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1、Advertising and Society,Advertising Principles and Practices,Questions Well Answer,What kind of power does advertising have in society,and what are its limitations?Why and how is advertising regulated?What guides ethical behavior in advertising?,3-2,Prentice Hall,2009,Whirlpool+Habitat for Humanity=
2、Good Business,How did Whirlpool get their target market to think about their brand,even when they didnt need it?How did Whirlpool execute the idea?,3-3,Visit the Site,Prentice Hall,2009,3-4,What is advertisings role in society?,Most of the time advertising is used for neutral or good purposes;acting
3、 in a socially responsible way.,3-5,MicrosoftWhole Foods MarketKelloggsMcDonaldsThe Home DepotWalt DisneyUPSCoca-ColaStarbucksPepsiCo,Top 20 Socially and Environmentally Responsible Companies,Source:National Marketing Institute,2006.,Johnson&JohnsonProcter&GambleKimberly-ClarkLowesTargetFordAppleDel
4、lH.J.HeinzEastman Kodak,3-6,Advertisings Role in Society:Demand Creation Debate,Critics say advertising creates demand,driving consumers to buy products unnecessarily.Do some products improve consumers lives?Proponents say companies invest in research to find out what consumers want.Audiences can re
5、fuse to buy products they dont need.,3-7,Advertisings Role in Society:Shape vs.Mirror Debate,Does advertising create or reflect social values?Critics say advertising abuses its influence on children and teenagers.Critics say advertising creates social trends,dictating how people think and act.Advert
6、isers say they spot trends and develop messages that connect with them.Advertising both mirrors and shapes.,3-8,Advertisings Role in Society:Overcommercialization Debate,Does advertising make people materialistic?Critics say advertising abuses its influence on vulnerable groups like children and tee
7、nagers.Critics say the lines between advertising and news and entertainment are blurred.How do you know sponsors arent influencing content and how their product is perceivedDoes product placement change how we view programming?,3-9,Other Social Responsibility Issues:An Overview,Poor taste and offens
8、ive advertisingStereotypingBody and self-image problemsTargeting strategiesProblems with advertising claims and other message strategiesThe issues surrounding the advertising of controversial products,3-10,Poor Taste and Offensive Advertising,Viewer reaction may be affected by sensitivity to:The pro
9、duct category,the timing,whether the viewer is alone or with others,and the context Creating general guidelines is difficult because peoples idea of“good taste”varies.What is considered“offensive”changes over time.,Principle:Testing is needed to find the right balance when one group that sees the ad
10、vertisement finds the message offensive,even through the primary target market may think the message is appropriate.,3-11,Sex in Advertising,Its becoming more blatant,especially when its not relevant to the product.Paris Hiltons“soft-core porn”ad for Carls Jr.restaurantsShould sex be used to sell pi
11、zza,tacos,and truck parts?Should sex only be used to advertise products purchased for sexual reasons,like clothes or exercise equipment.Does it,in fact,distract or hinder the communication or persuasion to the target?Does sex really sell?,3-12,Portraying Diverse People,A stereotype is a representati
12、on of a cultural group that emphasizes a trait or traits that may or may not communicate an accurate representation.Common problems include:Gender stereotypesBody image and self-imageRacial and ethnic stereotypesCultural differences in global advertisingAge-related stereotypesAdvertising to children
13、,Principle:Stereotyping is negative when it reduces a group of people to a caricature.,3-13,Message-related Issues,False advertising is a message that is untrue.Misleading claims are grossly exaggerated claims made by advertisers about products.Puffery is“advertising or other sales representations,w
14、hich praise the item to be sold with subjective opinions,superlatives,or exaggerations,vaguely and generally,stating no specific facts.”,Principles:Advertising claims are unethical if they are false,misleading,or deceptive.Puffery may be legal,but if it turns off the target audience then nothing is
15、gained by using such a message strategy.,3-14,Message-related Issues,Comparative advertising is a legitimate message strategy,regulations govern those uses that are challenged as misleading.The Lanham Act permits awards of damages from an advertiser who“misrepresents the nature,characteristics,quali
16、ties,or geographic origin in comparative advertising.”An endorsements or testimonial is any advertising message that consumers believe reflects the opinions,beliefs,or experiences of an individual,group,or institution.Its misleading if the endorser doesnt use the product or if consumers can reasonab
17、ly ascertain that a message does not reflect the announcers opinion.,3-15,The intent and connotation of the ad should be to inform and never to discredit or unfairly attack competitors,competing products or services.When a competitive product is named,it should be one that exists in the marketplace
18、as significant competition.The competition should be fairly and properly identified but never in a manner or tone of voice that degrades the competitive product or service.The advertising should compare related or similar properties or ingredients of the product,dimension to dimension,feature to fea
19、ture.The identification should be for honest comparison purposes and not simply to upgrade by association.If a competitive test is conducted,it should be done by an objective testing service.In all cases,the test should be supportive of all claims made in the advertising that are based on the test.T
20、he advertising should never use partial results or stress insignificant differences to cause the consumer to draw an improper conclusion.The property being compared should be significant in terms of value or usefulness of the product to the consumer.Comparisons delivered through the use of testimoni
21、als should not imply that the testimonial is more than one individuals,unless that individual represents a sample of the majority viewpoint.,Table 3.1American Association of Advertising Agencies Ten Guidelines for Comparative Advertising,3-16,Message-related Issues,Demonstrations should not mislead
22、the consumer.Its difficult for some food products so these are evaluated by the FTC on case-by-case basis.Shooting ice cream under hot lightsMilk looks gray on TV so a water and glue mixture is usedSome advertisers use disclaimers or“supers”to indicate exceptions.Advertising controversial products l
23、ike firearms,gambling,condoms,etc.reflects the clients ethics.,3-17,Product-related Issues,Unhealthy or dangerous productsagencies must consider if they can honestly promote these products including fast food,tobacco,liquor,or beer.In 1997,the FDA loosened controls on drug companies,and prescription
24、 drug ads skyrocketed.,Principle:The ethical responsibility for selling a controversial or unsafe product lies with the marketing department;however,advertising is often in the spotlight because it is the visible face of marketing.,3-18,Reactions to Concerns about Unhealthy or Dangerous Products,McD
25、onalds and Disney both added healthier choices to their menus.In 1996,the FDA restricted tobacco advertising within 1,000 feet of a school,and said ads in publications with 55%readership under age 18 could only run black and white text ads.The FDAs Master Settlement Agreement required the tobacco in
26、dustry to pay$206 billion over 25 years to 46 states,half of which supports antismoking ads targeting children.Tobacco companies voluntarily curbed ads to youth.Liquor companies and television networks have voluntarily reduced alcohol advertising.,3-19,How is advertising regulated?,The following mon
27、itor and regulate advertising:LawsGovernment regulations and regulatory bodiesMediaIndustry self-regulationProfessional oversight groupsPublic/community organizations,Organizations That Oversee Advertising,3-20,Prentice Hall,2009,3-21,Legal Environment,Trademark ProtectionA trademark is a brand,corp
28、orate or store name,or a distinctive symbol that identifies the sellers brand and thus differentiates it from the brands of other sellers.Registering a trademark through the Trademark Office gives the organization exclusive use,as long as its used to identify a specific product.The Lanham Trademark
29、Act of 1947 protects unique trademarks from infringementURLs can now be registered and protected,3-22,Legal Environment,Copyright ProtectionA copyright gives an organization the exclusive right to use or reproduce original work,such as an advertisement or package design,for a period of time.Copyrigh
30、t infringement is when a product is used in an ad without proper permission.Ads that use another ads message(copycat)can be subject to copyright infringement charges.,3-23,Legal Environment,International Laws and RegulationsPricing and distribution laws and regulatory restrictions vary by country.So
31、me countries ban ads for certain productThailand,Hungary,Hong Kong,and Malaysia have bans on certain types of tobacco advertisingTruthful ads can be banned for the public goodFederal ban on junk faxes is validContests,promotions,and direct mail are illegal in some countries.,3-24,Regulatory Environm
32、ent,Federal Trade Commission(FTC)Established in 1914,the FTC regulates deceptive and misleading advertising,focusing on:Fairness:unfair competition and deceptive practicesDeception:issues cease and desist ordersViolations:can fine companies for violating 1)a trade regulation rule or,(2)cease and des
33、ist order.Consumer participation:funds consumers groups and other interest groups in making rulesAlso oversees advertising involving weight loss products,children and elderly,telemarketing,and the entertainment industry.,3-25,Regulatory Environment,The FTC and Childrens AdvertisingThe Childrens Adve
34、rtising Review Unit(CARU)evaluates ads to children under 12.The Childrens Television Advertising Practice Act(1990)placed ceilings on ads during TV programs.10.5 minutes per hour on weekends12 minutes per hour on weekdaysAds clearly separated from programsAs of 1996,all stations must air 3 hours per
35、 week of educational programming.,3-26,Regulatory Environment,Regulating DeceptionDeceptive advertising intends to mislead consumers by making false or by failing to fully disclose important facts,or both.Current policy contains three elements:Misleadingrepresentation,omission,practiceReasonableness
36、“reasonable consumer”Injuriousmust cause material injuryDeception is difficult to prove due to vague and hard-to-measure criteria.,3-27,Regulatory Environment,Regulating SubstantiationDoes the advertiser have a reasonable basis to make a claim about product performance?Factors considered:Type and sp
37、ecificity of claim made Type of product Possible consequences of the false claims Degree of reliance on the claims by consumers Type and accessibility of evidence available for making the claim Injuriousmust cause material injury,3-28,Regulatory Environment,Remedies for Deception and Unfair Advertis
38、ingConsent decrees Advertiser agrees to stop the deceptive practiceCease and desist orderA process similar to court trial precedes the orderCorrective advertisingAdvertiser runs messages correcting the false impressionsConsumer redressCancel or reform contracts,refund money or return property,pay fo
39、r damages,or public notificationAd agency legal responsibilityAgency is liable along with advertiser and subject to the same penalties,3-29,Regulatory Environment,Food and Drug Administration(FDA)Regulatory division of the Department of Health and Human Services Oversees package labeling,ingredient
40、listings,and advertising for food and drugsDetermines the safety and purity of foods,cosmeticsWatchdog for drug advertising,specifically direct-to-consumer ads for prescription drugs,3-30,Regulatory Environment,Federal Communications Commission(FCC)Regulates radio and television broadcast communicat
41、ions(media,not advertisers)Can issue and revoke licenses,ban deceptive messages,or those in poor tasteResponds to complaints but doesnt initiate actionsWorks closely with FTC to eliminate false and deceptive advertising,3-31,Regulatory Environment,Other Regulatory BodiesThe Bureau of Alcohol,Tobacco
42、,and Firearms(BATF)within the Treasury Department regulates deception in advertising and establishes labeling requirements for the liquor industry.The U.S.Postal Service regulates direct mail and magazine advertising including the areas of obscenity,lotteries,and fraud.The States Attorneys General r
43、egulates advertising at the state level.,3-32,AgencyEffect on AdvertisingFederal Trade CommissionRegulates credit,labeling,packaging,www.ftc.govwarranties,and advertising.Food and Drug Administration Regulates packaging,labeling,andwww.fda.govmanufacturing of food and drug products.Federal Communica
44、tions CommissionRegulates radio and television stationswww.fcc.govand networks.U.S.Postal ServiceControls advertising by monitoring materialswww.usps.govsent through the mail.Bureau of Alcohol,Tobacco,and FirearmsDivision of the U.S.Treasury Departmentwww.aft.treas.govthat regulates advertising for
45、alcoholicbeverages.U.S.Patent OfficeOverseas trademark registration to protectwww.uspto.govagainst patent infringement.Library of CongressProvides controls for copyright protection.www.loc.gov,Table 3.4Specialized Government Agencies That Affect Advertising,3-33,Media Review of Advertising,The media
46、 screens and rejects advertising that violate their standards of truth and good taste.The First Amendment lets publishers refuse to run ads.The FTC pressures magazines and newspapers to stop running misleading weight loss ads.CBS refused to run an anti-Bush ad endorsed by the MoveOn organization.,3-
47、34,Three Types of Self Regulation,self-discipline Industry self-regulationSelf-regulation by public and community groups,3-35,Self-Discipline,Organizations exercise self-discipline when they develop,use,or enforce norms within its own practices.Most major advertisers and advertising agencies have in
48、-house ad review procedures.Several U.S.companies have their own codes of behavior and criteria for acceptability of advertising.,3-36,Industry Self-Regulation,National Advertising Review Council(NARC)Negotiates voluntary withdrawal of deceptive advertisingNational Advertising Division(NAD)consists
49、of ad industry people who monitor advertising and review complaints.If they cant resolve the issue,they send it to the NARB.National Advertising Review Board(NARB)is a 50-member group of ad industry people who hear the case and try to resolve an issue.If unresolved,they can:Publicly identify the adv
50、ertiser;share facts about the caseRefer the complaint to a government agency like the FTC,NARB Appeal Process,3-37,Prentice Hall,2009,3-38,Self-Regulation by Public and Community Groups,Local groups like the Better Business Bureau advise local businesses on legal aspects of advertising.Also receives
