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Advertising Law & Ethics : Codes of Ethics Ethics are systems of moral principles that help us determine right from wrong, good from bad. Guidelines Adv.

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Presentation on theme: "Advertising Law & Ethics : Codes of Ethics Ethics are systems of moral principles that help us determine right from wrong, good from bad. Guidelines Adv."— Presentation transcript:

1 Advertising Law & Ethics : Codes of Ethics Ethics are systems of moral principles that help us determine right from wrong, good from bad. Guidelines Adv. Carried shall be so designed as to confirm to the laws of the country & should not offend morality, decency & religious susceptibility of the views.

2 Adv. Should not be directed towards religious politics : No ad. shall contain references, which are likely to lead the public to infer that the product advertised, or any of its ingredients has some special or Miraculous or supernatural property.

3 No ad. which endangers the safety of children or creates in them any interest in unhealthy practices or shows them begging or in an undignified or indecent manner shall be carried out. Indecent, vulgar, suggestive, repulsive or offensive themes or treatment shall be avoided in all ads.

4 Regulatory Bodies : All ads. have to pass through the norms laid by the regulatory authorities. Regulations affect virtually every step in the advertising process, including protecting the product with a trademark, creating the message showing the product in action & announcing a special sale.

5 The following bodies (regulatory) provide an important check on advertisers, seeing to it that they do not advertise in ways that are deceptive or otherwise socially deceptive. Federal Trade Commission Federal Communication Commission Childrens adv. Review Unit Food & Drugs Admin. Adv. Review Council Adv. Standard Authority

6 1)Federal Trade Commission Independent agency of US Govt. (1951) with an objective of Keeping American competition free & fair. Has 5 jury members. Promotes competition through the enforcement of certain antitrust laws, to prevent the dissemination of false & deceptive advertising goods, drugs, curative devices & cosmetics.

7 Enforces federal antitrust & consumer protection laws by investigating complaints against individual companies initiated by consumer, business, inquiries or report in media. Ensures that nations markets function comparatively by eliminating unfair or deceptive practices.

8 2)FDA : under jurisdiction of the deptt. Of Health & Human services. Has authority over the labeling, packaging, branding, ingredient listing & advertising of packaged foods & drugs products Is authorized to require caution & warning labels on potentially hazardous products & also has limited authority over nutritional claims made in food advertising.

9 It has the authority to set rules for promoting these products & the power to seize food & drugs on charge of false & misleading advertising. Its heavily involved in advertising & promotion of tobacco products.

10 3)Federal Communication Commission : (1934) Regulates broadcast communication. Jurisdiction over TV, radio & telephone industries. Has authority to license broadcast stations as well as to remove a license or deny renewal to stations not operating in publics interest.

11 4)Advertising Review Council : Monitors all advertising, promotional & marketing materials for interactive entertainment software products that are released to the public. It includes print ads, packaging, radio & TV spots, internet advertising, online stores, posters & demos.

12 Its goals is to ensure that interactive entertainment software publishers follow standardized requirements for the display of rating info. & that advertising content in responsible, appropriate, truthful & accurate. The council also implements marketing guidelines that prohibit game publishers from targeting audiences for whom products are not appropriate.

13 5) Childrens Advertising Review Unit : self – regulation Resolves issues related to advertising to children. It reviews & evaluates advertising claims for truth & accuracy & compliance with CARUs guidelines which are set with higher standards than low.

14 It helps to ensure that commercials or advertisements directed to children contain responsible & positive social messages. It monitors English & Spanish language ads. 6)Advertising Standards Authority : (ASA, 1973) ASA established a separate self – regulatory body called the Advertising Standards Complaints Board formerly advertising standards council) to administer the codes of practice in New Zealand.

15 Has 4 public representatives with no connection to Media & Adv. 4 persons from ASA, reps from media, advertising agencies & advertisers Adjudicate on complaints received about ads which may be in breach codes of practice. Advise the ASA on interpretation of the codes & possible improvements in them. Report to ASA on any aspects of advertising which is causing concern.

16 Indian Regulatory Bodies : Enforce rules & regulations for the benefits of the public. a)Advertising Standard Council of India : (ASCI) is a voluntary self – regulatory body set up by advertising community To ensure that all advertising in India is fair, truthful, safe & legal.

17 Members of Boards are drawn from various companies. ASCI code is applicable to press, TV, radio, films & even promotion messages on packaging. During the year ended 31 March, 2002, 196 complaints were reviewed by the council of which 92 were upheld (the ads were found to be in contravention to ASCI Code). 73 of the advertisers concerned assured compliance with the council rules.

18 b)Information & Broadcasting Ministry : Regulates advertising on TV & other media. Regulations on Advertising Beverages/ alcohol Not permitted Print & outdoor do allow indirect Advertising Satellite TV accepts alcohol directly

19 Cigarettes Not permitted on air media, including satellite Pharma/DrugsRules vary with every clinic, institute, lab Advertising to childrenRestriction of direction/attitude is placed on childrens commercials No infant food advertising is acceptable Overseas commercials are accepted No language restrictions exist.

20 c)Self – Regulation by Media : Readers Digest Doesnt accept tobacco & liquor ads. Several publications refused to feature some of Benetons Shock ads. TV Networks have their own standards. Different Ads are shown at different times to viewers. TV networks have guidelines for ads. To children.

21 3)Ethical Issues in Advertising : Although many laws govern advertising, not all advertising is regulated. Numerous advertising – related issues are left to the discretion of the advertisers & are based on ethical concerns.

22 The following issues are central to ethics :- Advocacy Accuracy Acquisitiveness

23 Advocacy – Advertising by its nature, tries to persuade its audience to do something. As a result it is not objective or neutral, which disturbs critics who think it should be. Accuracy - Beyond the easily verifiable claims in an advertising message are matters of perception. Will buying automobile make me envy of my neighbors? Subtle message are more troubling when aimed at children & older people

24 Acquisitiveness : Advertising is symbol of our societys pre – occupation with accumulating material objects Because we are continually exposed to an array of changing newer & better products, critics claim we become convinced that we must have these products.

25 Codes of ethics provide only general guidelines. When advertising questions are not clearly covered by a code, a rule, or a regulation, someone must make a decision. Even though an ad. may increase product sales, do you use copy that has an offensive double meaning or illustrations that portray people in stereotypical situation ?

26 Do you stretch the truth when making a claim about a product ? Do you malign the competitors product even though you know it is basically the same as your own?

27 Key Ethical Issues in Advertising : Puffery Taste Stereotyping Childrens advertising Advertising controversial products Subliminal advertising Shock ads Weasel claims Surrogate advertising

28 Client – Agency Relationship : Plays role of closing distance between the advertiser & Media Depending upon size & the nature of agency, it offers numerous services to the advertiser :- Media buying Creative development Marketing strategy

29 Sales Promotion Communication task Prepare print, electronic & outdoor ads. Collateral designs like pop & display material

30 Types of Agencies :- Full service agency All marketing communication services. Research, design & develop ads, art work, media buying, production. Creative Agency Writing copy & design service

31 A media independentbuys space & time, related research & audience measurement data A composite agencyboth creative + media with accompanying research

32 Structure of Advertising Agencies : Account Executive The creative team The account planner or research The media planner & buyer Account director The creative director Production house Release to media

33 How agencies are paid for their work :- Ad agencies are paid a commission on the basis of % (which varies form medium to medium & from time to time) on the value the space & time that they buy from the media on behalf of their clients. 20% charges as commission on production costs Technical agencies get paid by the media & not by clients

34 How to select an adv. Agency Invite a large no. of agencies who meet the predetermined minimum criteria. The purpose is to seek required info. n the following format to evaluate their suitability.

35 Particulars CMD & Directors Average age of senior team of directors Agency history & ownership pattern Year of establishment Take over & mergers, if any

36 Size of turnover & growth (last 5 yrs) commissionfeesforecasts Clients won & lost (past 3 yrs) Clients list (at present) Billing by products Min. size of account required

37 Accounts New product from existing clients New products from new clients Media – related info. % on TV % on press national & local % on sales promotion Staff turnover Key personnel Agency annual report & accounts

38 Account planning : Is a process that involves conducting research & gathering all relevant information about a clients product or service brand & the consumers in the target market. It facilitates the creative process by providing necessary inputs to the creative process.

39 Its an important link between the client & the advertising agencys creative team. Account planners job is to provide the key decision makers with all the info. They require to make an intelligent decision.

40 Account planners uses research (both primary & secondary) to gain more info. about the brand in its market place, the consumers perspective, competitor info. & shares this info. to contribute or indirectly to develop an appropriate advertising campaign. Small agencies may not afford to have account planner deptt or if they have the deptt., it may lack the expertise for certain aspects or problems related to brand promotions.

41 A typical ad. campaign might be influenced, directly or indirectly, by info from many sources. Both outside research suppliers & agencys own account planning deptt. are the major sources of info. The account planner must sort out the potentially relevant material & puts it into a format that can be used.

42 A full service Agency : Deptt & functions B.O.D CEO Account Director Account Executive

43 Marketing Media CreativeProductionAdministration Planning Market Research Space Buying Air time Spot buying Copy Writing Script Writing Studio Art Buying TV Hiring Production company Print Buying Secretarial Library Accts

44 Various positions & functions in a full service agency Account director Competing accounts Account executive Contact report (minutes of meeting)

45 Role of account planning in Dev & execution of an adv. Campaign Initial briefing The budget The company, product or service The market Distribution

46 Brand Price Packaging Completion Report to the agency head Report to the deptt. head Preparing the campaign

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