INTRODUCTION• There is no doubt that advertising attracts all of us in number of ways, but• there are also number of controversy associated with advertising• Generally, these controversies are concerned about the impact of advertising on economy, society and ethics
ROLE OF ADVERTISING INMODERN BUSINESS WORLDAdvertising is primarily a means by which sellers communicate to prospective buyers. What they communicate? “The worth of their goods and services” Contd…
ROLE OF ADVERTISING IN MODERNBUSINESS WORLD1. Economic function2. Social function3. Psychological function
ROLE OF ADVERTISING IN MODERN BUSINESS WORLDEconomic function• Advertising communicates the message in persuasive language• It create wide markets as the information is delivered to people far and wide• It inclines people favorably to the products and affect our attitudes• Therefore, advertising performs an economic function by being an art of persuasion• Advertising is also an economic process—it helps the product to become known and it facilitates exchange between those who need the product and those who can satisfy the need• Provides employment opportunities (in advertising industry)
ROLE OF ADVERTISING IN MODERN BUSINESS WORLDSocial function• Advertising affects the core cultural values and subsidiary cultural values• Advertising is a mirror to the society in which it operates…it reflects the cultural values of that society• Advertising can also transfer some cultural values of one society to other• Advertising has improved our standard of livinge.g. we buy TV, AC, Computers, Cars etc after getting interested in these products through advertisingWe have accepted new ideas such as microwave, electric shaving, detergents etc through advertising
ROLE OF ADVERTISING IN MODERN BUSINESS WORLDSocial function• Advertising protects the consumer by educating them and by forcing the manufacturers to maintain quality and to be fairTherefore…..Advertising brings about consumer welfare in two ways:a. By improving standard of livingb. By improving product quality
ROLE OF ADVERTISING IN MODERNBUSINESS WORLDPsychological function• Advertising is closely linked to consumer behavior, therefore,• it affects personality of consumer, his concept of self, his attitudes, beliefs, opinions, his life-style etc• Advertising appeals to our physiological and psychological motives
ADVERTISING AND SOCIETY• Advertisements are not just the sellers• They reflect the society• Whatever is used in society is reflected in advertisinge.g.o Pakistani society is highly family oriented (example ads: savings for children, daughter’s marriage)o Pakistani society is people-oriented, and not self-orientedo For the sake of our family and others, we Pakistani can postpone our own gratificationo We are also fun loving (example ads: Lux, Pepsi, Jeans etc)
ETHICS IN ADVERTISING• Should not mislead the consumer• What it promises must be there in the performance of products• Ad should not be indecent and obscene• As advertising is also a social process, it must honor the norms of social behavior, and should not offend our moral sense• PAS (Pakistan Advertisers Society) regulates the advertising has the set guidelines
GUIDELINES• To ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading advertising.• To ensure that advertisements are not offensive to generally accepted standards of public decency.• To safeguard against indiscriminate use of advertising for promotion of products which are regarded as hazardous to society or to individuals to a degree or of a type which is unacceptable to society in large.• To ensure that advertisements observe fairness in competition so that consumers need to be informed on choices in the market place and the canons of generally accepted competitive behavior in business are both served.
ETHICAL ISSUES IN ADVERTISINGAdvertising is a highly visible business activity and any lapse in ethical standards can often be risky for the company.Some of the common examples of ethical issues in advertising are give below:• Vulgarity/Obscenity used to gain consumers’ attention• Misleading information and deception• Puffery• Stereotypes• Racial issues• Controversial products (e.g. alcohol, gambling, tobacco etc)
Basic Tenets of the Code• It is held that the responsibility of advertisers, advertising agencies, media and other associated companies is a constructive force in business. To fulfill this responsibility, it is essential that the parties recognise their obligation to themselves and to each other.• As a business the industry must operate in the spirit of vigorous competition honestly conducted.• It is recognized that unethical competitive practices in the advertising business lead to financial waste, loss of prestige and to the weakening of public confidence, in both, the advertisements and the industry.
Conti……..• The right of advertising is a responsibility towards the consumers and the society at large. Specifically the society members will not create advertising that is: – False or misleading visually or verbally. – Claims insufficiently supported that distort the true meaning or practicable application of statements made by professional or scientific authority. – Testimonials that do not reflect the real opinions of individuals involved. – Price claims that are misleading. – Statements, suggestions or pictures offensive to public decency or minority segments of the population.