Marketing ethics includes consumer protection, pricing, and advertising

Full Answer Section

• Direct Mail: Sending physical catalogs and promotional materials to targeted households.
• "Try-at-Home" Program: Allowing customers to select five frames to try at home for free, fostering direct engagement and reducing purchase anxiety.
• Online Quizzes: Allowing customers to take online quizes to determine what style of glasses would best fit them. This brings the customer into direct contact with the company.

Unethical Pricing Practices and Warby Parker's Pricing:

Two types of unethical pricing practices are:

• Price Gouging: Exploiting a surge in demand to drastically inflate prices, especially during emergencies. For example, a company selling essential supplies at exorbitant prices during a natural disaster.
• Bait-and-Switch: Advertising a product at a low price to lure customers in, then pressuring them to buy a more expensive alternative. For example, a car dealership advertising a "loss leader" vehicle that is unavailable, then pushing customers towards higher-priced models.

Warby Parker, in my assessment, is not guilty of unethical pricing. They are known for their transparent and competitive pricing. For instance:

• They offer a standard price for their frames and lenses, making it easy for customers to compare options.
• They provide clear information about their pricing structure on their website.
• They offer a "single-vision" lense for a set price, and then allow customers to add on extra features for an additional cost. This allows the customer to customize the product, and control the price.
• Their pricing is generally lower than traditional brick-and-mortar eyewear retailers, due to their direct-to-consumer model.

Warby Parker's Contribution to Targeted Marketing Ethics:

Warby Parker contributes to knowledge regarding targeted marketing ethics by demonstrating that:

• Transparency and Honesty are Key: Their clear pricing and "try-at-home" program build trust with customers.
• Personalization Can Be Ethical: Their targeted marketing efforts are designed to provide value to customers, not to manipulate them.
• Customer Experience Matters: Their focus on providing a seamless and enjoyable online shopping experience enhances customer satisfaction.
• Social Responsibility: Warby Parker's "Buy a Pair, Give a Pair" program, where they donate a pair of glasses for every pair sold, demonstrates that targeted marketing can be used to support social causes.

This company illustrates the concepts of targeted marketing learned in this unit by showcasing how technology and data can be used to personalize marketing efforts while maintaining ethical standards. It also shows that by cutting out the middle man, that a company can provide a better product, for a better price. It shows that a company can be profitable, and still have a social conscience.

Sample Answer

Let's explore marketing ethics through the lens of a company that utilizes direct marketing: Warby Parker.

Company Description and Products:

Warby Parker is an American online retailer of prescription glasses and sunglasses. They offer a wide range of stylish and affordable eyewear, including frames, lenses, and contact lenses. They've disrupted the traditional eyewear market by selling directly to consumers, cutting out intermediaries and offering a "try-at-home" program.

Direct Marketing and Warby Parker's Strategy:

Direct marketing, or targeted marketing, involves communicating directly with specific customer segments to promote products or services. Warby Parker excels at this through:

• Email Marketing: Personalized emails based on browsing history, purchase history, and customer preferences.
• Social Media Advertising: Targeted ads on platforms like Instagram and Facebook, reaching specific demographics and interests.