Advertising Ethics

Socially Responsible Advertising

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

What is Advertising
• Advertising can be defined as any paid form of non personal communication about an organization, product, service or idea by an identified sponsor. • Advertising is a general phrase used for the announcements made by sellers to promote the sales of their products.

What is advertising
• The word 'paid' refers to the space or time for an advertising message. • It is also non-personal in the sense that there is no opportunity for feedback.

• The advertising message is transmitted to a large group of individuals.
• Advertising is a very important promotional tool for mass goods and services. • It also creates brand images. It promotes sales. • The nature and purpose of advertising differ from industry to industry and time to time

Advertising’s Societal Role
• Does advertising create a materialistic culture or does it simply reflect it? • Critics believe that advertising has the power to shape social trends and the way people think and act • Advertising professionals believe advertising mirrors values rather than sets them • Advertising can potentially shape and mirror values
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ROLE OF ADVERTISING IN MODERN BUSINESS WORLD
Advertising is primarily a means by which sellers communicate to prospective buyers.

What they communicate?

“The worth of their goods and services”

ROLE OF ADVERTISING IN MODERN BUSINESS WORLD

1. Economic function
2. Social function 3. Psychological function

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, 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
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.g. we buy TV, AC, Computers, Cars etc after getting interested in these products through advertising We have accepted new ideas such as microwave, electric shaving, detergents etc through advertising

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…..

Advertising brings about consumer welfare in two ways:
a. By improving standard of living b. By improving product quality

ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Psychological function

• Advertising is closely linked to consumer behavior, therefore,
• it affects personality of consumer, his concept of self, his attitudes, beliefs, opinions, his lifestyle etc • Advertising appeals to our physiological and psychological motives

Social aspects of advertising
Advertising as a part of firm’s marketing effort operates in the society. It has to therefore follow the social norms. Key areas of debate regarding society and advertising are:  Deception  Manipulation  Taste

Social aspects of advertising
Deception: it refers not only to the information content in advertising but may also arise from misplace emphasis in presentations.
“Advertising as a whole must not create a misleading impression although every statement, separately considered, may be literally truthful”

Social aspects of advertising
• Manipulation :- The freedom of choice of consumers is restricted by the power of advertising since it can manipulate buyers into making a decision against their will or interest.
• Manipulation is done through emotional appeals. These companies can utilize advanced and very scientific advertising techniques and thus make an impression on consumers.

Social aspects of advertising
Taste:- Sometimes ads are offensive, tasteless, irritating, boring and so on.
a) Sources of distaste

b) Sexual Appeals
c) Shock advertising

Social aspects of advertising
Some examples of the Advertisements with social aspects:Grow-more-trees advertisements Drink milk

Eat healthy food, eat eggs
Mother’s milk is best for the baby Say no to drugs every time Get your child vaccinations in times

Legal aspects of advertising
The government in each country has to make sure that advertisements appearing do not: show anti-national feelings
contain misleading information about the product Violate government rules

Legal aspects of advertising
• Some examples of the Advertisements with legal aspects:Get your car checked for pollution Do not Drink and Drive Weight, price, manufacturing date, date of expiry should be mentioned on the packing case

Ethical aspects of advertising
Ethics are the moral standards against which behavior is judged
Key areas of debate regarding ethics and advertising are: • Truth in advertising • Advertising to children • Advertising controversial products

Ethical aspects of advertising
• Truth in Advertising • Deception is making false or misleading statements. • Puffery (commercial exaggeration) • Cannot legislate against emotional appeals

Ethical aspects of advertising
Advertising to Children—Issues • Advertising promotes superficiality and materialism in children. • Children are inexperienced and easy prey. • Persuasion to children creates childparent conflicts. • What does the literature say about kid’s abilities to process persuasive information?

Ethical aspects of advertising
Advertising Controversial Products • Critics question the “targeting” of minorities. • Tobacco, alcohol, gambling and lotteries are product categories of greatest concern. • How does the concept of “primary demand” provide insights here?

Economic aspects of advertising
Making Consumers Aware of Products and Services

 Providing Consumers With Information to Use to Make Purchase Decisions

 Encouraging Consumption and Fostering Economic Growth

 Effects on Consumer Choice  Differentiation

Economic aspects of advertising

 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