{"id":57313,"date":"2021-12-19T17:23:00","date_gmt":"2021-12-19T21:23:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=57313"},"modified":"2021-12-29T10:23:14","modified_gmt":"2021-12-29T14:23:14","slug":"what-is-ethical-marketing","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/what-is-ethical-marketing\/","title":{"rendered":"What Is Ethical Marketing? Fibs vs. Frauds"},"content":{"rendered":"\n

What is ethical marketing? Is there a meaningful difference between fibs and frauds?<\/p>\n\n\n\n

In All Marketers Are Liars<\/em>, Seth Godin argues that good marketing is good storytelling. He explains that it’s ethical to stretch the subjective truth when you tell a story, but that you cross a line when you stretch the objective truth with claims that can be proven false.<\/p>\n\n\n\n

Read more to learn the finer points of ethical marketing.<\/p>\n\n\n\n\n\n\n\n

Ethical Marketing Distinguishes Fibs From Frauds<\/h2>\n\n\n\n

You now know the impact of an authentic, cohesive story across all points of contact with your consumer. So you just need to find a believable story, right? Yes, but Godin warns against getting carried away. <\/p>\n\n\n\n

Marketers are selling the story and a feeling about the product, not the product itself. And if you\u2019re marketing to a worldview, you\u2019ll tell your story to people who want to listen. This leaves room for marketers to exploit consumers and the experience they hope for. But you shouldn\u2019t deceive consumers with your storytelling.<\/p>\n\n\n\n

What is ethical marketing? Godin believes that it involves knowing the difference between telling a fib<\/em> and committing fraud<\/em>\u2014and he urges marketers to never commit fraud<\/strong>. We\u2019ll discuss this difference, as well as some examples of each.<\/p>\n\n\n\n

Fibs<\/h3>\n\n\n\n

Godin defines fibs as stories that stretch the subjective<\/em> truth. If a fib is believed, it doesn\u2019t harm the customer, and it enhances your product. Usually, a fib stretches the truth about how a product will make a customer feel. If you tell a fib and your customer believes it, it becomes true. Godin notes that it\u2019s okay to fib parts of your story, as long as it benefits both you and your consumer. <\/p>\n\n\n\n

Godin uses Georg Riedel as an example. Riedel is a glassblower who specializes in wine glasses. People\u2014even those in the wine-tasting community\u2014insist his glasses improve the taste of the wine. Riedel\u2019s story (that a good wine deserves a luxury vessel for a better tasting experience) aligns authentically with his product (handcrafted wine glasses). People believe that wine tastes better in a Riedel glass, despite no factual evidence to back this up. Their belief in the product improves their experience drinking wine, so the story benefits both Riedel and his customers. It\u2019s a common fib in the wine-tasting community that the right wine glass can improve the taste of wine<\/a>. <\/p>\n\n\n\n

(Shortform note: There may not have been much research on the topic at the time of the book\u2019s initial publication in 2005. However, more recent studies show that there may actually be a correlation. One Japanese study supports the idea that glass shape influences taste<\/a>, while another study shows that visual perception influences taste<\/a>.)<\/p>\n\n\n\n

Ethics of Fibbing <\/strong>

Godin advocates for marketers to have integrity and to be honest and authentic with their customers. Even his popular idea of permission marketing (advertising to someone who has given advance consent<\/a>) puts more power into the customer\u2019s hands. It seems like a contradiction to also say fibbing is okay. Godin\u2019s definition of fibbing (bending the truth, telling an unimportant lie) leaves a lot up to the marketer\u2019s discretion and could be abused. Where do you draw the line between fibbing and committing fraud, and who determines this line? 

The Federal Trade Commission<\/a> (FTC) and Institute for Advertising Ethics<\/a> (IAE) are two organizations that distinguish the line between fibs and frauds. Both organizations echo Godin\u2019s claim that products should not cause harm to the consumer. This includes physical, psychological, and financial harm. When appropriate, scientific evidence should be cited to back up advertising claims. The IAE also notes that it should be clear to consumers that they\u2019re viewing an advertisement\u2014in other words, don\u2019t masquerade your ad as news or editorial content. 

In general, the FTC and IAE advise marketers to be honest with consumers, while fraudulent claims can result in legal action. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Frauds<\/h3>\n\n\n\n

Godin explains that fraud is when you stretch the objective<\/em> truth with claims that can be proven false. Unlike a fib, a customer\u2019s belief in fraud doesn\u2019t make it true. Fibs can enhance your product, while fraud hides the fact your product isn\u2019t as good as you\u2019re claiming it is.<\/strong> Telling a story that isn\u2019t mutually beneficial to you and your customer is fraud. <\/p>\n\n\n\n

Godin also notes that while fraud is unethical, it\u2019s also not a very smart business strategy. If you sell a product<\/a> that harms the people who buy it, soon you won\u2019t have any customers to keep buying it. <\/p>\n\n\n\n

For example, women\u2019s wellness brand Goop<\/a> faced a lawsuit over claims their \u201cvaginal eggs\u201d could balance hormones<\/a> and regulate menstrual cycles. They also claimed their \u201cflower essence\u201d would cure depression. These claims were not scientifically backed and caused harm to customers who believed this story, resulting in a $145,000 settlement.<\/p>\n\n\n\n

So Are All Marketers Liars?<\/strong>

The title of Godin\u2019s book is misleading, and some readers expressed their confusion about it. All Marketers Are Liars<\/em> plays on a negative connotation of lies, and it paints marketers in a bad light, at least initially. Understanding the title requires understanding Godin\u2019s distinction between fibbing and committing fraud. Marketers are liars in the sense that they are fibbing or stretching the subjective truth of their story, but they are not making objectively untrue statements, advertising harmful claims, or lying to the point of deceit or fraud. So marketers aren\u2019t really liars by the usual definition, just storytellers or fibbers. 

While later book jackets were redesigned to address the confusing title (the words
\u201care liars\u201d were crossed out with \u201ctell stories\u201d written above it), Godin includes this explanation for the book title:

\u201cI wasn\u2019t being completely truthful with you when I named this book. Marketers aren\u2019t liars. They are just storytellers. It\u2019s the consumers who are liars. As consumers, we lie to ourselves every day\u2026. Successful marketers are just the providers of stories that consumers choose to believe.\u201d 

Godin was fibbing\u2014or telling a lie that his readers were likely to tell themselves and believe about marketers (that they lie)\u2014in order to entice people to read his book. In doing so, he provided a story that his customer chose to believe. The question for both Godin and the reader is whether the original fib of all marketers being liars (which is still visible as part of the design of the cover) is mutually beneficial, especially since Godin advocates authenticity and doesn\u2019t actually believe marketers should objectively lie. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Spotting the Difference<\/h4>\n\n\n\n

As you can see, there\u2019s a lot of room for marketers to abuse their power by crossing the line from fibbing to committing fraud. As a consumer, how can you tell if a product will actually do what it says it does? Godin proposes a simple two-question test for consumers to use to determine whether a marketer is telling a fib or fraud. <\/p>\n\n\n\n