MDA 102
SCHOOL OF ADVERTISING AND MARKETING COMMUNICATIONS
FACULTY OF MEDIA STUDIES
PREPARED BY:
FURZANNE KASMAWI
CHAPTER 10
PRINCIPLES OF ADVERTISING
The Social, Ethical and Economic Aspects of Advertising
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
LEARNING OUTCOMES
At the end of this chapter, students should be able to:
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
TOPIC OUTLINES
10.1 ADVERTISING AND PROMOTION ETHICS
10.1.1 Advertising and Promotions : Two view points
10.1.2 Understanding ethics
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
10.2.1 Advertising as Untruthful or Deceptive
10.2.2 Advertising as Offensive or in Bad Taste
10.2.3 Advertising and Children
10.2.4 Social and Cultural Consequences
10.3 ECONOMIC EFFECTS OF ADVERTISING
10.3.1 Effects on Consumer Choice
10.3.2 Effects on Competition
10.3.3 Effects on Product costs and prices
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
TOPIC OUTLINES
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
INTRODUCTION
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.1 ADVERTISING AND PROMOTION ETHICS
Creates Needs and
Wants Among Consumers
Promotes Materialism,
Insecurity and Greed
Is More Propaganda
Than Information
Provides
Information
Creates Jobs and
Helps New Firms Enter a Market
Encourages
A Higher Standard
Of Living
Promotes
Competition in
The Marketplace
Is More Propaganda
Than Information
Creates Needs and
Wants Among Consumers
Creates Jobs and
Helps New Firms Enter a Market
Encourages
A Higher Standard
Of Living
Provides
Information
Proponents Argue That Advertising and Promotion:
Critics Argue That Advertising and Promotion
Promotes
Competition in
The Marketplace
10.1.1 Advertising and Promotion: Two Viewpoints
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.1 ADVERTISING AND PROMOTION ETHICS
Not All Issues Can Be Regulated
A Marketing or Promotion Action May Be Legal but Not Considered Ethical
Marketers Must Make Decisions Regarding the Appropriateness of Their Actions
A Marketing or Promotion Action May Be Legal but Not Considered Ethical
Not All Issues Can Be Regulated
Ethics: Moral principles and values that govern the actions of an individual or group.
10.1.2 Understanding Ethics
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.1 ADVERTISING AND PROMOTION ETHICS
10.1.2 Understanding Ethics
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.1 ADVERTISING AND PROMOTION ETHICS
10.1.2 Understanding Ethics
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.1 ADVERTISING AND PROMOTION ETHICS
10.1.2 Understanding Ethics
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.1 ADVERTISING AND PROMOTION ETHICS
10.1.2 Understanding Ethics
Protest from the families of the inmates’ victims and threatened boycotts from enraged consumers. A year later the lawsuit was settled when Benetton agreed to write letters of apology to the four families whose relatives were murdered by the inmates featured in the ads.
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
10.2.1 Advertising as Untruthful or Deceptive
Kellogg’s cereal H1N1 ‘Immunity’ claim: misleading advertisement cashing in on the pandemic paranoia of swine flu?
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
10.2.1 Advertising as Untruthful or Deceptive
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
10.2.2 Advertising as Offensive or in Bad Taste
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
10.2.2 Advertising as Offensive or in Bad Taste
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
10.2.2 Advertising as Offensive or in Bad Taste
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
may even generate publicity for their companies.
offend many people but catch the attention of consumers
Nudity, sexual suggestiveness, or other startling images
Shock Advertising
10.2.2 Advertising as Offensive or in Bad Taste
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
10.2.2 Advertising as Offensive or in Bad Taste
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
Children's TV �Watching Behavior
Children between ages 2-11 watch on average 21.5 hours of TV per week and may see 22,000 commercials per year
Television is an important source of information for children about products
10.2.3 Advertising and Children
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
They Lack the Knowledge and
Skills to Critically Evaluate
Advertising Claims
They Cannot Differentiate
Between Programs and Commercials
Children Must Learn
Through the Socialization
Process
Children Must Learn
Through the Socialization
Process
They Cannot Differentiate
Between Programs and Commercials
They Lack the Knowledge and
Skills to Critically Evaluate
Advertising Claims
Need to Acquire Skills Needed
To Function in the Marketplace
Consumer Advocates Argue That Children Are Vulnerable to Advertising Because:
While Marketers Argue That:
10.2.3 Advertising and Children
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
10.2.3 Advertising and Children
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
Suggests material possessions are symbols of status, success and accomplishment and/or will lead to greater social acceptance, popularity, sex appeal, and so on.
Seeks to create needs rather than merely showing how a product or service fulfills them
Images of the good life and suggests the acquisition of material possessions leads to contentment and happiness and adds to the joy of living.
10.2.4 Social and Cultural Consequences
Advertising encourages materialism
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
But persuasive advertising plays on consumers’ emotions, anxieties and psychological needs and desires such as status, self-esteem, and attractiveness which is unacceptable.
Advertising should just provide information useful in making purchase decisions and should not persuade.
Information advertising reports price, performance and other objective criteria as desirable
10.2.4 Social and Cultural Consequences
Advertising makes people buy things they don’t need
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 SOCIAL AND ETHICAL CRITICSM OF ADVERTISING
Portrayal of Women to Reflect Their Changing Role in Society
Portrayal of
Women As
Sex Objects
Ethnic Stereotyping/
Representation of Minorities
Ethnic Stereotyping/
Representation of Minorities
Portrayal of
Women As
Sex Objects
Gender
Stereotyping
Gender
Stereotyping
Portrayal of Women to Reflect Their Changing Role in Society
Other groups
Criticisms of Advertising
With Regard to Stereotyping
10.2.4 Social and Cultural Consequences
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 ECONOMIC EFFECTS OF ADVERTISING
Making Consumers Aware of Products and Services
Providing Consumers With Information to Use to Make Purchase Decisions
Providing Consumers With Information to Use to Make Purchase Decisions
Making Consumers Aware of Products and Services
Encouraging Consumption and Fostering Economic Growth
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 ECONOMIC EFFECTS OF ADVERTISING
Brand loyalty : to gain control of the market, usually at the expense of smaller brands.
10.3.1 Effects on Consumer Choice
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 ECONOMIC EFFECTS OF ADVERTISING
Economies of scale: particularly with respect to factors such as media costs.
.
10.3.2 Effects on Competition
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10.2 ECONOMIC EFFECTS OF ADVERTISING
A second way advertising can result in higher prices is by increasing product differentiation and adding to the perceived value of the product in consumers' minds.
10.3.3 Effects on Product costs and prices
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
10. 6 Summary
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
NEXT WEEK :
QUIZ 2
CHAPTERS COVERED : 6 TO 10
STRUCTURE OF QUESTIONS:
OBJECTIVES
TRUE AND FALSE
FILL IN THE BLANK
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
THAT’S THE END OF THE WHOLE SUBJECT!
HOPE YOU HAVE ENJOYED THIS SUBJECT THROUGH OUT THE SEMESTER!
AND GOOD LUCK IN YOUR FINAL EXAM!
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
LIST OF REFERENCES
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising
APPENDIX
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CHAPTER 10: The Social, Ethical and Economic Aspects of Advertising