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Ethical commercial
Advertising and Promotion Viewpoints
Creates consumer needs, wantsCreates consumer needs, wants
Promotes materialism, insecurity,
and greed
Promotes materialism, insecurity,
and greed
More propaganda than informationMore propaganda than information
Provides informationProvides information
Creates jobsCreates jobs
Encourages higher standard of livingEncourages higher standard of living
Promotes competitionPromotes competitionProponent
arguments
Proponent
arguments
Critic
arguments
Critic
arguments
Helps new firms enter a marketHelps new firms enter a market
Ethics in Advertising and Promotion
Not all issues can
be regulated
Not all issues can
be regulated
A marketing or
promotion action
may be legal but
not ethical
A marketing or
promotion action
may be legal but
not ethical
Marketers must
decide the
appropriateness
of their actions
Marketers must
decide the
appropriateness
of their actions
Ethics: Moral principles and values that
govern the actions and decisions of an
individual or group.
Ethics: Moral principles and values that
govern the actions and decisions of an
individual or group.
Promoting Responsible Drinking
Benetton’s “Death Row” Ad Offensive
Advertising and Untruthful or Deceptive
General mistrust of advertising
among consumers. Many do not
perceive ads as honest or believable
General mistrust of advertising
among consumers. Many do not
perceive ads as honest or believable
Techniques involving sales promotions
such as contests, sweepstakes,
premium offers
Techniques involving sales promotions
such as contests, sweepstakes,
premium offers
Unethical and/or deceptive practices
involving mail order, telemarketing
and other forms of direct marketing
Unethical and/or deceptive practices
involving mail order, telemarketing
and other forms of direct marketing
Internet scams and abusesInternet scams and abuses
Advertising as Offensive or in Bad Taste
Sexual
appeals
Sexual
appeals
Objectionable
products
Objectionable
products Shock adsShock ads
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 highlighted
D) Test the ethics of the advertising industry
Advertising and Children
Children's TV
Watching Behavior
Children's TV
Watching Behavior
Children ages 2-11
watch an average of
22 hours of TV per
week and see 30,000
commercials per year
Children ages 2-11
watch an average of
22 hours of TV per
week and see 30,000
commercials per year
80% of all advertising
targeted to children
falls in four
product categories:
Toys, cereal, candy &
fast food restaurants
80% of all advertising
targeted to children
falls in four
product categories:
Toys, cereal, candy &
fast food restaurants
Childrens are Defenceless
•Junk food
•Nag factor
Perspectives on Ads for Children
Advocates Argue That Children:Advocates Argue That Children:
Marketers Argue Children:Marketers Argue Children:
Lack the knowledge and
skills to evaluate
advertising claims
Lack the knowledge and
skills to evaluate
advertising claims
Cannot differentiate
between programs and
commercials
Cannot differentiate
between programs and
commercials
Must learn
through socialization
Must learn
through socialization
Must acquire skills
needed to function in
the marketplace
Must acquire skills
needed to function in
the marketplace
Social and Cultural Consequences
Does advertising
encourage materialism?
Does advertising
encourage materialism?
Does advertising make
people buy things
they don’t need?
Does advertising make
people buy things
they don’t need?
Does advertising affect Society?
What is your opinion of this ad?
Dove Challenges the Norms of Beauty
Advertising Can Address Social Problems
Do Advertisers Control the Media?
Advertising is the primary
source of revenue for
newspapers, magazines,
television and radio
Advertising is the primary
source of revenue for
newspapers, magazines,
television and radio
Advertisers may exert control
over the media by biasing
editorial content, limiting
coverage of certain issues, or
influencing program content
Advertisers may exert control
over the media by biasing
editorial content, limiting
coverage of certain issues, or
influencing program content
Media’s dependence on
advertising for revenue makes
them vulnerable to control by
advertisers
Media’s dependence on
advertising for revenue makes
them vulnerable to control by
advertisers
Do Advertisers Control the Media?
They must report the news
fairly and accurately to retain
public confidence
They must report the news
fairly and accurately to retain
public confidence
Advertisers need the media
more than the media need
any one advertiser
Advertisers need the media
more than the media need
any one advertiser
Media maintain separation
between news and business
departments “The Wall”
Media maintain separation
between news and business
departments “The Wall”
U.S. Government Discourages Drug Use
Role of Advertising in the Economy
Makes consumers aware
of products and services
Makes consumers aware
of products and services
Provides consumers with
information to use to
make purchase decisions
Provides consumers with
information to use to
make purchase decisions
Encourages consumption,
fosters economic growth
Encourages consumption,
fosters economic growth
Economic Impact of Advertising
Effects on Consumer Choice
• Differentiation
• Brand Loyalty
Effects on Consumer Choice
• Differentiation
• Brand Loyalty
Effects on Product Costs and Prices
• Advertising as an expense that
increases the cost of products
• Increased differentiation
Effects on Product Costs and Prices
• Advertising as an expense that
increases the cost of products
• Increased differentiation
Effects on Competition
• Barriers to entry
• Economies of scale
Effects on Competition
• Barriers to entry
• Economies of scale
Summarizing Economic Effects
Change consumers’ tastesChange consumers’ tastes
Reduces competitionReduces competition
Lowers sensitivity to priceLowers sensitivity to price
Builds brand loyaltyBuilds brand loyalty
Advertising
Equals
Market
Power
Advertising
Equals
Market
Power
Leads to higher pricesLeads to higher prices
Leads to fewer choicesLeads to fewer choices
Results in higher profitsResults in higher profits
Summarizing Economic Effects
Provides useful informationProvides useful information
Pressure for lower pricesPressure for lower prices
Increases price sensitivityIncreases price sensitivity
Increases competitionIncreases competition
Advertising
Equals
Information
Advertising
Equals
Information
Forces inefficient firms outForces inefficient firms out
Pressure for high qualityPressure for high quality
Advertisment Ethics

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Advertisment Ethics

  • 2. Group Members • Soban Ahmad (036) • Abrar Sadique (011) • Waqar-ul-Malik (050) • Asad Hameed (016)
  • 4. Advertising and Promotion Viewpoints Creates consumer needs, wantsCreates consumer needs, wants Promotes materialism, insecurity, and greed Promotes materialism, insecurity, and greed More propaganda than informationMore propaganda than information Provides informationProvides information Creates jobsCreates jobs Encourages higher standard of livingEncourages higher standard of living Promotes competitionPromotes competitionProponent arguments Proponent arguments Critic arguments Critic arguments Helps new firms enter a marketHelps new firms enter a market
  • 5. Ethics in Advertising and Promotion Not all issues can be regulated Not all issues can be regulated A marketing or promotion action may be legal but not ethical A marketing or promotion action may be legal but not ethical Marketers must decide the appropriateness of their actions Marketers must decide the appropriateness of their actions Ethics: Moral principles and values that govern the actions and decisions of an individual or group. Ethics: Moral principles and values that govern the actions and decisions of an individual or group.
  • 8. Advertising and Untruthful or Deceptive General mistrust of advertising among consumers. Many do not perceive ads as honest or believable General mistrust of advertising among consumers. Many do not perceive ads as honest or believable Techniques involving sales promotions such as contests, sweepstakes, premium offers Techniques involving sales promotions such as contests, sweepstakes, premium offers Unethical and/or deceptive practices involving mail order, telemarketing and other forms of direct marketing Unethical and/or deceptive practices involving mail order, telemarketing and other forms of direct marketing Internet scams and abusesInternet scams and abuses
  • 9. Advertising as Offensive or in Bad Taste Sexual appeals Sexual appeals Objectionable products Objectionable products Shock adsShock ads
  • 10. 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 highlighted D) Test the ethics of the advertising industry
  • 11. Advertising and Children Children's TV Watching Behavior Children's TV Watching Behavior Children ages 2-11 watch an average of 22 hours of TV per week and see 30,000 commercials per year Children ages 2-11 watch an average of 22 hours of TV per week and see 30,000 commercials per year 80% of all advertising targeted to children falls in four product categories: Toys, cereal, candy & fast food restaurants 80% of all advertising targeted to children falls in four product categories: Toys, cereal, candy & fast food restaurants
  • 12. Childrens are Defenceless •Junk food •Nag factor
  • 13. Perspectives on Ads for Children Advocates Argue That Children:Advocates Argue That Children: Marketers Argue Children:Marketers Argue Children: Lack the knowledge and skills to evaluate advertising claims Lack the knowledge and skills to evaluate advertising claims Cannot differentiate between programs and commercials Cannot differentiate between programs and commercials Must learn through socialization Must learn through socialization Must acquire skills needed to function in the marketplace Must acquire skills needed to function in the marketplace
  • 14. Social and Cultural Consequences Does advertising encourage materialism? Does advertising encourage materialism? Does advertising make people buy things they don’t need? Does advertising make people buy things they don’t need?
  • 16. What is your opinion of this ad?
  • 17. Dove Challenges the Norms of Beauty
  • 18. Advertising Can Address Social Problems
  • 19. Do Advertisers Control the Media? Advertising is the primary source of revenue for newspapers, magazines, television and radio Advertising is the primary source of revenue for newspapers, magazines, television and radio Advertisers may exert control over the media by biasing editorial content, limiting coverage of certain issues, or influencing program content Advertisers may exert control over the media by biasing editorial content, limiting coverage of certain issues, or influencing program content Media’s dependence on advertising for revenue makes them vulnerable to control by advertisers Media’s dependence on advertising for revenue makes them vulnerable to control by advertisers
  • 20.
  • 21. Do Advertisers Control the Media? They must report the news fairly and accurately to retain public confidence They must report the news fairly and accurately to retain public confidence Advertisers need the media more than the media need any one advertiser Advertisers need the media more than the media need any one advertiser Media maintain separation between news and business departments “The Wall” Media maintain separation between news and business departments “The Wall”
  • 23. Role of Advertising in the Economy Makes consumers aware of products and services Makes consumers aware of products and services Provides consumers with information to use to make purchase decisions Provides consumers with information to use to make purchase decisions Encourages consumption, fosters economic growth Encourages consumption, fosters economic growth
  • 24. Economic Impact of Advertising Effects on Consumer Choice • Differentiation • Brand Loyalty Effects on Consumer Choice • Differentiation • Brand Loyalty Effects on Product Costs and Prices • Advertising as an expense that increases the cost of products • Increased differentiation Effects on Product Costs and Prices • Advertising as an expense that increases the cost of products • Increased differentiation Effects on Competition • Barriers to entry • Economies of scale Effects on Competition • Barriers to entry • Economies of scale
  • 25. Summarizing Economic Effects Change consumers’ tastesChange consumers’ tastes Reduces competitionReduces competition Lowers sensitivity to priceLowers sensitivity to price Builds brand loyaltyBuilds brand loyalty Advertising Equals Market Power Advertising Equals Market Power Leads to higher pricesLeads to higher prices Leads to fewer choicesLeads to fewer choices Results in higher profitsResults in higher profits
  • 26. Summarizing Economic Effects Provides useful informationProvides useful information Pressure for lower pricesPressure for lower prices Increases price sensitivityIncreases price sensitivity Increases competitionIncreases competition Advertising Equals Information Advertising Equals Information Forces inefficient firms outForces inefficient firms out Pressure for high qualityPressure for high quality

Hinweis der Redaktion

  1. Answer: B