1. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin22
Chapter 22
Evaluation the Social, Ethical, and Economic Aspects of Advertising and Promotion
Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. Advertising and Promotion Viewpoints
Provides information
Proponent arguments
Encourages higher standard of living
Promotes competition
Helps new firms enter a market
Creates jobs
Relation to text
This slide relates to material on p. 737 of the text.
Summary Overview
This slide shows the two views concerning the appropriateness and value of advertising.
Proponents argue that advertising and promotion:
Provide information
Encourages a higher standard of living
Creates jobs and helps new firms enter a market
Promotes competition in the marketplace
Critics argue that advertising and promotion:
Creates needs and wants among consumers
Is more propaganda than information
Promotes materialism, insecurity, and greed
Throughout the text, advertising and promotion has been discussed in the context of the business and marketing environment and from a perspective that these activities are appropriate. Critics argue that there are negative social and economic effects of advertising and promotion.
Use of this slide
This slide can be used to introduce the two different viewpoints regarding the value of advertising and promotion and the arguments for each.
More propaganda than information
Critic arguments
Creates consumer needs, wants
Promotes materialism, insecurity, and greed

3. Ethics in Advertising and Promotion
Ethics: Moral principles and values that govern the actions and decisions of an individual or group.
Not all issues can be regulated
A marketing or promotion action may be legal but not ethical
Marketers must decide the appropriateness of their actions
Relation to text
This slide relates to material on p. 738 of the text.
Summary Overview
This slide defines and summarizes ethical considerations in advertising and promotion. Ethics is defined as moral principles and values that govern the actions and decisions of an individual or group. While many laws and regulation determine what advertisers can and cannot do, not every issue is covered by a rule or law. Marketers must make decisions regarding appropriate and responsible actions on the basis of ethical considerations.
Some ethical considerations in advertising and promotion are:
Not all issues can be regulated
A marketing or promotion action may be legal but not ethical
Marketers must decide the appropriateness of their actions
Companies are scrutinized for their ethics
Use of this slide
This slide can be used to discuss the ethical considerations of advertising and promotion.

4. Promoting Responsible Drinking
Relation to text
This slide relates to the material on page 739 and Exhibit 22-2.
Summary Overview
Companies marketing alcoholic beverages must recognize the need to reduce alcohol abuse and drunken driving, particularly among young people. Many of these companies have developed programs and ads designed to address this problem.
Miller Brewing Company has been running a campaign that uses ads like the one shown here that encourages parents to talk to their kids about the risks of underage drinking.
Use of this slide
Use this slide when discussing how companies like Miller Brewing try to promote responsible drinking and respond to the problems of drinking and driving.

5. Benetton’s “Death Row” Ad Offensive
Relation to text
This slide relates to the material on pp and Exhibit 22-4 of the text.
Summary Overview
This slide shows an ad from the controversial “Death Row” campaign that was run by Benetton in Benetton has always been known for its controversial advertising, and some magazines refuse to accept its ads. The company has defended itself by arguing that it is trying to raise people’s awareness regarding various social issues. However, the “Death Row” campaign was probably the most controversial of all the shock advertising used by company. Benetton argued that it ran the global campaign solely to spark debate on capital punishment. However, the ads outraged many people, including victims’ advocates who accused Benetton of glamorizing murders while ignoring their crimes.
Benetton went too far with its “Death Row” campaign, and the company received a lot of negative publicity. Various victims’ right groups organized boycotts of the company’s stores, and Sears canceled an exclusive contract to sell a line of Benetton clothes. In May 2000, Olivero Toscani, who had been overseen Benetton’s advertising since 1982, left the company as a result of the controversy.
Use of this slide
This slide can be used to show an example of advertising that has been controversial and received a great deal of criticism.

6. Advertising and Untruthful or Deceptive
General mistrust of advertising
among consumers. Many do not perceive ads as honest or believable
Abuses involving sales promotions such as contests, sweepstakes, premium offers
Relation to text
This slide relates to material on pp of the text.
Summary Overview
One of the major complaints against advertising is that many ads are untruthful and deceptive. Reasons for this viewpoint include:
A general mistrust of advertising among consumers, as many do not perceive ads as honest or believable
Abuses involving sales promotion such as contests, sweepstakes, and premium offers
Unethical and/or deceptive practices involving mail order, telemarketing, and other forms of direct marketing
Internet scams and abuses
While most critics would probably agree that most marketers are not out to deceive consumers deliberately, they are still concerned that many of their advertising and promotion practices are not in the best interest of consumers.
Use of this slide
This slide can be used to discuss some of the reasons why advertising and promotion are often criticized as being untruthful and deceptive.
Unethical and/or deceptive practices
involving mail order, telemarketing and other forms of direct marketing
Internet scams and abuses

7. Advertising as Offensive or in Bad Taste
Objectionable products
Sexual
appeals
Shock ads
Relation to text
This slide relates to material on pp of the text.
Summary Overview
Another common complaint of advertising, particularly by consumers, is that ads are offensive and in bad taste. This slide shows some of the reasons why advertising is viewed this way. Viewers often object to:
Advertising of certain products, such as contraceptives and personal hygiene.
Use of sexual appeals and/or nudity, which can be demeaning and offensive.
Use of shock ads that employ nudity, sexual suggestiveness, or other startling images to get consumers’ attention.
Many advertising experts agree that what underlies the increase in offensive or tasteless ads is the pressure on marketers and ad agencies to do whatever it takes to get an ad noticed. How far advertisers will go may depend on the public’s reaction. When consumers think the ads have gone too far, they are likely to pressure the advertisers to change their ads and the media to stop accepting them.
Use of this slide
This slide can be used to discuss advertising as offensive or in bad taste.

8. Test Your Knowledge Advertisers are using shock advertising to:
A) Test their First Amendment rights
B) Get ads noticed in the midst of clutter
C) Make a statement against self-regulation
D) Test the ethics of the advertising industry
E) Act as advocacy ads for company management
Answer: B

9. Advertising and Children
Children's TV Watching Behavior
Children ages 2-11 watch an average of 22 hours of TV per week and see 30,000 commercials per year
80% of all advertising targeted to children falls in four
product categories:
Toys, cereal, candy & fast food restaurants
Relation to text
This slide relates to material on pp of the text.
Summary Overview
One of the most controversial topics advertisers must deal with is the issue of advertising to children. The extensive amount of time children spend watching TV means they will be exposed to a great deal of advertising. This slide provides some statistics regarding children’s TV watching behavior.
Children between the ages of 2-17 watch an average of 22 hours of TV per week, and may see 30,000 commercials per year
The vast majority of advertising targeted to children falls in four product categories: toys, cereal, candy, and fast food restaurants
Use of this slide
This slide can be used to introduce the issue of advertising to children. The next slide will discuss two perspectives on advertising to children.

10. Perspectives on Ads for Children
Advocates Argue That Children:
Lack the knowledge and skills to evaluate advertising claims
Cannot differentiate
between programs and commercials
Relation to text
This slide relates to material on pp of the text.
Summary Overview
Critics of advertising to children argue that it should be banned or severely restricted. However, marketers argue that advertising is a part of life and children must learn to deal with it. Legislation by the government and self-regulatory group agreements have provided some protection for children.
This slide summarizes the two perspectives on advertising to children:
Consumer advocates argue that children are vulnerable to advertising because:
They lack the knowledge and skills to critically evaluate advertising claims
They cannot differentiate between programs and commercials
Marketers argue that children must:
Learn through the socialization process
Acquire the skills needed to function in the marketplace
Use of this slide
This slide can be used to discuss the two perspectives on advertising to children.
Marketers Argue Children:
Must learn
through socialization
Must acquire skills needed to function in the marketplace

11. Do TV Networks Have a Double Standard?
Relation to text
This slide relates the material in Ethical Perspective 22-1 on pp. 746 of the text.
Summary Overview
GoDaddy.com and its advertising agency, Ad Store, have argued that the major television networks such as Fox have a double standard as many of their program have more racy content than the commercials that they sometimes refuse to run.
This slide shows a commercial for GoDaddy.com, a company that manages and sells Internet domain names. The commercial depicts a mock congressional hearing and features an attractive woman in a very camisole that suffered a near “wardrobe malfunction.” Its was done as a satirical jab a famous Janet Jackson wardrobe malfunction that occurred during the halftime show of the 2004 Super Bowl, which led to government moves to more tightly regulate TV and radio content. Fox ran the commercial during the first quarter of the game, but refused to run it again during the fourth quarter after the National Football League became upset over the ad.
Use of this slide
This spot can be used to generate discussion regarding whether advertisers should be held to different standards by TV networks whose own programs are often more sexually explicit than the commercials they refuse to air.

12. Social and Cultural Consequences
Does advertising
encourage materialism?
Does advertising make people buy things
they don’t need?
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide shows some of the social and cultural questions related to advertising.
Does advertising make people buy things they don’t need?
Pro advertising
Advertising provides essential information
It is difficult to separate the desirable advertising from the undesirable
Consumers are free to choose
Critics of advertising
Information advertising is acceptable, but persuasive advertising is unacceptable
Persuasive advertising fosters discontent among consumers
Does advertising encourage materialism?
Materialism is an acceptable part of the Protestant ethic, which stresses hard work and individual effort
Acquisition of material possessions has positive economic impact
Advertisers seeks to create needs
Surrounds consumers with images of the good life and suggest material possessions will lead to happiness
Material possessions will lead to greater social acceptance
Is advertising just a reflection of society?
Some argue that advertising is merely a visible manifestation, good and bad, of the American way of life. Others feel that advertising reflects cultural values on a selective basis, echoing and reinforcing certain attitudes, behaviors, and values more frequently than others.
Use of this slide
This slide can be used to discuss the social and cultural consequences of advertising and arguments both for and against advertising.
Is advertising just
a reflection of society?

13. Does advertising affect Society?
Relation to text This slide relates to page 750 and Exhibit of the text.
Summary Overview The advertising industry believes that advertising reflects society, not the other way around. This ad was part of a campaign to address the criticisms of advertising.
Use of this slide Use this slide to present the advertising industry’s position advertising’s effect on society.

14. Advertising and Stereotyping
Portrayal of women to reflect their changing role in society
Gender
stereotyping
Portrayal of
women as
sex objects
Criticisms of Advertising
With Regard to Stereotyping
Relation to text
This slide relates to material on pp of the text.
Summary Overview
Advertising is criticized for portraying various gender and ethnic groups in ways that are unflattering. Critics also argue advertising does not stay contemporary and reflect the changing roles of women. Despite the recognition that advertisers must be sensitive to the portrayal of specific types of people, ad agencies are finding it increasingly difficult not to offend some segment of the public.
This slide shows the various forms of stereotyping that advertising is often accused of creating and perpetuating. These include:
Gender stereotyping
Portrayal of women to reflect their changing role in society
Portrayal of women as sex objects
Ethnic stereotyping/representation of minorities
Gay-specific ads
Use of this slide
This slide can be used to discuss stereotyping in advertising.
Sexual orientation
Ethnic stereotyping/
representation

15. What is your opinion of this ad?
Is this woman portrayed as a sex object?
Does this ad contain
cues that are sexually suggestive?
Relation to text
This slide relates to material on pp , and Exhibit 22-8 of the text.
Summary Overview
Consider this ad for Airwalk shoes and how it might be viewed by consumers.
Is this woman portrayed as a sex object?
Does this ad contain cues that are sexually suggestive?
Does this ad present an image of sexual submission?
This ad was criticized by some women’s groups who argued that it shows a submissive and sexually available woman. The critics argued that the ad contains a number of symbolic cues that are sexually suggestive and combine to reinforce an image of the woman’s sexual submission to a man. These cues include the heart shaped box, indicating love, the color red, which symbolizes passion, and the heavy lipstick, which is sexually suggestive, as is the slinky red dress.
Use of this slide
Use this slide to prompt a discussion about the sexual nature of some ads. You might ask your students if they agree with this assessment of the ad.
Does this ad present an image of sexual submissiveness?

16. Dove Challenges the Norms of Beauty
Relation to text
This slide relates to the material on pp , which is Ethical Perspective 22-2.
Summary Overview
This slide shows a page from the web site for Dove’s Campaign for Real Beauty. The campaign was launched after Unilever’s Dove brand team reviewed the results of a study indicating that most women feel that the media and advertisers set an unrealistic standard of beauty that they cannot achieve. The survey also found that only a small percentage of women are satisfied with their body weight and shape, and only two percent considered themselves beautiful. The goal of the campaign is to change the stereotypical portrayal of beauty based on physical attractiveness and to encourage women to feel good about themselves.
Most ads for beauty and cosmetic products show glamorous super models and are based on the idea that women will aspire to be like these women and purchase the advertised product in hopes of improving their appearance. Dove has taken an inspirational approach by encouraging women to focus on their natural beauty and appealing to their self-esteem.
Use of this slide
This slide can be used as part of a discussion regarding advertising’s portrayal of women. Critics of Dove’s campaign argue that it is really just a clever way for Dove to market its beauty and cosmetic brands and is more about selling these products than making a social statement. They argue that there is a contradiction in the message of the campaign because it suggests that women still need to use Dove products to be beautiful. They also feel that Dove markets items like cellulite cream and anti-aging products that have not been proven to work. And, the campaign still uses models that are more attractive than the average woman.
However, the Dove campaign has been viewed very favorably overall, and most observers feel that it is a positive step in terms of the way women are portrayed in advertising. The campaign has encouraged other marketers, like Nike, to change the way they portray women and celebrate the diversity of their physical appearance.

17. Test Your Knowledge
Groups such as the National Organization for Women (NOW) are critical of advertising that:
A) Portrays women in traditional sexist roles
B) Contributes to violence against women
C) Is insulting to women
D) Stereotypes women
E) Does any of the above
Answer: E

18. Advertising Can Address Social Problems
Relation to text
This slide relates to the material on p. 759 of the text which discusses the use of advertising to address social problems such as drug use.
Summary Overview
This slide contains the famous “Fried Egg” commercial that was created by the Partnership for a Drug Free America in the late 1980s and is perhaps the most well-known of all the anti-drug ads. It features a stern looking man cracking open an egg and placing it in a hot frying pan as he delivers the classic line: “This is your brain, this is your brain on drugs.”
This spot has been parodied many times and probably lost its effectiveness as the teen audience to which it was targeted began poking fun at the “this is your brain on drugs” line from the commercial and the phrase became part of popular culture.
Use of this slide
This commercial can be used to show the types of anti-drug ads created by the PDFA.
*Click outside of the video screen to advance to the next slide

19. Do Advertisers Control the Media?
Advertising is the primary source of revenue for newspapers, magazines, television and radio
Media’s dependence on advertising for revenue makes them vulnerable to control by advertisers
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide shows the arguments supporting the position that advertisers have control over the media. These include:
Advertising is the primary source of revenue for newspapers, magazines, television, and radio
Media’s dependence on advertising for revenue makes them vulnerable to control by advertisers
Advertisers may exert control over the media by biasing editorial content, limiting coverage of certain issues, or influencing program content
Use of this slide
This slide can be used to discuss the position that advertisers control the media because a large part of their revenue is generated from advertising.
Advertisers may exert control over the media by biasing editorial content, limiting coverage of certain issues, or influencing program content

20. Do Advertisers Control the Media?
They must report the news fairly and accurately to retain public confidence
Advertisers need the media more than the media need any one advertiser
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide shows arguments against the position that advertisers do have control over the media. These include:
They must report the news fairly and accurately to retain public confidence
Advertisers need the media more than the media needs any one advertiser
The media maintains separation between news and business departments. This separation is often referred to as “The Wall.”
Use of this slide
This slide can be used to discuss the reasons why advertisers do not control or have undue influence over the media despite the financial dependence that newspapers, magazines, and radio and television stations have on advertising.
Media maintain separation between news and business departments “The Wall”

21. U.S. Government Discourages Drug Use
Relation to text
This slide relates to the material on pp of the text.
Summary Overview
This slide shows a print ad from the campaign developed by the Office of National Drug Control Policy (ONDCP) and the Partnership for a Drug Free America to address the problem of illicit drug use. This ad was developed to deal with the problem of prescription-drug abuse.
Use of this slide
This slide can be used to discuss how the U.S. government used advertising to address the problem of illicit drug use. You might ask students whether they think these ads are an effective way of dealing with the drug problem in the U.S.

22. Role of Advertising in the Economy
Makes consumers aware of products and services
Provides consumers with information to use to make purchase decisions
Relation to text
This slide relates to material on p. 760 and Exhibit 22-24of the text.
Summary Overview
Advertising plays an important role in a free market system. It informs customers of available goods and services, but also affects consumer choices, competition, and product/service costs and prices.
This slide shows the role of advertising in the economy, which is:
Making consumers aware of products and services
Providing consumers with information to use to make purchase decisions
Encouraging consumption and fostering economic growth
Use of this slide
This slide can be used to discuss the economic role of advertising.
Encourages consumption, fosters economic growth

23. Economic Impact of Advertising
Effects on Consumer Choice
Differentiation
Brand Loyalty
Effects on Competition
Barriers to entry
Economies of scale
Effects on Product Costs and Prices
Advertising as an expense that increases the cost of products
Increased differentiation
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide summarizes the economic impact of advertising on consumer choice, competition, and product costs and prices. The impact of advertising includes:
Effects on consumer choice: differentiation and brand loyalty
Effects on competition: barriers to entry and economy of scale
Effects on product costs and prices
Advertising is an expense that increases the cost of products
Increased differentiation
The economic effect can be divided into two schools of thought. The “Advertising equals market power” perspective views advertising as a way to change consumers tastes, lower their sensitivity to price, and build brand loyalty. However, this results in higher profits, higher prices, reduced competition, and fewer choices. The “Advertising equals information” perspective views advertising as providing consumers with useful information, increasing price sensitivity, and increasing competition. Proponents of this view believe the economic effects of advertising are favorable and it contributes to a more efficient and competitive market.
Use of this slide
This slide can be used to discuss the economic impact of advertising on consumer choice, competition, and product costs and prices.

24. Test Your Knowledge
From an economic perspective, advertising might lower the cost of a product by:
A) Creating barriers to entry for less efficient firms
B) Moving consumers to the consumer socialization stage of the buying process
C) Making it possible for firms to realize economies of scale through expansion of sales volume
D) Allowing firms to advertise at high levels along with competitors
E) Doing none of the above
Answer: C

25. The Economic Value of Advertising
Relation to text
This slide relates to the material on pp
Summary Overview
This slide shows a commercial that was used by the International Advertising Association to promote the value of advertising. The commercial notes that branded products are the consumer’s guarantee of consistent quality; friends that he or she can recognize. Without the brand name, the consumers wouldn’t know what they are buying, so they would buy less.
Ads like this one are used in countries like China and Russia where consumers are unfamiliar with the concept of advertising. The goal of the campaign is to get consumers in these countries to recognize the role advertising plays in contributing to their economic well being.
Many economists continue to take a negative view of advertising and its effects on the functioning of the economy, while advertisers continue to view it as an efficient way for companies to communicate with their customers and an essential component of the economic system.
Use of this slide
This commercial can be used to discuss the economic value of advertising.
*Click outside of the video screen to advance to the next slide

26. Summarizing Economic Effects
Advertising Equals Market Power
Change consumers’ tastes
Lowers sensitivity to price
Builds brand loyalty
Results in higher profits
Relation to text
This slide relates to material on pp and Figure 22-3 of the text.
Summary Overview
Some believe that advertising equals market power. This reflects traditional economic thinking, which views advertising as a way to:
Change consumers’ tastes
Lower their sensitivity to price
Build brand loyalty
This, in turn, results in:
Higher profits
Reduced competition in the market
Higher prices and fewer choices for consumers
Use of this slide
This slide can be used to discuss the “advertising equals market power” position on advertising.
Reduces competition
Leads to higher prices
Leads to fewer choices

27. Summarizing Economic Effects
Advertising Equals Information
Provides useful information
Increases price sensitivity
Increases competition
Pressure for high quality
Relation to text
This slide relates to material on pp and Figure 22-3 of the text.
Summary Overview
Some believe that advertising equals information, which is a more positive view of advertising’s economic effects. The believe that advertising:
Provides useful information
Increase price sensitivity, which moves consumers toward lower-priced products
Increases competition in the market
This, in turn, results in:
Pressure from consumers for high-quality products at lower prices
Less efficient firms being forced out of the market, which makes room for new entrants
Use of this slide
This slide can be used to discuss the “advertising equals information” position on advertising.
Pressure for lower prices
Forces inefficient firms out

28. Do you agree with Leo Burnett?
“It must be said that without advertising we would have a far different nation, and one that would be much the poorer-not merely in material commodities, but in the life of the spirit.”
Relation to text
This slide relates to material on p. 766 and Figure 22-4 of the text.
Summary Overview
This slide shows an excerpt from a speech given by Leo Burnett summarizing the perspective of most advertising people on the economic effects of advertising.
Many advertising and marketing experts agree that advertising and promotion play an important role in helping to expand consumer demand for new products and services and in helping marketers differentiate their existing brands.
Use of this slide
This slide can be used to discuss the positive economic effects of advertising. You might ask your students if they agree with the legendary adman regarding the positive effects of advertising.
Excerpters is from a speech given by Leo Burnett on the American Association or Advertising Agencies’ 50th anniversary, April 20,1967