Social, Economical impact, Effect on consumer Demand,Effect on Consumer Choice,Effect on Business cycle,Deception in Advertising The Subliminal Advertising,Effect on Value System,Effect of Proliferation of Advertising,Use of Stereotypes in Advertising,Offensiveness in Advertising,Effect on Perspective,Social Responsibility,Offensive Advertising

1. Ms. Rajlaxmi Bhosale

2. Impact of Advertising
 As defined by Albert Lasker- Advertising is
salesmanship in print (in today’s parlance , in the paid
space and time of mass media)
 As a means of communincation, advertising shares
certain traits from journalism, education and
entertainment but it shouldn’t be judgedby those
standards.
 Sponsors advertise because they hope it will help their
sell some product , service or idea.

3. Impact of Advertising
Economic Social

4. Economic Impact of Advertising
 Comm-
unications
Adve
rtsin
g
Medi
a
Cons
umers
Trade
custo
mers
Comp
etitor
s
Retail
ers
Distrib
utors
Man
ufac
ture
s
Whol
esale
rs
Suppli
ers
Distr
ibut
ors
Stake
holder
s
Direct
ors
Mana
gers
Empl
oyees
Sub
Con
tract
Customers Organisations
Individuals

5. Economic Impact of Advertising
 Psycologist Ernest Ditcher asserted that :
A products’ image , created in part by advertisisng and
promotion is an inherent feature of the product itself.
Subsequent studies showed that while an ad may not
address a product’s quality directly , the positive image
conveyed by advertising may imply quality.

6. Economic
impact
Effect on Prices
Effect on
consumer
Demand
Effect on
Consumer
Choice
Effect on
Business cycle

7. Effect on prices …
 Does advertising increase the cost of the product??
 FTC and Supmreme court have ruled that , by
encouraging competition, advertising has the effect of
keeping prices down

8. Effect on prices …
 Advertising cost is borne by the customers
 Advertising cost is usually very small as compared
with the total cost of the product
 Advertising enables many manufacturers to
engage in mass production, which in turn lowers
the prices
 Industries subject to government price regulation
(agriculture)advertising has no effect on prices.

9. Effect on Competition .…
 Has negligible impact on retail sector
 Non advertised store brands of food compete
effectively with nationalized advertised brands on the
same grocery shelves.
 Some observers believe , Advertising also restricts
competition as small companies and industry
newcomers cant compete with immense advertising
budget of large firms

10. Effect on Consumer Demand…
 Relation of consumer demand and advertising is
extremely complex.
 Many studies show that advertising doesn’t aggregate
the consumption.
 Social& economic forces like technological advances,
education level,increase in population, income ,
changes in life style are more significant.
 Eg: use of mobiles and computers
 Similarly

11. Effect on Consumer Demand…
 Advertising can help get new product off the ground
by giving more people more “ complete information”
thereby stimulating Primary demand-demand for
the entire product class.
 In declining markets people want only price
information , here advertising can influence selective
Demand-demand for a particular brand.
 In growing markets, advertisers generally compete for
shares of that growth.
 In mature, static or declining markets, they compete
for each other’s shares.

12. Effect on Consumer Demand…
Eg : In India, the demand of
products such as, automobiles,
cellular phones , television sets ,
packaged foods will continue to
grow irrespective of the
advertisement due to the growing
market.

13. Effect on Consumer Choice…
 The best way to attract the consumers is to make
their product different.
 The freedom to advertise, encourages businesses
to create new brands and improve old ones.
 One dominant product may make the smaller
brands disappear, but a better product advertised
skillfully , may allow the dominant brand to lose to
the newer better product.

14. Effect on Business Cycle …
 Some argue that advertisement is responsible for
increased consumption patterns of the consumer and
hence, increase in GNP.(Others also argue that is
wasteful expenditure)
 Organisations that advertise during the lean business
cycle will reap benefit when business bounces up.
 Advertising contributes to volume growth, when
business cycle is up and stabilizes when business cycle
is down.

15. Social
Impact
Deception in
Advertising
The Subliminal
Advertising
Effect on Value
System
Effect of
Proliferation of
Advertising
Use of
Stereotypes in
Advertising
Offensiveness in
Advertising
Effect on
Perspective
Social
Responsibility
Advertising
Ethics

16. Deception in Advertising
 If a product doesn’t live upto its ads,
dissatisfaction occurs- and in long term is
harmful to the advertiser and the buyer.
 Meaningless (but legal)puffery might also
be taken as deceptive.
 Puffery refers to exaggerated, subjective
claims that can’t be proven true or false,
such as “the best” “premier” or “the only
way to fly”

17. Deception in Advertising
 Factually false or convey a false impression
and therefore have a potential to deceive or
mislead.
 Usually non product facts are used by the
advertisers.
 Like “Pepsi. The choice of a new generation”
 Non product facts are not about the brand
but about the consumer or social context in
which the consumer uses the brand.

18. Deception in Advertising
 Papa John’s Advertisement was considered deceptive
by Pizza Hut and a district t judge agreed and awarded
half million dollars in damage.
 The slogan was stopped but was overturned later on
appeal, but shows limits on what advertisers showd
safely puff.

19. Deception in Advertising

20. Characteristics of Deception in
Advertising
False promises – restores youth, prevents
cancer
Eg: Listerine promised to prevent sore
throat and cold, FTC asked to cut the ad
and run a corrective campaign.
Incomplete description
False and misleading comparsion
Bait and switch offers

21. Characteristics of Deception in
Advertising
Visual Distortion and false
demonstration- GM motors window
vendor advertisemnt
False testimonials-Celebrity
endorsement
Partial Disclosure
Small print qualification

22. Characteristics of Deception in
Advertising
Excessive profit margin
Product safety
 Harmful and low benefit
products
Poor services

23. Misleading Advertisement
 Any advertisement or promotion through
Television, Radio, or any other electronic
media, Newspapers, Banners, Posters,
Handbills, wall-writing etc. to misrepresent
the nature, characteristics, qualities or
geographic origin of goods, services or
commercial activities so as to mislead the
consumer could be broadly defined as a
misleading advertisement.

24. The Advertising Standards Council
of India (ASCI)
 The Advertising Standards Council of India (ASCI) was founded in 1985. The three main constituents of advertising industry viz advertisers,
advertising agencies and media came together to form this independent NGO. The aim of ASCI is to maintain and enhance public's
confidence in advertising. Their mandate is to make sure that all advertising material must be truthful, legal, and honest; it should also not
objectify women. It should be safe for consumers, especially children and fair to their competitors.
 The Real Estate (Regulation and Development) Bill, approved by the cabinet, seeks to provide a uniform regulatory environment to the
sector. It also intends to make it mandatory for developers to launch projects only after acquiring all statutory clearances from relevant
authorities.
 The Food Safety and Standards Authority of India (FSSAI). FSSAI was established under Food Safety and Standards Act, 2006 which
consolidates various acts & orders that have handled food related issues in various Ministries and Departments. FSSAI has been created for
laying down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import to ensure
availability of safe and wholesome food for human consumption.
 District Consumer Disputes Redressal Forum (DCDRF): Also known as the "District Forum" established by the State Government in each
district of the State.
 State Consumer Disputes Redressal Commission (SCDRC): Also known as the "State Commission" established by the State Government in
the State. It is a state level court that takes up cases valuing less than INR10 million
 National Consumer Disputes Redressal Commission (NCDRC): Established by the Central Government. It is a national level court that works
for the whole country and deals with amount more than INR10 million.
 Other than these there are many laws that elucidate and work towards the rights of a consumer:
 The Sales of Goods Act, 1930
 The Drugs and Cosmetics Act, 1940
 The Pharmacy Act, 1948
 The Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954 etc
 Currently there are numerous platforms for a product to get itself advertised and publicised. Despite being a challenging task, it is the job of
the brand to verify whether the content of those advertisements, adheres to the codes of conduct under various laws.
 The number of advertisements which are patently false and misleading, promoting dubious products and making unsubstantiated claims is
significant in India. Infact, most of these advertisements escape the scrutiny of regulatory bodies.
 In this world of claims and counter claims, it is extremely important for a consumer to keep his eyes and ears open and not let any false claim
take him for a ride.

25. Customer Complaints Council (CCC) of the
Advertising Standards Council of India (ASCI)
against iPhone 7
 The advertisement text states 'The amazing iPhone 7 is
here', but shows an image of iPhone 7 Plus variant,
which is misleading by ambiguity and implication,"
said ASCI

27. ASCI against Coca-Cola
 Thums Up campaign, in which the soft drink major
has showcased a rider performing a wheelie in normal
streets, traffic conditions, right amongst a few people.
 "This is contradictory to the disclaimer made in the
advertisement - the actions are for representational
purposes alone and must not be copied by viewers...
 It was concluded that though the overall
advertisement is not objectionable, regardless of the
disclaimer the specific visual... encourages dangerous
practices, manifests a disregard for safety and
encourages negligence,"

29. ASCI against FMCG major HUL
 Rin Antibac, had claimed that the detergent powder
with Ayurvedic extracts removes germs.
 ASCI said the claim "was not substantiated, and is
misleading by implication and exaggeration as the
advertised product does not have the property to
provide germ protection in wear conditions".

33. Patanjali pays the fine !!
 A fine of 11 lakhs was imposed on Yog guru, Baba
Ramdev’s company Patanjali Ayurved Ltd. For
misbranding and misrepresentation of its
products.
 The city court under section 52 (misbranding) and
Section 53 (misleading advertising) of the Food
Safety and Standards Act, 2006 as well as
Section23.1(5) Food Safety and Standard
(Packaging and Labeling Regulation )2011 asked to
to pa y the fine within a month.

41. Subliminal Advertising Myth
Wilson Bryan key promotes the notion
that to seduce the consumers,
advertisers intentionally create ads
with sexual messages hidden in the
illustrations just below the limen- or
the threshold of perception.

42. Subliminal Advertising

43. Subliminal Advertising

44. Marlboro and Ferrari: Marlboro cleverly got round this ban by creating a more
subtle design. They simulated a tobacco packet by painting a bar code on the back
of the car.

45. The design of the word “Viao” shows the symbol of analogue and digital that
defines the two worlds in which the brand works.

46. The logo of the NBC, an American television network, is a peacock, and the
silhouette of the animal is drawn in white and the tail in colors.
Since the mid-80s, the animal is not so visible to the naked eye, as it was
relegated to a simple white silhouette between 6 colored stripes

47. The Amazon logo includes a kind of arrow at the
bottom of the first 4 letters of the company name. This
arrow joins the ends of two letters, the letter A and the
letter Z.

48. •The letters E and X of the logo, when joined, form the shape of the
arrow between them.
• It can be a way of expressing the speed with which they work, and the
straightforwardness of their service. The arrow reinforces the message of the
Ex (Express) letters Ex, giving the company logo a whole new level.

49. Pepsi wants to imply that people dressed up as Coca-Cola people would be scared.
In contrast, in the second image (right), Coca-Cola uses the same image and conveys
the message that with Coca-Cola all are heroes, something that everyone would like to
be.

50. •Taking parts of the logo itself, it will reminisce the
letters that make up the word Toyota. It is a logo designed
in such a way that it reminisces at all times the word that
identifies the brand.

51. Effect on Value system
Advertising
 Promotes hedonistic, materialistic way of life.
 Encourages us to buy more than our requirement
 It destroys the essence of citizen democracy and
replacing it with self oriented consumer democracy.
 Pushes to buy by playing with emotional , status
symbols, social acceptance and sex appeal.
 17% consumers see ads as a source of information

52. Ritz Carlton ad

54. Proliferation of Advertising
 In the United States alone , an average person is
exposed to 500 – 1000 commercial messages a day, this
may create a negative impact on the customers.
 The most popular websites are cluttered with
advertisements.
 In countries like France only 12 mins ads are allowed in
per hour, only 4 minute break is allowed in a movie.

55. Proliferation of Advertising

57. Use of stereotypes in
Advertising
 Insensitivity towards minorities, women, immigrants,
the disabled , the elderly, and a myriads of other
groups.
 Account planning has become essential,
 Agencies retain a feminists consultants to review ads
that may offend women.

58. Stereotype Advertising

59. Stereotype Advertising

64. Racist ads: Seoul Secret uses Cris Horwang in blackface to
promote skin-whitening pill - TomoNews

74. How you feel
Kind human being
An innovator

76. Offensive Advertising
 Calvin Klein’s ads were perceived by many
parents to be pornographic in nature.
 They don’t want their children to get
exposed to messages that deemed immortal,
offensive and strictly adult oriented.
 Some countries ban the advertising of
condoms on national TV

77. Advertising in Perspective
 Encourages the acceptance of new products
 Fosters employment
 Provides a wide variety of choices to both the
consumers and business.
 Encourages mass production
 Helps keep prices down
 Stimulates healty competition
 Hihjer standard of living
 Dissiminates the public information about healthj and
society