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In Advertising
The competitive
drive to develop the
most effective
attention-grabbing
messages possible
The fear of crossing
the line beyond what
is legal, ethical, and
socially acceptable
Marketers encounter constant tension between:
Ethics
Ethics: Moral and value standards that
act as behavioral guidelines for a
society’s citizens
•Unlike laws and regulations,
ethical codes are generally not
written down
Ethics in Advertising and Promotion
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
Ethics: Moral principles and values that govern the
actions and decisions of an individual or group.
Children Elderly
Minorities
Developing
Countries
Minorities
ElderlyChildren
Targeting Vulnerable Groups
Targeting
Vulnerable
Groups
Offensive Messages
Marketers have a range of
creative options for their
messages—
each with a trade-off
Attention-
grabbing—but
controversial,
maybe offensive
Safe but boring
Questionable
B2B Practices
Puffery
Commercial
Free Speech
Misleading
Claims
Fraud
Questionable
B2B Practices
Puffery
Misleading
Claims
Commercial
Free Speech
What Legal Issues Relate to MC
Legal
Issues
National
Advertising
Division
National
Advertising
Review Council
Better Business
Bureau
Children’s
Advertising
Review unit
National
Advertising
Review Board
National
Advertising
Division
National
Advertising
Review Council
Children’s
Advertising
Review Unit
Better Business
Bureau
Industry Self-Regulation Groups
Regulating
Groups
Federal Trade
Commission
Patent and
Trademark
Office
State and Local
Regulations
Foreign
Regulations
State and Local
Regulations
Patent and
Trademark
Office
Federal Trade
Commission
Government Oversight
Government
Oversight
Approval Processes
Corporate Ethical Standards
Social Marketing
Corporate Ethical Standards
Approval Processes
Managing These Issues Is Complex
Managing
Issues
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
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
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
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?
Dove Challenges the Norms of Beauty
Economic Impact of Advertising
Effects on Consumer Choice
• Differentiation
• Brand Loyalty
Effects on Product Costs and Prices
• Advertising as an expense that increases the
cost of products
• Increased differentiation
Effects on Competition
• Barriers to entry
• Economies of scale
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
Why ‘Ethical’ Advertising?
Not to hurt sentiments of the society
Maintain a code of conduct
Avoid misrepresentation
Adhere with social norms
Social acceptance
Helps in image building
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising
Ethics In Advertising

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Ethics In Advertising

  • 2. The competitive drive to develop the most effective attention-grabbing messages possible The fear of crossing the line beyond what is legal, ethical, and socially acceptable Marketers encounter constant tension between:
  • 3. Ethics Ethics: Moral and value standards that act as behavioral guidelines for a society’s citizens •Unlike laws and regulations, ethical codes are generally not written down
  • 4. Ethics in Advertising and Promotion 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 Ethics: Moral principles and values that govern the actions and decisions of an individual or group.
  • 5.
  • 6.
  • 8. Offensive Messages Marketers have a range of creative options for their messages— each with a trade-off Attention- grabbing—but controversial, maybe offensive Safe but boring
  • 9. Questionable B2B Practices Puffery Commercial Free Speech Misleading Claims Fraud Questionable B2B Practices Puffery Misleading Claims Commercial Free Speech What Legal Issues Relate to MC Legal Issues
  • 10. National Advertising Division National Advertising Review Council Better Business Bureau Children’s Advertising Review unit National Advertising Review Board National Advertising Division National Advertising Review Council Children’s Advertising Review Unit Better Business Bureau Industry Self-Regulation Groups Regulating Groups
  • 11. Federal Trade Commission Patent and Trademark Office State and Local Regulations Foreign Regulations State and Local Regulations Patent and Trademark Office Federal Trade Commission Government Oversight Government Oversight
  • 12. Approval Processes Corporate Ethical Standards Social Marketing Corporate Ethical Standards Approval Processes Managing These Issues Is Complex Managing Issues
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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?
  • 17. Dove Challenges the Norms of Beauty
  • 18. Economic Impact of Advertising Effects on Consumer Choice • Differentiation • Brand Loyalty Effects on Product Costs and Prices • Advertising as an expense that increases the cost of products • Increased differentiation Effects on Competition • Barriers to entry • Economies of scale
  • 19. 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
  • 20. Why ‘Ethical’ Advertising? Not to hurt sentiments of the society Maintain a code of conduct Avoid misrepresentation Adhere with social norms Social acceptance Helps in image building