2

Evaluating the Social, Ethical,

and Economic Aspects of
Advertising and Promotion

Copyright 2012 McGraw-Hill Companies, Inc., All right reversed

Advertising and Promotion Viewpoints

Provides information to consumers

Encourages higher standard of living

Proponent
Proponent
arguments Promotes competition
arguments
Helps new firms enter a market

Creates jobs

More propaganda than information

Critic
Critic Creates consumer needs, faults
arguments
arguments
Promotes materialism, insecurity,
and greed

21-2
Ethics in Advertising and Promotion

Ethics:
Ethics: Moral
Moral principles
principles and
and values
values that
that
govern
govern the
the actions
actions and
and decisions
decisions
of
of an
an individual
individual or
or group
group

A
A marketing
marketing oror Marketers
Marketers must
must
Not
Not all
all issues
issues promotion
promotion decide
decide the
the
can
can be be action
action may
may be
be appropriate-
appropriate-
regulated
regulated legal
legal but
but not
not ness
ness of
of their
their
ethical
ethical actions
actions

21-3
Untruthful or Deceptive Advertising

Consumers Industry Problems

Dont trust advertising Deliberately untruthful

Rely on word of mouth False and misleading claims

Find ads intrusive Faulty sweepstakes

Find relevance too low Providing too little info

Trust websites slightly more Puffery and embellishment

21-4
Advertising as Offensive or in Bad Taste

Objectionable Sexual
Shock ads
products appeals

Condoms
Feminine
hygiene products
Womens
undergarments
Hemorrhoid
products

21-5
What is your opinion of this ad?

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?

21-6
Attitudes Toward Sex in Advertising

21-7
 Advertising and Children

Children's
Children's TV
TV
Watching
Watching Behavior
Behavior

Children
Children watch
watch an
an 80%
80% of of ads
ads targeted
targeted to
to
average
average of
of 22
22 hours
hours children
children cover:
cover:
of
of TV
TV per
per week
week Toys
Toys
Cereal
Cereal
They
They see
see up
up to
to 30,155
30,155 Candy
Candy
commercials
commercials per
per year
year
Fast
Fast food
food

21-8
Perspectives on Ads for Children

Advocates Argue That Children:

Lack the knowledge and Cannot differentiate

skills to evaluate between programs and
advertising claims commercials

Marketers Argue that Children:

Must acquire skills

Must learn
needed to function in
through socialization
the marketplace

21-9
 Other Areas of Concern

Areas of potential concern

Cable television programming
Internet ads
Ads encouraging children to call 900
numbers
An increase in toy-based programs
Marketing of violent films, music, games
Advertising and promotions in schools by
companies like Coca-Cola

21-10
Social and Cultural Consequences

Does
Does advertising
advertising
encourage
encourage materialism?
materialism?

Does
Does advertising
advertising make
make
people
people buy
buy things
things
they
they dont
dont need?
need?

Is
Is advertising
advertising just
just
aa reflection
reflection of
of society?
society?

21-11
 Advertising and Stereotyping

Portrayal of women to
reflect their changing role
in society

Criticisms of Portrayal of
Gender
Advertising women as
stereotyping
sex objects
With Regard to
Stereotyping

Ethnic
Sexual
stereotyping/
orientation
representation

21-12
Do Advertisers Control the Media?

Ads are the primary source of revenue for

newspapers, magazines, television and radio

Medias dependence on ads for revenue makes

them vulnerable to control by advertisers

Advertisers may exert control over media by

biasing editorial content, limiting coverage of
certain issues, or influencing program content

21-13
Can Media Resist Advertisers?

Media must report the news

fairly and accurately to retain
public confidence

Advertisers need the media

more than the media need
any one advertiser

Media maintain separation

between news and business
departments The Wall

21-14
Economic Effects of Advertising

Makes consumers aware

of products and services

Provides consumers with

information to use to
make purchase decisions

Encourages consumption,
fosters economic growth

Leads to economies of
scale & lower prices

21-15