Presentation on theme: " Advertising Educates Consumers › Pro: Advertising informs › Con: Advertising is superficial and intrusive Advertising improves living standards ›"— Presentation transcript:
Advertising Educates Consumers › Pro: Advertising informs › Con: Advertising is superficial and intrusive Advertising improves living standards › Pro: Ads lower the costs of products › Con: Ads are wasteful and help only some Is there “information” inthis ad?
Critics of advertising feel that advertising is superficial because many ads carry little actual product information. Do you think advertising is superficial?
Advertising Affects Happiness and Well- Being › Con: Ads create needs › Pro: Ads address a wide variety of basic human needs › Con: Ads promote materialism › Pro: Ads reflect society’s priorities
Critics feel advertising promotes materialism.
Advertising: Demeaning and deceitful, or liberating and artful? › Con: Ads perpetuate stereotypes › Pro: Advertisers are more sensitive now › Con: Ads are often offensive › Pro: Ads are a source of liberation › Con: Ads deceive via subliminal stimulation › Pro: Advertising is art
Do you think this ad perpetuates stereotypes?
Advertising has a Powerful Effect on the Mass Media › Pro: 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.
Ethics are the moral standards against which behavior is judged. Key areas of debate regarding ethics and advertising are: Truth in advertising Advertising to children Advertising controversial products
Truth in Advertising Deception is making false or misleading statements, but puffery (commercial exaggeration) is legal. Cannot legislate against emotional appeals
Advertising to Children—Issues Advertising promotes superficiality and materialism in children Children are inexperienced and easy prey Persuasion to children creates child-parent conflicts What does the literature say about kid’s abilities to process persuasive information?
Advertising Controversial Products Critics question “targeting” minorities Tobacco, alcohol, gambling and lotteries are product categories of greatest concern How does the concept of “primary demand” provide insights here? What does the literature say about advertising’s impact on these product categories?
Areas of advertising regulation: Deception and unfairness – Representation or omission that can mislead – Judged from perspective of consumer Competitive issues – Vertical cooperative advertising – Comparison advertising – Monopoly power Advertising to children
Government Regulation Federal Trade Commission (FTC) › Wide range of regulatory programs and remedies Federal Communications Commission (FCC) Food and Drug Administration (FDA) U.S. Postal Service Bureau of Alcohol, Tobacco, and Firearms
FTC Programs and Remedies Advertising Substantiation Program Affirmative Disclosure Consent Order – Cease and Desist Order – Affirmative Disclosure Corrective Advertising Control of Celebrity Endorsements
Industry Self-Regulation National Advertising Review Board (NARB) State and Local Better Business Bureaus Ad Agencies and Associations Media Organizations
Internet Self-Regulation No industry-wide trade association has emerged to date Global Dialogue on Electronic Commerce (GBDe) is emerging as a governing body Little progress has been made to address consumers’ complaints
Consumers as Regulatory agents Consumerism: Grass roots consumer movements Consumers Organizations – Consumer Federation of America – Consumers Union – Consumer Alert – Commercial Alert
Direct Marketing and e-Commerce Privacy, Contests, Telemarketing Spam=30 million messages/minute, 50 billion/day worldwide “Phishing” as insidious spam Sales Promotion Premiums, Trade Allowances, Contests/Sweepstakes Public Relations Privacy, Copyright Infringement, Defamation (slander and libel)