Social, Ethical, and Economic Aspects of Advertising

1. Social, Ethical, and Economic Aspects of Advertising

2. Creates needs and wants among consumers Provides information Promotes materialism, insecurity and greed Creates jobs and helps new firms enter a market Promotes competition in the marketplace Promotes competition in the marketplace Advertising: Two Viewpoints Proponents argue that advertising and promotion: Encourages a higher standard of living Creates jobs and helps new firms enter a market Provides information Encourages a higher standard of living Critics argue that advertising and promotion Creates unnecessary and unrealistic needs and wants among consumers Is more corporate propaganda than information Is more propaganda than information

3. Ethics in Advertising and Promotion Ethics: Moral principles and values that govern the actions of an individual or group. Not all issues can be regulated Advertising may be legal but not ethical Advertisers must make decisions regarding the appropriateness of their ads Legal & Social Responsibility Reviews

4. Ethics in Advertising and Promotion General Principle: It is very easy to offend some members of your target audience.

5. 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: Untruthful, Deceptive & Misleading? General mistrust of advertising and among consumers. Many do not perceive ads as honest or believable General mistrust of advertising among consumers. Many consumers perceive ads to be phony and misleading. Sales Promotion Abuses -- contests, sweepstakes, and premium offers Unethical and/or deceptive direct marketing practices

6. Use of shock ads Objections to advertising of certain products Use of sexual appeals and/or nudity Advertising as Offensive or in Bad Taste Objections to advertising of certain products Use of sexual appeals and/or nudity

7. Many People Found Benetton’s “Death Row” Ad Campaign Offensive

8. Miller Promotes Responsible Drinking *Click outside of the video screen to advance to the next slide

9. Children between ages 2-11 watch on average 22 hours of TV per week and may see 40,000 commercials per year Approximately 80% of all advertising targeted to children falls in four product categories: Toys, cereals, candy & fast food restaurants Advertising and Children Children's TV Watching Behavior

10. They lack the knowledge and skills to critically evaluate advertising claims They cannot differentiate between programs and commercials Children must learn through the socialization process Need to acquire skills needed to function in the marketplace Perspectives on Advertising to Children Consumer Advocates Argue That Children Are Vulnerable to Advertising Because: They lack the knowledge and skills to critically evaluate advertising claims They cannot differentiate between programs and commercials While Marketers Argue That: Children must learn through the socialization process

11. Portrayal of women to reflect their changing role in society Gender stereotyping Portrayal of women as sex objects Portrayal of the elderly Ethnic stereotyping/ representation of minorities Advertising and Stereotyping Portraying women in traditional housewife roles Portrayal of women as sex objects and men as stupid Gender stereotyping Criticisms of Advertising With Regard to Stereotyping Ethnic stereotyping/ representation of minorities

12. Is this woman portrayed as a sex object? Does this ad contain cues that are sexually suggestive? Does this ad present an image of sexual submissiveness? What is your opinion of this ad? Is this woman portrayed as a sex object? Does this ad contain cues that are sexually suggestive?

13. Advertising is the primary source of revenue for newspapers, magazines, and television and radio networks and stations The media’s dependence on advertising for revenue makes them vulnerable to control by advertisers • Advertisers may exert control over the media by • biasing editorial content • forcing limited coverage of certain issues • influencing competitor advertising exposure “Pro” Argument: Advertisers Control the Media Advertising is the primary source of revenue for newspapers, magazines, and television and radio networks and stations The media’s dependence on advertising for revenue makes them vulnerable to control by advertisers

14. They must report the news fairly and accurately to retain public confidence Advertisers need the media more than the media need any one advertiser The media maintains procedural separation between news and the ad departments - “The Wall” “Con” Argument: Advertisers Do Not Control the Media Journalistic Integrity: The Media must report the news fairly and accurately to maintain public’s confidence Advertisers need the media more than the media need any one advertiser

15. Two Opposing Schools of Thought on Advertising’s Role in the Economy

16. The Economic Value of Advertising *Click outside of the video screen to advance to the next slide

17. 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.” These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agencies’ 50th anniversary, April 20,1967