1. 1-1 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-1 Chapter 3 Social, ethical and regulatory aspects

2. 1-2 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-2 1.To consider various perspectives concerning the social and ethical aspects of marketing communication. 2.To evaluate the social criticisms of advertising. 3.To examine how advertising is regulated, including the role and function of various regulatory agencies. 4.To examine the self-regulation of advertising and evaluate its effectiveness. Learning objectives

3. 1-3 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-3 Social and ethical criticisms Government regulation Deceptive Offensive Advertising and children Ethics Social and ethical consequences Self- regulation of advertising Regulation

4. 1-4 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-4 Crazy Domains What are your thoughts? Is this ad offensive or sexist? Or is it a light-hearted fantasy not be taken too seriously? What are your thoughts? Is this ad offensive or sexist? Or is it a light-hearted fantasy not be taken too seriously? Source: © 2010 Crazy Domain Names

5. 1-5 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-5 Crazy Domains (cont.) Selected comments from members of the public: ‘It is all about sex, got nothing to with domains, unless it’s to start a porn site. It’s totally inappropriate.’ ‘This is overtly sexist and exploitative. It belittles women in the workforce and portrays them as sexual property.’ ‘The ad is misogynist.’ ‘It sends a terrible message to young women; namely what they look like has more bearing than their authority in the workplace... this ad is a reminder that women are still not taken seriously in the workplace.’

6. 1-6 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-6 Advertising and society  Marketing communication is intimately connected with the social and cultural environment.  Advertising is very prevalent and occupies an increasing amount of public space.  Advertisers operate in a complex environment of government rules and regulations.  Many parties are concerned about advertising’s potential to offend, mislead, exploit or deceive.  Advertising is a very powerful force with the potential to offend.

7. 1-7 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-7 Advertising and promotion: two viewpoints Creates artificial needs and wants Promotes materialism Is more propaganda than information Is more propaganda than information Provides information Creates jobs and helps new firms enter a market Creates jobs and helps new firms enter a market Encourages a higher standard of living Encourages a higher standard of living Promotes competition in the marketplace Promotes competition in the marketplace Proponents’ arguments Critics’ arguments

8. 1-8 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-8 Junk food and The Parents Jury

9. 1-9 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-9 Ethics Ethics are moral principles and values that govern the actions and decisions of an individual or group. Laws are formal, codified rules that are recognised as binding in a community. Activities that are lawful may not be ethical!

10. 1-10 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-10 Advertising and truthfulness  Around the world, virtually all advertising codes require advertising to be truthful (not misleading or deceptive).  Advertisers are required to have a reasonable basis for making claims.  Few advertisers deliberately set out to deceive.  Misleading or fraudulent claims can be made inadvertently.  Many people believe that advertising should be primarily informative.  Advertisers argue that they have the right to present the most favourable case for their products/services.

11. 1-11 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-11 Source: Australian Association of National Advertisers, www.aana.com.au

12. 1-12 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-12 Source: Advertising Standards Authority New Zealand, www.asa.co.nz

13. 1-13 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-13 Sources of distaste Sex appeals and/or nudity Sex appeals and/or nudity Sensitive products Fear/ Shock appeals

14. 1-14 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-14 Sex appeals in advertising

15. 1-15 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-15 Sex appeals in advertising (cont.)

16. 1-16 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-16 Advertising and children Children’s media habits Average of 5 hours per day using media including television, videogames and the internet Exposed to more than 40 000 commercials per annum 22 hours per week watching TV

17. 1-17 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-17 Perspectives on advertising to children Lack of skill/expertise for critical evaluation of advertising claims Lack of skill/expertise for critical evaluation of advertising claims Difficulty differentiating between programs and commercials Difficulty differentiating between programs and commercials Children must learn through the socialisation Children must learn through the socialisation Need to acquire skills to function in the marketplace Consumer advocates argue that children are vulnerable to advertising due to: Marketers argue that:

18. 1-18 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-18 Advertising and children  Given children’s vulnerability and natural guile, most advertising associations produce special codes to protect them.  The Australian Communications and Media Authority has strict guidelines for advertising to children, which include the following:  advertising banned on preschool programs  no alcohol advertising  restrictions on prizes and competitions  program hosts selling goods or services  the number of times a commercial can be broadcast during children’s programs.

19. 1-19 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-19 Advertising and children (cont.)

20. 1-20 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-20 Advertising and children (cont.) Source: Australian Association of National Advertisers (AANA), www.aana.com.au

21. 1-21 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-21 Social and cultural consequences of advertising Does advertising make people buy things they don’t need? Does advertising encourage materialism? Does advertising encourage materialism? Does advertising control the media? Does advertising perpetuate stereotypes?

22. 1-22 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-22 Advertising and materialism Surrounds consumers with images of the ‘good life’ Material possessions as symbols of status Creates artificial needs Criticisms of advertising with regard to materialism Acquisition of material possessions equated with accomplishment, popularity or sex appeal

23. 1-23 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-23 Advertising and stereotyping Preoccupation with beauty ideals Portrayals of women fail to reflect their changing role in society Portrayal of women as sex objects Portrayal of women as sex objects Ethnic stereotyping/ representation of minorities Ethnic stereotyping/ representation of minorities Gender stereotyping Gender stereotyping Portrayal of the elderly Portrayal of the elderly Criticisms of advertising with regard to stereotyping Criticisms of advertising with regard to stereotyping

24. 1-24 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-24 Stereotypical portrayal of women

25. 1-25 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-25 Social and ethical criticisms Government regulation Deceptive Offensive Advertising and children Ethics Social and ethical consequences Self- regulation of advertising Regulation

26. 1-26 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-26 Regulatory aspects Advertising is controlled through laws and regulations. Laws are formal, codified rules recognised as binding in a community. Regulations are internal rules governing the behaviour of groups.

27. 1-27 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-27 Consumer protection laws Fair Trading Act, 1986 Competition and Consumer Act, 2010

28. 1-28 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-28 Competition and Consumer Act, 2010

29. 1-29 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-29 Industry regulation Self-regulation forms the basis of the advertising regulation system in both Australia and New Zealand. Flexible and responsive to industry needs and public opinion Limits government interference Benefits of self-regulation

30. 1-30 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-30 Industry self-regulation Advertising Standards Authority Advertising Standards Bureau Australian Advertising Standards Council Advertising Standards Bureau Australian Advertising Standards Council

31. 1-31 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-31 Industry self-regulation in Australia Advertising Standards Bureau (ASB) Advertising Standards Bureau (ASB) Advertising Claims Board (ACB) Australian Advertising Standards Council Public complaints Competitive complaints

32. 1-32 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-32 Advertising Standards Board

33. 1-33 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-33 Industry self-regulation in New Zealand Advertising Standards Authority (ASA) AANZA ANZA RBA NZTBC NZDMA Member organisations

34. 1-34 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-34 Levels of advertising regulation Government regulation Industry self-regulation Federal, state and local laws Advertising Standards Bureau Trade/professional associations Internal vetting procedures Media Codes of conduct Advertisers & agencies Businesses Voluntary codes of conduct Codes of conduct

35. 1-35 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-35 Appraising self-regulation Demonstrated as an effective mechanism Has led to more stringent standards than legislation alone Time-consuming complaint resolution process Lacks power and authority/problems with enforceability Advertising industry perspective Critics’ perspective Preferable to government intervention in a mature industry Self- serving

36. 1-36 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-36 Summary and conclusions  Advertising is a powerful and pervasive form of communication.  Advertising has been the target of considerable criticism regarding its social and economic impact.  Advertising has the potential to offend some members of the public.  There is ongoing debate over whether advertising influences and transmits social values or simply mirrors those values.  Regulation and control processes stem from internal regulation, self-regulation and government.  In Australia and New Zealand a system of industry self-regulation is in operation.