This Could Be a Current Promotion in Your Kids School!

When you get home from work one day, your 17-year old daughter comes flying into the living room, very excited. A large car manufacturer has approached her school. The car manufacturer wishes to fund a marketing project for the students. The students have to come up with marketing strategies for the car manufacturer to promote the sale of their cars. Prizes will be awarded to the students with the three best ideas. A large party will be given for all the students upon completion of the project equipped with food and entertainment. At the party, there will sales representatives from the car manufacturer and loan officers from several of the local banks.
The next day, you are discussing the promotion with your coworkers.
Was the project created to benefit the students with their education or was the project funded to drum up business for the car manufacturer especially if sales reps were present at the party?

This promotion is a win / win situation for both the students and car manufacturer. The school gets funds for a marketing project the students get to learn from. In addition, the students can feel as they have accomplished something, which can make a difference and be recognized by someone as important as a car manufacturer. The students also receive an award for their efforts which includes prizes and a party.

The car manufacturer wins by getting new and fresh ideas from the students. They also get to advertise and potentially sell new cars to the students that came up with the new marketing ideas.

The question is, do you find this ethical. "Ethics refers to the right and wrong conduct of individuals and institutions of which they are a part." (Ingram, 2006, pg 43) In addition the American Marketing Association has developed a code of ethics for sales people. Looking at the code of ethics on professional conduct, this car manufacturer didn't cause any harm, they followed laws and regulations, and they accurately represented themselves. In the area of promotions, this car manufacturer didn't have misleading advertising, and they didn't manipulate or use deception.

This scenario reminds me of those time-share ads, comes have free lunch with us. Let us show you around. You would have to be pretty naive to think they wouldn't try and sell you the time-share.

References:

Ingram T. N., La Forge R. W, Avila R. A., Schwepker C. H. Jr., Williams M.R., (2006) Professional Selling a Trust Based Approach, Third Edition, Upper Saddle River, NJ: Person Education, LTD