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1、 2010 South-Western,a part of Cengage LearningAll rights reserved.,Ethical,Regulatory,and Environmental Issues,CHAPTER 21,INTEGRATED MARKETING COMMUNICATIONS IN ADVERTISING AND PROMOTION,Appreciate the ethical issues associated with advertising,sales promotions,and other marcom practices.Understand
2、why the targeting of marketing communications toward vulnerable groups is a heatedly debated practice.Explain the role and importance of governmental efforts to regulate marketing communications.Be familiar with deceptive advertising and the elements that guide the determination of whether a particu
3、lar advertisement is deceptive.,Chapter ObjectivesAfter reading this chapter you should be able to:,2010 South-Western,a part of Cengage Learning.All rights reserved.,212,Be acquainted with the regulation of unfair business practices and the major areas where the unfairness doctrine is applied.Know
4、the process of advertising self-regulation.Appreciate the role of marketing communications in environmental(green)marketing.Recognize the principles that apply to all green marcom efforts.,Chapter Objectives(contd)After reading this chapter you should be able to:,2010 South-Western,a part of Cengage
5、 Learning.All rights reserved.,213,2010 South-Western,a part of Cengage Learning.All rights reserved.,214,Ethical Issues in Marketing Communications,Ethics in MarcomInvolves matters of right and wrong,or moral,conduct pertaining to any aspect of marketing communicationsHonesty,honor,virtue,integrity
6、Ethical ConductLack of consensus about what it isEthical lapses and moral indiscretions occur under pressures of trying to meet business goals and attempting to satisfy the demands of the financial community,2010 South-Western,a part of Cengage Learning.All rights reserved.,215,Sources of Ethical Is
7、sues,2010 South-Western,a part of Cengage Learning.All rights reserved.,216,The Ethics of Targeting,Ethical DebateIs it ethical to target products and communications efforts to segments that vulnerable or put at risk by these actions?Is Targeting Unethical or Just Good Marketing?When does a good tar
8、geting strategy become a method of unfair(unethical)advantage?,2010 South-Western,a part of Cengage Learning.All rights reserved.,217,Is Targeting Unethical or Just Good Marketing?,PositiveTargeting benefits rather than harms consumersproviding them with products best suited to their particular need
9、s and wants,NegativeTargeting is not concerned with fulfilling consumers needs and wants,but rather with exploiting consumer vulnerabilities,2010 South-Western,a part of Cengage Learning.All rights reserved.,218,The Ethics of Targeting,2010 South-Western,a part of Cengage Learning.All rights reserve
10、d.,219,Targeting to Children and Teens,Negative Targeting OutcomesProducts targeted to kids are unnecessary and the communications involved are exploitativePosters,book covers,free magazines,advertising,and other so-called learning tools that are ads for productsMovies with tie-in merchandise progra
11、msTargeting adult products(e.g.,beer)to pre-adultsUsing unacceptable cartoon-like images(e.g.,Joe Camel)Promoting adult-oriented entertainment(e.g.,violent films,video games,and music products)to children and teensMarketing food products(e.g.,high-fat,high-calorie snacks)that contribute to childhood
12、 obesity,2010 South-Western,a part of Cengage Learning.All rights reserved.,2110,Targeting to Economically Disadvantaged Consumers,Billboards advertising tobacco and alcohol disproportionately appear in inner-city areasExamples:R.J.Reynolds attempt to market new brands cigarettes to African-American
13、s and downscale young womenHeileman Brewing Companys targeting of“Power Master”high-alcohol malt liquor to inner-city neighborhoods,2010 South-Western,a part of Cengage Learning.All rights reserved.,2111,Targeting Tobacco Products,Figure 21.1,2010 South-Western,a part of Cengage Learning.All rights
14、reserved.,2112,Ethical Issues in Advertising,2010 South-Western,a part of Cengage Learning.All rights reserved.,2113,American Association of Advertising Agencies Code of Ethical Standards,Ethical Code and Standards of PracticeSet lofty goals for the advertising industry and provides a framework for
15、evaluating whether or not ads meet the high standards specified,2010 South-Western,a part of Cengage Learning.All rights reserved.,2114,Ethical Issues in Public Relations,PublicityInvolves disseminating positive information about a firm and its products and handling negative publicityLike advertisin
16、gthe same ethical issues applyNegative PublicityWhen firms confess to product shortcomings and acknowledge problems or,instead,attempt to cover up the problems,2010 South-Western,a part of Cengage Learning.All rights reserved.,2115,Ethical Issues in Packaging and Branding,2010 South-Western,a part o
17、f Cengage Learning.All rights reserved.,2116,Ethical Issues in Sales Promotions,Sales PromotionsManufacturer promotions directed at wholesalers and retailers and to consumersSlotting AllowancesManufacturers have to pay retailers to handle a new productIs this a form of bribery and is it unethical?Co
18、nsumer-Oriented Sales PromotionsA promoter offers a reward for a consumers behavior that not delivered or lies about the odds of winningConsumers who make false claims for coupon redemptions and refunds,2010 South-Western,a part of Cengage Learning.All rights reserved.,2117,Ethical Issues in Online
19、Marketing,Consumer Privacy IssuesConsumers privacy rights to personal information and shopping behaviors collected by online marketersSecurity of personal information collected onlineSelling of personal information to other parties without consent of consumerBogus positive product evaluations and bl
20、ogs deceptively extolling products,2010 South-Western,a part of Cengage Learning.All rights reserved.,2118,Fostering Ethical Marketing Communications,The Professional Ethics Test,Take only actions that would be viewed as proper by an objective panel of your professional colleagues,The Golden Rule,Ac
21、t in a way that you would want others to act toward you,The TV test,Would l feel comfortable explaining this action on television to the general public?”,2010 South-Western,a part of Cengage Learning.All rights reserved.,2119,Regulation of Marketing Communications,Justifications for RegulationWhen c
22、onsumer decisions are based on false or limited informationWhen benefits realized exceed the costsBenefits of RegulationImproved consumer choicesImproved product qualityReduction in pricesCostsRegulatory complianceEnforcement costsUnintended side effects,2010 South-Western,a part of Cengage Learning
23、.All rights reserved.,2120,Regulation by Federal Agencies,2010 South-Western,a part of Cengage Learning.All rights reserved.,2121,Regulation by Federal Agencies(contd),2010 South-Western,a part of Cengage Learning.All rights reserved.,2122,Regulation of Unfair Practices,Unfair AdvertisingActs or pra
24、ctices that cause or are likely to cause substantial injury to consumers,which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or competition(emphasis added)FTCs Criteria for Unfair Business ActsAct offends public policy established by s
25、tatutesAct is immoral,unethical,oppressive,or unscrupulousAct causes substantial injury to consumers,competitors,or other businesses,2010 South-Western,a part of Cengage Learning.All rights reserved.,2123,Regulation by Federal Agencies(contd),FTCs Corrective Advertising ProgramRequires a firm that m
26、isleads consumers to use future advertisements to rectify any deceptive impressions it has created in consumers mindsFood and Drug Administration(FDA)s Regulation of Product LabelingResponsible for regulating information on the packages of food and drug productsRequires advertisers to present a bala
27、nced perspective when advertising drugs,2010 South-Western,a part of Cengage Learning.All rights reserved.,2124,Regulation by Federal Agencies(contd),Drug AdvertisingFTC regulates deceptive and unfair advertising for over-the-counter(OTC)drugsFDA regulates advertisements for prescription drugs in re
28、quiring advertisers to present a balanced perspective when advertising drugs,2010 South-Western,a part of Cengage Learning.All rights reserved.,2125,Regulation of Marketing Communications,Regulation by State AgenciesMost,if not all,states have departments of consumer affairs or consumer protectionAd
29、vertising Self-RegulationIs undertaken by the advertising community itself(i.e.,advertisers,industry trade associations,and ad media)rather than by governmental bodies.,2010 South-Western,a part of Cengage Learning.All rights reserved.,2126,Advertising Self-Regulation,Advertising Clearance ProcessAd
30、vertising agency clearance Approval from the advertisers legal department and perhaps also from an independent law firm Media approval,2010 South-Western,a part of Cengage Learning.All rights reserved.,2127,The National Advertising Review Council,National Advertising Review Council(NARC)Responsible
31、for receiving or initiating,evaluating,investing,analyzing and holding initial negotiations with an advertiser on complaints or questions from any source involving truth or accuracy of national advertisingNARC Organizational UnitsThe Childrens Advertising Review Unit(CARU)National Advertising Review
32、 Board(NARB)Council of Better Business Bureaus National Advertising Division(NAD),2010 South-Western,a part of Cengage Learning.All rights reserved.,2128,Environmental Marketing Communications,Legitimate Green MarketingIs a firms introduction of environmentally oriented products and its undertaking
33、of marcom programs to promote themSeeks to accomplish two objectives:Improve environmental qualitySatisfy customers,2010 South-Western,a part of Cengage Learning.All rights reserved.,2129,Green Marketing Initiatives,Green Marketing CommunicationsAdvertisements that promote green productsEnvironmenta
34、lly friendly packagingSeal-of-approval programs promoting green productsCause-and event-oriented marcom efforts that support environmental consciousnessPoint-of-purchase display materials that are environmentally efficaciousDirect marketing programs that reduce resource usage by developing more effi
35、cient solicitationsOutdoor advertising efforts that reduce the usage of environmentally damaging materials.,2010 South-Western,a part of Cengage Learning.All rights reserved.,2130,Green Advertising Addressing the Biophysical Environment,Figure 21.2,2010 South-Western,a part of Cengage Learning.All r
36、ights reserved.,2131,Guidelines for Green Marketing,FTCs Green GuidesQualifications and disclosures should be sufficiently clear and prominent to prevent deceptionClaims should make clear whether they apply to the product,the package,or a component of eitherClaims should not overstate an environment
37、al attribute or benefit,either expressly or by implicationComparative claims should be presented in a manner that makes the basis for the comparison sufficiently clear to avoid consumer deception,2010 South-Western,a part of Cengage Learning.All rights reserved.,2132,Green Advertising Presenting an Image of Environmental Responsibility,Figure 21.4,2010 South-Western,a part of Cengage Learning.All rights reserved.,2133,Guidelines for Green Marketing,2010 South-Western,a part of Cengage Learning.All rights reserved.,2134,Green Advertising Promoting a Green Lifestyle,Figure 21.3,
