The document discusses ethical standards in advertising. It notes that while the Federal Trade Commission regulates truth in advertising, advertisers still have significant leeway to violate consumer ethical standards. It also discusses how large corporations have seen record profits while unethical business practices have exacerbated economic downturns. Who determines ethical standards is a complex issue with room for interpretation.

2. Who Determines the Ethical Advertising Standards?
According to Chron (2018), “The advertising industry operates
within strict federal regulations and is monitored by the Federal
Trade Commission. Even with truth-in-advertising laws in place,
advertisers have significant leeway to violate the ethical
standards of a wide range of consumers” (para. 1).

3. • ACCORDING TO STRATEGIES OF ETHICAL MARKETING (2012), “ACCORDING TO THE BUREAU OF
ECONOMIC ANALYSIS, CORPORATE PROFITS SOARED TO ALL TIME HIGHS IN 2011. AT THE SAME
TIME, THE WORLD WAS SUFFERING THROUGH A CRIPPLING ECONOMIC DOWNTURN MADE WORSE
BY UNSCRUPULOUS BUSINESS PRACTICES. THE VAST DISPARITY BETWEEN CORPORATIONS AND
THEIR CUSTOMERS HAS MADE ETHICAL BUSINESS PRACTICES AN EXTREMELY RELEVANT ISSUE. ”
(PARA. 2).
Ethical Advertising?

4. A: Advertisement in America has always followed
American culture. We can see it beginning in 1682
with shopping guides. As time continued, it didn’t
only announce consumer goods but began
persuading the public. ("History Of Advertisement Timelines |
Timetoast Timelines", 2018).
Q: In what ways has advertising affected American culture?

5. ADVERTISING THROUGH TIME
Shopping
Guides
1682
1700s
1st Advertising
Agency born!
1843
1st
Newspaper,
Town crier &
Magazine
Mid 1800s
Ads ran
rampant about
the selling of
slaves either
captured,
brought or
runaway
1873
1st Advertising
Convention
1939
Army Ads
1950s 1990s
TV
born
Internet
born
NOW
Social
media
born

6. THEN & NOW
• “In the 1880s, industries ranging from soap to canned food to
cigarettes introduced new production techniques, created
standardized products in unheard-of quantities, and sought to
find and persuade buyers.”
• “It nevertheless acquired a new centrality in the 1920s.
Consumer spending–fueled in part by the increased availability
of consumer credit–on automobiles, radios, household
appliances, and leisure time activities like spectator sports and
movie going paced a generally prosperous 1920s. Advertising
promoted these products and services.”

7. WHAT ARE THE KEY PERSUASIVE
TECHNIQUES USED IN CONSUMER
ADVERTISING?
1. repetition
2. claims
3. association
4. bandwagon
5. promotions

10. MCDONALD’S PHILOSOPHY
• “Ray Kroc wanted to build a restaurant system that would be famous for
providing food of consistently high quality and uniform methods of preparation.”
• He wanted to serve burgers, fries and beverages that tasted the same
anywhere.
• To achieve his goal he created and convinced franchisees that they were in
business for them selves but not alone.
• Believing that the franchisees, suppliers and employees were a part of a 3-
legged stool and that the stool was as strong as the legs that supported it.

11. MCDONALD’S ADVERTISING
• McDonald’s ads usually convey a moment of happiness for food at a great
value.
• Has developed a sense of a family tradition surrounding a McDonald’s
propaganda.
• Gives back to the community.
• Runs local charities.
• McDonald's uses its marketing strategy of providing a great value to help meet
its three goals. This involves serving quality food quickly and in a fun
environment, being a socially responsible company and providing a good return
for all of the people who invest in the company.

12. 5 KEY ADVERTISING TECHNIQUES
Repetition: McDonald’s offers 3 products: a burger (choice of meat), potato (fries or hash brown)
and beverage.
Claims: One can buy a satisfying meal for low cost at any McDonald’s (e.g. Dollar Menu)
Association: McDonald's partners really well with the entertainment industry for advertising or
toys.
Bandwagon: Advertisements show families or friends gathering at McDonald's having a great
time.
Promotions: McDonald's is always offering a special promotion that enables its prices to stay at
an unfair advantage to other fast food retailers.

13.  THE REALITY
• ACCORDING TO "WHAT IS MCDONALD'S MARKETING
STRATEGY? | REFERENCE.COM (2018), “HOWEVER,
ONLYABOUT 15 PERCENT OF ALL MCDONALD'S
RESTAURANTS ARE OWNED BY THE ACTUAL
COMPANY. THE REMAINING 85 PERCENTARE
OPERATED UNDER FRANCHISES. ALTHOUGH
FRANCHISES HAVE TO FOLLOW CERTAIN RULES IN
TERMS OF QUALITY, CLEANLINESS AND SERVICE,
THEY ALSO HAVE THE ABILITY TO OPT OUT OF
CERTAIN PROMOTIONS. THIS MEANS THAT SOME
MINOR MARKETING STRATEGIES DIFFER FROM
LOCATION TO LOCATION” (FULLANSWER).

14. ADVERTISING TO CHILDREN
According to Chron (2018), “Although the FTC places
special emphasis on truth-in-advertising laws when
applied to children, the law allows for a great deal of
unethical behavior here. Former FTC commissioner
Roscoe B. Starek states that children are not likely to
understand exaggerated statements or images”
(Advertising to Children).

15. MCDONALD’S AND CHILDREN

16. SO
INTERESTING…
The Ronald McDonald House aims at
helping families care for a sick child. ("What We Do", 2018).

17. BUT, ON THE OTHER HAND…
• MCDONALD'S AGGRESSIVELY TARGETS CHILDREN IN THEIR ADVERTISING CAMPAIGNS, SO
HEAVILY THAT CHILDREN OFTEN ARE ABLE TO RECOGNIZE THE MCDONALD’S LOGO EVEN AS A
SMALL CHILD.
• THE ADAPTATION OF MOST MCDONALD’S HAVING A PLAYGROUND, GETTING THE “ALL AMERICAN
MEAL” AT A LOW COST IN A SPECIALLY MADE CONTAINER WITH A TOY INSIDE OF IT HAS MADE
MCDONALD’S A FAVORITE PLACE FOR CHILDREN.
• “IF COMPANIES FIND A WAY TO FOSTER THIS RELATIONSHIP WITH A CHILD AT A YOUNG AGE, IT IS
MORE LIKELY THAT THE CHILD WILL ESTABLISH BELIEF AND TRUST IN THE COMPANY.”
• BECAUSE OF ALL THE CRITICS MCDONALD’S HAS GOTTEN OVER THE YEARS FOR BEING AN
UNHEALTHY PLACE FOR CHILDREN, THEY CHANGED A FEW THINGS. FRIED WERE REDUCED FROM
2.4 OZ TO 1.1 OZ, LOW-FAT MILK WAS ADDED AND SO WERE APPLE SLICES. THIS LOWERED THE
CALORIE INTAKE TO ABOUT 20 LESS THEN THE NATIONAL AVERAGE. CRITICS WONDER IF THIS IS
REALLY A WAY TO MAKE PEOPLE THINK OF THE HAPPY MEAL AS A “HEALTHY” OPTION?
("What We Do", 2018).

19. WHAT TO WONDER…
• It’s a wonder, why is McDonald's reputation so bad?
It makes you wonder –who did they make mad that
devoted their life to ruining their reputation!
• We are choosing to eat there – knowing it’s
unhealthy and blaming McDonald's…
• Yes, McDonald's is unhealthy! But, can we blame
them for their obesity crisis? I don’t think so.
Google/research study over study and one will see
McDonald's is actually one of the best –yep I said (err
wrote it) BEST places to eat for fast food. They never
appear in the top 5 and only one sandwich continually
appears on the bottom of the list, no matter which site
you review.

20. We as a society, may just have to accept that McDonald’s
isn’t going anywhere. There ads are relatable and strike
us as appealing. Whether we like to admit or not we often
do think of them in those “crunch” times (whether or not
we act on it).
In this commercial, the dad is heading the sleepover of his
little girl(s) and friends. So, he orders the “my wife’s out of
town and I’m over my head meal”, which turns out to be 4
Happy Meals and his meal.
THE AMERICAN STAPLE
DOUBLE CLICK TO SEE AD

21. VIDEO NOTES:•The target group are obviously African Americans. This is something I admire but think can
get a little pushy when it seems too directed at one particular group of people. However, at
least the commercial portrays an African American family (and male) in a positive light.
•Being a married woman, I can look at that commercial laugh and relate, because it’s
exactly how my husband thinks! He will run out to get our daughter something to eat
whereas I would just cook it. Apparently, other dads do it too!
•This is what makes McDonald’s effective. They understand their customer and the average
American. With that understanding they are able to portray it through advertisement which
keeps consumers engrossed in their brand.
•The only thing I disagreed with was the commercial seems more focused on the Happy
Meals but at the end it speaks about different combinations you can get (including a Happy
Meal) but shows all the items. This makes me feel as though it is suggesting not ordering
Happy Meals for kids (although it is saying at the same time). It feels a little ethically wrong.

22. REFERENCES
11 UNSETTLING FACTS YOU SHOULD KNOW ABOUT MCDONALD'S HAPPY MEALS. (2018). RETRIEVED FROM
HTTPS://WWW.HUFFINGTONPOST.COM/2014/03/13/MCDONALDS-HAPPY-MEAL-FACTS_N_4936593.HTML
AMERICAN ADVERTISING: A BRIEF HISTORY. (N.D.). RETRIEVED FROM
HTTP://HISTORYMATTERS.GMU.EDU/MSE/ADS/AMADV.HTML
CHRON. (2018). LIST OF ETHICAL & LEGAL ISSUES WHEN ADVERTISING. RETRIEVED FROM
HTTP://SMALLBUSINESS.CHRON.COM/LIST-ETHICAL-LEGAL-ISSUES-ADVERTISING-11466.HTML
HISTORY OF ADVERTISEMENT TIMELINES | TIMETOAST TIMELINES. (2018). RETRIEVED FROM
HTTPS://WWW.TIMETOAST.COM/TIMELINES/61588
OUR HISTORY: RAY KROC AND THE MCDONALD'S BROTHERS | MCDONALD'S. (2018). RETRIEVED FROM
HTTPS://WWW.MCDONALDS.COM/US/EN-US/ABOUT-US/OUR-HISTORY.HTML
ROM SLAVERY TO PRESENT DAY: THE EVOLUTION OF AFRICAN AMERICAN IN ADVERTISING | AMERICAN HISTORY FOR
TRAVELERS. (2012). RETRIEVED FROM HTTP://HTTPS://AMERICANHISTORY4TRAVELERS .COM/2012/08/05/FROM-SLAVERY-TO-PRESENT-
DAY-THE-EVOLUTION-OF-AFRICAN-AMERICANS-IN-ADVERTISING/

23. REFERENCES
(CONT.)
STRATEGIES OF ETHICAL MARKETING. (2012). ETHICAL MARKETING | WHAT IS ETHICAL MARKETING?. RETRIEVED
FROM HTTP://WWW.MARKETING-SCHOOLS.ORG/TYPES-OF-MARKETING/ETHICAL-MARKETING.HTML
THINGS YOU DIDN’T KNOW ABOUT MCDONALD’S: COMPARE FAST FOOD FIGURES, NUTRITION FACTS & CONTROVERSIES.
(N.D.). RETRIEVED FROM HTTP://COMPARECAMP.COM/THINGS-YOU-DIDNT-KNOW-ABOUT-MCDONALDS-COMPARE-FAST-FOOD-
FIGURES-NUTRITION-FACTS-CONTROVERSIES/#
WHAT IS MCDONALD'S MARKETING STRATEGY? | REFERENCE.COM. (2018). RETRIEVED FROM
HTTPS://WWW.REFERENCE.COM/BUSINESS-FINANCE/MCDONALDS-MARKETING-STRATEGY-865A72F75C054D43
WHAT WE DO. (2018). RETRIEVED FROM HTTPS://WWW.RMHC.ORG/WHAT-WE-DO
YOUTUBE. (2018). RETRIEVED FROM HTTPS://WWW.YOUTUBE.COM/WATCH?V=C1HZQL6HOCG
#1 HARDEE'S/CARL'S JR.: 2/3-POUND MONSTER THICK BURGER. (N.D.). RETRIEVED FROM
HTTPS://WWW.THEDAILYMEAL.COM/EAT/AMERICA-S-UNHEALTHIEST-FAST-FOODS/SLIDE-13