1. Akshay Thakur-130640109114

3. ADVERTISING AND PROMOTION VIEWPOINTS Creates consumer needs, wants Promotes materialism, insecurity, and greed More propaganda than information Provides information Creates jobs Encourages higher standard of living Promotes competition Proponent arguments Critic arguments Helps new firms enter a market

4. ETHICS IN ADVERTISING AND PROMOTION Not all issues can be regulated A marketing or promotion action may be legal but not ethical Marketers must decide the appropriateness of their actions Ethics: Moral principles and values that govern the actions and decisions of an individual or group.

5. PROMOTING RESPONSIBLE DRINKING

6. ADVERTISING AND UNTRUTHFUL OR DECEPTIVE General mistrust of advertising among consumers. Many do not perceive ads as honest or believable General mistrust of advertising among consumers. Many do not perceive ads as honest or believable 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 Unethical and/or deceptive practices involving mail order, telemarketing and other forms of direct marketing Internet scams and abuses

7. TEST YOUR KNOWLEDGE Advertisers are using shock advertising to: A) Test their First Amendment rights B) Get ads noticed in the midst of clutter C) Make a statement against self-regulation D) Test the ethics of the advertising industry E) Act as advocacy ads for company management

8. ADVERTISING AND CHILDREN Children's TV Watching Behavior Children ages 2-11 watch an average of 22 hours of TV per week and see 30,000 commercials per year 80% of all advertising targeted to children falls in four product categories: Toys, cereal, candy & fast food restaurants 80% of all advertising targeted to children falls in four product categories: Toys, cereal, candy & fast food restaurants

9. PERSPECTIVES ON ADS FOR CHILDREN Advocates Argue That Children: Marketers Argue Children: Lack the knowledge and skills to evaluate advertising claims Cannot differentiate between programs and commercials Cannot differentiate between programs and commercials Must learn through socialization Must learn through socialization Must acquire skills needed to function in the marketplace

10. SOCIAL AND CULTURAL CONSEQUENCESCONSEQUENCES Does advertising encourage materialism? Does advertising encourage materialism? Does advertising make people buy things they don’t need? Does advertising make people buy things they don’t need? Is advertising just a reflection of society? Is advertising just a reflection of society?

11. ADVERTISING AND STEREOTYPING Portrayal of women to reflect their changing role in society Portrayal of women as sex objects Portrayal of women as sex objects Ethnic stereotyping/ representation Ethnic stereotyping/ representation Gender stereotyping Gender stereotyping Sexual orientation Criticisms of Advertising With Regard to Stereotyping Criticisms of Advertising With Regard to Stereotyping

12. DO ADVERTISERS CONTROL THE MEDIA? They 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”

13. ROLE OF ADVERTISING IN THE ECONOMY Makes consumers aware of products and services Provides consumers with information to use to make purchase decisions Encourages consumption, fosters economic growth

14. TEST YOUR KNOWLEDGE From an economic perspective, advertising might lower the cost of a product by: A) Creating barriers to entry for less efficient firms B) Moving consumers to the consumer socialization stage of the buying process C) Making it possible for firms to realize economies of scale through expansion of sales volume D) Allowing firms to advertise at high levels along with competitors E) Doing none of the above

15. SUMMARIZING ECONOMIC EFFECTS Change consumers’ tastes Reduces competition Lowers sensitivity to price Builds brand loyalty Advertising Equals Market Power Leads to higher prices Leads to fewer choices Results in higher profits

16. SUMMARIZING ECONOMIC EFFECTS Provides useful information Pressure for lower prices Increases price sensitivity Increases competition Advertising Equals Information Forces inefficient firms out Pressure for high quality