social ,ethical & economic aspects of advertising
TRANSCRIPT
Evaluating the Social, Evaluating the Social, Ethical, and Ethical, and Economic Aspects of Economic Aspects of Advertising and Advertising and PromotionPromotion
Evaluating the Social, Evaluating the Social, Ethical, and Ethical, and Economic Aspects of Economic Aspects of Advertising and Advertising and PromotionPromotion
Creates Needs andWants Among
Consumers
Creates Needs andWants Among
Consumers
Promotes Materialism,
Insecurity and Greed
Promotes Materialism,
Insecurity and Greed
Is More PropagandaThan Information
Is More PropagandaThan Information
ProvidesInformationProvides
InformationCreates Jobs and Helps New Firms Enter a Market
Creates Jobs and Helps New Firms Enter a Market
EncouragesA Higher Standard
Of Living
EncouragesA Higher Standard
Of Living
PromotesCompetition in
The Marketplace
PromotesCompetition in
The Marketplace
Is More PropagandaThan Information
Is More PropagandaThan Information
Creates Needs andWants Among
Consumers
Creates Needs andWants Among
Consumers
Creates Jobs and Helps New Firms Enter a Market
Creates Jobs and Helps New Firms Enter a Market
EncouragesA Higher Standard
Of Living
EncouragesA Higher Standard
Of LivingProvides
InformationProvides
Information
Advertising and Promotion: Two Advertising and Promotion: Two ViewpointsViewpoints
Proponents Argue That Advertising and Promotion:
Proponents Argue That Advertising and Promotion:
Critics Argue That Advertising and Promotion
Critics Argue That Advertising and Promotion
PromotesCompetition in
The Marketplace
PromotesCompetition in
The Marketplace
Not All Issues Can Be
Regulated
Not All Issues Can Be
Regulated
A Marketing or Promotion Action May Be Legal but Not Considered
Ethical
A Marketing or Promotion Action May Be Legal but Not Considered
Ethical
Marketers Must Make Decisions Regarding the
Appropriateness of Their Actions
Marketers Must Make Decisions Regarding the
Appropriateness of Their Actions
A Marketing or Promotion Action May Be Legal but Not Considered
Ethical
A Marketing or Promotion Action May Be Legal but Not Considered
Ethical
Not All Issues Can Be
Regulated
Not All Issues Can Be
Regulated
Ethics in Advertising and PromotionEthics in Advertising and Promotion
Ethics: Moral principles and values that govern the actions of and individual or group.Ethics: Moral principles and values that govern the actions of and individual or group.
General Mistrust of Advertising and Among Consumers. Many Do Not
Perceive Ads As Honest or Believable
General Mistrust of Advertising and Among Consumers. Many Do Not
Perceive Ads As Honest or Believable
General Mistrust of Advertising and Among Consumers. Many Do Not
Perceive Ads As Honest or Believable
General Mistrust of Advertising and Among Consumers. Many Do Not
Perceive Ads As Honest or Believable
Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium
Offers
Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium
Offers
Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and
Other Forms of Direct Marketing
Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and
Other Forms of Direct Marketing
Internet Scams and AbusesInternet Scams and Abuses
Abuses Involving Sales Promotions Such As Contests, Premium Offers
Abuses Involving Sales Promotions Such As Contests, Premium Offers
Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and
Other Forms of Direct Marketing
Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and
Other Forms of Direct Marketing
Advertising and Promotion as Advertising and Promotion as Untruthful or DeceptiveUntruthful or Deceptive
Advertising and ChildrenAdvertising and Children
Children's TV Watching Behavior
Children's TV Watching Behavior
Children between ages 2-11 watch on average 21.5 hours of TV per week and may see 22,000 commercials per year
Children between ages 2-11 watch on average 21.5 hours of TV per week and may see 22,000 commercials per year
Television is an important source of information for children about products
Television is an important source of information for children about products
They Lack the Knowledge and
Skills to Critically Evaluate
Advertising Claims
They Lack the Knowledge and
Skills to Critically Evaluate
Advertising Claims
They Cannot Differentiate
Between Programs and Commercials
They Cannot Differentiate
Between Programs and Commercials
Children Must LearnThrough the Socialization
Process
Children Must LearnThrough the Socialization
Process
Children Must LearnThrough the Socialization
Process
Children Must LearnThrough the Socialization
Process
They Cannot Differentiate
Between Programs and Commercials
They Cannot Differentiate
Between Programs and Commercials
They Lack the Knowledge and
Skills to Critically Evaluate
Advertising Claims
They Lack the Knowledge and
Skills to Critically Evaluate
Advertising Claims
Perspectives on Advertising to Perspectives on Advertising to ChildrenChildren
Need to Acquire Skills Needed
To Function in the Marketplace
Need to Acquire Skills Needed
To Function in the Marketplace
Consumer Advocates Argue That Children Are Vulnerable to
Advertising Because:
Consumer Advocates Argue That Children Are Vulnerable to
Advertising Because:
While Marketers Argue That:While Marketers Argue That:
Does Advertising Make People Buy ThingsThey Don’t Need?
Does Advertising Make People Buy ThingsThey Don’t Need?
Does Advertising Encourage Materialism?
Does Advertising Encourage Materialism?
Does Advertising Encourage Materialism?
Does Advertising Encourage Materialism?
Does Advertising Make People Buy ThingsThey Don’t Need?
Does Advertising Make People Buy ThingsThey Don’t Need?
Social and Cultural Social and Cultural Consequences of AdvertisingConsequences of Advertising
Is Advertising JustA Reflection of Society?
Is Advertising JustA Reflection of Society?
Portrayal of Women to Reflect Their Changing
Role in Society
Portrayal of Women to Reflect Their Changing
Role in Society
Portrayal ofWomen AsSex Objects
Portrayal ofWomen AsSex Objects
Ethnic Stereotyping/
Representation of Minorities
Ethnic Stereotyping/
Representation of Minorities
Ethnic Stereotyping/
Representation of Minorities
Ethnic Stereotyping/
Representation of Minorities
Portrayal ofWomen Asan Objects
Portrayal ofWomen Asan Objects
Gender Stereotyping
Gender Stereotyping
Gender Stereotyping
Gender Stereotyping
Portrayal of Women to Reflect Their Changing
Role in Society
Portrayal of Women to Reflect Their Changing
Role in Society
Advertising and StereotypingAdvertising and Stereotyping
Portrayal ofThe ElderlyPortrayal ofThe Elderly
Criticisms of Advertising
With Regard to Stereotyping
Criticisms of Advertising
With Regard to Stereotyping
Advertising Is the Primary Source of Revenue for Newspapers,
Magazines, and Television and Radio Networks and Stations
Advertising Is the Primary Source of Revenue for Newspapers,
Magazines, and Television and Radio Networks and Stations
Advertisers May Exert Control Over The Media by Biasing Editorial Content, Limiting
Coverage of Certain Issues or Influencing Program Content
Advertisers May Exert Control Over The Media by Biasing Editorial Content, Limiting
Coverage of Certain Issues or Influencing Program Content
The Media’s Dependence on Advertising For Revenue Makes Them Vulnerable To Control by
Advertisers
The Media’s Dependence on Advertising For Revenue Makes Them Vulnerable To Control by
Advertisers
Advertising Is the Primary Source of Revenue for Newspapers,
Magazines, and Television and Radio Networks and Stations
Advertising Is the Primary Source of Revenue for Newspapers,
Magazines, and Television and Radio Networks and Stations
The Media’s Dependence on Advertising For Revenue Makes Them Vulnerable To Control by
Advertisers
The Media’s Dependence on Advertising For Revenue Makes Them Vulnerable To Control by
Advertisers
Do Advertisers Control the Media?Do Advertisers Control the Media?
They Must Report the News Fairly and Accurately to Retain
Public Confidence
They Must Report the News Fairly and Accurately to Retain
Public Confidence
Advertisers Need the Media More Than the Media Need Any
One Advertiser
Advertisers Need the Media More Than the Media Need Any
One Advertiser
Advertisers Need the Media More Than the Media Need Any
One Advertiser
Advertisers Need the Media More Than the Media Need Any
One Advertiser
They Must Report the News Fairly and Accurately to Retain
Public Confidence
They Must Report the News Fairly and Accurately to Retain
Public Confidence
Do Advertisers Control the media?Do Advertisers Control the media?
The Media Maintain Separation Between News and Business
Departments “The Wall”
The Media Maintain Separation Between News and Business
Departments “The Wall”
Making Consumers Aware of Products and Services
Making Consumers Aware of Products and Services
Providing Consumers With Information to Use to Make
Purchase Decisions
Providing Consumers With Information to Use to Make
Purchase Decisions
Providing Consumers With Information to Use to Make
Purchase Decisions
Providing Consumers With Information to Use to Make
Purchase Decisions
Making Consumers Aware of Products and Services
Making Consumers Aware of Products and Services
Role of Advertising in the EconomyRole of Advertising in the Economy
Encouraging Consumption and Fostering Economic
Growth
Encouraging Consumption and Fostering Economic
Growth+
Effects on Consumer Choice• Differentiation • Brand Loyalty
Effects on Consumer Choice• Differentiation • Brand Loyalty
Effects on product costs and prices• Advertising as an expense that
increases the cost of products• Increased differentiation
Effects on product costs and prices• Advertising as an expense that
increases the cost of products• Increased differentiation
Effects on Competition• Barriers to entry • Economies of scale
Effects on Competition• Barriers to entry • Economies of scale
Effects on Consumer Choice• Differentiation • Brand Loyalty
Effects on Consumer Choice• Differentiation • Brand Loyalty
Effects on Competition• Barriers to entry • Economies of scale
Effects on Competition• Barriers to entry • Economies of scale
Economic Impact of AdvertisingEconomic Impact of Advertising
Advertising Helps New Advertising Helps New Competitors Enter the MarketCompetitors Enter the Market
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Do You Agree With Leo Burnett?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