Ethical Issues in Advertising

these controversies are concerned about the impact of advertising on economy. but • there are also number of controversies associated with advertising • Generally.INTRODUCTION • There is no doubt that advertising attracts all of us in number of ways. society and ethics .

What they communicate? “The worth of their goods and services” Contd… .ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Advertising is primarily a means by which sellers communicate to prospective buyers.

Economic function 2.ROLE OF ADVERTISING IN MODERN BUSINESS WORLD 1. Social function 3. Psychological function .

advertising performs an economic function by being an art of persuasion Advertising is also an economic process—it helps the product to become known and it facilitates exchange between those who need the product and those who can satisfy the need Provides employment opportunities (in advertising industry) • .ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Economic function • • • • • Advertising communicates the message in persuasive language It create wide markets as the information is delivered to people far and wide It inclines people favorably to the products and affect our attitudes Therefore.

we buy TV.ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Social function • • • • Advertising affects the core cultural values and subsidiary cultural values Advertising is a mirror to the society in which it operates…it reflects the cultural values of that society Advertising can also transfer some cultural values of one society to other Advertising has improved our standard of living e. Cars etc after getting interested in these products through advertising We have accepted new ideas such as microwave. electric shaving. Computers.g. AC. detergents etc through advertising .

. b. By improving standard of living By improving product quality . Advertising brings about consumer welfare in two ways: a.ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Social function • Advertising protects the consumer by educating them and by forcing the manufacturers to maintain quality and to be fair Therefore….

opinions.ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Psychological function • Advertising is closely linked to consumer behavior. beliefs. his concept of self. therefore. • it affects personality of consumer. his attitudes. his life-style etc • Advertising appeals to our physiological and psychological motives .

g. Coke.ADVERTISING AND SOCIETY • Advertisements are not just the sellers • They reflect the society • Whatever is used in society is reflected in advertising e. Denim Jeans etc) . daughter’s marriage) o Indian society is people-oriented. o Indian society is highly family oriented (example ads: savings for children. we Indians can postpone our own gratification o We are also fun loving (example ads: Lux. and not self-oriented o For the sake of our family and others.

it must honor the norms of social behavior.ETHICS IN ADVERTISING • Should not mislead the consumer • What it promises must be there in the performance of products • Ad should not be indecent and obscene • As advertising is also a social process. and should not offend our moral sense • ASCI (Advertising Standards Council of India) regulates the advertising in India  has the set guidelines .

ASCI GUIDELINES • To ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading advertising. To ensure that advertisements observe fairness in competition so that consumers need to be informed on choices in the market place and the canons of generally accepted competitive behavior in business are both served. • • • . To ensure that advertisements are not offensive to generally accepted standards of public decency. To safeguard against indiscriminate use of advertising for promotion of products which are regarded as hazardous to society or to individuals to a degree or of a type which is unacceptable to society in large.

gambling. alcohol. Some of the common examples of ethical issues in advertising are give below: • Vulgarity/Obscenity used to gain consumers’ attention • • • Misleading information and deception Puffery Stereotypes • • Racial issues Controversial products (e.ETHICAL ISSUES IN ADVERTISING Advertising is a highly visible business activity and any lapse in ethical standards can often be risky for the company.g. tobacco etc) .

Thank You! .

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