Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Dove¶s Campaign for Real Beauty

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advertising and Promotion: Two Viewpoints Proponents argue that advertising and promotion: Provides information Encourages a higher standard of living Promotes competition in the marketplace Critics argue that advertising and promotion Creates needs and wants among consumers Is more propaganda than information © 2007 McGraw-Hill Companies.. McGraw-Hill/Irwin Creates jobs and helps new firms enter a market Promotes materialism. Inc. insecurity and greed .

Ethics in Advertising and Promotion Ethics: Moral principles and values that govern the actions of and individual or group.. Inc. Not all issues can be regulated A marketing or promotion action may be legal but not considered ethical Marketers must make decisions regarding the appropriateness of their actions © 2007 McGraw-Hill Companies. McGraw-Hill/Irwin .

Inc.. McGraw-Hill/Irwin .Many People Found Benetton¶s ³Death Row´ Ad Campaign Offensive © 2007 McGraw-Hill Companies.

. Inc. Many do not perceive ads as honest or believable Abuses involving sales promotions such as contests. telemarketing and other forms of direct marketing Internet scams and abuses © 2007 McGraw-Hill Companies.Advertising and Promotion as Untruthful or Deceptive General mistrust of advertising and among consumers. McGraw-Hill/Irwin . sweepstakes. premium offers Unethical and/or deceptive practices involving mail order.

Inc..Advertising as Offensive or in Bad Taste Objections to advertising of certain products Use of sexual appeals and/or nudity Use of shock ads © 2007 McGraw-Hill Companies. McGraw-Hill/Irwin .

Inc. McGraw-Hill/Irwin .Test Your Knowledge Advertisers are using shock advertising to: A) test their First Amendment rights B) get their ads noticed in the midst of all the clutter that is found in the media C) make a statements against selfregulation D) test the ethics of the advertising industry E) act as advocacy ads for company management © 2007 McGraw-Hill Companies..

Advertising and Children Children's TV Watching Behavior Children between ages 2-11 watch on average 22 hours of TV per week and may see 40.000 commercials per year Approximately 80% of all advertising targeted to children falls in four product categories: Toys.. McGraw-Hill/Irwin . cereals. Inc. candy & fast food restaurants © 2007 McGraw-Hill Companies.

Inc. McGraw-Hill/Irwin Need to acquire skills needed to function in the marketplace .Perspectives on Advertising to Children Consumer Advocates Argue That Children Are Vulnerable to Advertising Because: They lack the knowledge and skills to critically evaluate advertising claims They cannot differentiate between programs and commercials While Marketers Argue That: Children must learn through the socialization process © 2007 McGraw-Hill Companies..

Social and Cultural Consequences of Advertising Does advertising make people buy things they don¶t need? Does advertising encourage materialism? Is advertising just a reflection of society? © 2007 McGraw-Hill Companies. Inc.. McGraw-Hill/Irwin .

. McGraw-Hill/Irwin .Advertising and Stereotyping Portrayal of women to reflect their changing role in society Gender stereotyping Criticisms of Advertising With Regard to Stereotyping Portrayal of women as sex objects Portrayal of the elderly Ethnic stereotyping/ representation of minorities © 2007 McGraw-Hill Companies. Inc.

. Inc. McGraw-Hill/Irwin .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? © 2007 McGraw-Hill Companies.

Dove Challenges the Stereotypical Perspective of Beauty © 2007 McGraw-Hill Companies. Inc. McGraw-Hill/Irwin ..

Inc.Test Your Knowledge Groups such as the National Organization for Women (NOW) are critical of advertising that: A) portrays women in traditional sexist roles B) contributes to the problem of violence against women C) is insulting to women D) stereotypes women E) does any of the above © 2007 McGraw-Hill Companies. McGraw-Hill/Irwin ..

magazines. and television and radio networks and stations The 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.. Inc. McGraw-Hill/Irwin . limiting coverage of certain issues or influencing program content © 2007 McGraw-Hill Companies.Do Advertisers Control the Media? Advertising is the primary source of revenue for newspapers.

.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 The media maintain separation between news and business departments ³The Wall´ © 2007 McGraw-Hill Companies. Inc. McGraw-Hill/Irwin .

McGraw-Hill/Irwin . Government Uses Advertising To Discourage Drug Use © 2007 McGraw-Hill Companies.S.. Inc.The U.

McGraw-Hill/Irwin .Role of Advertising in the Economy Making consumers aware of products and services Providing consumers with information to use to make purchase decisions Encouraging consumption and fostering economic growth © 2007 McGraw-Hill Companies.. Inc.

Inc.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 © 2007 McGraw-Hill Companies.. McGraw-Hill/Irwin .

McGraw-Hill/Irwin . advertising might lower the cost of a product by: A) creating barriers to entry for less efficient firms B) moving consumers to the consumer socialization stage of the buying process C) making it possible for firms to realize economies of scale through expansion of sales volume D) allowing firms to advertise at high levels along with competitors E) doing none of the above.Test Your Knowledge From an economic perspective.. © 2007 McGraw-Hill Companies. Inc.

Inc. McGraw-Hill/Irwin .Two Schools of Thought on Advertising¶s Role in the Economy © 2007 McGraw-Hill Companies..

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.. Inc.Do You Agree With Leo Burnett? ³It 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.1967 © 2007 McGraw-Hill Companies. McGraw-Hill/Irwin .

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