social, ethical, and regulatory aspects of advertising chapter 4

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Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

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Page 1: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Social, Ethical, and Regulatory Aspects of Advertising

Chapter 4

Page 2: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Ch 4: Ethics & Regulation 2

Social Aspects of Advertising

• Advertising Educates Consumers– Pro: Advertising informs– Con: Advertising is superficial

• Advertising improves living standards– Pro: Ads lower the costs of products– Con: Ads are wasteful and help only some

Page 3: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Critics of advertising feel that advertising is superficial because many ads carry little actual product information. Do you think advertising is superficial?

Critics of advertising feel that advertising is superficial because many ads carry little actual product information. Do you think advertising is superficial?

Page 4: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Advertising affects Happiness and Well-Being

Con: Ads create needs

Pro: Ads address a wide variety of needs

Con: Ads promote materialism

Pro: Ads reflect society’s priorities

Ch 4: Ethics & Regulation 4

Page 5: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Critics feel advertising promotes materialismCritics feel advertising promotes materialism

Page 6: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Advertising: Demeaning and deceitful, or liberating and artful?

Con: Ads perpetuate stereotypes

Pro: Advertisers are more sensitive now

Con: Ads are often offensive

Pro: Ads are a source of liberation

Con: Ads deceive via subliminal stimulation

Pro: Advertising is art

Ch 4: Ethics & Regulation 6

Page 7: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Do you think this ad perpetuates stereotypes?

Do you think this ad perpetuates stereotypes?

Page 8: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Advertising has a powerful effect on

mass media

Pro: Ads foster a diverse and affordable mass media

Con: Advertising affects and controls programming

Ch 4: Ethics & Regulation 8

Page 9: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

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

Ch 4: Ethics & Regulation 9

Page 10: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Regulatory Aspects of Advertising

Areas of advertising regulation:

• Deception and unfairness

• Competitive issues– Vertical cooperative advertising– Comparison advertising– Monopoly power

• Advertising to children

Ch 4: Ethics & Regulation 10

Page 11: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Key Regulatory Agents

Government Regulation

• Federal Trade Commission (FTC)– Wide range of regulatory programs and remedies

• Federal Communications Commission (FCC)

• Food and Drug Administration (FDA)

• U.S. Postal Service

• Bureau of Alcohol, Tobacco, and Firearms

Ch 4: Ethics & Regulation 11

Page 12: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Key Regulatory Agents (con’t)

Industry Self-Regulation• National Advertising Review Board (NARB)

• State and Local Better Business Bureaus

• Ad Agencies and Associations

• Media Organizations

Consumers as Regulatory agents• Consumerism: Grass roots consumer movements

• Consumers Organizations

Ch 4: Ethics & Regulation 12

Page 13: Social, Ethical, and Regulatory Aspects of Advertising Chapter 4

Regulation of Other Promotional Tools

• Direct Marketing and e-commerce– Privacy, Contests, Telemarketing

• Sales Promotion– Premiums, Trade Allowances, Contests

• Public Relations– Privacy, Copyright Infringement,

Defamation

Ch 4: Ethics & Regulation 13