Economic effects of advertisemnts


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Economic effects of advertisemnts

  1. 1. Economic Effects of Advertising<br />Presented by <br />Amlin David <br />
  2. 2. What is Advertising<br />Advertising is a form of communication used to persuade an audience (viewers, readers or listeners) to take some action with respect to products, ideas, or services. <br />
  3. 3. Definitions of Advertising<br />Any paid form of non personal presentation and promotion of ideas of goods and services by an identified sponsor (Philip Kotler 2006)<br />Paid non personal communication from an identified sponsor using mass media to persuade or influence an audience ( Wells, Burnett and Moriaty 1998) <br />
  4. 4. Economic reactions of Advertising<br />Generates a net gain in direct sales due to promotion of the industries products and services<br />Generates indirect sales and jobs among the first level suppliers to the industries that incur advertising expenditures<br />Generates indirect sales and jobs among all other levels of economic activity as the sales ripple through the economy<br />
  5. 5. Effects of Advertising on Economics<br />Consumer information<br />Competition<br />Consumer Manupulation<br />
  6. 6. Effects of advertising in a free economy<br />Creating a market<br />Its about brand<br />Pop culture<br />Influence on Children<br />Consumerist society<br />
  7. 7. Social problems of Children in Advertising<br />Child Obesity <br />Materialistic Habits <br />Violence/Harmful<br />
  8. 8. Side A(Proposed government regulation)<br />General Parties:<br />Some parents<br />Some pediatricians & health care professionals<br />Most child psychologists<br />Consumer protection groups<br />Specific Parties:<br /><ul><li>Advertising Educational Foundation (AEF)
  9. 9. American Academy of Pediatrics
  10. 10. Children’s Advertising Review Committee (CARU)
  11. 11. Emily Roberts (Treaty Oak Psychotherapy – Austin)</li></li></ul><li>Side AIssues and Arguments<br />“Childhood obesity is quickly becoming a global health concern as figures reach epidemic proportions” (*Source: Advertising to Children 2).<br />“Children create and begin to model a lifestyle based on the advertisements they view” (*Source: Wright 51).<br />“Advertisers expose too many negative and potentially harmful advertisements to children (*Source: Gunter, Oats, & Blades 81).<br />
  12. 12. Side B(Opposed government regulation)<br />General Parties<br />Some advertising agencies<br />Some global economists<br />Some parents<br />Some television stations<br />Specific parties<br /><ul><li>American Association of Advertising Agencies (AAAA)
  13. 13. Child’s Play Communications
  14. 14. Children’s Food & Beverage Advertising Initiative
  15. 15. Hilary Fox (LatinWorks Advertising Agency)</li></li></ul><li>Side BIssues and Arguments<br />“It is the parents or guardians responsibility to monitor what their children view” (*Source Toops 3).<br />“Since we live in a capitalistic society, advertising is a business that sustains a way of life and economic success for the U.S.” (*Source: United States 4).<br />People rely on it to work, businesses rely on it to sell their products, and consumers rely on it to choose products they identify with” (*Source: United States 9).<br />
  16. 16. Analysis of Side A’s Arguments<br />Values<br />Health, family, self-esteem, fairness, & education<br />Obligations<br />Protecting their children, pushing for more gvnt. regulation<br />Consequences<br />Statistics will begin to show the decrease of child obesity, the fall of child/adolescent violence, and less materialistic habits<br />
  17. 17. Analysis of Side B’s Arguments<br />Values<br />National & global economy, the right to freedom of speech, currency, competition, fairness, and education<br />Obligations<br />To distribute their informative ad campaigns to children & parents to sell their goods and create awareness of their brand<br />Consequences<br />The national economy will suffer tremendously as advertising is a billion dollar industry<br />
  18. 18. Solutions for influences of Children Education<br />Educating children about advertisements, what the effects are, and the different ways we can change how current messages are sent out.<br />Both sides to merge together in effort to agree that organizations like CARU will serve as a review committee that will have experts from areas such as: education, communication, child development, child mental health, marketing and nutrition.<br />
  19. 19. Disadvantages of advertising<br />Misleading claims<br />Encourage Monopoly<br />High prices<br />Disconnection to business<br />Misuse of advertising<br />Creating unrequired desire<br />Buying problems<br />
  20. 20. THANK YOU<br />