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| Biological needs that require the satisfaction of hunger, thrist, and basic bodily functions. |
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| The need to provide shelter and protection for the body and to maintain a comfortable existence. |
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| The need for affiliation and affection. A person will strive for both the giving and receiving of love. |
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| The need for recognition, status, and prestige. In addition to the respect of others, there is a need and desire for self-respect. |
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| This is the highest of all the need states and is acheived by only a small percentage of people, according to Maslow. The individual strives for maximum fulfillment of individual capabilities. |
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| Moral standards and principles against which behavior is judged. Honesty, integrity, fairness, and sensitivity are all included in a broad definition of ethical behavior. |
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| The most fundamental ethical issue - making false statement or misleading statements in an advertisement. |
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| The use of absolute superlatives such as "Number One" or "Best in the World" is considered completely legal. |
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| Demand for an entire product category. Advertising cannot create primary demand for mature products (milk, automobiles, toothpaste, cigarettes, and alcohol). |
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Congress defines it as "acts or practices that cause or are likely to cause substantial injury to consumers, which is not reasonably avoidable by consumers themselves, and not outweighed by the countervailing benefits to consumers or competition. |
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Vertical cooperative advertising |
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| An advertising technique whereby a manufacturer and dealer (either a wholesales or retailer) share the expense of advertising. |
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| Comparison advertisements |
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| Those in which an advertiser makes a comparison between the firm's brand and competitors' brands. |
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| Some firms are so powerful in their use of advertising that monopoly power by virtue of their advertising spending can become a problem. This issue normally arises in the context of mergers and aquisitions. |
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| Federal Trade Commission (FTC) |
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Definition
| Most widely empowered agency in government. Controls unfair methods of competition, regulates deceptive advertising, and has various programs for controlling the advertising process. |
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| Federal Communications Commission (FCC) |
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Definition
| Prohibits obscenity, fraud, and lotteries on radio and television. Ultimate power lies in the ability to deny or revoke broadcast licenses. |
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Food and Drug Administration (FDA) |
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Definition
| Regulates the advertising of food, drug, cosmetic, and medical products. Can require special labeling for hazardous products such as household cleaners. Prohibits false labeling and packaging. |
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| Securities Exchange Commission (SEC) |
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Definition
| Regulates the advertising of securities and the disclosure of information in annual reports. |
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| U.S. Postal Service (USPS) |
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Definition
| Responsible for regulating direct mail advertising and prohibiting lotteries, fraud, and misrepresentation. It can also regulate and impose fines for materials deemed to be obscene. |
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| Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) |
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Definition
| Most direct influence has been on regulation of advertising for alcoholic beverages. This agency was responsible for putting warning labels on alcoholic beverages advertising and banning active athletes as celebrities in beer ads. It has the power to determine what constitutes misleading advertising in these product areas. |
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| Advertising substantiation program |
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Definition
| Ensures that advertisers make supporting evidence for their claims available to consumers. |
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| An advertiser accused of running deceptive or unfair advertising agrees to stop running the advertisement in question, without admitting guilt. |
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| FTC can issue this for advertisers who do not comply voluntarily. It requires that the advertising in quesiton be stopped within 30 days so that a hearing can be held to determine whether the advertising is deceptive or unfair. |
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Issued by the FTC that requires that the important material absent from prior ads must be included in subsequent advertisements. |
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| The most extensive remedy for advertising determined to be misleading. The firm may be required to run corrective ads in an attempt to dispel those faulty beliefs based on deceptive or unfair advertising. |
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| Advertisements that use an expert or celebrity as a spokesperson for a product. Experts have to actually be qualified and celebrities actually have to use the product. |
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| The promotion industry's attempt to police itself. Supports say it is an example of how unnecessary government intervention is, while critics point to it as a joke, an elaborate shell game. |
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| The actions of individual consumers or groups of consumers designed to exert power in the marketplace. |
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| Online tracking marker that advertisers place on a Web surfer's hard drive to track that person's online behavior. |
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| Unsolicited commercial messages sent through the e-mail system. |
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| An item offered for "free" or at a greatly reduced price with the purchase of another item. |
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| The use of pictures or images owned by someone else without permission. If a firm uses a model's photo or a photographer's work in an advertisement or company brochure without permission, then the work has been appropiated without the owner's permission. |
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| Communication that damages the reputation of an individual because the information in the communication was untrue. |
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Term
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| Oral defamation and in the context of promotion would occur during television or radio broadcast of an event involving a company and its employees. |
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Definition
| Defamation that occurs in print and would relate to magazine, newspaper, direct mail, or Internet reports. |
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