Question

Many consumers and consumer advocates are critical of the practice of tracking individuals due to the concerns about personal privacy.They argue that technology has made it far too easy to track buyer behavior and personal information. Marketers counter that by saying individual segmentation and targeting has benefits that far outweigh the risks. What are your thoughts on the ethical risks associated with segmentation/ targeting?

Answer 1

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Abstract

Ethical issues in marketing arise from the conflicts and lack of agreement on particular issues. Parties involved in marketing transactions have a set of expectations about how the business relationships will take shape and how various transactions need to be conducted

If we look at the strategies used in current marketplace, companies more than ever are using Targeted segmentation and marketing to reach various consumer groups.

While some companies have become increasingly sophisticated in marketing to Targeted consumers, others’ attempts have misfired and created much controversy, calling for a closer examination of the validity and potential pitfalls of Targeted segmentation and marketing

Below are the thoughts / Openion about the ethical risk associated with segmentation / targeting

Segmentation is the process in which a consumer market is divided into smaller submarkets. Targeted segmentation is based on the general concept of specific focus on Group of Consumers, which includes race, religion, language, nationality, culture, and customs, etc.

There are great advantages for using Targeted subcultures for market segmentation. First, Targeted consumers demonstrate unique characteristics inconsistent from those of the general population.

Cultural heritage partially explains many measurable differences in consumption among consumers of various Targeted groups.

These differences are easily identifiable and verifiable, thus making Targeted consumers well defined target markets. Second, Targeted groups also have substantial and verifiable market potential.

In addition, due to the explosive growth of media, minority consumers are much more accessible today than in the past.

Despite the growing support for Targeted segmentation and marketing, targeted marketing to specific consumers is not without pitfalls. Targeted marketing is essentially differentiated marketing towards an Targeted group.

Like any targeted marketing, Targeted marketing is focused towards a particular segment -- a group of people with common characteristics.

Therefore, there is no guarantee that even the best strategies translate into success in Targeted marketing.

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