Transcript Response to Environmental Problems

Regulatory, Ethical, and
“Green” Issues in
Marketing
Communications
3
When Is Regulation Justified?
Benefits
1. Consumer choice is improved
2. Product quality tends to improve
3. Reduced prices
Costs
1. Enforcement costs
2. Unintended side effects
Regulation of Marketing
Communications
Federal Trade Commission (FTC)
The U.S. government agency that has
primary responsibility for regulating
matters such as deceptive and unfair
business practices and advertising
Regulation of Deceptive Advertising
When will the FTC find a business
practice deceptive?
Elements of Deception
• Misleading
• Reasonable
consumer
• Material
Misleading?
• Misleading
• Reasonable
consumer
• Material
Federal Regulation
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Regulation of deceptive advertising
Regulation of unfair practices
Information regulation
Regulation of product labeling (FDA)
Regulation of prescription drug ads
(FDA)
Information Regulation
Corrective advertising
Information Regulation
Corrective advertising
Which firm in 1975 was ordered to
spend $10 Mill to correct a misleading
campaign?
Information Regulation
Current Events
Which firm in 2005 was ordered by U.S.
District Court to halt and remove a
misleading claim?
What was the claim?
Ethical issues in marketing
Communications
Ethics in our context involves matters
of right and wrong, or moral conduct
pertaining to any aspect of marketing
communications
Enhancing Ethical Behavior
Two core values
Ethical issues in marketing
Communications
See text for ethical issues in:
• Targeting
• Advertising
• Public relations
• Packaging communications
• Sales promotions
• Online marketing communications
Criticisms of Advertising
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Criticism of Advertising
An Appeal to
Insecurity
Enhancing Ethical Behavior
The Golden
Rule
Act in a way that you would want
others to act toward you
The
Professional
Ethics
Take only actions that would be
viewed as proper by an objective
panel of your professional
colleagues
The TV test
“Would l feel comfortable
explaining this action on
television to the general public?”
Response to
Environmental Problems
Green advertising
Packaging response
Seal-of-Approval programs
Cause-Oriented Programs
Point-of-Purchase
Green Advertising
• Relationship
between
product and
environment
• Promote a green
lifestyle
• Corporate
responsibility
Green Advertising
Green Advertising
Promoting an
Image of
Environmental
Responsibility
Green Advertising
Corporate
Responsibility
Green Advertising
Mercedes-Benz
Leo Burnett
Company, Inc.
Response to
Environmental Problems
Green advertising
Packaging response
Seal-of-Approval programs
Cause-Oriented Programs
Point-of-Purchase
Package Response
• Recyclable bottles
• Polystyrene to
paperboard
• Plastic to
cardboard
• Smaller packages
Response to
Environmental Problems
Green advertising
Packaging response
Seal-of-Approval programs
Cause-Oriented Programs
Point-of-Purchase
Seal-of-Approval Programs
• Designed to assist consumers in
identifying environmentally friendly
products and brands
• Green Seal of Approval
• “Chasing arrows logo”
Response to
Environmental Problems
Green advertising
Packaging response
Seal-of-Approval programs
Cause-Oriented Programs
Point-of-Purchase
Cause-Oriented Programs
Cause-Oriented
programs
Response to
Environmental Problems
Green advertising
Packaging response
Seal-of-Approval programs
Cause-Oriented Programs
Point-of-Purchase
Point-of-Purchase Programs
Use the point-of-purchase as a
vehicle for promoting a brand’s
environmental virtues
Appropriate Environmental Claims
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