Marketing Communications

REGULATION OF MARKETING COMMUNICATIONS PRACTICES 573

Packaging

Packaging can be deceptive or misleading because label information suggests either desirable

ingredients or attributes or less undesirable ingredients (low cholesterol). Usually, packaging

graphics show the product as appealingly as possible, but sometimes this is not a true repre-

sentation of the product (for instance, a children’s toy seems larger than it is, the picture

contains features that are not part of the product). Some packaging is unsafe for children or

can be tampered with. Also, the environmental implications of some types of packaging may be

considered as unethical. According to a US study, professionals judge packaging as unethical

when using the word ‘light’ relating to texture and not to calorie content, packaging store

brands to mimic manufacturer-brand packaging, being aware of safety hazards and not doing

anything about them, charging more per unit for a large package than a small package, and

not attending to environmental problems when packaging materials are available to do so.^112

Sales promotion

Failing to mail a free premium object or to provide a rebate cheque, making consumers

believe that their odds of winning a prize in a contest are much greater than they actually

are and advertising a promotion that is not suffi ciently available are unethical practices.

Connections, a tour operator that sells low-prize long-distance fl ights, was faced with a

consumer complaint because it was felt that the low-cost fl ights to Th ailand as advertised

were available only in small quantities and the other available tickets were substantially

more expensive.

Regulation of marketing communications practices

Regulation of marketing communications is called for when the expectation is that, with-

out regulation, consumer decisions would be based on false or limited information. Th e

advantages of regulation are that consumer choice is improved, product quality is improved

z The US government confirmed that it was going to mine commercial databases for clues about terrorist

organisations.

z The movie Minority Report with Tom Cruise featured talking billboards that track wherever you go.

z The US government threatened to block flights to America by European airlines that refuse to give the US

government access to passenger lists.

z Surveys indicated that a majority of consumers do not believe commercial companies are handling personal

information about their customers in a confidential way.

Within two days, a consumer privacy group was calling for an immediate worldwide boycott of Benetton.

CASPIAN, Consumers Against Supermarket Privacy Invasion and Numbering, warned the public that Benetton

could easily link the serial number in a sweater to credit card information, and that this information would be avail-

able to anyone with access to the Benetton database. A number of consumers expressed their concern about the

initiative. A website calling for a Benetton boycott and posters featuring messages such as ‘I’d rather go naked’

quickly appeared. Less than three weeks later, Benetton announced that it was ‘reconsidering’, and no chips were

currently present in the garments produced. Philips removed all traces of the press release from its website.

Companies should be increasingly aware of the perceptions of the general public, pressure group activities and the

potential damage to the image of the company that occurs as a result of PR initiatives that do not take major con-

cerns of these publics into account.^111

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