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Chapter 21 - Evaluating the social, ethical, and economic aspects of advertising and promotion. The main goals of this chapter are: To consider various perspectives concerning the ethical aspects of advertising and promotion, to consider various perspectives concerning the social aspects of advertising and promotion, to evaluate the social criticisms of advertising.
Chapter 21 Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Advertising Proponents’ arguments • • • • • Provides information to consumers Encourages higher standard of living Promotes competition Helps new firms enter a market Creates jobs Critics’ arguments • More propaganda than information • Creates consumer needs and faults • Promotes materialism, insecurity, and greed Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Advertising and Promotion Ethics Ethics: Moral principles and values that govern the actions and decisions of an individual or group Marketing or promotion action may be legal but not ethical Marketers must base their decisions on ethical considerations Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Advertising as Untruthful or Deceptive Consumers rely on word of mouth Difficult to prove deception Projects only positive points Exists more at the local level Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Advertising as Offensive or in Bad Taste Sources of distaste Ads of personal products or services Ads of products and brands that consumers do not use or would not buy Type of appeal or the manner of presentation Sexual appeal in ads Offensive and tends to demean women or men Promotes a decline of moral and social values Shock advertising: Using nudity, sexual suggestiveness, or other startling images to get consumers’ attention Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Advertising and Children Popular medium TV and the Internet Critics argue that children: Lack the knowledge and skills to evaluate advertising claims Cannot differentiate between programs and commercials Marketers’ arguments Children must deal with advertising Consumer socialization process: Acquiring skills needed to function in the marketplace Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Advertising and Children Existing restrictions are adequate Greater knowledge of the marketplace required for teens Areas of potential concern Cable television programming Internet ads Increase in ads encouraging children to call 900 numbers Increase in toybased programs Marketing of violent entertainment Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Guidelines for Advertising Directed to Children Level of knowledge, sophistication, and maturity of the audience should be taken into account Should refrain from unfair exploitation of the imaginative quality of children Should not advertise products and content inappropriate for children directly to them Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Guidelines for Advertising Directed to Children Information should be communicated in an accurate manner and in a language understandable to children Advertisements should portray positive and beneficial social behavior Minority groups should be incorporated in advertisements Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Social and Cultural Consequences Advertising influences and transmits social values Advertising agencies should consider the impact of the advertising messages they create Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 10 Advertising Encourages Materialism Materialism: Preoccupation with material things rather than intellectual or spiritual concerns Advertisements that contribute to materialism: Seek to create needs Surround consumers with images of the good life Suggest it leads to contentment and happiness Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 11 Arguments Favoring Materialism Protestant ethic: Stresses on hard work, individual effort, and initiative Views the accumulation of material possessions as evidence of success Does not rule out interest in intellectual, spiritual, or cultural values Advertisements only reflect the values of society Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 12 Advertising Makes People Buy Things They Don’t Need Critics’ argument Advertising should only provide information useful in making purchase decisions Defenders’ argument Advertising is informational in nature Advertising should not be limited to dealing with basic functional needs Consumers are free to choose Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13 Advertising and Stereotyping Gender stereotyping Portrayal of women Preoccupied with beauty, household duties, and motherhood Decorative objects or sexually provocative figures Portrayal of men Constructive, powerful, autonomous, and achieving Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 14 Advertising and Stereotyping Advertisers are striving to: Increase the incidence of minority groups Avoid ethnic stereotyping Develop advertising that has specific appeals to various ethnic groups Be sensitive to the portrayal of specific groups of people in their ads for ethical and commercial reasons Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 15 Advertising and the Media Ads are the primary source of revenue for newspapers, magazines, television, and radio Advertisers have an influence over media Economic censorship Media present biased news coverage in compliance with the advertiser Reasons for media not being influenced by advertisers Public confidence should be retained by being fair, accurate, and truthful Advertisers need the media more than the media need any one advertiser The Wall Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 16 Economic Effects of Advertising Effects on consumer choice Helps achieve: Differentiation: Products or services of large advertisers are perceived as unique or better than competitors’ Brand loyalty Effects on competition Large firms with huge budgets: Act as a barrier to entry, resulting in less competition and higher prices Can achieve economies of scale Effects on product costs and prices Increases the cost of products and services Increases product differentiation that adds to the perceived value of the product in consumers’ minds Lowers prices by making a market more competitive Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 17 Figure 21.6 Two Schools of Thought on Advertising’s Role in the Economy Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 18 ... written consent of McGraw-Hill Education Advertising and Promotion Ethics Ethics: Moral principles and values that govern the actions and decisions of an individual or group Marketing or promotion action may be legal but not ... McGraw-Hill Education Advertising and Children Popular medium TV and the Internet Critics argue that children: Lack the knowledge and skills to evaluate advertising claims Cannot differentiate between programs and commercials... written consent of McGraw-Hill Education Guidelines for Advertising Directed to Children Information should be communicated in an accurate manner and in a language understandable to children