Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Dove’s Campaign for Real Beauty © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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 Advertising and Promotion: Two Viewpoints © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Proponents argue that advertising and promotion: Critics argue that advertising and promotion Promotes competition in the marketplace Promotes competition in the marketplace

Not all issues can be regulated A marketing or promotion action may be legal but not considered ethical Marketers must make decisions regarding the appropriateness of their actions A marketing or promotion action may be legal but not considered ethical Not all issues can be regulated Ethics in Advertising and Promotion © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Ethics: Moral principles and values that govern the actions of and individual or group.

Many People Found Benetton’s “Death Row” Ad Campaign Offensive © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Miller Brewing Co. Promotes Responsible Drinking © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin *Click outside of the video screen to advance to the next slide

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 and Promotion as Untruthful or Deceptive © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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 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 Advertising as Offensive or in Bad Taste © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Use of shock ads

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Advertisers are using shock advertising to: A)test their First Amendment rights B)get their ads noticed in the midst of all the clutter that is found in the media C)make a statements against self- regulation D)test the ethics of the advertising industry E)act as advocacy ads for company management

Advertisers Such as GoDaddy.com Argue That Television Networks Have a Double Standard © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin *Click outside of the video screen to advance to the next slide

Advertising and Children © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Children's TV Watching Behavior Children between ages 2-11 watch on average 22 hours of TV per week and may see 40,000 commercials per year Approximately 80% of all advertising targeted to children falls in four product categories: Toys, cereals, candy & fast food restaurants Approximately 80% of all advertising targeted to children falls in four product categories: Toys, cereals, candy & fast food restaurants

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 Perspectives on Advertising to Children © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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:

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? Social and Cultural Consequences of Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Is advertising just a reflection of society? Is advertising just a reflection of society?

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 Advertising and Stereotyping © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Portrayal of the elderly Portrayal of the elderly Criticisms of Advertising With Regard to Stereotyping Criticisms of Advertising With Regard to Stereotyping

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? What is your opinion of this ad? © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Dove Challenges the Stereotypical Perspective of Beauty © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Groups such as the National Organization for Women (NOW) are critical of advertising that: A)portrays women in traditional sexist roles B)contributes to the problem of violence against women C)is insulting to women D)stereotypes women E)does any of the above

Advertising is Used to Address Social Problems © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin *Click outside of the video screen to advance to the next slide

Using Advertising to Fight the War on Drugs © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin *Click outside of the video screen to advance to the next slide

Advertising is the primary source of revenue for newspapers, magazines, and television and radio networks and stations Advertisers may exert control over the media by biasing editorial content, limiting coverage of certain issues or influencing program content The media’s dependence on advertising for revenue makes them vulnerable to control by advertisers Advertising is the primary source of revenue for newspapers, magazines, and television and radio networks and stations The media’s dependence on advertising for revenue makes them vulnerable to control by advertisers Do Advertisers Control the Media? © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

They must report the news fairly and accurately to retain public confidence Advertisers need the media more than the media need any one advertiser They must report the news fairly and accurately to retain public confidence Do Advertisers Control the Media? © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The media maintain separation between news and business departments “The Wall”

The U.S. Government Uses Advertising To Discourage Drug Use © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Making consumers aware of products and services Providing consumers with information to use to make purchase decisions Making consumers aware of products and services Role of Advertising in the Economy © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Encouraging consumption and fostering economic growth

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 Economic Impact of Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin From an economic perspective, advertising might lower the cost of a product by: A)creating barriers to entry for less efficient firms B)moving consumers to the consumer socialization stage of the buying process C)making it possible for firms to realize economies of scale through expansion of sales volume D)allowing firms to advertise at high levels along with competitors E)doing none of the above.

Two Schools of Thought on Advertising’s Role in the Economy © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Economic Value of Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin *Click outside of the video screen to advance to the next slide

Do You Agree With Leo Burnett? © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin “It must be said that without advertising we would have a far different nation, and one that would be much the poorer-not merely in material commodities, but in the life of the spirit.” These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agencies’ 50th anniversary, April 20,1967