1. Regulatory, Ethical, and “Green” Issues in Marketing Communications3

2. When Is Regulation Justified?
Benefits
Consumer choice is improved
Product quality tends to improve
Reduced prices
Costs
Enforcement costs
Unintended side effects

3. 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

4. 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.”

5. Elements of Deception
Misleading
Reasonable consumer
Material

6. Misleading?
Misleading
Reasonable consumer
Material

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

8. Information Regulation
Corrective advertising
A firm that misleads consumers should
have to use future advertisements to
rectify any deceptive impressions it has
created in consumers’ minds

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

10. 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?

11. 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

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

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

14. Criticisms of Advertising
Advertising is untruthful and deceptive
Advertising is manipulative
Advertising is offensive and in bad taste
Advertising creates and perpetuates stereotypes
People buy things they do not really need
Advertising plays upon people’s fears and insecurities

15. Criticism of Advertising
An Appeal to
Insecurity

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

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

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

19. Green Advertising Green Advertising Promoting an Image of
Environmental
Responsibility

20. Green Advertising
Corporate
Responsibility

21. Green Advertising
Mercedes-Benz
Leo Burnett Company, Inc.

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

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

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

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

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

27. Cause-Oriented Programs

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

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

30. Appropriate Environmental Claims
Make specific claims
Reflect current disposal options
Make substantive claims
Make supportable claims