Marketing Indicator 4.01 Acquire a foundational knowledge of promotion to understand its nature and scope. Promotion Part IV - Ethics

Ethical Issues Associated with Fear-Based Advertising Ethics in marketing - deliberately applying standards of fairness, or moral rights and wrongs, to marketing decision making, behavior, and practice in the organization. Fear-Based Advertising defined as: ▫ A proven set of marketing strategies and tactics used to motivate target audiences to take massive action quickly. ▫ Desired outcomes are achieved quickly through persuasive techniques that tap into powerful emotions.

Ethical Issues Associated with Fear-Based Advertising Fear-based advertising is unethical when: ▫ engendering perceptions or attitudes that are negative or unethical  overly dramatic and graphic,  lacks social responsibility,  exploitative,  stimulates unneeded demand, and  involves inappropriate manipulative techniques

Sexism/Stereotyping in Advertising Why it is important to study: ▫ It is important because it not only focuses on the use of sexual appeals in advertising, ▫ How ethical it is to do so Three areas of focus ▫ (1) if sex actually sells and if so, when and where is it being used in advertising, ▫ (2) the use of men and women in ads of a sexual nature, ▫ (3) the role that ethics plays in the use of sexual appeals in advertising.

Sexism in Advertising: Today & Yesterday

Ethical Issues Associated with Promotion to Children

Ethical Issues Associated with Sales Promotion Sweepstakes, Samples, Rebates, and Premiums avoidance of false and misleading advertising rejection of high-pressure manipulations, or misleading sales tactics avoidance of sales promotions that use deception or manipulations. (AMA Code of Ethics)

Use of Stealth Marketing In stealth marketing people are paid to use or pitch products in public settings without disclosing the fact that they are being paid to do so.

Stealth Marketing – The Joneses

Ethical Issues Associated with Use of Customer Information Obtained on the Internet Privacy Ownership Access Issue: Should social networking sites allow outside parties to have access to user information?

Laws That Protect Customers From Unwanted Promotions Federal Communications Commission (FCC) adopted rules that prohibit sending unwanted commercial messages to wireless devices without prior permission. This ban took effect in March The Federal Trade Commission (FTC) adopted detailed rules that restrict sending unwanted commercial messages to computers

Reasons For The Regulation Of Products Used In Advertising Protect children Protect consumers from false or misleading information (for example, are cosmetics drugs? What about dietary supplements? Is it organic?) Health risks involved (tobacco, alcohol, over-the- counter drugs, prescription drugs) Protects against harm to animals

Ways Businesses Use Socially Responsible Promotions Socially responsible companies are increasing their charitable contributions and committing to making the world, or their community, a better place. What is CSR? CSR is short for corporate social responsibility, a concept whereby businesses and organizations perform a social good or take responsibility for the impact of their activities. ▫ Examples:  A company investing in responsible drinking and not just in promoting their alcoholic beverages.

Social Responsibilty

Deceptive Commercials

You Do – Fear-Based or Deceptive Advertisement You and a partner will design and create an animation commercial that would be labeled as “fear-based” or “deceptive”. You may choose an existing company/product or a fictitious company/product to design an ad for. This assignment will be completed in two parts: 1.You will explain in two paragraphs why your commercial would be labeled as “fear based” or “deceptive”, what channels and times of the day will your commercial be aired and why, and what message are you trying to send consumers. 2.Use Go Animate or make a poster to create the commercial or ad.

Marketing Indicator 4.01 Acquire a foundational knowledge of promotion to understand its nature and scope. Promotion Part V - Technology

Use of Technology in Promotion Has Changed the Way Marketers Communicate with Customers The Internet provides technology which transforms the customer communication process into a real time interaction which takes place in the customer’s home, or cubicle at work. Blogging s Banner Ads Company website: Social Media (Facebook) Text messaging Instant messaging Search engine ads Links from one webpage to another webpage

Ways That the Use of Technology Positively Impacts the Promotion Function Cost saving Instant reach Longer Impact Saves Time

Ways That The Use Of Technology Negatively Impacts The Promotion Function Limited Reach Lack of Personal Touch Authenticity Disadvantages to the consumer: ▫ Direct marketing and Unwanted s or spam with viruses attached ▫ A computer virus possibly attached to the ad ▫ Overload of information with too many ads coming across the web site or web page constantly ▫ A waste of advertising dollars with the company “hoping” that the consumer is seeing the ad, when research shows that we are seeing less than half of what is being advertised ▫ Without parental control, children seeing and receiving negative ads and negative advertising messages ▫ Bluetooth technology and companies texting ads to the cell phones (mobile media) can encroach on consumer privacy

Technology Has Enhanced Opportunities To Contact Customers With Promotional Messages Opportunities to contact customers exist through: ▫ Text messaging ▫ Bluetooth technology ▫ target market ▫ Instant messaging ▫ Social media ▫ Banner ads

Ways That Technology Has Facilitated the Use Of Sales Promotions Sales promotions Consumer promotions Coupons Groupon Incentives Contests are games or activities that require the participant to demonstrate a skill. Sweepstakes are games of chance. Special offers and rebates Product samples Sponsorship Promotional tie-ins Cross-promotion Cross-selling Product placement Online Loyalty Marketing Programs Point-of-Purchase Displays Kiosks

You Do – Fear-Based or Deceptive Advertisement You and a partner will design and create an animation commercial that would be labeled as “fear-based” or “deceptive”. You may choose an existing company/product or a fictitious company/product to design an ad for. This assignment will be completed in two parts: 1.You will explain in two paragraphs why your commercial would be labeled as “fear based” or “deceptive”, what channels and times of the day will your commercial be aired and why, and what message are you trying to send consumers. 2.Use Go Animate or make a poster to create the commercial or ad.