regulatory, ethical, and “green” issues in marketing communications 3
TRANSCRIPT
Regulatory, Ethical, and “Green” Issues in Marketing Communications
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When Is Regulation Justified?When Is Regulation Justified?
Benefits
1. Consumer choice is improved
2. Product quality tends to improve
3. Reduced prices
Costs
1. Enforcement costs
2. Unintended side effects
Regulation of Marketing Regulation of Marketing CommunicationsCommunications
Federal Trade Commission (FTC)
The U.S. government agency that has primary responsibility for regulating matters such as deceptive and unfair business practices and advertising
Regulation of Deceptive AdvertisingRegulation of Deceptive Advertising
When will the FTC find a business practice deceptive?
Elements of DeceptionElements of Deception
• Misleading
• Reasonable
consumer
• Material
Misleading?Misleading?
• Misleading
• Reasonable
consumer
• Material
Federal RegulationFederal Regulation
• Regulation of deceptive advertising• Regulation of unfair practices• Information regulation• Regulation of product labeling (FDA)• Regulation of prescription drug ads
(FDA)
Information RegulationInformation Regulation
Corrective advertising
Information RegulationInformation Regulation
Corrective advertising
Which firm in 1975 was ordered to spend $10 Mill to correct a misleading campaign?
Information RegulationInformation Regulation
Current Events
Which firm in 2005 was ordered by U.S. District Court to halt and remove a misleading claim?
What was the claim?
Ethical issues in marketing Ethical issues in marketing CommunicationsCommunications
Ethics in our context involves matters
of right and wrong, or moral conduct
pertaining to any aspect of marketing
communications
Enhancing Ethical BehaviorEnhancing Ethical Behavior
Two core values
Ethical issues in marketing Ethical issues in marketing CommunicationsCommunications
See text for ethical issues in:
• Targeting
• Advertising
• Public relations
• Packaging communications
• Sales promotions
• Online marketing communications
Criticisms of AdvertisingCriticisms of Advertising
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Criticism of AdvertisingCriticism of Advertising
An Appeal to
Insecurity
Enhancing Ethical BehaviorEnhancing Ethical Behavior
Act in a way that you would want
others to act toward you
The Golden Rule
The Professional
Ethics
The TV test
Take only actions that would be
viewed as proper by an objective
panel of your professional
colleagues
“Would l feel comfortable
explaining this action on
television to the general public?”
Response to Response to Environmental ProblemsEnvironmental Problems
Cause-Oriented Programs
Packaging response
Green advertising
Point-of-Purchase
Seal-of-Approval programs
Green AdvertisingGreen Advertising
• Relationship between product and environment
• Promote a green lifestyle
• Corporate responsibility
Green AdvertisingGreen Advertising
Green Advertising
Promoting an
Image of
Environmental
Responsibility
Green AdvertisingGreen Advertising
Corporate
Responsibility
Green AdvertisingGreen Advertising
Mercedes-Benz
Leo Burnett Company, Inc.
Response to Response to Environmental ProblemsEnvironmental Problems
Cause-Oriented Programs
Packaging response
Green advertising
Point-of-Purchase
Seal-of-Approval programs
Package ResponsePackage Response
• Recyclable bottles
• Polystyrene to paperboard
• Plastic to cardboard
• Smaller packages
Response to Response to Environmental ProblemsEnvironmental Problems
Cause-Oriented Programs
Packaging response
Green advertising
Point-of-Purchase
Seal-of-Approval programs
Seal-of-Approval ProgramsSeal-of-Approval Programs
• Designed to assist consumers in identifying environmentally friendly products and brands
• Green Seal of Approval
• “Chasing arrows logo”
Response to Response to Environmental ProblemsEnvironmental Problems
Cause-Oriented Programs
Packaging response
Green advertising
Point-of-Purchase
Seal-of-Approval programs
Cause-Oriented ProgramsCause-Oriented Programs
Cause-Oriented
programs
Response to Response to Environmental ProblemsEnvironmental Problems
Cause-Oriented Programs
Packaging response
Green advertising
Point-of-Purchase
Seal-of-Approval programs
Point-of-Purchase ProgramsPoint-of-Purchase Programs
Use the point-of-purchase as a
vehicle for promoting a brand’s
environmental virtues
Appropriate Environmental ClaimsAppropriate Environmental Claims
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