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Current Issues In Advertising Central issues of advertising are divided into 3 categories: 1st category represents Nature & Content of Advertising. Remaining 2 categories represents aggregate effects of advertising on society as a whole i.e. Secondary Effects, those are: 1) Effects on Society’s Values and Lifestyle 2) Effect of advertisement on Society’s Wellbeing Nature & Content of Advertising Ethics Ethics in advertising means a set of well defined principles which govern the ways of communication taking place between the seller and the buyer. An ethical ad is the one which doesn’t lie, doesn’t make fake or false claims and is in the limit of decency. Nowadays, ads are more exaggerated and a lot of puffing is used which is not ethical. 1) Ethics in Advertising is directly related to the purpose of advertising and the nature of advertising. Sometimes exaggerating the ad becomes necessary to prove the benefit of the product. For e.g. a sanitary napkin ad which shows that when the napkin was dropped in a river by some girls, the napkin soaked whole water of the river. Thus, the purpose of advertising was only to inform women about the product quality. Obviously, every woman knows that this cannot practically happen but the ad was accepted. This doesn’t show that the ad was unethical. Ethics also depends on what we believe. If the advertisers make the ads on the belief that the customers will understand, persuade them to think, and then act on their ads, then this will lead to positive results and the ad may not be called unethical. But at the same time, if advertisers believe that they can fool their customers by showing any impractical things like just clicking fingers will make your home or office fully furnished or just buying a lottery ticket will make you a millionaire, then this is not going to work out for them and will be called as unethical. Recently, the Vatican issued an article which says ads should follow three moral principles – Truthfulness, Social Responsibility and Upholding Human Dignity. Pharmaceutical Advertising - they help creating awareness, but one catchy point here is that the advertisers show what the medicine can cure but never talk about the side effects of that same thing or the risks involved in intake of it. Alcohol - till today, there hasn’t come any liquor ad which shows anyone drinking the original liquor. They use mineral water and sodas in their advertisements with their brand name. These types of ads are called surrogate ads. These type of ads are totally unethical when liquor ads are totally banned. Even if there are no advertisements for alcohol, people will continue drinking. Cigarettes and Tobacco - these products should be never advertised as consumption of these things is directly and badly responsible for cancer and other severe health issues. These as are already banned in countries like India, Norway, Thailand, Finland and Singapore. Ads for social causes - these types of ads are ethical and are accepted by the people. But ads like condoms and contraceptive pills should be limited, as these are sometimes unethical, and are more likely to loose morality and decency at places where there is no educational knowledge about all these products. 2) Manipulation 1. 2. 3. An advertising can manipulate the buyer into making a decision against his or her will or at least against his or her best interests in allocating his financial resources. A marketer can manipulate the buyer in several forms: A Motivational Appeal, the appeal to motives at the subconscious level. Use of Indirect Emotional Appeals Rational/Scientific Appeals I. Motivation Research Freudian Psychoanalytic Model: It assumes that important buying motives are subconscious For example, A consumer may actually prefer a cake mix that requires the addition of an egg because it subconsciously satisfies the need to contribute to the baking process. Use of subliminal advertising: In 1956 Advertising experiment done by James Vicary, in a movie theatre, he flashed the phrases, “Drink coke” and “Hungry, Eat popcorn” on the screen every five seconds. This tests, which covered a six-week period , were reported to have increased cola sales by 57 percent and popcorn sales by 18 percent. II. Emotional Appeals An emotional appeal is related to an individual’s psychological and social needs for purchasing certain products and services. Many consumers are emotionally motivated or driven to make certain purchases. For example, Dishwashing liquids are advertised as sweeping away the dullness of life. They are housewife’s path road to beauty and romantic excitement. Surf Excel “Daag Achhe Hai”, Cadbury Dairy Milk Shubhaarambh Ad, HDFC Life Insurance, Voltas A.C. III. Rational/Scientific Appeals Company can use highly sophisticated, scientific techniques to make such advertising effective. For example, Colgate Sensodyne, Sunsilk Care Expert 3) Taste Taste is an individual's personal and cultural patterns of choice and preference. So as per people’s tastes, some of them found advertisements annoying, enjoyable, informative or offensive. Advertising may not be omnipotent, but may contend that it is too omnipresent or intrusive. The purposes of advertising are to inform, remind, convince and persuade consumers about the value and merits of specific brands. Advertisers use a number of specific appeals to tap into target consumers' psychological, emotional and social biases, solidifying brand images and creating loyal customer bases. Different consumers respond differently to different advertising appeals. The marketer use different appeals like rational appeal (for e.g. Sunsilk), emotional appeal (for e.g. Cadbury Dairy Milk), fear appeal ( for e.g. stop smoking), humor appeal ( for e.g. flipkart), romance appeal, music appeal and so on. Intrusiveness: Intrusion represents over repetition. Greyser postulates a lifecycle wherein an advertising campaign moves with repetition from period of effectiveness ,acceptance and to a period of irritation. The cycle contains following stages: 1) Exposure to the message on several occasions prior to serious attention ( Basic interest) 2) Interest in the advertisement on either substantive(informative) or stimulus ( enjoyment) grounds. 3) Continued but declining attention to the advertisement on such grounds 4) Mental tune-out of the advertisement on grounds of familiarity. 5) Increasing awareness of the advertisement, now as a negative stimulus(irritation) 6) Growing irritation 1. 2. 3. 4. 5. Factors affecting Intrusiveness: Intensity of the campaign: Many exposures over a short time period run a high risk of irritation. Other advertising to which audience is involved Product Usage Brand Preferences Entertainment Value of Advertising For e.g. Kitkat Squirrel, Surf Excel “Daag Achhe Hain”, Airtel Advertising to Children 1) 2) 3) 4) Advertising to children has been a major focus of public policy and concern for many years. Groups such as ACT ( Action for Children’s Television) And CARU (Children’s Advertising Review Unit) have been particularly active. CARU was established in 1974 for the purpose of: Monitoring children’s advertising for truth and accuracy Evaluating proposed children’s advertising Promoting research into children’s advertising Disseminating information to the public. 1) 2) 3) Deborah Roedder identified three types of child information processing: Strategic – for ages ten to eleven years old and older Cued – Six to ten years old Limited – Under six years old Strategic processors can evaluate a product’s appeal with greater sophistication because they can store information about the selling intent, other products, and past experiences. Prompts can be used to encourage use of storage and retrieval strategies by cued processors but would not benefit limited processors very much. The Children’s TV Act of 1990 requires broadcasters to provide programming that serves the educational and informational needs of children and must limit the amount of advertising for any programming aimed at children. For e.g. McDonald’s banned Ad, Flipkart Effects on Values and Lifestyle Advertising by its very nature receives wide exposure. Furthermore, it presumably has an effect on what people buy and thus on their activities. Because of this exposure and because of its role as a persuasive vehicle, it is argued that it has an impact on the values and lifestyles of society and that this impact has its negative as well as positive side. Three issues that have attracted particular attention are: The relationship of advertising to materialism, The role that advertising has played in creating harmful stereotypes of women and ethnic minorities, and The possible contribution of advertising in promoting harmful products. 1. Materialism: Materialism is defined as the tendency to give undue importance to material interests. Presumably, there is a corresponding lessening of importance to non material interests such as love, freedom and intellectual pursuits. But although people do spend their resources on material things, they do so in the pursuit of non material goals. The distinctive aspect of our society is not the possession of material goods, but the extent to which material goods are used to attain non material goals. 2. Promoting Stereotypes: The advertising has contributed to the role of stereotyping of women and ethnic minorities. In 729 advertisements appearing in 1970, none showed women in a professional capacity. The authors concluded that the advertisements reflected the stereotype that women do not do important things. Thus advertising showing women in traditional roles is less effective with an audience of professional women and vice versa. 3. Promoting Harmful Products: The basic argument is that alcohol, cigarettes, tobacco, these are harmful products and they are indirectly responsible for death resulting from drunk drivers and other adverse effects. A ban of advertising would prohibit product innovation that may be helpful. For e.g. wine coolers, low alcohol beers. The real goal is to return to alcohol prohibition, which did not work-it only created the revenue source for the gangsters. Economic Effects on Advertising 1. 2. 3. 4. 5. 6. 7. Advertising is basically an economic institution. It performs an economic function for an advertiser, affects economic decisions of the audience, and is an integral part of the whole economic system. Economic benefits of Advertising: Advertising provides informational utility Maintains or enhances brand equity Supports the media Provides employment Reduces distribution costs Provides product utility Stimulates introduction of new products Advertising and Competition There is a vigorous competition in the market. Competitive forces lead to real product innovation, the efficient distribution of goods, and the absence of inflated prices. George Milne has developed a marketing approach to the measurement of industry concentration. A Causal Model Empirical Studies 1. 2. 3. Advertising and Prices Advertising and Profitability Advertising and Brand Stability Remedies