Economic Social Impact of Advertising

7/29/2019 Economic Social Impact of Advertising

1/22

Evaluating the Social,

Ethical, and EconomicAspects of Advertising

and Promotion


2/22

Role of Advertising in the Economy

Makes consumers awareof products and services

Provides consumers withinformation to use to

make purchase decisions

Encourages consumption,fosters economic growth


3/22

Economic Impact of Advertising

Effects on Consumer Choice Differentiation Brand Loyalty

Effects on Product Costs and Prices

Advertising as an expense thatincreases the cost of products

Increased differentiation

Effects on Competition Barriers to entry Economies of scale


4/22

Advertising and Promotion Viewpoints

Creates unnecessary consumer needs andwants

Promotes materialism, insecurity,and greed

More propaganda (lies) than information

Provides information

Creates jobs

Encourages higher standard of living

Promotes competition(for)

Proponentarguments

(against)Criticarguments

Helps new firms enter a market

What is materialism?


5/22

Social and Cultural Consequences

Does advertisingencourage materialism?

Does advertising makepeople buy thingsthey dont need?

Is advertising justa reflection of society?


6/22

Advertising and Children

Children's TVWatching Behavior

Children ages 2-11watch an average of22 hours of TV perweek and see 30,000

commercials per year

80% of all advertising

targeted to children

falls in four

product categories:Toys, cereal, candy &

fast food restaurants


7/22

Perspectives on Ads for Children

Advocates Argue That Children:

Marketers Argue Children:

Lack the knowledge andskills to evaluate

advertising claims

Cannot differentiatebetween programs and

commercials

Must learnthrough socialization

Must acquire skillsneeded to function in

the marketplace


8/22

Advertising to children


9/22

Advertising and Stereotyping

Portrayal of women toreflect their changing rolein society

Portrayal ofwomen assex objects

Ethnicstereotyping/representation

Genderstereotyping

Sexualorientation

Criticisms ofAdvertising

With Regard toStereotyping


10/22

How women are portrayed in advertising


11/22

Ethics in Advertising and Promotion

Not all issues canbe regulated

A marketing orpromotion actionmay be legal but

not ethical

Marketers mustdecide the

appropriatenessof their actions

Ethics: Moral principles and values thatgovern the actions and decisions of anindividual or group.


12/22

Advertising and Untruthful or Deceptive

General mistrust of advertisingamong consumers. Many do not

perceive ads as honest or believable

Abuses involving sales promotions

such as contests, sweepstakes,premium offers

Unethical and/or deceptive practicesinvolving mail order, telemarketing

and other forms of direct marketing

Internet scams and abuses


13/22

Subliminal Advertising

Subliminal- To reveal amessage without aperson knowing or beingaware


14/22



15/22



16/22



17/22

Do Advertisers Control the Media?

Advertising is the primary

source of revenue fornewspapers, magazines,

television and radio

Advertisers may exert control

over the media by biasingeditorial content, limiting

coverage of certain issues, orinfluencing program content

Medias dependence on

advertising for revenue makesthem vulnerable to control by

advertisers


18/22

Do Advertisers Control the Media?

They must report the newsfairly and accurately to retain

public confidence

Advertisers need the mediamore than the media need

any one advertiser

Media maintains separationbetween news and business

departments The Wall


19/22

Advertising Can Address

Social Problems


20/22

U.S. Government Discourages Drug Use


21/22

Advertising Can Address Social Problems


22/22

Test Your Knowledge

Whether advertising :

A) Is insulting to women

B) Stereotypes women

C) Affect childhood

Economic Social Impact of Advertising

Documents

Transcript of Economic Social Impact of Advertising