Chapter 21 Presentation


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Promotional Strategy - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion

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Chapter 21 Presentation

  1. 1. Promotional Strategy MKT4230 Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion Patricia Knowles, Ph.D. Associate Professor Clemson University 1
  2. 2. 2 Promotional Strategy MKT4230 2 Advertising and Promotion Viewpoints These are the two views concerning the appropriateness and value of advertising. Textbook Page 730 Creates consumer needs, faults Promotes materialism, insecurity, and greed More propaganda than information Proponent arguments Critic arguments Provides information to consumers Creates jobs Encourages higher standard of living Promotes competition Helps new firms enter a market
  3. 3. 3 Promotional Strategy MKT4230 3 Ethics in Advertising and Promotion This chart defines and summarizes ethical considerations in advertising and promotion. Textbook Page 731 Not all issues can be regulated A marketing or promotion action may be legal but not ethical Marketers must decide the appropriate-ness of their actions Ethics Moral principles and values that govern the actions and decisions of an individual or group
  4. 4. 4 Promotional Strategy MKT4230 4 Promoting Responsible Drinking This is an ad put out by the Miller Brewing Company to encourage parents to talk to their teenagers about the risks of underage drinking. Textbook Pages 731 – 732 / Exhibit 21 - 2
  5. 5. 5 Promotional Strategy MKT4230 5 Shock Ads This is an ad from the controversial “Death Row” campaign that was run by Benetton in 2000. Textbook Pages 732 – 733 / Exhibit 21 - 4
  6. 6. 6 Promotional Strategy MKT4230 6 Untruthful or Deceptive Advertising These are some of the key points about untruthful or deceptive advertising and its effects on consumers. Textbook Pages 733 - 734 Consumers Don’t trust advertising Rely on word of mouth Find ads intrusive Find relevance too low Trust websites slightly more Industry Problems Deliberately untruthful False and misleading claims Faulty sweepstakes Providing too little info Puffery and embellishment
  7. 7. 7 Promotional Strategy MKT4230 7 Advertising as Offensive or in Bad Taste Another common complaint of advertising, particularly by consumers, is that ads are offensive and in bad taste. These are some of the reasons why advertising is viewed this way. Textbook Pages 734 - 735 Sexual appealsObjectionable products Shock ads Condoms Feminine hygiene products Women’s undergarments Hemorrhoid products
  8. 8. 8 Promotional Strategy MKT4230 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. 9 Promotional Strategy MKT4230 9 What is Your Opinion of this Ad? This is an Airwalk ad that criticized for being suggestive and symbolizing sexual submission. Textbook Pages 735 – 736 / Exhibit 21 - 8 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?
  10. 10. 10 Promotional Strategy MKT4230 10 Dolce & Gabbana’s Controversial, Offensive Ad This is a Dolce & Gabbana ad that was criticized as being offensive to women. Textbook Page 732 / Exhibit 21 - 3
  11. 11. 11 Promotional Strategy MKT4230 11 Attitudes Toward Sex in Advertising This chart shows the varying attitudes that men and women have toward sex in advertising. Textbook Page 736 / Figure 21 - 1
  12. 12. 12 Promotional Strategy MKT4230 12 Advertising and Children These are key facts about the television viewing habits of children and the types of ads that target them. Textbook Pages 738 Children's TV Watching Behavior Children watch an average of 22 hours of TV per week They see up to 30,155 commercials per year 80% of ads targeted to children cover: •Toys •Cereal •Candy •Fast food
  13. 13. 13 Promotional Strategy MKT4230 13 Perspectives on Ads for Children This is a summary of the two perspectives on advertising to children Textbook Page 738 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 Advocates Argue That Children: Marketers Argue that Children:
  14. 14. 14 Promotional Strategy MKT4230 14 Other Areas of Concern These are some of the additional ways that companies market to children: • Cable television programming • Internet ads • Ads encouraging children to call 900 numbers • An increase in toy-based programs • Marketing of violent films, music, games • Advertising and promotions in schools by companies like Coca-Cola Textbook Pages 738 - 741
  15. 15. 15 Promotional Strategy MKT4230 15 Social and Cultural Consequences The social and cultural consequences of advertising and arguments both for and against advertising: Textbook Pages 741 - 744 Does advertising encourage materialism? Does advertising make people buy things they don’t need? Is advertising just a reflection of society?
  16. 16. 16 Promotional Strategy MKT4230 16 Does Advertising Affect Society? This is an ad that was developed by the American Association of Advertising Agencies in response to criticisms of advertising. Textbook Page 743 / Exhibit 21 - 13
  17. 17. These are the various ways in which advertising is accused of creating and perpetuating stereotypes. 17 Promotional Strategy MKT4230 17 Advertising and Stereotyping Textbook Pages 744 - 748 Portrayal of women to reflect their changing role in society Portrayal of women as sex objects Ethnic stereotyping/ representation Gender stereotyping Sexual orientation Criticisms of Advertising With Regard to Stereotyping
  18. 18. 18 Promotional Strategy MKT4230 18 Targeting Specific Markets This is an ad targeted to the African-American market. Textbook Page 746 / Exhibit 21 - 17
  19. 19. 19 Promotional Strategy MKT4230 19 Do Advertisers Control the Media? These are the arguments supporting the position that advertisers have control over the media. Textbook Pages 748 - 750 Ads are the primary source of revenue for newspapers, magazines, television and radio Advertisers may exert control over media by biasing editorial content, limiting coverage of certain issues, or influencing program content Media’s dependence on ads for revenue makes them vulnerable to control by advertisers
  20. 20. 20 Promotional Strategy MKT4230 20 Can Media Resist Advertisers? These are arguments against the position that advertisers control the media. Textbook Pages 750 - 751 Advertisers need the media more than the media need any one advertiser Media must report the news fairly and accurately to retain public confidence Media maintain separation between news and business departments “The Wall”
  21. 21. 21 Promotional Strategy MKT4230 21 The Social Value of Media This is a print ad developed by the Partnership for a Drug Free America and the Office of National Drug Control Policy. Textbook Pages 751 – 752 / Exhibit 21 - 20
  22. 22. 22 Promotional Strategy MKT4230 22 Economic Effects of Advertising These are ways in which advertising has an affect on the economy and an ad promoting the same. Textbook Pages 752 – 753 / Exhibit 21 - 22 Makes consumers aware of products and services Provides consumers with information to use to make purchase decisions Encourages consumption, fosters economic growth Leads to economies of scale and lower prices
  23. 23. 23 Promotional Strategy MKT4230 23 Economic Impact of Advertising This visual summarizes the economic impact of advertising on consumer choice, competition, and product costs and prices. Textbook Pages 753 – 755 / Exhibit 21 - 25 Consumer Choice • Differentiation • Brand Loyalty Product Costs & Prices • Advertising is an expense that increases product costs • Increased differentiation Competition • Barriers to entry • Economies of scale
  24. 24. 24 Promotional Strategy MKT4230 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. 25 Promotional Strategy MKT4230 25 Summarizing Economic Effects This chart summarizes the position that advertising equals market power. Textbook Pages 756 / Figure 21 - 3 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
  26. 26. 26 Promotional Strategy MKT4230 26 Summarizing Economic Effects This chart summarizes the position that advertising equals market power. Textbook Pages 756 - 757 / Figure 21 - 3 Provides useful information Pressure for lower prices Increases price sensitivity Increases competition Advertising Equals Information Forces inefficient firms out Pressure for high quality
  27. 27. 27 Promotional Strategy MKT4230 27 The Value of Advertising This is an ad that the American Advertising Federation (AAF) uses to promote the value of advertising in building strong brands. Textbook Pages 757 / Exhibit 21 - 27 Advertising. The way great brands get to be great brands.
  28. 28. 28 Promotional Strategy MKT4230 28 The Positive Effects of Advertising This are excerpts from a speech given by Leo Burnett. Textbook Pages 757 – 758 / Figure 21 - 4