Download Evaluating the Social, Ethical, and Economic Aspects of Advertising

21
Evaluating the Social, Ethical,
and Economic Aspects of
Advertising and Promotion
McGraw-Hill/Irwin
Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed
Advertising and Promotion Viewpoints
Provides information to consumers
Encourages higher standard of living
Proponent
arguments
Promotes competition
Helps new firms enter a market
Creates jobs
More propaganda than information
Critic
arguments
Creates consumer needs, faults
Promotes materialism, insecurity,
and greed
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Ethics in Advertising and Promotion
Ethics: Moral principles and values that
govern the actions and decisions
of an individual or group
Not all issues
can be
regulated
A marketing or
promotion
action may be
legal but not
ethical
Marketers must
decide the
appropriateness of their
actions
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Untruthful or Deceptive Advertising
Consumers
Industry Problems
Don’t trust advertising
Deliberately untruthful
Rely on word of mouth
False and misleading claims
Find ads intrusive
Faulty sweepstakes
Find relevance too low
Providing too little info
Trust websites slightly more
Puffery and embellishment
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Advertising as Offensive or in Bad Taste
Objectionable
products
Sexual
appeals
Shock ads
Condoms
Feminine
hygiene
products
Women’s
undergarments
Hemorrhoid
products
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What is your opinion of this ad?
Is this woman portrayed
as a sex object?
Does this ad contain
cues that are sexually
suggestive?
Does this ad present an
image of sexual
submissiveness?
21-6
Attitudes Toward Sex in Advertising
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Advertising and Children
Children's TV
Watching Behavior
Children watch an
average of 22 hours
of TV per week
They see up to 30,155
commercials per year
80% of ads targeted to
children cover:
•Toys
•Cereal
•Candy
•Fast food
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Perspectives on Ads for Children
Advocates Argue That Children:
Lack the knowledge and
skills to evaluate
advertising claims
Cannot differentiate
between programs and
commercials
Marketers Argue that Children:
Must learn
through socialization
Must acquire skills
needed to function in
the marketplace
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Other Areas of Concern
• Areas of potential concern
• Cable television programming
• Internet ads
• Ads encouraging children to call 900
numbers
• An increase in toy-based programs
• Marketing of violent films, music, games
• Advertising and promotions in schools by
companies like Coca-Cola
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Social and Cultural Consequences
Does advertising
encourage materialism?
Does advertising make
people buy things
they don’t need?
Is advertising just
a reflection of society?
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Advertising and Stereotyping
Portrayal of women to
reflect their changing role
in society
Gender
stereotyping
Criticisms of
Advertising
With Regard to
Stereotyping
Sexual
orientation
Portrayal of
women as
sex objects
Ethnic
stereotyping/
representation
21-12
Do Advertisers Control the Media?
Ads are the primary source of revenue for
newspapers, magazines, television and radio
Media’s dependence on ads for revenue makes
them vulnerable to control by advertisers
Advertisers may exert control over media by
biasing editorial content, limiting coverage of
certain issues, or influencing program content
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Can Media Resist Advertisers?
Media must report the news
fairly and accurately to retain
public confidence
Advertisers need the media
more than the media need
any one advertiser
Media maintain separation
between news and business
departments “The Wall”
21-14
Economic Effects of Advertising
Makes consumers aware
of products and services
Provides consumers with
information to use to
make purchase decisions
Encourages consumption,
fosters economic growth
Leads to economies of
scale & lower prices
21-15