Download MKM803Chapter18

Regulatory, Ethical, and Social Issues for
Integrated Marketing Communications
Advertising Regulation in
Canada
Government
Regulation
Self
Regulation
CRTC
ASC
Canadian Radio-Television and
Telecommunications Commission (CRTC)
Mandate: To ensure that the
Broadcasting Act of 1991 and the
Telecommunications Act of 1993 are
upheld throughout Canada.
 Objective of each Act is to ensure all
Canadians can receive broadcasting and
telecommunications services.

CRTC and Advertising
Regulations
Advertising limits
 Infomercials
 900 Numbers
 Alcohol and drugs

CRTC and Advertising NonRegulation
False or misleading ads
 Internet

Other Regulations
Regulation of Tobacco Advertising
 Quebec Regulations on Advertising to
Children

Advertising Standards Council (ASC)

A not-for-profit, self-regulatory industry body.
 Mandate is to create and maintain community
confidence in advertising.
 Standards Division:



Administers the industry’s self-regulatory codes.
Handles complaints about advertising.
Administers any disputes arising between
advertisers.
Canadian Code of Advertising
Standards
 “The Code” describes acceptable advertising.

Pertains only to content of ads.



Does not limit promotion of legal products or the
demonstration of products for their intended purpose.
Does not supersede any other laws or regulations.
Intent: To provide standards for responsible and
effective advertising without minimizing the right
of firms to advertise.
The Code
Complaint process
 Sets standards
 Clearance

Clauses of the Code
1.
2.
3.
4.
5.
6.
7.
8.
Accuracy and Clarity
Disguised Advertising
Techniques
Price Claims
Bait and Switch
Guarantees
Comparative
Advertising
Testimonials
Professional or
Scientific Claims
9.
10.
11.
12.
13.
14.
Imitation
Safety
Superstitions and Fears
Advertising to Children
Advertising to Minors
Unacceptable
Depictions and
Portrayals
Advertising and Promotion: Two
Viewpoints Proponents Argue That
Advertising and Promotion:
Provides
Information
Encourages
A Higher Standard
Of Living
Creates Jobs and
Helps New Firms
Enter a Market
Promotes
Competition in
The Marketplace
Critics Argue That Advertising and
Promotion
Creates Needs and
Wants Among
Consumers
Is More
Propaganda
Than Information
Promotes
Materialism,
Insecurity and
Greed
Advertising and Promotion as
Deceptive
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
Unethical and/or Deceptive Practices
Involving Mail Order, Telemarketing and
Other Forms of Direct Marketing
Internet Scams and Abuses
Advertising as Offensive or In
Bad Taste
Objections to
Advertising
Of Certain Products
Use of Sexual
Appeals And/or
Nudity
Use of Shock
Ads
Examples of Shock Ads
Many People Found Benetton’s “Sentenced to
Death” Campaign Offensive
Advertising and Children
Children's TV
Watching Behaviour
Children between
ages 2-11 watch on
average 15.5 hours
of TV per week.
Television is an
important source of
information for
children about
products.
Perspectives on Advertising to Children
Consumer Advocates Argue That
Children Are Vulnerable to
Advertising Because:
They Lack the
Knowledge and
Skills to Critically
Evaluate
Advertising Claims
They Cannot
Differentiate
Between Programs
and Commercials
While Marketers Argue That:
Children Must Learn
Through the
Socialization
Process
Need to Acquire
Skills Needed
To Function in the
Marketplace
Social and Cultural
Consequences of Advertising
Does Advertising Make
People Buy Things
They Don’t Need?
Does Advertising
Encourage Materialism?
Is Advertising Just
A Reflection of Society?
Advertising and Stereotyping
Portrayal of Women to
Reflect Their Changing
Role in Society
Gender
Stereotyping
Criticisms of
Advertising
With Regard to
Stereotyping
Portrayal of
The Elderly
Portrayal of
Women As
Sex Objects
Ethnic
Stereotyping/
Representation
of Minorities
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?
Advertising is Used to Address
Social Problems
Using Advertising to Fight the War on
Drugs
Role of Advertising in the Economy
Making Consumers Aware of
Products and Services
Providing Consumers With
Information to Use to Make
Purchase Decisions
+
Encouraging Consumption
and Fostering Economic
Growth
Economic Impact of Advertising
Effects on Consumer Choice
• Differentiation
• Brand Loyalty
Effects on Competition
• Barriers to entry
• Economies of scale
Effects on product costs and prices
• Advertising as an expense that
increases the cost of products
• Increased differentiation