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Evaluating theSocial, Ethical, andEconomic Aspects of

Advertising andPromotion

Evaluating theSocial, Ethical, andEconomic Aspects of

Advertising andPromotion

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Creates Needs andWants AmongConsumers

PromotesMaterialism,

Insecurity andGreed

Is MorePropaganda

Than Information

ProvidesInformation

Creates Jobs andHelps New FirmsEnter a Market

Encourages

A Higher StandardOf Living

Promotes

Competition inThe Marketplace

Is MorePropaganda

Than Information

Creates Needs andWants AmongConsumers

Creates Jobs andHelps New FirmsEnter a Market

Encourages

A Higher StandardOf Living

ProvidesInformation

Advertising and Promotion: Two Viewpoints

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Proponents Argue ThatAdvertising and Promotion:

Critics Argue That Advertising and

Promotion

Promotes

Competition inThe Marketplace

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Not All IssuesCan Be

Regulated

A Marketing orPromotion ActionMay Be Legal but

NotConsideredEthical

Marketers MustMake DecisionsRegarding the

Appropriatenessof Their Actions

A Marketing orPromotion ActionMay Be Legal but

NotConsideredEthical

Not All IssuesCan Be

Regulated

Ethics in Advertising and Promotion

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Ethics: Moral principles and values thatgovern the actions of and individual or group.

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The Miller Brewing Co. PromotesResponsible Drinking

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General Mistrust of Advertising andAmong Consumers. Many Do Not

Perceive Ads As Honest or Believable

General Mistrust of Advertising andAmong Consumers. Many Do Not

Perceive Ads As Honest or Believable

Abuses Involving Sales PromotionsSuch As Contests, Sweepstakes,

Premium Offers

Unethical And/or Deceptive Practices

Involving Mail Order, Telemarketing andOther Forms of Direct Marketing

Internet Scams and Abuses

Abuses Involving Sales PromotionsSuch As Contests, Sweepstakes,

Premium Offers

Unethical And/or Deceptive Practices

Involving Mail Order, Telemarketing andOther Forms of Direct Marketing

Advertising and Promotion asUntruthful or Deceptive

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Objections toAdvertising

OfCertain Products

Use of SexualAppeals And/or

Nudity

Objections toAdvertising

OfCertain Products

Use of SexualAppeals And/or

Nudity

Use of ShockAds

Advertising as Offensive or in Bad Taste

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++

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Many People Found Benettons Death RowAd Campaign Offensive

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Bijan Used Shock Advertisingto Get Attention

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Advertising and Children

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Children's TVWatching Behavior

Children between ages2-11 watch on average21.5 hours of TV perweek and may see

22,000 commercialsper year

Television is an

important source of

information for

children about products

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They Lack theKnowledge and

Skills to CriticallyEvaluate

Advertising Claims

They Cannot

DifferentiateBetween Programsand Commercials

Children Must LearnThrough theSocialization

Process

Children Must LearnThrough theSocialization

Process

They Cannot

DifferentiateBetween Programsand Commercials

They Lack theKnowledge and

Skills to CriticallyEvaluate

Advertising Claims

Perspectives on Advertising to Children

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Need to AcquireSkills Needed

To Function in theMarketplace

Consumer Advocates Argue ThatChildren Are Vulnerable to

Advertising Because:

While Marketers Argue That:

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Does Advertising MakePeople Buy Things

They Dont Need?

Does AdvertisingEncourage Materialism?

Does AdvertisingEncourage Materialism?

Does Advertising MakePeople Buy Things

They Dont Need?

Social and Cultural Consequencesof Advertising

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Is Advertising JustA Reflection of Society?

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Portrayal of Women toReflect Their Changing

Role in Society

Portrayal ofWomen AsSex Objects

EthnicStereotyping/Representation

of Minorities

EthnicStereotyping/Representation

of Minorities

Portrayal ofWomen AsSex Objects

GenderStereotyping

GenderStereotyping

Portrayal of Women toReflect Their Changing

Role in Society

Advertising and Stereotyping

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Portrayal ofThe Elderly

Criticisms ofAdvertising

With Regard toStereotyping

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Is This Woman Portrayed Asa Sex Object?

Does This Ad ContainCues That Are Sexually

Suggestive?

Does This Ad Present anImage of SexualSubmissiveness?

Does This Ad ContainCues That Are Sexually

Suggestive?

Is This Woman Portrayed Asa Sex Object?

What is your opinion of this ad?

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Advertising is Used to Address Social Problems

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Using advertising to fight the war on drugs

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The U.S. Government Used AdvertisingTo Discourage Drug Use

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Should Drug Use Be Linked With Terrorism?

+ +

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Advertising Is the Primary Sourceof Revenue for Newspapers,

Magazines, and Television andRadio Networks and Stations

Advertisers May Exert ControlOver The Media by BiasingEditorial Content, Limiting

Coverage ofCertain Issues orInfluencing Program Content

The Medias Dependence onAdvertising For Revenue MakesThem Vulnerable To Control by

Advertisers

Advertising Is the Primary Sourceof Revenue for Newspapers,

Magazines, and Television andRadio Networks and Stations

The Medias Dependence onAdvertising For Revenue MakesThem Vulnerable To Control by

Advertisers

Do Advertisers Control the Media?

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They Must Report the NewsFairly and Accurately to Retain

Public Confidence

Advertisers Need the MediaMore Than the Media Need Any

One Advertiser

Advertisers Need the MediaMore Than the Media Need Any

One Advertiser

They Must Report the NewsFairly and Accurately to Retain

Public Confidence

Do Advertisers Control the media?

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The Media Maintain SeparationBetween News and Business

Departments The Wall

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Making Consumers Aware ofProducts and Services

Providing Consumers WithInformation to Use to Make

Purchase Decisions

Providing Consumers WithInformation to Use to Make

Purchase Decisions

Making Consumers Aware ofProducts and Services

Role of Advertising in the Economy

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Encouraging Consumptionand Fostering Economic

Growth+

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The American Advertising FederationPromotes the Value of Advertising

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Effects on Consumer Choice Differentiation Brand Loyalty

Effects on product costs and prices Advertising as an expense that

increases the cost of products Increased differentiation

Effects on Competition Barriers to entry Economies of scale

Effects on Consumer Choice Differentiation Brand Loyalty

Effects on Competition Barriers to entry Economies of scale

Economic Impact of Advertising

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Advertising Helps New CompetitorsEnter the Market

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Do You Agree With Leo Burnett?

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It must be said that without

advertising we would have a far

different nation, and one that

would be much the poorer-notmerely in material commodities,

but in the life of the spirit.

These excerpters are from a speech given by Leo Burnett on the American

Association or Advertising Agencies 50th anniversary, April 20,1967