Economic effects of advertising
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Economic effects of advertising

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In brief about the economic effects of advertisements

In brief about the economic effects of advertisements

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