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Economic effects of advertising
 

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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    Economic effects of advertising Economic effects of advertising Presentation Transcript

    • Economic Effects of Advertising
      Presented by
      Amlin David
    • 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.
    • 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)
    • 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
    • Effects of Advertising on Economics
      Consumer information
      Competition
      Consumer Manupulation
    • Effects of advertising in a free economy
      Creating a market
      Its about brand
      Pop culture
      Influence on Children
      Consumerist society
    • Social problems of Children in Advertising
      Child Obesity
      Materialistic Habits
      Violence/Harmful
    • 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)
      • American Academy of Pediatrics
      • Children’s Advertising Review Committee (CARU)
      • 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).
    • 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)
      • Child’s Play Communications
      • Children’s Food & Beverage Advertising Initiative
      • 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).
    • 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
    • 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
    • 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.
    • Disadvantages of advertising
      Misleading claims
      Encourage Monopoly
      High prices
      Disconnection to business
      Misuse of advertising
      Creating unrequired desire
      Buying problems
    • THANK YOU