9.4. Guidelines and Controls on Marketing Communications

Marketing ethics

Ethics are the values, or moral code, of individuals and society, which govern behaviour and business conduct. In marketing there can be a temptation to make exaggerated or misleading claims about products and business practices in order to boost sales and make larger profits. Sometimes profits may be more important to a firm than ethics.

Standards and codes of practice

Keen to assure consumers of their concern for product quality and ethical marketing, some industries in the UK have drawn up voluntary codes of practice which member firms are encouraged to follow. In many ways these are useful additions to the marketing strategies of firms.

British Standards Institution (BSI): the BSI sets quality and safety standards for a wide range of products. Products meeting the BSI standards are awarded the kitemark to indicate that they have reached the necessary standards. Products awarded the kitemark will have a competitive advantage over rival products which fail to display the symbol to the consumer.

Professional and trade associations: Members of trades often set up professional associations in order to protect their interests and improve their reputation with consumers. Examples include the Federation of Master Builders and Association of British Travel Agents (ABTA). These organisations usually specify a code of practice governing the behaviour of members, and consumers can appeal to the associations if they feel that a particular code of practice has been breached.

Independent Television Commission (ITC): the ITC regulates advertisements appearing on television and cable and has its own Code of Advertising Standards and Practice. Certain products and services, including cigarettes, spirits, private investigation agencies, and gambling, may not be advertised on TV. There are also strict rules about advertising aimed at children and about the use of child actors or models in adverts.

Advertising Standards Authority (ASA): the ASA was set up in 1962 to monitor the standard of advertisements in the UK. It covers all advertisements in newspapers, magazines, posters, direct marketing sales promotions, cinema, video cassettes, and Teletext. The ASA safeguards the consumer by ensuring that the rules contained in the British Code of Advertising Practice are followed by any organisation that prepares and publishes advertisements.

The essence of good advertising

The British Code of Advertising Practice states that all advertisements should be:

• Legal, decent, honest and truthful.

• Prepared with a sense of responsibility to the consumer and to society.

• In line with the principles of fair competition generally accepted in business.

As well as receiving and investigating complaints from consumers, the ASA advises advertisers, agencies, and publishers how to avoid misleading advertising. If an advertisement is found to be misleading or offensive, the ASA will act to have it changed or withdrawn. Failure to comply with its rulings may lead to adverse publicity in the ASA’s monthly report of judgements.

The work of the ASA is financed by a levy of 0.1% on UK advertising expenditures. One criticism, therefore, of the ASA is that it is funded by the very people it is attempting to police, namely the advertising industry.

Advertising on radio is regulated by the Radio Authority.