chapter 21 presentation
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Promotional Strategy - Evaluating the Social, Ethical, and Economic Aspects of Advertising and PromotionTRANSCRIPT
Promotional StrategyMKT4230
Evaluating the Social, Ethical, and Economic
Aspects of Advertising and Promotion
Patricia Knowles, Ph.D.
Associate ProfessorClemson University
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Advertising and Promotion ViewpointsThese are the two views concerning the appropriateness and value of advertising.
TextbookPage 730
Creates consumer needs, faults
Promotes materialism, insecurity, and greed
More propaganda than information
Proponent arguments
Critic arguments
Provides information to consumers
Creates jobs
Encourages higher standard of living
Promotes competition
Helps new firms enter a market
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Ethics in Advertising and PromotionThis chart defines and summarizes ethical considerations in advertising and promotion.
TextbookPage 731
Not all issues can be regulated
A marketing or promotion action may be legal but not ethical
Marketers must decide the appropriate-ness of
their actions
EthicsMoral principles and values that govern the actions and decisions
of an individual or group
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Promoting Responsible DrinkingThis is an ad put out by the Miller Brewing Company to encourage parents to talk to their teenagers about the risks of underage drinking.
TextbookPages 731 – 732 / Exhibit 21 - 2
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Shock AdsThis is an ad from the controversial “Death Row” campaign that was run by Benetton in 2000.
TextbookPages 732 – 733 / Exhibit 21 - 4
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Untruthful or Deceptive AdvertisingThese are some of the key points about untruthful or deceptive advertising and its effects on consumers.
TextbookPages 733 - 734
Consumers
Don’t trust advertising
Rely on word of mouth
Find ads intrusive
Find relevance too low
Trust websites slightly more
Industry Problems
Deliberately untruthful
False and misleading claims
Faulty sweepstakes
Providing too little info
Puffery and embellishment
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Advertising as Offensive or in Bad TasteAnother common complaint of advertising, particularly by consumers, is that ads are offensive and in bad taste. These are some of the reasons why advertising is viewed this way.
TextbookPages 734 - 735
Sexual appealsObjectionable products Shock ads
Condoms
Feminine hygiene products
Women’s undergarments
Hemorrhoid products
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Test Your KnowledgeAdvertisers 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
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What is Your Opinion of this Ad?This is an Airwalk ad that criticized for being suggestive and symbolizing sexual submission.
TextbookPages 735 – 736 / Exhibit 21 - 8
Is this woman portrayed as a sex object?
Does this ad contain cues that are sexually suggestive?
Does this ad present an image of sexual submissiveness?
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Dolce & Gabbana’s Controversial, Offensive AdThis is a Dolce & Gabbana ad that was criticized as being offensive to women.
TextbookPage 732 / Exhibit 21 - 3
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Attitudes Toward Sex in AdvertisingThis chart shows the varying attitudes that men and women have toward sex in advertising.
TextbookPage 736 / Figure 21 - 1
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Advertising and ChildrenThese are key facts about the television viewing habits of children and the types of ads that target them.
TextbookPages 738
Children's TV Watching Behavior
Children watch an average of 22 hours of TV per week
They see up to 30,155 commercials per year
80% of ads targeted to children cover:
• Toys• Cereal• Candy• Fast food
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Perspectives on Ads for ChildrenThis is a summary of the two perspectives on advertising to children
TextbookPage 738
Lack the knowledge and skills to evaluate advertising claims
Cannot differentiate between programs and commercials
Must learnthrough socialization
Must acquire skills needed to function in the marketplace
Advocates Argue That Children:
Marketers Argue that Children:
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Other Areas of ConcernThese are some of the additional ways that companies market to children:
• Cable television programming• Internet ads• Ads encouraging children to call 900 numbers• An increase in toy-based programs• Marketing of violent films, music, games• Advertising and promotions in schools by companies like Coca-Cola
TextbookPages 738 - 741
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Social and Cultural ConsequencesThe social and cultural consequences of advertising and arguments both for and against advertising:
TextbookPages 741 - 744
Does advertising encourage materialism?
Does advertising make people buy thingsthey don’t need?
Is advertising just a reflection of society?
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Does Advertising Affect Society?This is an ad that was developed by the American Association of Advertising Agencies in response to criticisms of advertising.
TextbookPage 743 / Exhibit 21 - 13
These are the various ways in which advertising is accused of creating and perpetuating stereotypes.
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Advertising and Stereotyping
TextbookPages 744 - 748
Portrayal of women to reflect their changing role in society
Portrayal ofwomen assex objects
Ethnic stereotyping/representation
Gender stereotyping
Sexual orientation
Criticisms of AdvertisingWith Regard to
Stereotyping
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Targeting Specific MarketsThis is an ad targeted to the African-American market.
TextbookPage 746 / Exhibit 21 - 17
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Do Advertisers Control the Media?These are the arguments supporting the position that advertisers have control over the media.
TextbookPages 748 - 750
Ads are the primary source of revenue for newspapers, magazines, television and radio
Advertisers may exert control over media by biasing editorial content, limiting coverage of certain issues, or influencing program content
Media’s dependence on ads for revenue makes them vulnerable to control by advertisers
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Can Media Resist Advertisers?These are arguments against the position that advertisers control the media.
TextbookPages 750 - 751
Advertisers need the media more than the media need any one advertiser
Media must report the news fairly and accurately to retain public confidence
Media maintain separation between news and business departments “The Wall”
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The Social Value of MediaThis is a print ad developed by the Partnership for a Drug Free America and the Office of National Drug Control Policy.
TextbookPages 751 – 752 / Exhibit 21 - 20
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Economic Effects of AdvertisingThese are ways in which advertising has an affect on the economy and an ad promoting the same.
TextbookPages 752 – 753 / Exhibit 21 - 22
Makes consumers aware of products and services
Provides consumers with information to use to make purchase decisions
Encourages consumption, fosters economic growth
Leads to economies of scale and lower prices
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Economic Impact of AdvertisingThis visual summarizes the economic impact of advertising on consumer choice, competition, and product costs and prices.
TextbookPages 753 – 755 / Exhibit 21 - 25
Consumer Choice• Differentiation • Brand Loyalty
Product Costs & Prices• Advertising is an expense that
increases product costs• Increased differentiation
Competition• Barriers to entry • Economies of scale
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Test Your KnowledgeFrom 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
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Summarizing Economic EffectsThis chart summarizes the position that advertising equals market power.
TextbookPages 756 / Figure 21 - 3
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
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Summarizing Economic EffectsThis chart summarizes the position that advertising equals market power.
TextbookPages 756 - 757 / Figure 21 - 3
Provides useful information
Pressure for lower prices
Increases price sensitivity
Increases competition
Advertising Equals Information
Forces inefficient firms out
Pressure for high quality
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The Value of AdvertisingThis is an ad that the American Advertising Federation (AAF) uses to promote the value of advertising in building strong brands.
TextbookPages 757 / Exhibit 21 - 27
Advertising. The way great brands get to be
great brands.
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The Positive Effects of AdvertisingThis are excerpts from a speech given by Leo Burnett.
TextbookPages 757 – 758 / Figure 21 - 4