Social, Ethical, and Regulatory Aspects of Advertising

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Presentation transcript:

Social, Ethical, and Regulatory Aspects of Advertising 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