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Ethical Marketing Assignment Help

1. Why is the very popular method-percentage-of-sales-logically unsound (Armstrong et al.)? 

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The percentage of sales method is essentially utilized in developing a budgeted set of financial instruments. It is logically unsound because there are several expenditures that are carry a set flat to a given value or carry a flat component which is why they are not able to associate the same with sales of the given firm. Apart from this there are several balance sheet related items which are not able to associate such as fixed assets and debits.

Also in this, costing of every step is applied where a given cost is variable but it will be modified to a different percentage of sales whenever there is a change in the volume level. For example- purchasing discounts may change only if the number of purchases crosses 1000 mark.

2. Define ethical marketing. Give examples of some of the challenges firms face in being ethical marketers (Armstrong et al.)? 

Ethical marketing is an ideology in which the companies focus on how their product benefits on the social and environmental causes. They emphasize on moral values as well.

There are several instances where the privacy of the consumer if compromised. Secretive data gets leaked to the audience which should not be the case. Also the marketing communication standards vary for companies largely practicing ethical marketing. In some cases, companies practice high level of personal ethics and this varies from company to company. There are issues related to transparency when it comes to paying their target to endorse the products. Different companies believe in different strategies for the same. At times, the companies face problems in complying with the regulations and standards established by government and professional organizations. There are instances where ethics are not discussed openly and people are not honest with their marketing decisions. This can lead to variation in opinion and hence differences between the employees.

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