social, ethical, and regulatory aspects of advertising chapter 4
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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
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?
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
Critics feel advertising promotes materialismCritics feel advertising promotes materialism
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
Do you think this ad perpetuates stereotypes?
Do you think this ad perpetuates stereotypes?
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
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
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
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
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
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