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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 21-2 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 21-3 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 21-4 Advertising as Offensive or in Bad Taste Objectionable products Sexual appeals Shock ads Condoms Feminine hygiene products Women’s undergarments Hemorrhoid products 21-5 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 21-7 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 21-8 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 21-9 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 21-10 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? 21-11 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 21-13 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