Regulatory, Ethical, and Social Issues for Integrated Marketing Communications

Advertising Regulation in Canada Government Regulation Self Regulation CRTC ASC

Canadian Radio-Television and Telecommunications Commission (CRTC) Mandate: To ensure that the Broadcasting Act of 1991 and the Telecommunications Act of 1993 are upheld throughout Canada. Objective of each Act is to ensure all Canadians can receive broadcasting and telecommunications services.

CRTC and Advertising Regulations Advertising limits Infomercials 900 Numbers Alcohol and drugs

CRTC and Advertising Non- Regulation False or misleading ads Internet

Other Regulations Regulation of Tobacco Advertising Quebec Regulations on Advertising to Children

Advertising Standards Council (ASC) A not-for-profit, self-regulatory industry body. Mandate is to create and maintain community confidence in advertising. Standards Division: Administers the industry’s self-regulatory codes. Handles complaints about advertising. Administers any disputes arising between advertisers.

Canadian Code of Advertising Standards “ The Code” describes acceptable advertising. Pertains only to content of ads. Does not limit promotion of legal products or the demonstration of products for their intended purpose. Does not supersede any other laws or regulations. Intent: To provide standards for responsible and effective advertising without minimizing the right of firms to advertise.

The Code Complaint process Sets standards Clearance

Clauses of the Code 1. Accuracy and Clarity 2. Disguised Advertising Techniques 3. Price Claims 4. Bait and Switch 5. Guarantees 6. Comparative Advertising 7. Testimonials 8. Professional or Scientific Claims 9. Imitation 10. Safety 11. Superstitions and Fears 12. Advertising to Children 13. Advertising to Minors 14. Unacceptable Depictions and Portrayals

Advertising and Promotion: Two Viewpoints Creates Needs and Wants Among Consumers Creates Needs and Wants Among Consumers Promotes Materialism, Insecurity and Greed Promotes Materialism, Insecurity and Greed Is More Propaganda Than Information Is More Propaganda Than Information Provides 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 Is More Propaganda Than Information Is More Propaganda Than Information Creates Needs and Wants Among Consumers Creates Needs and Wants Among Consumers 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 Provides Information Provides Information Proponents Argue That Advertising and Promotion: Critics Argue That Advertising and Promotion Promotes Competition in The Marketplace Promotes Competition in The Marketplace

Advertising and Promotion as Deceptive General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers Unethical and/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing Unethical and/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing Internet Scams and Abuses Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers Unethical and/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing Unethical and/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing

Advertising as Offensive or In Bad Taste Objections to Advertising Of Certain Products Objections to Advertising Of Certain Products Use of Sexual Appeals And/or Nudity Use of Sexual Appeals And/or Nudity Objections to Advertising Of Certain Products Objections to Advertising Of Certain Products Use of Sexual Appeals And/or Nudity Use of Sexual Appeals And/or Nudity Use of Shock Ads

Examples of Shock Ads

Many People Found Benetton’s “Sentenced to Death” Campaign Offensive

Advertising and Children Children's TV Watching Behaviour Children between ages 2-11 watch on average 15.5 hours of TV per week. Television is an important source of information for children about products.

Perspectives on Advertising to Children They Lack the Knowledge and Skills to Critically Evaluate Advertising Claims They Lack the Knowledge and Skills to Critically Evaluate Advertising Claims They Cannot Differentiate Between Programs and Commercials They Cannot Differentiate Between Programs and Commercials Children Must Learn Through the Socialization Process Children Must Learn Through the Socialization Process Children Must Learn Through the Socialization Process Children Must Learn Through the Socialization Process They Cannot Differentiate Between Programs and Commercials They Cannot Differentiate Between Programs and Commercials They Lack the Knowledge and Skills to Critically Evaluate Advertising Claims They Lack the Knowledge and Skills to Critically Evaluate Advertising Claims Need to Acquire Skills Needed To Function in the Marketplace Need to Acquire Skills Needed To Function in the Marketplace Consumer Advocates Argue That Children Are Vulnerable to Advertising Because: While Marketers Argue That:

Social and Cultural Consequences of Advertising Does Advertising Make People Buy Things They Don’t Need? Does Advertising Make People Buy Things They Don’t Need? Does Advertising Encourage Materialism? Does Advertising Encourage Materialism? Does Advertising Encourage Materialism? Does Advertising Encourage Materialism? Does Advertising Make People Buy Things They Don’t Need? Does Advertising Make People Buy Things They Don’t Need? Is Advertising Just A Reflection of Society? Is Advertising Just A Reflection of Society?

Advertising and Stereotyping Portrayal of Women 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 Ethnic Stereotyping/ Representation of Minorities Ethnic Stereotyping/ Representation of Minorities Portrayal of Women As Sex Objects Portrayal of Women As Sex Objects Gender Stereotyping Gender Stereotyping Gender Stereotyping Gender Stereotyping Portrayal of Women to Reflect Their Changing Role in Society Portrayal of The Elderly Portrayal of The Elderly Criticisms of Advertising With Regard to Stereotyping Criticisms of Advertising With Regard to Stereotyping

What is your opinion of this ad? Is This Woman Portrayed As a Sex Object? Does This Ad Contain Cues That Are Sexually Suggestive? Does This Ad Contain Cues That Are Sexually Suggestive? Does This Ad Present an Image of Sexual Submissiveness? Does This Ad Contain Cues That Are Sexually Suggestive? Does This Ad Contain Cues That Are Sexually Suggestive? Is This Woman Portrayed As a Sex Object?

Advertising is Used to Address Social Problems

Using Advertising to Fight the War on Drugs

Role of Advertising in the Economy Making Consumers Aware of Products and Services Providing Consumers With Information to Use to Make Purchase Decisions Making Consumers Aware of Products and Services Encouraging Consumption and Fostering Economic Growth +

Economic Impact of Advertising Effects on Consumer Choice Differentiation Brand Loyalty Effects on Consumer Choice Differentiation Brand Loyalty Effects on product costs and prices Advertising as an expense that increases the cost of products Increased differentiation Effects on product costs and prices Advertising as an expense that increases the cost of products Increased differentiation Effects on Competition Barriers to entry Economies of scale Effects on Competition Barriers to entry Economies of scale Effects on Consumer Choice Differentiation Brand Loyalty Effects on Consumer Choice Differentiation Brand Loyalty Effects on Competition Barriers to entry Economies of scale Effects on Competition Barriers to entry Economies of scale