4 Objectives To Understand Advertising amp WellBeing Ethical Campaign Development Role of Government Agencies SelfRegulation Regulation of IBP Techniques Is Advertising Full of Double Standards ID: 215209
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Social, Ethical, & Regulatory Aspects of Advertising
4Slide2
ObjectivesTo Understand:Advertising & Well-Being
Ethical Campaign DevelopmentRole of Government Agencies
Self-RegulationRegulation of IBP TechniquesSlide3
Is Advertising Full of Double Standards?Slide4
Social Aspects of Advertising
Advertising Educates Consumers
Pro
: Advertising informs
Con
: Advertising is superficial
Advertising improves living standards
Pro
: Ads lower the costs of products
Con
: Ads are wasteful & help only someSlide5
Critics of advertising feel that advertising is superficial because many ads carry little actual product information. Do you think advertising is superficial?Slide6
Advertising Affects
Happiness & Well-Being
Con
: Ads create needs
Pro
: Ads address a wide variety of basic human needs
Con
: Ads promote materialism
Pro
: Ads reflect society’s prioritiesSlide7
Addresses Social Problems (and dogs too.)Slide8
Critics feel advertising promotes materialismSlide9
Advertising: Demeaning & deceitful, or liberating & artful?
Con
: Ads perpetuate stereotypes
Pro
: Advertisers are more sensitive now
Con
: Ads are often offensive
Pro
: Ads are a source of liberation
Con
: Ads deceive via subliminal stimulation
Pro
: Advertising is artSlide10
Do you think this ad perpetuates stereotypes?Slide11
Advertising has a
powerful effect on
mass media
Pro
: Ads foster a diverse & affordable mass media that provides information
Con
: Advertising affects & controls programming. “Advertainment” has made matters worseSlide12
Ethical Aspects of Advertising
Ethics are the moral standards against which behavior is judged. Key areas of debate regarding ethics & advertising are:
Truth in advertising
Advertising to children
Advertising controversial productsSlide13
Ethical Aspects of Advertising
Truth in Advertising
Deception
is making false or misleading statements, but
puffery (commercial exaggeration)
is legal.
Cannot legislate against emotional appealsSlide14
Ethical Aspects of Advertising
Advertising to Children—Issues
Advertising promotes superficiality & materialism in children
Children are inexperienced & easy prey
Persuasion to children creates child-parent conflicts
What does the literature say about kid’s abilities to process persuasive information?Slide15
Mommy, why is Ronald McDonald being arrested?Slide16
Ethical Aspects of Advertising
Advertising Controversial Products
Critics question “targeting” minorities
Tobacco, alcohol, gambling & lotteries are product categories of greatest concern
How does the concept of “primary demand” provide insights here?
What does the literature say about advertising’s impact on these product categories?Slide17
Controversies in Cigarette Advertising(they find ways around the laws).Slide18
Alcohol Advertising…to Cats?Slide19
Or by Frogs.Slide20
Regulatory Aspects of Advertising
Areas of advertising regulation
:
Deception & unfairness
Competitive issues
Vertical cooperative advertising
Comparison advertising
Monopoly power
Advertising to childrenSlide21
Key Regulatory Agents
Government Regulation
Federal Trade Commission (FTC)
Wide range of regulatory programs & remedies
Federal Communications Commission (FCC)
Food & Drug Administration (FDA)
U.S. Postal Service
Bureau of Alcohol, Tobacco, & FirearmsSlide22
Not Following Advertising Law Can Bring a Big Company DownSlide23
Key Regulatory Agents--FTC
FTC Programs & Remedies
Advertising Substantiation Program
Consent Order
Cease & Desist Order
Affirmative Disclosure
Corrective Advertising
Control of Celebrity EndorsementsSlide24
Key Regulatory Agents (
con’t
)
Industry Self-Regulation
National Advertising Review Board (NARB)
State & Local Better Business Bureaus
Ad Agencies & Associations
Media OrganizationsSlide25
Consumers as Regulators tooSlide26
Key Regulatory Agents (
con’t
)
Internet
Self-Regulation
No industry-wide trade association has emerged to date
Global Dialogue on Electronic Commerce (GBDe) is emerging as a governing body
Little progress has been made to address consumers’ complaintsSlide27
Key Regulatory Agents (
con’t
)
Consumers as Regulatory agents
Consumerism: Grass roots consumer movements
Consumers Organizations
Consumer Federation of America
Consumers Union
Consumer Alert
Commercial Alert
www.adbusters.comSlide28
Regulation of Other Promotional Tools
Direct Marketing & e-Commerce
Privacy, Contests, Telemarketing
Spam=10 million messages/minute worldwide
Sales Promotion
Premiums, Trade Allowances, Contests
Public Relations
Privacy, Copyright Infringement, Defamation (slander & libel)Slide29
Review/?sAdvertising & Well-Being
Ethical Campaign DevelopmentRole of Government Agencies
Self-RegulationRegulation of IBP Techniques
Mom JeansSlide30
EXAM 1Covers Content up to This Point.
Read & Review Class NotesProfessor Close