Evaluating the Social,

Ethical, and Economic

Aspects of Advertising and
Promotion

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Dove’s Campaign for Real Beauty

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Advertising and Promotion: Two Viewpoints

Proponents
Proponents argue
argue that
that
advertising
advertising and
and promotion:
promotion:

Encourages
Encourages Creates
Creates jobs
jobs and
and
Provides
Provides aa higher
information higher standard
standard helps
helps new
new firms
firms
information of
of living
living enter
enter aa market
market

Promotes
Promotes
competition
competition in
in
the
the marketplace
marketplace

Critics
Critics argue
argue that
that advertising
advertising and
and
promotion
promotion

Creates Promotes
Promotes
Creates needs
needs and
and Is
Is more
more materialism,
wants
wants among
among propaganda
propaganda materialism,
consumers insecurity
insecurity and
and
consumers than
than information
information greed
greed
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Ethics in Advertising and Promotion

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

AA marketing
marketing or or Marketers
Marketers mustmust
promotion
promotion action
action make
make decisions
decisions
Not
Not all
all issues
issues may
may bebe legal
legal but
but regarding
regarding thethe
can
can be
be regulated
regulated not
not considered
considered appropriateness
appropriateness
ethical
ethical of
of their
their actions
actions

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Many People Found Benetton’s “Death Row”
Ad Campaign Offensive

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advertising and Promotion as Untruthful or
Deceptive

General
General mistrust
mistrust of
of advertising
advertising and
and
among
among consumers.
consumers. Many
Many dodo not
not
perceive
perceive ads
ads as
as honest
honest or
or believable
believable

Abuses
Abuses involving
involving sales
sales promotions
promotions such
such
as
as contests,
contests, sweepstakes,
sweepstakes, premium
premium
offers
offers

Unethical
Unethical and/or
and/or deceptive
deceptive practices
practices
involving
involving mail
mail order,
order, telemarketing
telemarketing and
and
other
other forms
forms of
of direct
direct marketing
marketing

Internet
Internet scams
scams and
and abuses
abuses

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Advertising as Offensive or in Bad Taste

Objections
Objections to
to Use
Use of
of sexual
sexual Use
Use of
of shock
shock
advertising
advertising appeals
appeals and/or
and/or ads
ads
of
of certain
certain products
products nudity
nudity

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Test Your Knowledge
Advertisers are using shock advertising to:
A) test their First Amendment rights
B) get their ads noticed in the midst of all
the clutter that is found in the media
C) make a statements against self-
regulation
D) test the ethics of the advertising industry
E) act as advocacy ads for company
management

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Advertising and Children

Children's
Children's TV
TV
Watching
Watching Behavior
Behavior

Children
Children between
between ages
ages Approximately
Approximately 80% 80% of of
2-11
2-11 watch
watch on
on average
average all
all advertising
advertising targeted
targeted
22
22 hours
hours of
of TV
TV per
per to
to children
children falls
falls in
in four
four
week
week and
and may
may see
see product
40,000 product categories:
categories:
40,000 commercials
commercials Toys,
per
per year
year Toys, cereals,
cereals, candy
candy & &
fast
fast food
food restaurants
restaurants

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Perspectives on Advertising to Children

Consumer
Consumer Advocates
Advocates Argue
Argue That
That
Children
Children Are
Are Vulnerable
Vulnerable to
to
Advertising
Advertising Because:
Because:

They
They lack
lack the
the They
They cannot
cannot
knowledge
knowledge and and differentiate
differentiate
skills
skills to
to critically
critically between
between programs
programs
evaluate
evaluate and
and commercials
commercials
advertising
advertising claims
claims

While
While Marketers
Marketers Argue
Argue That:
That:

Children
Children must
must learn
learn Need
Need toto acquire
acquire
through
through the
the skills
skills needed
needed
socialization
socialization to
to function
function in
in the
the
process
process marketplace
marketplace
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Social and Cultural Consequences
of Advertising

Does
Does advertising
advertising make
make
people
people buy
buy things
things
they
they don’t
don’t need?
need?

Does
Does advertising
advertising
encourage
encourage materialism?
materialism?

Is
Is advertising
advertising just
just
aa reflection
reflection of
of society?
society?

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Advertising and Stereotyping

Portrayal
Portrayal of of women
women to
to
reflect
reflect their
their changing
changing role
role
in
in society
society

Portrayal
Portrayal of
of
Gender
Gender women
stereotyping Criticisms
Criticisms of
of women as as
stereotyping sex
sex objects
objects
Advertising
Advertising
With
With Regard
Regard to
to
Stereotyping
Stereotyping

Ethnic
Ethnic
Portrayal
Portrayal of
of stereotyping/
stereotyping/
the
the elderly
elderly representation
representation of
of
minorities
minorities
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
What is your opinion of this ad?

Is
Is this
this woman
woman portrayed
portrayed as
as
aa sex
sex object?
object?

Does
Does this
this ad
ad contain
contain
cues
cues that
that are
are sexually
sexually
suggestive?
suggestive?

Does
Does this
this ad
ad present
present an
an
image
image ofof sexual
sexual
submissiveness?
submissiveness?

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Dove Challenges the Stereotypical
Perspective of Beauty

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Test Your Knowledge
Groups such as the National Organization for Women
(NOW) are critical of advertising that:
A) portrays women in traditional sexist roles
B) contributes to the problem of violence
against women
C) is insulting to women
D) stereotypes women
E) does any of the above

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Do Advertisers Control the Media?

Advertising
Advertising is
is the
the primary
primary source
source
of
of revenue
revenue forfor newspapers,
newspapers,
magazines,
magazines, andand television
television and
and
radio
radio networks
networks and and stations
stations

The
The media’s
media’s dependence
dependence on on
advertising
advertising for
for revenue
revenue makes
makes
them
them vulnerable
vulnerable to
to control
control by
by
advertisers
advertisers

Advertisers
Advertisers maymay exert
exert control
control
over
over the
the media
media byby biasing
biasing
editorial
editorial content,
content, limiting
limiting
coverage
coverage of of certain
certain issues
issues or
or
influencing
influencing program
program content
content

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Do Advertisers Control the Media?

They
They must
must report
report the
the news
news
fairly
fairly and
and accurately
accurately to to retain
retain
public
public confidence
confidence

Advertisers
Advertisers need
need the
the media
media
more
more than
than the
the media
media need
need any
any
one
one advertiser
advertiser

The
The media
media maintain
maintain separation
separation
between
between news
news and
and business
business
departments
departments “The
“The Wall”
Wall”

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The U.S. Government Uses Advertising To
Discourage Drug Use

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Role of Advertising in the Economy

Making
Making consumers
consumers aware
aware of
of
products
products and
and services
services

Providing
Providing consumers
consumers with
with
information
information to
to use
use to
to make
make
purchase
purchase decisions
decisions

Encouraging
Encouraging consumption
consumption
and
and fostering
fostering economic
economic
growth
growth

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Economic Impact of Advertising

Effects
Effects on
on Consumer
Consumer Choice
Choice
•• Differentiation
Differentiation
•• Brand
Brand Loyalty
Loyalty

Effects
Effects on
on Competition
Competition
•• Barriers
Barriers to
to entry
entry
•• Economies
Economies ofof scale
scale

Effects
Effects on
on Product
Product Costs
Costs and
and Prices
Prices
•• Advertising
Advertising as
as an
an expense
expense that
that
increases
increases the
the cost
cost of
of products
products
•• Increased
Increased differentiation
differentiation

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 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.

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Two Schools of Thought on Advertising’s Role in the
Economy

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Do You Agree With Leo Burnett?

“It must be said that without

advertising we would have a far
different nation, and one that
would be much the poorer-not
merely 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

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin