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Chapter 4
Social, Ethical, Regulatory Aspects of Advertising
24
Other
Not Applicable
02/14/2008

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Cards

Term
Permission Marketing
Definition

-marketers can direct advertising and promotions only to people who give them permissino to do so

-2004 do not call list including 60 million american phone numbers to restrict telemarketing calls

Term
Social Aspects of Advertising
Definition
-matters of opinion, no clear right or wrong answers, have to use critical thinking*
Term
Advertising Informs
Definition

Pro-educates consumers, can become aware of tendencies towards being persuaded

-reduces products search time

-PSA's

Con-pervasive and intrusive

-too widespread

-planetfeedback.com expressed annoyance with pop-ups and product placement/content crossover

-not truthful

Term
Advertising Improves Standard of Living
Definition

Pro-lowers cost of products

-consumers have greater variety of choice

-firms produce improved products because of competition

-new discoveries/innovatino can be told and spread quickly

Con-wastes resources

-only shifts demand to different brand, it doesn't stimulate demand

-brings economic stagnation and widens gap between rich and poor

Term
Advertising Affects Happiness and General Well Being
Definition

Pro-addreses wide varieties of human needs

-maslow's hierarchy of needs

-physiological

-safety

-love and belonging needs

-esteem needs

-self actualization

Con-creates needs, makes people buy things they don't want

-makes girls covet slim bodies and perfect complexions

Pro 2-only reflects society's priorities

*-Stephen Fox: people who create ads aren't trying to secretly persuade you, they are just making an especially visible manifestation of the american way of life

Con 2-promotes materialism

-aspirations/wants are distorted by adv

-brings about conformity and status seeking behavior

Term
Advertising: Demeaning and Deceitful, or liberating and artful?
Definition

Con-adv perpetuates stereotypes

Pro-advertisers are showing much more sympathy

-versace and body shop ads, unhealthy vs healthy?

Con-adv is offensive, often crude and rude to get consumers attention because they tune out so much

-demonstrates a balance by advertisers between frankness and sensitivity

Pro-adv is a source of fulfillment and liberation

-modern adv brings us a "democracy" of goods

-Andy Warhol demonstrated that the most accessible art is advertising

Con-adv deceives via subliminal stimulation

-doesn't work, isn't true

Pro-adv is a democratic art

-Warhol: "whats great about america is that they started the tradition where the richest consumers buy the same things as the poorest" (coke)

Term
Adv has a powerful effect on Mass Media
Definition

Pro-adv fosters a diverse and affordable mass media

0citeizens have access to a variety of info and netertainment at a low cost

-provides invaluable exposure to issues

-partnership for a drug free america appeals to fascination with celebrities but also gets the point across that drugs kill

Con-affects programming

-have to drop smaller shows bc it doesn't appeal to mass market, therfore it doesn't get $ from adv

-has to drop shows bc of controversial issues even if it's true (NFL show, drugs and abuse, players offended)

Term
Ethical Aspects of Adv
Definition

1. Truth in Adv

2. Adv to children

3. Advertising controversial products

Term
Ethics
Definition
moral standards on which behavior is judged, honesty, integrity, and fairness
Term
Adv. to Children
Definition

-promotes superficiality

-creates child/parent conflicts

-contributes to obesity

 

Term
Deception
Definition
-making false or misleading statements in ads
Term
Puffery
Definition

-using absolute superlatives like #1 or the "best in the world!"

-considered legal

Term
Treasure Island Program
Definition

-blur boundary bw programming and adv

-looked like an adventure show, but it was a real hotel

-FCC permited it

Term
Channel One Controversy
Definition

-controversy bc they provide the most adv for kids

-copanie, and activists are campaigning to stop channel one

-asking ad agencies to not adv on channel one

Term
Advertising Controversial Products
Definition

-tobacco, alcohol, gambling, guns

*adv does influence adults and kids, and can create primary demand

Term
Regulatory Aspects of Adv
Definition

-deception and unfairness

-competitive issues

-advertising to children

Term
6 Government Agencies (that regulate adv)
Definition

1. Federal Trade Commission-most active, controls unfair methods of adv and deception

2. Federal Communications Commission-prohibits obscenity, fraud, and lotteries on radio and tv, can take away broadcast licenses

3. Food and Drug Administration-regulates adv of food, drug, cosmetic, and medical products

-requires special labels for hazardous products

4. Securities and Exchange Commission-regulates disclosure of information

5. US Postal Service-regulate direct mail, adv, prohibit lotteries

-imposes fines for obscene materials

6. Bureau of Alcohol, Tobacco, Firearms and Explosives-most direct influence on adv for alcohol, put warning labels on bottles

 

 

 

 

 

Term
Industry Self Regulation
Definition

-the promotion industry's attempt to police itself

-NARB

Term

National Advertising Review Board (NARB)

Definition

-deals with complaints thatmkae it past the NAD

-a variety of programs ad organizations are designed to monitor adv and that they are effective

-advertisers are just as interested as consumers in maintaining high standards, bc economic vitality of many companies could fail

Term
Internet Self Regulation
Definition
-no industry wide trade association has emerged to offer guidelines, question ethics of internet promotional tools
Term
Consumerism
Definition
-actions of individual consumers or groups of consumers designed to exert power in the market place (patronage, boycotts)
Term
Cookie Issues
Definition

-online tracking markers that advertisers place on hard drive of person to track online behavior

-looming as a real possibility is the widespread use of offline databases that DO include consumer's names, address, phone numbers, credit card, SS number, medical records that are merged with online tracking data from web browser behavior

Term
From IMC to IBP
Definition

-emphasis on synergy and coordination

-need to "define and understand in detail the brand itself"

Term
7 factors boosting IBP
Definition

1. fragmentation of media

2. better audience assessment

3. consumer empowerment

4. increased adv clutter

5. database technology

6. channel power

7. accountability

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