Evaluating the Social,  Ethical , and Economic Aspects of Advertising and Promotion 22 McGraw-Hill/Irwin Copyright © 2009 ...
Advertising and Promotion Viewpoints Creates consumer needs, wants  Promotes materialism, insecurity,  and greed More prop...
Ethics in Advertising and Promotion Ethics:  Moral principles and values that govern the actions and decisions of an indiv...
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 hon...
Advertising as Offensive or in Bad Taste Sexual appeals Objectionable products Shock ads
Test Your Knowledge Advertisers are using shock advertising to:  A)  Test their First Amendment rights  B)  Get ads notice...
Advertising and Children Children's TV  Watching Behavior Children ages 2-11 watch an average of  22 hours of TV per week ...
Perspectives on Ads for Children Advocates Argue That Children: Marketers Argue Children: Lack the knowledge and skills to...
Do TV Networks Have a Double  Standard ?
Social and Cultural  Consequences Does advertising  encourage materialism? Does advertising make people buy things they do...
Does advertising affect Society?
Advertising and Stereotyping Criticisms of Advertising With Regard to Stereotyping Portrayal of women to reflect their cha...
What is your opinion of this ad? Is this woman portrayed as a sex object? Does this ad contain cues that are sexually sugg...
Dove Challenges the Norms of Beauty
Test Your Knowledge Groups such as the National Organization for Women (NOW) are critical of advertising that:  A)  Portra...
Advertising Can Address Social Problems *Click outside of the video screen to advance to the next slide
Do Advertisers Control the Media? Advertising is the primary source of revenue for newspapers, magazines, television and r...
Do Advertisers Control the Media? They must report the news fairly and accurately to retain public confidence Advertisers ...
U.S. Government Discourages Drug Use
Role of Advertising in the Economy Makes consumers aware of products and services Provides consumers with information to u...
Economic Impact of Advertising <ul><li>Effects on Consumer Choice </li></ul><ul><li>Differentiation  </li></ul><ul><li>Bra...
Test Your Knowledge From an economic perspective, advertising might lower the cost of a product by:  A)  Creating barriers...
The Economic Value of Advertising *Click outside of the video screen to advance to the next slide
Summarizing Economic Effects Change consumers’ tastes Reduces competition Lowers sensitivity to price Builds brand loyalty...
Summarizing Economic Effects Provides useful information Pressure for lower prices Increases price sensitivity Increases c...
Do you agree with Leo Burnett? “ It must be said that without advertising we would have a far different nation, and one th...
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  • Chapter 22 Evaluation the Social, Ethical, and Economic Aspects of Advertising and Promotion © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • Relation to text This slide relates to material on p. 737 of the text. Summary Overview This slide shows the two views concerning the appropriateness and value of advertising. Proponents argue that advertising and promotion : Provide information Encourages a higher standard of living Creates jobs and helps new firms enter a market Promotes competition in the marketplace Critics argue that advertising and promotion : Creates needs and wants among consumers Is more propaganda than information Promotes materialism, insecurity, and greed Throughout the text, advertising and promotion has been discussed in the context of the business and marketing environment and from a perspective that these activities are appropriate. Critics argue that there are negative social and economic effects of advertising and promotion. Use of this slide This slide can be used to introduce the two different viewpoints regarding the value of advertising and promotion and the arguments for each.
  • Relation to text This slide relates to material on p. 738 of the text. Summary Overview This slide defines and summarizes ethical considerations in advertising and promotion. Ethics is defined as moral principles and values that govern the actions and decisions of an individual or group. While many laws and regulation determine what advertisers can and cannot do, not every issue is covered by a rule or law. Marketers must make decisions regarding appropriate and responsible actions on the basis of ethical considerations. Some ethical considerations in advertising and promotion are: Not all issues can be regulated A marketing or promotion action may be legal but not ethical Marketers must decide the appropriateness of their actions Companies are scrutinized for their ethics Use of this slide This slide can be used to discuss the ethical considerations of advertising and promotion.
  • Relation to text This slide relates to the material on page 739 and Exhibit 22-2. Summary Overview Companies marketing alcoholic beverages must recognize the need to reduce alcohol abuse and drunken driving, particularly among young people. Many of these companies have developed programs and ads designed to address this problem. Miller Brewing Company has been running a campaign that uses ads like the one shown here that encourages parents to talk to their kids about the risks of underage drinking. Use of this slide Use this slide when discussing how companies like Miller Brewing try to promote responsible drinking and respond to the problems of drinking and driving.
  • Relation to text This slide relates to the material on pp. 739-740 and Exhibit 22-4 of the text. Summary Overview This slide shows an ad from the controversial “Death Row” campaign that was run by Benetton in 2000. Benetton has always been known for its controversial advertising, and some magazines refuse to accept its ads. The company has defended itself by arguing that it is trying to raise people’s awareness regarding various social issues. However, the “Death Row” campaign was probably the most controversial of all the shock advertising used by company. Benetton argued that it ran the global campaign solely to spark debate on capital punishment. However, the ads outraged many people, including victims’ advocates who accused Benetton of glamorizing murders while ignoring their crimes. Benetton went too far with its “Death Row” campaign, and the company received a lot of negative publicity. Various victims’ right groups organized boycotts of the company’s stores, and Sears canceled an exclusive contract to sell a line of Benetton clothes. In May 2000, Olivero Toscani, who had been overseen Benetton’s advertising since 1982, left the company as a result of the controversy. Use of this slide This slide can be used to show an example of advertising that has been controversial and received a great deal of criticism.
  • Relation to text This slide relates to material on pp. 721-722 of the text. Summary Overview One of the major complaints against advertising is that many ads are untruthful and deceptive. Reasons for this viewpoint include: A general mistrust of advertising among consumers, as many do not perceive ads as honest or believable Abuses involving sales promotion such as contests, sweepstakes, and premium offers Unethical and/or deceptive practices involving mail order, telemarketing, and other forms of direct marketing Internet scams and abuses While most critics would probably agree that most marketers are not out to deceive consumers deliberately, they are still concerned that many of their advertising and promotion practices are not in the best interest of consumers. Use of this slide This slide can be used to discuss some of the reasons why advertising and promotion are often criticized as being untruthful and deceptive.
  • Relation to text This slide relates to material on pp. 741-745 of the text. Summary Overview Another common complaint of advertising, particularly by consumers, is that ads are offensive and in bad taste. This slide shows some of the reasons why advertising is viewed this way. Viewers often object to: Advertising of certain products, such as contraceptives and personal hygiene. Use of sexual appeals and/or nudity, which can be demeaning and offensive. Use of shock ads that employ nudity, sexual suggestiveness, or other startling images to get consumers’ attention. Many advertising experts agree that what underlies the increase in offensive or tasteless ads is the pressure on marketers and ad agencies to do whatever it takes to get an ad noticed. How far advertisers will go may depend on the public’s reaction. When consumers think the ads have gone too far, they are likely to pressure the advertisers to change their ads and the media to stop accepting them. Use of this slide This slide can be used to discuss advertising as offensive or in bad taste.
  • Answer: B
  • Relation to text This slide relates to material on pp. 745-749 of the text. Summary Overview One of the most controversial topics advertisers must deal with is the issue of advertising to children. The extensive amount of time children spend watching TV means they will be exposed to a great deal of advertising. This slide provides some statistics regarding children’s TV watching behavior. Children between the ages of 2-17 watch an average of 22 hours of TV per week, and may see 30,000 commercials per year The vast majority of advertising targeted to children falls in four product categories: toys, cereal, candy, and fast food restaurants Use of this slide This slide can be used to introduce the issue of advertising to children. The next slide will discuss two perspectives on advertising to children.
  • Relation to text This slide relates to material on pp. 745-749 of the text. Summary Overview Critics of advertising to children argue that it should be banned or severely restricted. However, marketers argue that advertising is a part of life and children must learn to deal with it. Legislation by the government and self-regulatory group agreements have provided some protection for children. This slide summarizes the two perspectives on advertising to children: Consumer advocates argue that children are vulnerable to advertising because: They lack the knowledge and skills to critically evaluate advertising claims They cannot differentiate between programs and commercials Marketers argue that children must: Learn through the socialization process Acquire the skills needed to function in the marketplace Use of this slide This slide can be used to discuss the two perspectives on advertising to children.
  • Relation to text This slide relates the material in Ethical Perspective 22-1 on pp. 746 of the text. Summary Overview GoDaddy.com and its advertising agency, Ad Store, have argued that the major television networks such as Fox have a double standard as many of their program have more racy content than the commercials that they sometimes refuse to run. This slide shows a commercial for GoDaddy.com, a company that manages and sells Internet domain names. The commercial depicts a mock congressional hearing and features an attractive woman in a very camisole that suffered a near “wardrobe malfunction.” Its was done as a satirical jab a famous Janet Jackson wardrobe malfunction that occurred during the halftime show of the 2004 Super Bowl, which led to government moves to more tightly regulate TV and radio content. Fox ran the commercial during the first quarter of the game, but refused to run it again during the fourth quarter after the National Football League became upset over the ad. Use of this slide This spot can be used to generate discussion regarding whether advertisers should be held to different standards by TV networks whose own programs are often more sexually explicit than the commercials they refuse to air.
  • Relation to text This slide relates to material on pp. 749-751 8 of the text. Summary Overview This slide shows some of the social and cultural questions related to advertising. Does advertising make people buy things they don’t need? Pro advertising Advertising provides essential information It is difficult to separate the desirable advertising from the undesirable Consumers are free to choose Critics of advertising Information advertising is acceptable, but persuasive advertising is unacceptable Persuasive advertising fosters discontent among consumers Does advertising encourage materialism? Pro advertising Materialism is an acceptable part of the Protestant ethic, which stresses hard work and individual effort Acquisition of material possessions has positive economic impact Critics of advertising Advertisers seeks to create needs Surrounds consumers with images of the good life and suggest material possessions will lead to happiness Material possessions will lead to greater social acceptance Is advertising just a reflection of society? Some argue that advertising is merely a visible manifestation, good and bad, of the American way of life. Others feel that advertising reflects cultural values on a selective basis, echoing and reinforcing certain attitudes, behaviors, and values more frequently than others. Use of this slide This slide can be used to discuss the social and cultural consequences of advertising and arguments both for and against advertising.
  • Relation to text This slide relates to page 750 and Exhibit 22-14 of the text. Summary Overview The advertising industry believes that advertising reflects society, not the other way around. This ad was part of a campaign to address the criticisms of advertising. Use of this slide Use this slide to present the advertising industry’s position advertising’s effect on society.
  • Relation to text This slide relates to material on pp. 751-756 of the text. Summary Overview Advertising is criticized for portraying various gender and ethnic groups in ways that are unflattering. Critics also argue advertising does not stay contemporary and reflect the changing roles of women. Despite the recognition that advertisers must be sensitive to the portrayal of specific types of people, ad agencies are finding it increasingly difficult not to offend some segment of the public. This slide shows the various forms of stereotyping that advertising is often accused of creating and perpetuating. These include: Gender stereotyping Portrayal of women to reflect their changing role in society Portrayal of women as sex objects Ethnic stereotyping/representation of minorities Gay-specific ads Use of this slide This slide can be used to discuss stereotyping in advertising.
  • Relation to text This slide relates to material on pp. 742-743, 751-753 and Exhibit 22-8 of the text. Summary Overview Consider this ad for Airwalk shoes and how it might be viewed by consumers. Is this woman portrayed as a sex object? Does this ad contain cues that are sexually suggestive? Does this ad present an image of sexual submission? This ad was criticized by some women’s groups who argued that it shows a submissive and sexually available woman. The critics argued that the ad contains a number of symbolic cues that are sexually suggestive and combine to reinforce an image of the woman’s sexual submission to a man. These cues include the heart shaped box, indicating love, the color red, which symbolizes passion, and the heavy lipstick, which is sexually suggestive, as is the slinky red dress. Use of this slide Use this slide to prompt a discussion about the sexual nature of some ads. You might ask your students if they agree with this assessment of the ad.
  • Relation to text This slide relates to the material on pp. 761-762, which is Ethical Perspective 22-2. Summary Overview This slide shows a page from the web site for Dove’s Campaign for Real Beauty. The campaign was launched after Unilever’s Dove brand team reviewed the results of a study indicating that most women feel that the media and advertisers set an unrealistic standard of beauty that they cannot achieve. The survey also found that only a small percentage of women are satisfied with their body weight and shape, and only two percent considered themselves beautiful. The goal of the campaign is to change the stereotypical portrayal of beauty based on physical attractiveness and to encourage women to feel good about themselves. Most ads for beauty and cosmetic products show glamorous super models and are based on the idea that women will aspire to be like these women and purchase the advertised product in hopes of improving their appearance. Dove has taken an inspirational approach by encouraging women to focus on their natural beauty and appealing to their self-esteem. Use of this slide This slide can be used as part of a discussion regarding advertising’s portrayal of women. Critics of Dove’s campaign argue that it is really just a clever way for Dove to market its beauty and cosmetic brands and is more about selling these products than making a social statement. They argue that there is a contradiction in the message of the campaign because it suggests that women still need to use Dove products to be beautiful. They also feel that Dove markets items like cellulite cream and anti-aging products that have not been proven to work. And, the campaign still uses models that are more attractive than the average woman. However, the Dove campaign has been viewed very favorably overall, and most observers feel that it is a positive step in terms of the way women are portrayed in advertising. The campaign has encouraged other marketers, like Nike, to change the way they portray women and celebrate the diversity of their physical appearance.
  • Answer: E
  • Relation to text This slide relates to the material on p. 759 of the text which discusses the use of advertising to address social problems such as drug use. Summary Overview This slide contains the famous “Fried Egg” commercial that was created by the Partnership for a Drug Free America in the late 1980s and is perhaps the most well-known of all the anti-drug ads. It features a stern looking man cracking open an egg and placing it in a hot frying pan as he delivers the classic line: “This is your brain, this is your brain on drugs.” This spot has been parodied many times and probably lost its effectiveness as the teen audience to which it was targeted began poking fun at the “this is your brain on drugs” line from the commercial and the phrase became part of popular culture. Use of this slide This commercial can be used to show the types of anti-drug ads created by the PDFA.
  • Relation to text This slide relates to material on pp. 756-757 of the text. Summary Overview This slide shows the arguments supporting the position that advertisers have control over the media. These include: Advertising is the primary source of revenue for newspapers, magazines, television, and radio Media’s dependence on advertising for revenue makes them vulnerable to control by advertisers Advertisers may exert control over the media by biasing editorial content, limiting coverage of certain issues, or influencing program content Use of this slide This slide can be used to discuss the position that advertisers control the media because a large part of their revenue is generated from advertising.
  • Relation to text This slide relates to material on pp. 757-758 of the text. Summary Overview This slide shows arguments against the position that advertisers do have control over the media. These include: They must report the news fairly and accurately to retain public confidence Advertisers need the media more than the media needs any one advertiser The media maintains separation between news and business departments. This separation is often referred to as “The Wall.” Use of this slide This slide can be used to discuss the reasons why advertisers do not control or have undue influence over the media despite the financial dependence that newspapers, magazines, and radio and television stations have on advertising.
  • Relation to text This slide relates to the material on pp. 739-741 of the text. Summary Overview This slide shows a print ad from the campaign developed by the Office of National Drug Control Policy (ONDCP) and the Partnership for a Drug Free America to address the problem of illicit drug use. This ad was developed to deal with the problem of prescription-drug abuse. Use of this slide This slide can be used to discuss how the U.S. government used advertising to address the problem of illicit drug use. You might ask students whether they think these ads are an effective way of dealing with the drug problem in the U.S.
  • Relation to text This slide relates to material on p. 760 and Exhibit 22-24of the text. Summary Overview Advertising plays an important role in a free market system. It informs customers of available goods and services, but also affects consumer choices, competition, and product/service costs and prices. This slide shows the role of advertising in the economy, which is: Making consumers aware of products and services Providing consumers with information to use to make purchase decisions Encouraging consumption and fostering economic growth Use of this slide This slide can be used to discuss the economic role of advertising.
  • Relation to text This slide relates to material on pp. 760-764 of the text. Summary Overview This slide summarizes the economic impact of advertising on consumer choice, competition, and product costs and prices. The impact of advertising includes: Effects on consumer choice: differentiation and brand loyalty Effects on competition: barriers to entry and economy of scale Effects on product costs and prices Advertising is an expense that increases the cost of products Increased differentiation The economic effect can be divided into two schools of thought. The “Advertising equals market power” perspective views advertising as a way to change consumers tastes, lower their sensitivity to price, and build brand loyalty. However, this results in higher profits, higher prices, reduced competition, and fewer choices. The “Advertising equals information” perspective views advertising as providing consumers with useful information, increasing price sensitivity, and increasing competition. Proponents of this view believe the economic effects of advertising are favorable and it contributes to a more efficient and competitive market. Use of this slide This slide can be used to discuss the economic impact of advertising on consumer choice, competition, and product costs and prices.
  • Answer: C
  • Relation to text This slide relates to the material on pp. 764-766. Summary Overview This slide shows a commercial that was used by the International Advertising Association to promote the value of advertising. The commercial notes that branded products are the consumer’s guarantee of consistent quality; friends that he or she can recognize. Without the brand name, the consumers wouldn’t know what they are buying, so they would buy less. Ads like this one are used in countries like China and Russia where consumers are unfamiliar with the concept of advertising. The goal of the campaign is to get consumers in these countries to recognize the role advertising plays in contributing to their economic well being. Many economists continue to take a negative view of advertising and its effects on the functioning of the economy, while advertisers continue to view it as an efficient way for companies to communicate with their customers and an essential component of the economic system. Use of this slide This commercial can be used to discuss the economic value of advertising.
  • Relation to text This slide relates to material on pp. 764-765 and Figure 22-3 of the text. Summary Overview Some believe that advertising equals market power. This reflects traditional economic thinking, which views advertising as a way to: Change consumers’ tastes Lower their sensitivity to price Build brand loyalty This, in turn, results in: Higher profits Reduced competition in the market Higher prices and fewer choices for consumers Use of this slide This slide can be used to discuss the “advertising equals market power” position on advertising.
  • Relation to text This slide relates to material on pp. 764-765 and Figure 22-3 of the text. Summary Overview Some believe that advertising equals information, which is a more positive view of advertising’s economic effects. The believe that advertising: Provides useful information Increase price sensitivity, which moves consumers toward lower-priced products Increases competition in the market This, in turn, results in: Pressure from consumers for high-quality products at lower prices Less efficient firms being forced out of the market, which makes room for new entrants Use of this slide This slide can be used to discuss the “advertising equals information” position on advertising.
  • Relation to text This slide relates to material on p. 766 and Figure 22-4 of the text. Summary Overview This slide shows an excerpt from a speech given by Leo Burnett summarizing the perspective of most advertising people on the economic effects of advertising. Many advertising and marketing experts agree that advertising and promotion play an important role in helping to expand consumer demand for new products and services and in helping marketers differentiate their existing brands. Use of this slide This slide can be used to discuss the positive economic effects of advertising. You might ask your students if they agree with the legendary adman regarding the positive effects of advertising.
  • Chapter22

    1. 1. Evaluating the Social, Ethical , and Economic Aspects of Advertising and Promotion 22 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
    2. 2. Advertising and Promotion Viewpoints Creates consumer needs, wants Promotes materialism, insecurity, and greed More propaganda than information Provides information Creates jobs Encourages higher standard of living Promotes competition Proponent arguments Critic arguments Helps new firms enter a market
    3. 3. Ethics in Advertising and Promotion Ethics: Moral principles and values that govern the actions and decisions of an individual or group. Not all issues can be regulated A marketing or promotion action may be legal but not ethical Marketers must decide the appropriateness of their actions
    4. 4. Promoting Responsible Drinking
    5. 5. Benetton’s “Death Row” Ad Offensive
    6. 6. Advertising and Untruthful or Deceptive General mistrust of advertising among consumers. Many do not perceive ads as honest or believable Abuses involving sales promotions such as contests, sweepstakes, premium offers Unethical and/or deceptive practices involving mail order, telemarketing and other forms of direct marketing Internet scams and abuses
    7. 7. Advertising as Offensive or in Bad Taste Sexual appeals Objectionable products Shock ads
    8. 8. 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 against self-regulation D) Test the ethics of the advertising industry E) Act as advocacy ads for company management
    9. 9. Advertising and Children 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 80% of all advertising targeted to children falls in four product categories: Toys, cereal, candy & fast food restaurants
    10. 10. Perspectives on Ads for Children Advocates Argue That Children: Marketers Argue Children: Lack the knowledge and skills to evaluate advertising claims Cannot differentiate between programs and commercials Must learn through socialization Must acquire skills needed to function in the marketplace
    11. 11. Do TV Networks Have a Double Standard ?
    12. 12. Social and Cultural Consequences Does advertising encourage materialism? Does advertising make people buy things they don’t need? Is advertising just a reflection of society?
    13. 13. Does advertising affect Society?
    14. 14. Advertising and Stereotyping Criticisms of Advertising With Regard to Stereotyping Portrayal of women to reflect their changing role in society Portrayal of women as sex objects Ethnic stereotyping/ representation Gender stereotyping Sexual orientation
    15. 15. What is your opinion of this ad? Is this woman portrayed as a sex object? Does this ad contain cues that are sexually suggestive? Does this ad present an image of sexual submissiveness?
    16. 16. Dove Challenges the Norms of Beauty
    17. 17. Test Your Knowledge Groups such as the National Organization for Women (NOW) are critical of advertising that: A) Portrays women in traditional sexist roles B) Contributes to violence against women C) Is insulting to women D) Stereotypes women E) Does any of the above
    18. 18. Advertising Can Address Social Problems *Click outside of the video screen to advance to the next slide
    19. 19. Do Advertisers Control the Media? 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 Media’s dependence on advertising for revenue makes them vulnerable to control by advertisers
    20. 20. Do Advertisers Control the Media? They must report the news fairly and accurately to retain public confidence Advertisers need the media more than the media need any one advertiser Media maintain separation between news and business departments “The Wall”
    21. 21. U.S. Government Discourages Drug Use
    22. 22. Role of Advertising in the Economy Makes consumers aware of products and services Provides consumers with information to use to make purchase decisions Encourages consumption, fosters economic growth
    23. 23. Economic Impact of Advertising <ul><li>Effects on Consumer Choice </li></ul><ul><li>Differentiation </li></ul><ul><li>Brand Loyalty </li></ul><ul><li>Effects on Product Costs and Prices </li></ul><ul><li>Advertising as an expense that increases the cost of products </li></ul><ul><li>Increased differentiation </li></ul><ul><li>Effects on Competition </li></ul><ul><li>Barriers to entry </li></ul><ul><li>Economies of scale </li></ul>
    24. 24. Test Your Knowledge From an economic perspective, advertising might lower the cost of a product by: A) Creating barriers to entry for less efficient firms B) Moving consumers to the consumer socialization stage of the buying process C) Making it possible for firms to realize economies of scale through expansion of sales volume D) Allowing firms to advertise at high levels along with competitors E) Doing none of the above
    25. 25. The Economic Value of Advertising *Click outside of the video screen to advance to the next slide
    26. 26. Summarizing Economic Effects Change consumers’ tastes Reduces competition Lowers sensitivity to price Builds brand loyalty Advertising Equals Market Power Leads to higher prices Leads to fewer choices Results in higher profits
    27. 27. Summarizing Economic Effects Provides useful information Pressure for lower prices Increases price sensitivity Increases competition Advertising Equals Information Forces inefficient firms out Pressure for high quality
    28. 28. Do you agree with Leo Burnett? “ It must be said that without advertising we would have a far different nation, and one that would be much the poorer-not merely in material commodities, but in the life of the spirit.” Excerpters is from a speech given by Leo Burnett on the American Association or Advertising Agencies’ 50th anniversary, April 20,1967
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