Advertising Social,Legal,Ethical & Economical Aspects


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Advertising Social,Legal,Ethical & Economical Aspects

  1. 1. ADVERTISING- SOCIAL,LEGAL,ETHICAL & ECONOMICAL ASPECTS Submitted to : Submitted by: Swati Sharma Avtar Singh Faculty, Rbs Anil Kumar Pankaj Kumar Sham Singh
  2. 2. WHAT IS ADVERTISING <ul><li>Advertising is any paid form of non personal presentation and promotion of goods, services & ideas by an identified sponsor. </li></ul><ul><li>Advertising is a general phrase used for the announcements made by sellers to promote the sales of their products. </li></ul>
  3. 3. Social aspects of advertising <ul><li>Advertising as a part of firm’s marketing effort operates in the society. It has to therefore follow the social norms. </li></ul><ul><li> Key areas of debate regarding society and advertising are: </li></ul><ul><li>Deception </li></ul><ul><li>Manipulation </li></ul><ul><li>Taste </li></ul>
  4. 4. Social aspects of advertising <ul><li>Deception: it refers not only to the information content in advertising but may also arise from misplace emphasis in presentations. </li></ul><ul><li>According to federal trade commission of the USA- </li></ul><ul><li>“ Advertising as a whole must not create a misleading impression although every statement, separately considered, may be literally truthful” </li></ul>
  5. 5. Social aspects of advertising <ul><li>Manipulation :- The freedom of choice of consumers is restricted by the power of advertising since it can manipulate buyers into making a decision against their will or interest. </li></ul><ul><li>Manipulation is done through emotional appeals. These companies can utilize advanced and very scientific advertising techniques and thus make an impression on consumers. </li></ul>
  6. 6. Social aspects of advertising <ul><li>Taste:- Sometimes ads are offensive, tasteless, irritating, boring and so on. </li></ul><ul><li>Sources of distaste </li></ul><ul><li>Sexual Appeals </li></ul><ul><li>Shock advertising </li></ul>
  7. 7. Social aspects of advertising <ul><li>Some examples of the Advertisements with social aspects:- </li></ul><ul><li>Grow-more-trees advertisements </li></ul><ul><li>Drink milk </li></ul><ul><li>Eat healthy food, eat eggs </li></ul><ul><li>Mother’s milk is best for the baby </li></ul><ul><li>Say no to drugs every time </li></ul><ul><li>Get your child vaccinations in times </li></ul>
  8. 8. Legal aspects of advertising <ul><li>The government in each country has to make sure that advertisements appearing do not flaunt of their rules & regulations. </li></ul><ul><li>It should not:- </li></ul><ul><li>show anti-national feelings </li></ul><ul><li>contain misleading information about the product </li></ul><ul><li>Violate government rules </li></ul>
  9. 9. Legal aspects of advertising <ul><li>Some examples of the Advertisements with legal aspects:- </li></ul><ul><li>Get your car checked for pollution </li></ul><ul><li>Drinks & driving do not mix </li></ul><ul><li>Weight, price, manufacturing date, date of expiry should be mentioned on the packing case </li></ul>
  10. 10. Ethical aspects of advertising <ul><li>Ethics are the moral standards against which behavior is judged </li></ul><ul><li>Key areas of debate regarding ethics and advertising are: </li></ul><ul><ul><li>Truth in advertising </li></ul></ul><ul><ul><li>Advertising to children </li></ul></ul><ul><ul><li>Advertising controversial products </li></ul></ul>
  11. 11. Ethical aspects of advertising <ul><li>Truth in Advertising </li></ul><ul><ul><li>Deception is making false or misleading statements. </li></ul></ul><ul><ul><li>Puffery ( commercial exaggeration ) is legal. </li></ul></ul><ul><ul><li>Cannot legislate against emotional appeals </li></ul></ul>
  12. 12. Ethical aspects of advertising <ul><li>Advertising to Children—Issues </li></ul><ul><ul><li>Advertising promotes superficiality and materialism in children. </li></ul></ul><ul><ul><li>Children are inexperienced and easy prey. </li></ul></ul><ul><ul><li>Persuasion to children creates child-parent conflicts. </li></ul></ul><ul><ul><li>What does the literature say about kid’s abilities to process persuasive information? </li></ul></ul>
  13. 13. Ethical aspects of advertising <ul><li>Advertising Controversial Products </li></ul><ul><ul><li>Critics question the “targeting” of minorities. </li></ul></ul><ul><ul><ul><li>Tobacco, alcohol, gambling and lotteries are product categories of greatest concern. </li></ul></ul></ul><ul><ul><li>How does the concept of “primary demand” provide insights here? </li></ul></ul><ul><ul><li>What does the literature say about advertising’s impact on these product categories? </li></ul></ul>
  14. 14. Economic aspects of advertising <ul><li>Making Consumers Aware of Products and Services </li></ul><ul><li>Providing Consumers With Information to Use to Make Purchase Decisions </li></ul><ul><li>Encouraging Consumption and Fostering Economic Growth </li></ul>
  15. 15. Economic aspects 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 Competition </li></ul><ul><li>Barriers to entry </li></ul><ul><li>Economies of scale </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>