Transcript Document

Chapter 4
Social, Ethical, and
Regulatory Aspects
of Advertising
Social Aspects of
Advertising
• Advertising Educates Consumers
– Pro: Advertising informs
– Con: Advertising is superficial
• Advertising improves living standards
– Pro: Ads lower the costs of products
– Con: Ads are wasteful and help only some
Ch 4: Ethics & Regulation 2
Critics of advertising
feel that advertising is
superficial because
many ads carry little
actual product
information. Do you
think advertising is
superficial?
Advertising affects
Happiness and Well-Being
Con: Ads create needs
Pro: Ads address a wide variety of needs
Con: Ads promote materialism
Pro: Ads reflect society’s priorities
Ch 4: Ethics & Regulation 4
Critics feel advertising
promotes materialism
Advertising: Demeaning and
deceitful, or liberating and artful?
Con: Ads perpetuate stereotypes
Pro: Advertisers are more sensitive now
Con: Ads are often offensive
Pro: Ads are a source of liberation
Con: Ads deceive via subliminal stimulation
Pro: Advertising is art
Ch 4: Ethics & Regulation 6
Do you think this ad
perpetuates stereotypes?
Advertising has a
powerful effect on
mass media
Pro: Ads foster a diverse and affordable
mass media
Con: Advertising affects and controls
programming
Ch 4: Ethics & Regulation 8
Ethical Aspects of
Advertising
Ethics are the moral standards against
which behavior is judged. Key areas
of debate regarding ethics and
advertising are:
• Truth in advertising
• Advertising to children
• Advertising controversial products
Ch 4: Ethics & Regulation 9
Regulatory Aspects of
Advertising
Areas of advertising regulation:
• Deception and unfairness
• Competitive issues
– Vertical cooperative advertising
– Comparison advertising
– Monopoly power
• Advertising to children
Ch 4: Ethics & Regulation 10
Key Regulatory Agents
Government Regulation
• Federal Trade Commission (FTC)
– Wide range of regulatory programs and remedies
• Federal Communications Commission (FCC)
• Food and Drug Administration (FDA)
• U.S. Postal Service
• Bureau of Alcohol, Tobacco, and Firearms
Ch 4: Ethics & Regulation 11
Key Regulatory Agents (con’t)
Industry Self-Regulation
• National Advertising Review Board (NARB)
• State and Local Better Business Bureaus
• Ad Agencies and Associations
• Media Organizations
Consumers as Regulatory agents
• Consumerism: Grass roots consumer movements
• Consumers Organizations
Ch 4: Ethics & Regulation 12
Regulation of Other
Promotional Tools
• Direct Marketing and e-commerce
– Privacy, Contests, Telemarketing
• Sales Promotion
– Premiums, Trade Allowances, Contests
• Public Relations
– Privacy, Copyright Infringement,
Defamation
Ch 4: Ethics & Regulation 13