Regulatory, Ethical, and “Green” Issues in Marketing Communications 20

Regulation of Marketing Communications Federal Trade Commission (FTC) The U.S. government agency that has primary responsibility for regulating matters such as deceptive and unfair business practices and advertising

Regulation of Deceptive Advertising FTC will find a business practice deceptive “if there is a representation, omission or practice that is likely to mislead the consumer acting reasonably in the circumstances, to the consumer’s detriment.”

Elements of Deception Misleading Reasonable consumer Material

Misleading? Misleading Reasonable consumer Material

Federal Regulation Regulation of deceptive advertising Regulation of unfair practices Information regulation Regulation of product labeling (FDA) Regulation of prescription drug ads (FDA)

Information Regulation Corrective advertising

Information Regulation Corrective advertising Which firm in 1975 was ordered to spend $10 Mill to correct a misleading campaign?

Information Regulation Current Events Which firm in 2005 was ordered by U.S. District Court to halt and remove a misleading claim? What was the claim?

Ethical issues in marketing Communications Ethics in our context involves matters of right and wrong, or moral conduct pertaining to any aspect of marketing communications

Enhancing Ethical Behavior Two core values Treat customers with respect, concern, and honesty Treat the environment as though it were your own property

Ethical issues in marketing Communications See text for ethical issues in: Targeting Advertising Public relations Packaging communications Sales promotions Online marketing communications

Criticisms of Advertising

Criticism of Advertising An Appeal to Insecurity

Enhancing Ethical Behavior Act in a way that you would want others to act toward you The Golden Rule The Professional Ethics The TV test Take only actions that would be viewed as proper by an objective panel of your professional colleagues “Would l feel comfortable explaining this action on television to the general public?”

Response to Environmental Problems Cause-Oriented Programs Packaging response Green advertising Point-of-Purchase Seal-of-Approval programs

Green Advertising Relationship between product and environment Promote a green lifestyle Corporate responsibility

Green Advertising Promoting an Image of Environmental Responsibility

Green Advertising Corporate Responsibility

Green Advertising Mercedes-Benz Leo Burnett Company, Inc.

Response to Environmental Problems Cause-Oriented Programs Packaging response Green advertising Point-of-Purchase Seal-of-Approval programs

Package Response Recyclable bottles Polystyrene to paperboard Plastic to cardboard Smaller packages

Response to Environmental Problems Cause-Oriented Programs Packaging response Green advertising Point-of-Purchase Seal-of-Approval programs

Seal-of-Approval Programs Designed to assist consumers in identifying environmentally friendly products and brands Green Seal of Approval “Chasing arrows logo”

Response to Environmental Problems Cause-Oriented Programs Packaging response Green advertising Point-of-Purchase Seal-of-Approval programs

Cause-Oriented Programs Cause-Oriented programs

Response to Environmental Problems Cause-Oriented Programs Packaging response Green advertising Point-of-Purchase Seal-of-Approval programs

Point-of-Purchase Programs Use the point-of-purchase as a vehicle for promoting a brand’s environmental virtues

Guidelines for Green Marketing Qualifications and disclosures should be sufficiently clear and prominent to prevent deception Claims should make clear whether they apply to the product, the package, or a component of either Claims should not overstate an environmental attribute or benefit, either expressly or by implication Comparative claims should be presented in a manner that makes the basis for the comparison sufficiently clear to avoid consumer deception

Appropriate Environmental Claims