Role of ethics in marketing

As noted by ( Kotler and Armstrong, 2010:629 ) : “ Good moralss is a basis of sustainable selling. In the long tally, unethical selling injuries clients and society as a whole. Further aˆ¦the sustainable selling ends of long – term client and concern public assistance can be achieved merely through ethical selling behavior ” .

DiPiazza, 2009 as cited by Kotler and Armstrong, 2010:632, concluded that: “ Ethical motives require a entire corporate committedness aˆ¦ I see moralss as a mission – critical issue aˆ¦ profoundly imbedded in who we are and what we do. It ‘s merely every bit of import as our merchandise development rhythm or our distribution system aˆ¦It ‘s about making a civilization based on unity and regard aˆ¦ ” .

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Any company have to encompass, communicate and rehearse the cardinal ethical values that will better consumer assurance in the unity of the selling exchange system. These basic values are deliberately aspirational and include honestness, duty, equity, regard, openness and citizenship.

Tanga Cement Company Ltd has worked out a doctrine of socially responsible and ethical behavior instead than on the free market and legal system to make up one’s mind on ethical issues. The company has Code of Conduct to regulate all its activities, internal dealingss and interactions with all company stakeholders in conformity with its ethical values.

TCCL conformance with its Code of Conduct is taken as the ultimate duty of the Top Management Team, with day-to-day monitoring delegated to line direction squad. This codification of behavior is supplemented by the company ‘s duty doctrine every bit good as its employment patterns, occupational wellness and safety controls.

TCCL ‘s Code of Conduct commits it to the highest criterions of unity, behavior and moralss in its traffics with all parties concerned, including its all its stakeholders ( managers, directors, employees, clients, providers, rivals, investors, stockholders and the populace in general ) . Company ‘s top direction squad, line direction squad, forces officers together with company staffs are expected to carry through their ethical duties in such a manner that the concern is run purely harmonizing to just commercial competitory patterns.

TCCL is making values to all its clients within ethically responsible actions. Therefore, under the sustainable selling construct, TCCL is looking beyond what is legal and allowable and develop cement within criterions for long – term consumer ‘s public assistances.


As noted by Kotler and Armstrong, 2010:233, “ merchandise ‘s place is the manner the merchandise is defined by consumers on of import properties – the topographic point the merchandise occupies in consumers ‘ heads relative to viing merchandises.

Trout, 2005 concluded that: “ Merchandises are created in the mill, but trade names are created in the head of consumers ” . In generic position, a merchandise ‘s place is the complex set of perceptual experiences, feelings, and feelings that consumers have for the merchandise compared with viing merchandises. Brand ‘s placement must function the demands and penchants of a well – defined mark markets. As noted by ( Arora, 2011 ) : “ Sellers want to place their trade names on the cardinal benefits that they offer comparative to viing trade names ” .

Tanga Cement Company Ltd ( TCCL ) full places its trade name ( SIMBA ) within four places in prosecuting the market and achieving right competitory advantages over its rivals:

Simba trade name is the usher for concrete brick and block devising

Tanga Cement concrete is one of the most lasting edifice stuffs. It provides superior fire opposition compared with wooden building, can derive strength over clip. Structures made of concrete can hold a long service life. The ingredients of Tanga Cement concrete are combined to give the merchandises its lower cost. The hard-boiled concrete makes merchandises with more strength, lastingness, and suited visual aspect in fresh province workability and coherence.

Simba trade name is the usher for concreting

Tanga cement provides sufficient attending in choosing concrete stuffs, mix proportions, placing, and compression, coating, and hardening of concrete. This consequences into strong, lasting, look good, and meets the require strength and last a life-time.

Simba trade name is the usher for stick oning

Tanga sand – cement is used extensively in constructing work as a cosmetic and protective coating for concrete, masonry walls and concrete ceilings. The mixes have good workability which is easy to work on.

Simba trade name is the usher to bricklaying

Beding Mortar binds bricks and blocks together to give strength and stableness to a wall. Freshly assorted howitzer must be soft and flexible ( good workability mix ) , so that it spreads easy and makes good contact, without going excessively rough mix during the bedclothes procedure.


A trade name represents everything that a merchandise or service agencies to consumers and is the major digesting plus of the company, outliving the company ‘s specific merchandises and installations. In today ‘s competitory markets, it seems to be impossible to happen something unbranded. As noted by ( Thakare, 2009 ) : “ Trade names make for highly powerful assets that require be carefully developing and managing. The value of a successful trade name is more than the amount of all other touchable assets of a company ” .

Stewart, 2009 as cited by ( Kotler and Keller, 2009:254 ) concluded that: “ If Quaker Oats concern were to divide, I will give you the land and bricks and howitzer, and I would maintain the trade names and hallmarks, and I would do better than you ” . Besides a former Chief executive officer of McDonald ‘s agrees: “ If every plus we own, every edifice, and every piece of equipment were destroyed in a awful catastrophe, we would be able to borrow all the money to replace it really rapidly because of the value of our trade name… The trade name is more valuable than the entirety of all these assets. ” ( Kotler & A ; Armstrong, 2008:230 )

Tanga Cement Company Ltd incorporates its trade name name ( SIMBA ) so as to get positive differential effects from consumers on its merchandises. Its trade name name has strong among consumers in Tanzania and is valuable plus for the company. The undermentioned below is a cardinal scheme that TCCL take to construct and pull off its SIMBA trade name:

Brand Extension

Harmonizing to ( Tanga Cement Company Ltd, 2011 ) , Tanga Cement fabrication installations are ISO 9001:2000 certified and have stringent quality direction system, which guarantee the cement quality is purely controlled at every phase of its fabrication procedure. These controls guarantee a high degree of merchandise consistence.

The company has extended its current trade name ( SIMBA ) to new and modified merchandises so as to salvage high advertisement costs and get instant acknowledgment and faster credence. SIMBA trade name have extended into two merchandises: Simba 32.5 HARAKA and Simba 42.5 HARAKA.

Simba 32.5 HARAKA with CEM II / B – Meter 32.5R is specially blended with good quality control supervising systems, high quality cement engineered for usage in all structural, edifice and peculiarly utile in Marine and hydraulic construction.A It reduces the heats of hydration in mass concrete and the permeableness of concrete in H2O retaining constructions

Simba 42.5 HARAKA with CEM II / A – Meter 42.5N is designed with high strength as per category 42.5N specifications demands. It ‘s suited for high strength executing plants, i.e. Bridgess, roadsin structural plants every bit good as for dirt stabilisation, high strength paving blocks, and roof tiles.

In constructing its trade name name, Tanga Cement Co. , Ltd makes critical determinations on positioning its trade name among its rivals ; local makers – Tanzania Portland Cement Co. , Ltd and Mbeya Cement Company Ltd competitions from dumped and inexpensive imported cement from China, Pakistan, India and Egypt.

The company SIMBA trade name physiques strong consumer beliefs and values. It involves important direction determinations in a uninterrupted procedure so as to construct an everlasting client relationship with values to consumers and net incomes to the company.

Through advertisement, SIMBA trade name have managed to capture the heads of clients as the usher for concrete brick and block devising, concreting, daubing, and bricklaying intents. Advertising serves as a medium to pass on and assist develop a trade name ‘s image ( perceptual experience ) in consumers mind.A Though Advertising is non theA merely functioning medium, it is indispensable to construct consumers awareness towards merchandise ‘s being every bit good as its properties

Through company staffs by personal trade name experience by word of oral cavity and aid clients to cognize the trade name values through a broad scope of its properties.

Besides by utilizing periodic trade name audit to measure its trade name ‘s strengths and failings so as to antagonize the rival ‘s menaces of capturing the heads of its reputable clients.

Therefore, all market analysts agree that, branding involves making a perceptual experience in consumer ‘s head. SIMBA trade name powerful attributes enjoys a high degree of client trade name consciousness and trueness. This is assisting TCCL to construct strong and profitable client relationships. The altering nature of market competitions in cement industry in Tanzania is coercing TCCL to take important determinations in the procedure of edifice and pull offing its SIMBA trade name against the altering client ‘s penchants and menaces of its rivals.


Harmonizing to ( Kotler and Armstrong, 2010:335 ) pricing determinations are capable to a complex scope of company, environmental, competitory forces, and consumer ‘s perceptual experiences on the merchandise ‘s value. The company adjusts its monetary values to reflect alterations in costs and demand and to account for fluctuations in consumers and state of affairss. As noted by Panera Bread Company ‘s CEO, Shaich, R. as cited in by Kotler and Armstrong, 2010:314, “ Give people something of value, and they will merrily pay for it ” . The challenge is to reap the client value the company creates.

Tanga Cement Company Ltd see a figure of external factors in puting the monetary value of cement as monetary value plays a cardinal function in making client value and constructing a long and everlasting client ‘s relationships. Besides TCCL position its client perceptual experiences on its merchandises as the key to its pricing scheme so as to fulfill the demands and outlooks of its consumers.

Harmonizing to ( KnowThis LLC, 2011 ) : “ External factors are a figure of act uponing factors which are non controlled by the company but will impact pricing determinations. Understanding these factors requires the seller behavior research to supervise what is go oning in each market the company serves since the consequence of these factors can change by market. ”

Nature of the market and demand

Before puting monetary values, TCCL understand the relationship between monetary value and demand for the company ‘s merchandise. The company operates in monopolistic market with intense competitions from local makers ( Tanzania Portland Cement Co. , Ltd and Mbeya Cement Company Ltd ) and inflow of dumped and inexpensive imported cement from China, Pakistan and India. The alteration in monetary value influence mark market demand for cement in Tanzania. TCCL monetary values depend on market demand so as to vie with local and imported cement and besides on whether its rivals ‘ monetary values stay changeless or alteration with the company ‘s ain monetary values.

Rivals ‘ schemes and monetary values

Tanzania local cement market is dominated by TPCC followed by TCCL and MCCL, these companies engage in stiff competitions with each other and besides with imported cement particularly from China, India, and Pakistan. Tanga Cement pricing include an rating of its rivals ‘ offerings in footings of client value. Consumers perceive its merchandises as less value relation to Twiga Cement, therefore it bear down a lower monetary value compared to its chief rival – Twiga Cement. In extremely competitory cement industry, Tanga Cement responds rapidly to rivals ‘ monetary value accommodations therefore cut downing the consequence of such alterations.

Economic conditions

This factor besides has strong impact on TCCL ‘s pricing schemes. As cited by ( Kotler and Armstrong, 2010:329 ) , “ Economic factors such as roar or recession, rising prices, and involvement rates affect pricing determinations because they affect both consumer perceptual experiences of the merchandise ‘s monetary value and value and the costs of bring forthing a merchandise ”

On the instance of TCCL, economic recessions and rising pricess which are presently impacting Tanzanians have affected its monetary values. The widespread bead in disbursement due to important diminution in economic activity across the state have led to low productions, investing disbursement, families disbursement and diminution of TCCL concern net incomes. The high rising pricess in our state have resulted in the general monetary value degree rises of cement. This is due to diminish in existent value of money and other pecuniary points over clip.

On the instance of resellers, as noted by ( Nagle and Hogan, 2007 ) : “ Firms within the seller ‘s channels of distribution besides must be considered when finding monetary value. Distribution spouses expect to have fiscal compensation for their attempts, which normally means they will have a per centum of the concluding merchandising monetary value ” . Tanga Cement Co. , Ltd sat monetary values that give resellers a just net income which help them to sell its merchandises really efficaciously. This monetary value border between what they pay to TCCL to get the cement and the monetary value they charge their clients is sufficient for them to cover their costs and besides earn a coveted net income.

Besides authorities actions have influenced the monetary value of cement from TCCL. Currently the state is confronting power deficit, high rising pricess, hapless substructures, and hapless policy on imported cement. The company is confronting high production cost due to the usage of back – up generators as a consequence of low supply of electricity, high distributions costs through roads due to decrease of rail services from TRL, and hapless Tanzania authorities policy in cement industry by taking suspended responsibilities on imported cement which resulted to un- competitory monetary values in the market.

Customers value perceptual experiences

Possibly the most obvious external factors that influence monetary value scenes are the outlooks of clients. Tanga Cement set its merchandise ‘s monetary value after understanding how its consumers perceive the merchandise. In Tanzania, clients value Tanga cement as one of best trade name in building and devising of concrete merchandises together with Twiga cement. Customers value the Simba trade name in its quality ; hence they buy the merchandise to obtain the benefits of utilizing that merchandise. By utilizing client – oriented pricing methods, Tanga Cement set monetary value that delivers both value to the client and net incomes to the company.

: Challenge FACING TCCL




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