1. Promotional Strategy
MKT4230
Evaluating the Social,
Ethical, and Economic
Aspects of Advertising and
Promotion
Patricia Knowles, Ph.D.
Associate Professor
Clemson University
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Advertising and Promotion Viewpoints
These are the two views concerning the appropriateness and value of advertising.
Textbook
Page 730
Creates consumer needs, faults
Promotes materialism, insecurity, and greed
More propaganda than information
Proponent
arguments
Critic
arguments
Provides information to consumers
Creates jobs
Encourages higher standard of living
Promotes competition
Helps new firms enter a market
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Ethics in Advertising and Promotion
This chart defines and summarizes ethical considerations in advertising and promotion.
Textbook
Page 731
Not all issues can be
regulated
A marketing or
promotion action may
be legal but not ethical
Marketers must decide
the appropriate-ness of
their actions
Ethics
Moral principles and values that govern the actions and decisions
of an individual or group
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Promoting Responsible Drinking
This is an ad put out by the Miller Brewing Company to encourage parents to talk to their
teenagers about the risks of underage drinking.
Textbook
Pages 731 – 732 / Exhibit 21 - 2
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Untruthful or Deceptive Advertising
These are some of the key points about untruthful or deceptive advertising and its effects on
consumers.
Textbook
Pages 733 - 734
Consumers
Don’t trust advertising
Rely on word of mouth
Find ads intrusive
Find relevance too low
Trust websites slightly more
Industry Problems
Deliberately untruthful
False and misleading claims
Faulty sweepstakes
Providing too little info
Puffery and embellishment
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Advertising as Offensive or in Bad Taste
Another common complaint of advertising, particularly by consumers, is that ads are
offensive and in bad taste. These are some of the reasons why advertising is viewed this
way.
Textbook
Pages 734 - 735
Sexual appealsObjectionable products Shock ads
Condoms
Feminine hygiene
products
Women’s undergarments
Hemorrhoid products
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Test Your Knowledge
Advertisers are using shock advertising to:
A. Test their First Amendment rights
B. Get ads noticed in the midst of clutter
C. Make a statement against self-regulation
D. Test the ethics of the advertising industry
E. Act as advocacy ads for company management
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What is Your Opinion of this Ad?
This is an Airwalk ad that criticized for being suggestive and symbolizing sexual submission.
Textbook
Pages 735 – 736 / Exhibit 21 - 8
Is this woman portrayed as a
sex object?
Does this ad contain cues that are
sexually suggestive?
Does this ad present an image of
sexual submissiveness?
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Dolce & Gabbana’s Controversial, Offensive Ad
This is a Dolce & Gabbana ad that was criticized as being offensive to women.
Textbook
Page 732 / Exhibit 21 - 3
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Advertising and Children
These are key facts about the television viewing habits of children and the types of ads that
target them.
Textbook
Pages 738
Children's TV Watching Behavior
Children watch an average of 22
hours of TV per week
They see up to 30,155
commercials per year
80% of ads targeted to children
cover:
•Toys
•Cereal
•Candy
•Fast food
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Perspectives on Ads for Children
This is a summary of the two perspectives on advertising to children
Textbook
Page 738
Lack the knowledge and skills to
evaluate advertising claims
Cannot differentiate between
programs and commercials
Must learn
through socialization
Must acquire skills needed to
function in the marketplace
Advocates Argue That Children:
Marketers Argue that Children:
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Other Areas of Concern
These are some of the additional ways that companies market to children:
• Cable television programming
• Internet ads
• Ads encouraging children to call 900 numbers
• An increase in toy-based programs
• Marketing of violent films, music, games
• Advertising and promotions in schools by companies like Coca-Cola
Textbook
Pages 738 - 741
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Social and Cultural Consequences
The social and cultural consequences of advertising and arguments both for and against
advertising:
Textbook
Pages 741 - 744
Does advertising encourage materialism?
Does advertising make people buy things
they don’t need?
Is advertising just a reflection of society?
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Does Advertising Affect Society?
This is an ad that was developed by the American Association of Advertising Agencies in
response to criticisms of advertising.
Textbook
Page 743 / Exhibit 21 - 13
17. These are the various ways in which advertising is accused of creating and perpetuating
stereotypes.
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Advertising and Stereotyping
Textbook
Pages 744 - 748
Portrayal of women to reflect their
changing role in society
Portrayal of
women as
sex objects
Ethnic stereotyping/
representation
Gender
stereotyping
Sexual orientation
Criticisms of Advertising
With Regard to
Stereotyping
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Do Advertisers Control the Media?
These are the arguments supporting the position that advertisers have control over the
media.
Textbook
Pages 748 - 750
Ads are the primary source of revenue for newspapers, magazines,
television and radio
Advertisers may exert control over media by biasing editorial content, limiting
coverage of certain issues, or influencing program content
Media’s dependence on ads for revenue makes them vulnerable to
control by advertisers
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Can Media Resist Advertisers?
These are arguments against the position that advertisers control the media.
Textbook
Pages 750 - 751
Advertisers need the media more than
the media need any one advertiser
Media must report the news fairly and
accurately to retain public confidence
Media maintain separation between news
and business departments “The Wall”
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The Social Value of Media
This is a print ad developed by the Partnership for a Drug Free America and the Office of
National Drug Control Policy.
Textbook
Pages 751 – 752 / Exhibit 21 - 20
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Economic Effects of Advertising
These are ways in which advertising has an affect on the economy and an ad promoting the
same.
Textbook
Pages 752 – 753 / Exhibit 21 - 22
Makes consumers aware of products
and services
Provides consumers with information
to use to make purchase decisions
Encourages consumption, fosters
economic growth
Leads to economies of scale and
lower prices
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Economic Impact of Advertising
This visual summarizes the economic impact of advertising on consumer choice,
competition, and product costs and prices.
Textbook
Pages 753 – 755 / Exhibit 21 - 25
Consumer Choice
• Differentiation
• Brand Loyalty
Product Costs & Prices
• Advertising is an expense that
increases product costs
• Increased differentiation
Competition
• Barriers to entry
• Economies of scale
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Test Your Knowledge
From an economic perspective, advertising might lower the cost of a product by:
A. Creating barriers to entry for less efficient firms
B. Moving consumers to the consumer socialization stage of the buying process
C. Making it possible for firms to realize economies of scale through expansion of sales
volume
D. Allowing firms to advertise at high levels along with competitors
E. Doing none of the above
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Summarizing Economic Effects
This chart summarizes the position that advertising equals market power.
Textbook
Pages 756 / Figure 21 - 3
Change consumers’ tastes
Reduces competition
Lowers sensitivity to price
Builds brand loyalty
Advertising Equals
Market Power
Leads to higher prices
Leads to fewer choices
Results in higher profits
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Summarizing Economic Effects
This chart summarizes the position that advertising equals market power.
Textbook
Pages 756 - 757 / Figure 21 - 3
Provides useful information
Pressure for lower prices
Increases price sensitivity
Increases competition
Advertising Equals
Information
Forces inefficient firms out
Pressure for high quality
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The Value of Advertising
This is an ad that the American Advertising Federation (AAF) uses to promote the value of
advertising in building strong brands.
Textbook
Pages 757 / Exhibit 21 - 27
Advertising. The way
great brands get to be
great brands.