ETIKA

PERIKLANAN
Advertising and Promotion Viewpoints

Provides information

Encourages higher standard of living

Proponent
arguments Promotes competition

Helps new firms enter a market

Creates jobs

More propaganda than information

Critic Creates consumer needs, wants

arguments
Promotes materialism, insecurity,
and greed
 Ethics in Advertising and Promotion

Ethics: Moral principles and values that

govern the actions and decisions of an
individual or group.

A marketing or Marketers must

Not all issues can promotion action decide the
be regulated may be legal but appropriateness
not ethical of their actions
Promoting Responsible Drinking
Benetton’s “Death Row” Ad Offensive
Advertising and Untruthful or Deceptive

General mistrust of advertising

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

Internet scams and abuses

 Advertising and Children

Children's TV
Watching Behavior

Children ages 2-11 80% of all advertising

watch an average of targeted to children
22 hours of TV per falls in four
week and see 30,000 product categories:
commercials per year
Toys, cereal, candy &
fast food restaurants
 Perspectives on Ads for Children

Advocates Argue That Children:

Lack the knowledge and Cannot differentiate

skills to evaluate between programs and
advertising claims commercials

Marketers Argue Children:

Must acquire skills

Must learn
needed to function in
through socialization
the marketplace
Social and Cultural Consequences

Does advertising
encourage materialism?

Does advertising make

people buy things
they don’t need?

Is advertising just
a reflection of society?
Does advertising affect Society?
 Advertising and Stereotyping

Portrayal of women to
reflect their changing role
in society

Criticisms of Portrayal of
Gender
women as
stereotyping Advertising sex objects
With Regard to
Stereotyping

Ethnic
Sexual
stereotyping/
orientation
representation
What is your opinion of this ad?

Is this woman portrayed

as a sex object?

Does this ad contain

cues that are sexually
suggestive?

Does this ad present an

image of sexual
submissiveness?
Do Advertisers Control the Media?

Advertising is the primary

source of revenue for
newspapers, magazines,
television and radio

Media’s dependence on
advertising for revenue makes
them vulnerable to control by
advertisers

Advertisers may exert control

over the media by biasing
editorial content, limiting
coverage of certain issues, or
influencing program content
Do Advertisers Control the Media?

They must report the news

fairly and accurately to retain
public confidence

Advertisers need the media

more than the media need
any one advertiser

Media maintain separation

between news and business
departments “The Wall”
Role of Advertising in the Economy

Makes consumers aware

of products and services

Provides consumers with

information to use to
make purchase decisions

Encourages consumption,
fosters economic growth
Economic Impact of Advertising

Effects on Consumer Choice

• Differentiation
• Brand Loyalty

Effects on Competition
• Barriers to entry
• Economies of scale

Effects on Product Costs and Prices

• Advertising as an expense that
increases the cost of products
• Increased differentiation
 Summarizing Economic Effects

Change consumers’ tastes

Advertising
Equals Lowers sensitivity to price
Market
Power Builds brand loyalty

Results in higher profits

Reduces competition

Leads to higher prices

Leads to fewer choices

 Summarizing Economic Effects

Provides useful information

Advertising
Equals Increases price sensitivity
Information
Increases competition

Pressure for high quality

Pressure for lower prices

Forces inefficient firms out