1-1 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e...

1-1Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-1

Chapter 3

Social, ethical and regulatory aspects


1. To consider various perspectives concerning the social and ethical aspects of marketing communication.

2. To evaluate the social criticisms of advertising.

3. To examine how advertising is regulated, including the role and function of various regulatory agencies.

4. To examine the self-regulation of advertising and evaluate its effectiveness.

Learning objectives


Social and ethical

criticisms

Governmentregulation

Deceptive

Offensive

Advertising and children

Ethics

Social and ethical

consequences

Self-regulation

of advertising

Regulation


Crazy Domains

What are your thoughts?Is this ad offensive or sexist? Or is it a light-hearted fantasy not be taken too seriously?

What are your thoughts?Is this ad offensive or sexist? Or is it a light-hearted fantasy not be taken too seriously?

Source: © 2010 Crazy Domain Names


Crazy Domains (cont.)Selected comments from members of the public:

‘It is all about sex, got nothing to with domains, unless it’s to start a porn site. It’s totally inappropriate.’

‘This is overtly sexist and exploitative. It belittles women in the workforce and portrays them as sexual property.’

‘The ad is misogynist.’

‘It sends a terrible message to young women; namely what they look like has more bearing than their authority in the workplace . . . this ad is a reminder that women are still not taken seriously in the workplace.’


Advertising and society Marketing communication is intimately

connected with the social and cultural environment.

Advertising is very prevalent and occupies an increasing amount of public space.

Advertisers operate in a complex environment of government rules and regulations.

Many parties are concerned about advertising’s potential to offend, mislead, exploit or deceive.

Advertising is a very powerful force with the potential to offend.


Advertising and promotion: two viewpoints

Creates artificial needs and wantsCreates artificial needs and wants

Promotes materialismPromotes

materialismIs more

propagandathan information

Is more propaganda

than information

Provides informationProvides

informationCreates jobs and helps new firms enter a market

Creates jobs and helps new firms enter a market

Encouragesa higher standard

of living

Encouragesa higher standard

of living

Promotes competition inthe marketplace

Promotes competition inthe marketplace

Proponents’ argumentsProponents’ arguments

Critics’ argumentsCritics’ arguments


Junk food and The Parents Jury


Ethics

Ethics are moral principles and values that govern the actions and decisions of an individual or group.

Laws are formal, codified rules that are recognised as binding in a community.

Activities that are lawful may not be ethical!


Advertising and truthfulness Around the world, virtually all advertising codes

require advertising to be truthful (not misleading or deceptive).

Advertisers are required to have a reasonable basis for making claims.

Few advertisers deliberately set out to deceive. Misleading or fraudulent claims can be made

inadvertently. Many people believe that advertising should be

primarily informative. Advertisers argue that they have the right to

present the most favourable case for their products/services.


Source: Australian Association of National Advertisers, www.aana.com.au


Source: Advertising Standards Authority New Zealand, www.asa.co.nz


Sources of distaste

Sex appeals and/or nudity

Sex appeals and/or nuditySensitive productsSensitive products Fear/ Shock

appeals

Fear/ Shock appeals

Windows User

I'm not sure where the outside images came from - not in text. Do we need permissions for these?The smoking one could possibly be replaced with Exhibit 3.4 but may not fit


Sex appeals in advertising


Sex appeals in advertising (cont.)



Children’s media habits Children’s media habits

Average of 5 hours per day using media including television, videogames and the internet

Average of 5 hours per day using media including television, videogames and the internet

Exposed to more than 40 000 commercials per annum

Exposed to more than 40 000 commercials per annum

22 hours per week watching TV

22 hours per week watching TV


Perspectives on advertising to children

Lack of skill/expertise for

critical evaluation of advertising claims

Lack of skill/expertise for

critical evaluation of advertising claims

Difficulty differentiating

between programs and commercials

Difficulty differentiating

between programs and commercials

Children must learnthrough the socialisation

Children must learnthrough the socialisation

Need to acquire skills to function in the

marketplace

Need to acquire skills to function in the

marketplace

Consumer advocates argue that children are vulnerable to advertising due to:

Consumer advocates argue that children are vulnerable to advertising due to:

Marketers argue that:Marketers argue that:



Given children’s vulnerability and natural guile, most advertising associations produce special codes to protect them.

The Australian Communications and Media Authority has strict guidelines for advertising to children, which include the following: advertising banned on preschool programs no alcohol advertising restrictions on prizes and competitions program hosts selling goods or services the number of times a commercial can be broadcast

during children’s programs.


Advertising and children (cont.)


Advertising and children (cont.)

Source: Australian Association of National Advertisers (AANA), www.aana.com.au


Social and cultural consequences of advertising

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

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

Does advertising encourage materialism?

Does advertising encourage materialism?

Does advertising control the media?

Does advertising control the media?

Does advertising perpetuate stereotypes?

Does advertising perpetuate stereotypes?


Advertising and materialism

Surrounds consumers with images of the ‘good life’

Surrounds consumers with images of the ‘good life’

Material possessions as

symbols of status

Material possessions as

symbols of status

Creates artificial needs

Creates artificial needs

Criticisms of advertising with

regard to materialism

Criticisms of advertising with

regard to materialism

Acquisition of material possessions equated with accomplishment, popularity or sex

appeal

Acquisition of material possessions equated with accomplishment, popularity or sex

appeal


Advertising and stereotyping

Preoccupation with beauty ideals

Preoccupation with beauty ideals

Portrayals of women fail to reflect their changing

role in society

Portrayals of women fail to reflect their changing

role in society

Portrayal ofwomen assex objects

Portrayal ofwomen assex objects

Ethnic stereotyping/

representation of minorities

Ethnic stereotyping/

representation of minorities

Gender stereotyping

Gender stereotyping

Portrayal ofthe elderly

Portrayal ofthe elderly

Criticisms of advertising

with regard to stereotyping

Criticisms of advertising

with regard to stereotyping


Stereotypical portrayal of women


Social and ethical

criticisms

Governmentregulation

Deceptive

Offensive


Ethics

Social and ethical

consequences

Self-regulation

of advertising

Regulation


Regulatory aspects

Advertising is controlled through laws and regulations.

Laws are formal, codified rules recognised as binding in a community.

Regulations are internal rules governing the behaviour of groups.


Consumer protection laws

Fair Trading Act, 1986Fair Trading Act, 1986

Competition and Consumer Act, 2010Competition and Consumer Act, 2010


Competition and Consumer Act, 2010


Industry regulation

Self-regulation forms the basis of the advertising regulation system in both Australia and New Zealand.

Flexible and responsive to industry needs and public

opinion

Flexible and responsive to industry needs and public

opinionLimits government

interferenceLimits government

interference

Benefits of self-regulationBenefits of self-regulation


Industry self-regulation

Advertising Standards Authority


Advertising Standards Bureau

Australian Advertising Standards Council

Advertising Standards Bureau

Australian Advertising Standards Council


Industry self-regulation in Australia

Advertising Standards Bureau (ASB)

Advertising Standards Bureau (ASB)

Advertising Claims Board (ACB)

Advertising Claims Board (ACB)

Australian Advertising

Standards Council

Australian Advertising

Standards Council

Public complaintsPublic complaints Competitive complaintsCompetitive complaints


Advertising Standards Board


Industry self-regulation in New Zealand


(ASA)


(ASA)

AANZAAANZA

ANZAANZA

RBARBA

NZTBCNZTBC

NZDMANZDMA

Member organisationsMember organisations


Levels of advertising regulation

Government regulationGovernment regulation

Industry self-regulationIndustry self-regulation

Federal, state and local lawsFederal, state and local laws

Advertising Standards BureauAdvertising Standards Bureau

Trade/professional associations

Trade/professional associations

Internal vetting proceduresInternal vetting procedures

Media Media Codes of conductCodes of conduct

Advertisers & agenciesAdvertisers & agencies

BusinessesBusinesses

Voluntary codes of conductVoluntary codes of conduct

Codes of conductCodes of conduct


Appraising self-regulation

Demonstrated as an effective

mechanism

Demonstrated as an effective

mechanism

Has led to more stringent

standards than legislation alone

Has led to more stringent

standards than legislation alone

Time-consuming complaint

resolution process

Time-consuming complaint

resolution process

Lacks power and authority/problems with

enforceability

Lacks power and authority/problems with

enforceability

Advertising industry perspectiveAdvertising industry perspective

Critics’ perspectiveCritics’ perspective

Preferable to government

intervention in a mature industry

Preferable to government

intervention in a mature industry

Self-serving

Self-serving


Summary and conclusions Advertising is a powerful and pervasive form of

communication. Advertising has been the target of considerable

criticism regarding its social and economic impact. Advertising has the potential to offend some

members of the public. There is ongoing debate over whether advertising

influences and transmits social values or simply mirrors those values.

Regulation and control processes stem from internal regulation, self-regulation and government.

In Australia and New Zealand a system of industry self-regulation is in operation.

1-1 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e...

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