Download Marketers Argue that Children - McGraw Hill Higher Education

20
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
20-3
Promoting Responsible Drinking
20-4
Shock Ads
20-5
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
20-6
Advertising as Offensive or in Bad Taste
Objectionable
products
Sexual
appeals
Shock ads
Condoms
Feminine
hygiene
products
Women’s
undergarments
Hemorrhoid
products
20-7
Test Your Knowledge
Advertisers are using shock advertising to:
A) Test their First Amendment rights
B) Get ads noticed in the midst of clutter
C) Make a statement against self-regulation
D) Test the ethics of the advertising industry
E) Act as advocacy ads for company management
20-8
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?
20-9
Dolce & Gabbana’s Controversial, Offensive Ad
20-10
Attitudes Toward Sex in Advertising
20-11
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
20-12
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
20-13
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
20-14
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?
20-15
Does advertising affect Society?
20-16
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
20-17
Targeting Specific Markets
20-18
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
20-19
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”
20-20
The Social Value of Media
20-21
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
20-22
Economic Impact of Advertising
Consumer Choice
• Differentiation
• Brand Loyalty
Competition
• Barriers to entry
• Economies of scale
Product Costs & Prices
• Advertising is an expense
that increases product costs
• Increased differentiation
20-23
Test Your Knowledge
From an economic perspective, advertising might
lower the cost of a product by:
A) Creating barriers to entry for less efficient
firms
B) Moving consumers to the consumer
socialization stage of the buying process
C) Making it possible for firms to realize
economies of scale through expansion
of sales volume
D) Allowing firms to advertise at high levels
along with competitors
E) Doing none of the above
20-24
Summarizing Economic Effects
Advertising
Equals
Market
Power
Change consumers’ tastes
Lowers sensitivity to price
Builds brand loyalty
Results in higher profits
Reduces competition
Leads to higher prices
Leads to fewer choices
20-25
Summarizing Economic Effects
Provides useful information
Advertising
Equals
Information
Increases price sensitivity
Increases competition
Pressure for high quality
Pressure for lower prices
Forces inefficient firms out
20-26
The Value of Advertising
Advertising.
The way great
brands get to
be great
brands.
20-27
The Positive Effects of Advertising
20-28