Ethical and legal issues in relationship selling

Ethical and Legal Issues in Relationship Selling ppt download

ethical and legal issues in relationship selling

build a relationship with, just keep reading! Explain legal considerations in selling. Explain ethical issues in selling. Objectives. Imagine you want to buy a brand. Ethical and Legal Issues in Selling What ethical responsibilities do salespeople have toward themselves, their firms, and Ethics and partnering relationships. Ethical and legal issues in selling Reported by: Rizza Estoconing Analyn Ethics and personal relationship Ethical principles are particularly.

ethical and legal issues in relationship selling

Ethical Influences While the ethical nature of selling has improved over time, salespeople still face a variety of ethical influences and dilemmas. Top management, sales managers, peers, company policies and personal values of the salesperson all play a role in influencing a company's ethical culture. For a salesperson, aligning his values with the organization's is a key starting point.

For honest salespeople looking to build customer relationships, a company that emphasizes the consultative style and customer service is likely a good match. Ethical Challenges Based on the combination of personal values and external influences, salespeople react in a number of ethical situations. An underlying issue surrounding most selling ethics is the lure of fast money.

Taking a customer-first approach typically plays out better in the long run, but the opportunity for a high-dollar, quick sale sometimes causes short-sightedness in sellers. Completing expense reports honestly, following through on all commitments to customers and disclosing all important facts before, during and after a sale are signals of an ethical salesperson.

References 2 San Diego State University: Ethical and Legal Considerations in Selling About the Author Neil Kokemuller has been an active business, finance and education writer and content media website developer since He has been a college marketing professor since We conducted an online global search for relationship marketing courses and textbooks to select the books.

Appendix shows the outcome of the search, in which we used the key word relationship marketing, plus course descriptions, course syllabi, and textbooks. The selected books were Baron et al. The five course books were the most commonly used globally, with four or more course hits. Sales numbers were not available to verify book spread, which instead can be supported with the fact that all but one of the textbooks were second or third editions.

The books were also available electronically, which facilitated the analysis. Great variety was evident in the books used, as many other books were used, but they were used considerably less frequently. However, the intent was not to analyse all relationship-marketing books, but to select and analyse the most frequently used. Content analysis does not prescribe a correct or minimum number of books to analyse.

Adding books with three course hits would have resulted in five more books, but all appeared to be rather similar in content; their addition would not have produced noticeably different results concerning ethical content. Many business schools do not reveal their individual courses or textbooks online; these are listed at the end of the table to show the width of the search.

Definition of the recording units e. This study used key words from the elements in the fundamentals of ethical relationship marketing and the paragraphs in which the words appeared context coding. Definition of the coding categories Next, the coding categories were developed and operationalised. The first three columns in Table I show the results. Awareness of the accuracy and reliability of the sample coding, and revision of the coding rules As delimitation, and to avoid interpreting and speculating, the books were analysed on how they explicitly dealt with ethical issues.

The books were re-analysed as the list extended. Reiteration until sufficient reliability is achieved: The books were available in hard copy form, and as Ebrary Database PDF documents; the latter facilitated computer-assisted analysis, which increased accuracy.

ethical and legal issues in relationship selling

The search function in Adobe was used for each word. The located words, accompanied by the paragraphs, were extracted and compiled in a separate document, which formed data chunks in the raw data material. Assessment of the achieved reliability or accuracy The accuracy of the coding was checked by identifying irrelevant hits. Findings from the content analysis The columns of Table I summarise the counts, with relevant hits for each of the codes representing the ethical elements in each of the books.

Some of the hits, assessed as irrelevant, constitute the difference between the count and the relevant numbers. Summary of the findings: The hits in the managerial-oriented book followed the same pattern, having fewer hits compared to nearly all course books. The hits in the managerial-oriented book followed the same pattern. These sparsely hit categories included morals, ethics integration, ethical tension, virtues, diligence, transparency, promise-driven concepts, truthfulness, exceeding Responsibility the legal minimum threshold, moral guidance, and responsibility.

The hits in in relationship the managerial-oriented book followed the same pattern. This indicated that the framework was indeed useful in capturing ethical relationship-marketing concepts, especially so from a broad perspective.

Even though the selected books did not illustrate the integration element, seeing ethics as integrated rather than compartmentalised was in line with the relationship marketing idea.

ethical and legal issues in relationship selling

Findings for the ethical relationship marketing framework elements Core concepts ethics and morals. Finally, we should note that there may be some serious ethical issues associated with social networks, especially related to the potentially addictive behaviours that are resulting Baron et al.

Organizations should stress ethical behavior in all stakeholder transactions and interactions. No hits occurred on this element in any of the course books or the managerially oriented book. Thus, none of them was in line with the recommendations of Abela and Murphy to avoid tensions in marketing practice. There were many hits on customer orientation.

On the other hand, another core relationship-marketing concept, relationship orientation, surprisingly, was rarely used in any of the books, including the managerial-oriented book.

Strategic CRM is a core customer-centric business strategy that aims at winning and keeping profitable customers Buttle,p. For a customer relationship strategy to work, a company must establish a focus on the customer, a commitment to genuinely understanding the customer, and a culture in which MIP every employee believes that the customer comes first. In short, the company needs to have a customer strategy, one focused on ensuring that everything the company does is oriented 31,7 toward building solid customer relationships Peppers and Rogers,p.

4-1 Ethical and Legal Issues in Relationship Selling 4.

Trust, loyalty, and commitment resulted in a great number of hits in all books. Virtues and diligence, referring more directly to ethical aspects, were not found. Relationship marketing RM is usually defined as an approach to develop long-term loyal customers and thus increasing profitability Gummesson,p.

ethical and legal issues in relationship selling

Trust, which encompasses ethics, is the bigger idea Peppers and Rogers,pp. The pattern in all books was the same; dialogue, transparency, and co-understanding were all found, with dialogue being the most frequent.

Transparency was not found in the managerial-oriented book, but the two other concepts were. In RM, interaction and dialogue in two-way relationships are emphasized, while in mass-marketing relationships these aspects are primarily one way.

ABC's of Relationship Selling : Charles M. Futrell :

Consumers have an active relationship to suppliers but the degree of co-creation varies Gummesson,p. The first is self-regulation by companies and associations. For example, a number of companies publish their privacy policies and make a commercial virtue out of their transparency Buttle,p. Spin is out, transparency is in, and the fact that this higher ethical standard is being applied today by more and more consumers in a wider and wider variety of marketing and selling situations owes much to the social media revolution and to the kind of word-of-mouth recommendations and experience sharing that goes on among consumers now, electronically Peppers and Rogers,p.

Truthfulness, and more so promises, was found in all the books, including the managerially oriented book. Most promises are made without written contracts, they are moral and ethical promises to perform a service, deliver goods or collaborate in a development project Gummesson,p.

Trust is expectation that the word of another can be relied upon and implies honesty in negotiations Baron et al. All course books, but not the managerial marketing book, mentioned ethics vs legal issues. It is imperative to separate what is right from strictly legal considerations and technicalities, and what is right from a long term and ethical relationship perspective[y] Gummesson,p. Moreover, as each organization moves to globalize its operations, its leaders will need to be aware of and comply with the many legal requirements of the nations in which it serves customers, and they will need to respect the individual cultures of these countries Peppers and Rogers,p.

Two course books mentioned that management could assist with moral guidance. Like the ever-observant child, the organization always knows when behavior is being allowed that is inconsistent with its purported values Peppers and Rogers,p.

Managing social responsibility requires the use of appropriate measures and leadership responsibility for those measures Gummesson,p. All books, including the managerial book, mentioned responsibility. A focal organization must take responsibility for managing its network so that it creates and delivers sustainable value to customers Buttle,p. The responsibility for customer management may spring from the marketing department, or sales management, or product development, or even, occasionally, from the information- technology department, where the customer data are housed Peppers and Rogers,p.

Discussion of the findings This study contributes to the understanding of how relationship-marketing textbooks deal with ethics issues. The results indicate that they address these issues to a surprisingly limited extent. Some ethical issues selected from the range of fundamentals received some coverage in the books, but those directly referring to ethics, in particular, were few. Thus, overall, the attention that ethics received in the books was scant.

Sales Techniques vs. Ethics

MIP The fundamentals framework, explicitly grounded in the relationship-marketing 31,7 setting, captures a broad range of aspects. It contains specific features such as customer and relationship orientation, making and keeping promises, interaction and dialogue, co-understanding, loyalty and commitment, and a people focus.

This content distinguishes it from other marketing ethics models and from the framework of Kavali et al. Their model focuses on managerial aspects, and similarly recognises, for example, prioritising people, behavioural standards in excess of the law, stakeholder orientation, and having a set of core ethical principles. Both models capture comprehensive core ethical principles identified through literature reviews and both are capable of use in empirical studies.

Sales Techniques vs. Ethics |

A conclusion of this study is that the link between ethics and relationship marketing needs to be explicit, especially if the aim is to make ethical relationship marketing successful. The lack of coverage strongly suggests that the relative inattention to ethical issues in business schools can be tied to textbook content.

Both in practical company activities and behaviour, and in teaching and teaching material, far too little attention is given to ethics. It is not a matter of introducing a new relationship marketing perspective, but of pointing at the roots and elements of ethical relationship marketing.

Recognising ethical fundamentals should permeate the whole company; when it does, it can benefit the implementation of relationship marketing by, for example, changing views about responsibility, customers, and engaging in dialogue with others.

Furthermore, recognising ethical issues in relationship marketing can improve or restore a marketing reputation damaged by ethical blunders.

Customers do value companies that display high levels of ethics and responsibility. Rather than merely adding content to current textbooks, and in order to offer an integrated view on ethics, fundamental revisions of relationship marketing books appear necessary. Other authors have made similar suggestions to incorporate sustainability issues into marketing textbooks e. Demoss and Nicholson, ; Bridges and Wilhelm, The suggestions divide into three categories; each aims to encourage marketing teachers, students, or course designers.

The suggestions draw on ideas and elements in previous similar studies. A great many studies have addressed this topic, such as Baetz and Sharp