal exploitation) than human rights, leading to a premium pricing model for some non-animal products. If your product is unusable, make sure consumers are aware of it. If your organization actively opposes the exploitation of animals, use this opportunity in your messages. If your product is not animal-related, it may be precious to earn relevant industry certifications and/or awards (such as free trade coffee or conflict-free diamonds). For consumers interested in human rights, refer to your commitment to acceptable wages, which is the focus of fashion and retail brands such as Walmart.
5. It is all about the packaging.
Consumers are passive ethical shoppers as compared to active ethical shopkeepers. Consumers mainly rely on product labeling, so packaging design and copying are essential. Consumers are more likely to shop ethically if there is no additional cost, loss of quality, or need for a “watch.” Don’t forget small print: While most general consumers do not read the small print, ethical consumers are more likely to do so. Include key facts, industry certifications, and initiatives for your packaging and marketing materials to kickstart them.
6. Use PR to tell your story
The ethical or unethical activities of a brand do not directly impact shopping decisions, with the rare exception of significant negative media coverage when its products are judged. This implies that brands should communicate ethically oriented information to the public through third-party, public relations and actively manage any negative information. Due to this trend, online reputation management (ORM) has become a popular service for established brands. However, before you go to a meeting with the press, clean up what you want to do because investigations by the media may work for you. Review suppliers, components, processes, and logistics to identify areas where you can be more sustainable and socially responsible without creating economic hardship.
There is no question that ethical consumer markets are a real opportunity for marketers. However, to be successful, marketers have to refer to entangle an ethical consumer. You can then make a difference in the community and find a middle ground in a competitive environment that will drive revenue and profitability.