Presentation on theme: "Social, Ethical, and Regulatory Aspects of Advertising and Promotion"— Presentation transcript:
1Social, Ethical, and Regulatory Aspects of Advertising and Promotion Marketing 3344
2Social Aspects of Advertising Advertising Educates ConsumersPro: Advertising informsCon: Advertising is superficial and intrusiveAdvertising improves living standardsPro: Ads lower the costs of productsCon: Ads are wasteful and help only someIs there “information” inthis ad?
3Ad in Context ExampleCritics of advertising feel that advertising is superficial because many ads carry little actual product information. Do you think advertising is superficial?
4Social Aspects of Advertising Advertising Affects Happiness and Well-BeingCon: Ads create needsPro: Ads address a wide variety of basic human needsCon: Ads promote materialismPro: Ads reflect society’s priorities
5Ad in Context ExampleCritics feel advertising promotes materialism.
6Social Aspects of Advertising Advertising: Demeaning and deceitful, or liberating and artful?Con: Ads perpetuate stereotypesPro: Advertisers are more sensitive nowCon: Ads are often offensivePro: Ads are a source of liberationCon: Ads deceive via subliminal stimulationPro: Advertising is art
7Ad in Context ExampleDo you think this ad perpetuates stereotypes?
8Ad in Context ExampleDo you think this ad perpetuates stereotypes?
9Social Aspects of Advertising Advertising has a Powerful Effect on the Mass MediaPro: Ads foster a diverse and affordable mass media that provides information and exposure on important issues.Con: Advertising affects and controls programming. “Branded Entertainment” blurs entertainment and persuasion. And, controversial issues do not attract advertisers.
10Ethical Aspects of Advertising Ethics are the moral standards against which behavior is judged. Key areas of debate regarding ethics and advertising are:Truth in advertisingAdvertising to childrenAdvertising controversial products
11Ethical Aspects of Advertising Truth in AdvertisingDeception is making false or misleading statements, but puffery (commercial exaggeration) is legal.Cannot legislate against emotional appeals
12Ethical Aspects of Advertising Advertising to Children—IssuesAdvertising promotes superficiality and materialism in childrenChildren are inexperienced and easy preyPersuasion to children creates child-parent conflictsWhat does the literature say about kid’s abilities to process persuasive information?
13Ethical Aspects of Advertising Advertising Controversial ProductsCritics question “targeting” minoritiesTobacco, alcohol, gambling and lotteries are product categories of greatest concernHow does the concept of “primary demand” provide insights here?What does the literature say about advertising’s impact on these product categories?
14Regulatory Aspects of Advertising Areas of advertising regulation:Deception and unfairnessRepresentation or omission that can misleadJudged from perspective of consumerCompetitive issuesVertical cooperative advertisingComparison advertisingMonopoly powerAdvertising to children
15Key Regulatory Agents Government Regulation Federal Trade Commission (FTC)Wide range of regulatory programs and remediesFederal Communications Commission (FCC)Food and Drug Administration (FDA)U.S. Postal ServiceBureau of Alcohol, Tobacco, and Firearms
16Key Regulatory Agents--FTC FTC Programs and RemediesAdvertising Substantiation ProgramAffirmative DisclosureConsent OrderCease and Desist OrderCorrective AdvertisingControl of Celebrity Endorsements
17Key Regulatory Agents (con’t) Industry Self-RegulationNational Advertising Review Board (NARB)State and Local Better Business BureausAd Agencies and AssociationsMedia Organizations
18Key Regulatory Agents (con’t) Internet Self-RegulationNo industry-wide trade association has emerged to dateGlobal Dialogue on Electronic Commerce (GBDe) is emerging as a governing bodyLittle progress has been made to address consumers’ complaints
19Key Regulatory Agents (con’t) Consumers as Regulatory agentsConsumerism: Grass roots consumer movementsConsumers OrganizationsConsumer Federation of AmericaConsumers UnionConsumer AlertCommercial Alert
20Regulation of Other Promotional Tools Direct Marketing and e-CommercePrivacy, Contests, TelemarketingSpam=30 million messages/minute, 50 billion/day worldwide“Phishing” as insidious spamSales PromotionPremiums, Trade Allowances, Contests/SweepstakesPublic RelationsPrivacy, Copyright Infringement, Defamation (slander and libel)