Download Chapter Three: Advertising and Society

Advertising and Society
Part 1: Foundations
Chapter 3
Chapter Outline
I. Chapter Key Points
II. Advertising’s Social Role
III. Review and Regulation of Advertising
IV. Advertising’s Regulatory Environment
V. Media Review of Advertising
VI. Self-Regulation
VII. Advertising Ethics
VIII.Determining What is Ethical
3-2
Key Points
• Discuss the shape-versus-mirror debate
• Analyze the legal topics that guide advertising
practice
• List the key regulatory agencies and their
responsibilities
• Explain the way the advertising industry regulates
itself
• Critique the key ethical issues that challenge the
practice of advertising
• Outline three ways to determine if an advertising
decision is ethical
3-3
Advertising’s Societal Role
• Does advertising create a materialistic culture
or does it simply reflect it?
– Critics believe that advertising has the power to
shape social trends and the way people think and
act
– Advertising professionals believe advertising
mirrors values rather than sets them
• Advertising can potentially shape and mirror
values
3-4
Review and Regulation of
Advertising
Copyright Protection
• Trademark
• Copyright
First Amendment
• Commercial speech
• Only truthful
commercial speech is
protected, not
misleading or deceptive
statements
3-5
Advertising’s Regulatory
Environment
Federal Trade Commission • Deceptive advertising
• Regulating
deception
• Regulating
substantiation
• Remedies for
deception and unfair
advertising
misleads customers by
making claims that are
false
3-6
Advertising’s Regulatory
Environment
Federal Trade Commission
• Regulating
deception
• Regulating
substantiation
• Remedies for
deception and
unfair advertising
• The advertiser should
have a reasonable basis
for making a product
claim
3-7
Advertising’s Regulatory
Environment
Federal Trade Commission
• Regulating
deception
• Regulating
substantiation
• Remedies for
deception and
unfair advertising
• Consent Decrees
• Cease-and-Desist
Orders
• Corrective Advertising
• Consumer Redress
• Advertising Agency
Legal Responsibility
3-8
Advertising’s Regulatory
Environment
Food and Drug Administration
Federal Comm. Commission
• Oversees package
labeling, ingredient
listings, and advertising
for food and drugs
• Watchdog for drug
advertising
• Can issue and revoke
licenses to broadcasting
stations
• Can ban messages that
are deceptive or in poor
taste
3-9
Advertising’s Regulatory
Environment
Other Regulatory Bodies
• Bureau of Alcohol,
Tobacco, and Firearms
• U.S. Postal Service
• States’ Attorneys
General
International Regulations
• Marketing practices
vary in legal and
regulatory restrictions
• International advertisers
should have someone in
the country who knows
the local laws
3-10
Media Review of Advertising
• The media attempts to regulate advertising by
screening and rejecting ads
• The First Amendment gives any publisher the
right to refuse to publish
• The Advertising Review Council designed the
standards and guidelines used by major
television networks
3-11
Self-Regulation
• Self-discipline
• Industry selfregulation
• Self-regulation
with outside
help
• Most advertisers and
agencies have in-house
review procedures
• Every element of a
proposed ad should be
evaluated by an inhouse committee or
lawyers
3-12
Self-Regulation
• Self-discipline
• Industry selfregulation
• Self-regulation
with outside
help
• National Advertising
Review Council
– National Advertising
Division
– National Advertising
Review Board
• Negotiates voluntary
withdrawal of deceptive
advertising
3-13
Self-Regulation
• Self-discipline
• Industry selfregulation
• Self-regulation
with outside
help
• Local Groups
• Consumer Groups
3-14
Advertising Ethics
• A set of moral
principles that
guide actions
and create a
sense of
responsible
behavior
•
Six key issues
1. Poor taste and offensive
advertising
2. Stereotyping
3. Body and self image
4. Targeting children
5. Misleading claims and
other message
strategies
6. Controversial products
3-15
Advertising Ethics
Poor Taste/Offensive
• Advertisers and media
outlets must try to be
sensitive to consumer
objections
• Creating guidelines for
good taste is difficult
• Sex in advertising
Reinforcing Stereotypes
• Diversity Issues
• Gender Roles
• Racial and Ethnic
Stereotypes
• Senior Citizens
3-16
Advertising Ethics
Body and Self Image
• Self-image advertising
can contribute to selfimprovement
• Can also lead to
dangerous practices
• Advertising mirrors and
shapes the standard of
attractiveness
Children
• One of the most
controversial topics in
the industry
• Children are unable to
evaluate advertising
messages and make
purchasing decisions
3-17
Advertising Ethics
Misleading Claims
• Advertising claims are
unethical if they are
false, misleading, or
deceptive
Controversial Products
• Though it is acceptable
to advertise these
products, it is still
offensive to some
3-18
Determining What is Ethical
• The social ethic
• The
professional
ethic
• The personal
ethic
• The “Golden Rule”
• Social responsibility
motivates a business to
make a positive impact
on society
3-19
Determining What is Ethical
• The social ethic
• The
professional
ethic
• The personal
ethic
• Industry standards help
with a decision about
what is ethically correct
• A code of standards
identifies how
professionals should
respond when facing an
ethical dilemma
3-20
Determining What is Ethical
• The social ethic
• The
professional
ethic
• The personal
ethic
• Personal judgment and
moral reasoning rests on
an intuitive sense of
right and wrong
• Advertising
professionals must be
aware of industry
standards as well as
ethical questions
3-21