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Advertising and Promotion: Two Viewpoints
Proponents Argue That Proponents Argue That Advertising and Promotion: Advertising and Promotion: Provides Provides Information Information Encourages Encourages A Higher Standard A Higher Standard Of Living Of Living Promotes Promotes Competition in Competition in The Marketplace The Marketplace Critics Argue That Advertising and Critics Argue That Advertising and Promotion Promotion Creates Needs and Creates Needs and Wants Among Wants Among Consumers Consumers Is More Is More Propaganda Propaganda Than Information Than Information Promotes Promotes Materialism, Materialism, Insecurity and Insecurity and Greed Greed Creates Jobs and Creates Jobs and Helps New Firms Helps New Firms Enter a Market Enter a Market
Ethics in Advertising and Promotion
Ethics: Moral principles and values that Ethics: Moral principles and values that govern the actions of and individual or group. govern the actions of and individual or group.
A Marketing or A Marketing or Promotion Action Promotion Action May Be Legal but May Be Legal but Not Considered Not Considered Ethical Ethical Marketers Must Marketers Must Make Decisions Make Decisions Regarding the Regarding the Appropriateness Appropriateness of Their Actions of Their Actions
Not All Issues Not All Issues Can Be Can Be Regulated Regulated
Advertising and Promotion as Untruthful or Deceptive
General Mistrust of Advertising and General Mistrust of Advertising and Among Consumers. Many Do Not Among Consumers. Many Do Not Perceive Ads As Honest or Believable Perceive Ads As Honest or Believable Abuses Involving Sales Promotions Abuses Involving Sales Promotions Abuses Involving Sales Promotions Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Such As Contests, Sweepstakes, Such As Contests, Premium Offers Such As Contests, Offers Premium Premium Offers Premium Offers Unethical And/or Deceptive Practices Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing Involving Mail Order, Telemarketing and Other Forms of Direct Marketing and Other Forms of Direct Marketing Internet Scams and Abuses Internet Scams and Abuses
Advertising and Children
Children's TV Children's TV Watching Behavior Watching Behavior
Children between ages Children between ages 2-11 watch on average 2-11 watch on average 21.5 hours of TV per 21.5 hours of TV per week and may see week and may see 22,000 commercials 22,000 commercials per year per year
Television is an Television is an important source of important source of information for information for children about products children about products
Perspectives on Advertising to Children
Consumer Advocates Argue That Consumer Advocates Argue That Children Are Vulnerable to Children Are Vulnerable to Advertising Because: Advertising Because: They Lack the They Lack the Knowledge and Knowledge and Skills to Critically Skills to Critically Evaluate Evaluate Advertising Claims Advertising Claims They Cannot They Cannot Differentiate Differentiate Between Programs Between Programs and Commercials and Commercials
While Marketers Argue That: While Marketers Argue That: Children Must Learn Children Must Learn Through the Through the Socialization Socialization Process Process Need to Acquire Need to Acquire Skills Needed Skills Needed To Function in the To Function in the Marketplace Marketplace
Social and Cultural Consequences of Advertising
Does Advertising Make Does Advertising Make People Buy Things People Buy Things They Don’t Need? They Don’t Need? Does Advertising Does Advertising Encourage Materialism? Encourage Materialism? Is Advertising Just Is Advertising Just A Reflection of Society? A Reflection of Society?
Advertising and Stereotyping
Portrayal of Women to Portrayal of Women to Reflect Their Changing Reflect Their Changing Role in Society Role in Society
Gender Gender Stereotyping Stereotyping
Criticisms of Criticisms of Advertising Advertising With Regard to With Regard to Stereotyping Stereotyping
Portrayal of Portrayal of Women As Women As Sex Objects an Objects Sex Objects an Objects
Portrayal of Portrayal of The Elderly The Elderly
Ethnic Ethnic Stereotyping/ Stereotyping/ Representation Representation of Minorities of Minorities
Do Advertisers Control the Media?
Advertising Is the Primary Source Advertising Is the Primary Source of Revenue for Newspapers, of Revenue for Newspapers, Magazines, and Television and Magazines, and Television and Radio Networks and Stations Radio Networks and Stations The Media’s Dependence on The Media’s Dependence on Advertising For Revenue Makes Advertising For Revenue Makes Them Vulnerable To Control by Them Vulnerable To Control by Advertisers Advertisers Advertisers May Exert Control Advertisers May Exert Control Over The Media by Biasing Over The Media by Biasing Editorial Content, Limiting Editorial Content, Limiting Coverage of Certain Issues or Coverage of Certain Issues or Influencing Program Content Influencing Program Content
Do Advertisers Control the media?
They Must Report the News They Must Report the News Fairly and Accurately to Retain Fairly and Accurately to Retain Public Confidence Public Confidence Advertisers Need the Media Advertisers Need the Media More Than the Media Need Any More Than the Media Need Any One Advertiser One Advertiser The Media Maintain Separation The Media Maintain Separation Between News and Business Between News and Business Departments “The Wall” Departments “The Wall”
Role of Advertising in the Economy
Making Consumers Aware of Making Consumers Aware of Products and Services Products and Services Providing Consumers With Providing Consumers With Information to Use to Make Information to Use to Make Purchase Decisions Purchase Decisions
Encouraging Consumption Encouraging Consumption and Fostering Economic and Fostering Economic Growth Growth
Economic Impact of Advertising
Effects on Consumer Choice Effects on Consumer Choice • Differentiation • Differentiation • Brand Loyalty • Brand Loyalty Effects on Competition Effects on Competition • Barriers to entry • Barriers to entry • Economies of scale • Economies of scale Effects on product costs and prices Effects on product costs and prices • Advertising as an expense that • Advertising as an expense that increases the cost of products increases the cost of products • Increased differentiation • Increased differentiation
Advertising Helps New Competitors Enter the Market
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Do You Agree With Leo Burnett?
“It must be said that without advertising we would have a far different nation, and one that would be much the poorer-not merely in material commodities, but in the life of the spirit.”
These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agencies’ 50th anniversary, April 20,1967