In between the tough competition and constant pressure to create powerful deliverable, keeping a check on ethics is also a must not just to avoid legal implications but to create and maintain a good Brand Integrity.

1. In Advertising

2. The competitive
drive to develop the
most effective
attention-grabbing
messages possible
The fear of crossing
the line beyond what
is legal, ethical, and
socially acceptable
Marketers encounter constant tension between:

3. Ethics
Ethics: Moral and value standards that
act as behavioral guidelines for a
society’s citizens
•Unlike laws and regulations,
ethical codes are generally not
written down

4. Ethics in Advertising and Promotion
Not all issues can be
regulated
A marketing or
promotion action may
be legal but not ethical
Marketers must decide
the appropriateness of
their actions
Ethics: Moral principles and values that govern the
actions and decisions of an individual or group.

7. Children Elderly
Minorities
Developing
Countries
Minorities
ElderlyChildren
Targeting Vulnerable Groups
Targeting
Vulnerable
Groups

8. Offensive Messages
Marketers have a range of
creative options for their
messages—
each with a trade-off
Attention-
grabbing—but
controversial,
maybe offensive
Safe but boring

9. Questionable
B2B Practices
Puffery
Commercial
Free Speech
Misleading
Claims
Fraud
Questionable
B2B Practices
Puffery
Misleading
Claims
Commercial
Free Speech
What Legal Issues Relate to MC
Legal
Issues

10. National
Advertising
Division
National
Advertising
Review Council
Better Business
Bureau
Children’s
Advertising
Review unit
National
Advertising
Review Board
National
Advertising
Division
National
Advertising
Review Council
Children’s
Advertising
Review Unit
Better Business
Bureau
Industry Self-Regulation Groups
Regulating
Groups

11. Federal Trade
Commission
Patent and
Trademark
Office
State and Local
Regulations
Foreign
Regulations
State and Local
Regulations
Patent and
Trademark
Office
Federal Trade
Commission
Government Oversight
Government
Oversight

12. Approval Processes
Corporate Ethical Standards
Social Marketing
Corporate Ethical Standards
Approval Processes
Managing These Issues Is Complex
Managing
Issues

13. Advertising and Untruthful or Deceptive
General mistrust of advertising
among consumers. Many do not perceive ads as
honest or believable
Abuses involving sales promotions such as contests,
sweepstakes, premium offers
Unethical and/or deceptive practices
involving mail order, telemarketing and other forms
of direct marketing
Internet scams and abuses

14. Advertising and Children
Children's TV
Watching Behavior
Children ages 2-11
watch an average of
22 hours of TV per
week 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

15. Perspectives on Ads for Children
Advocates Argue That Children:
Marketers Argue Children:
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

16. Social and Cultural Consequences
Does advertising
encourage materialism?
Does advertising make people
buy things
they don’t need?
Is advertising just
a reflection of society?

17. Dove Challenges the Norms of Beauty

18. Economic Impact of Advertising
Effects on Consumer Choice
• Differentiation
• Brand Loyalty
Effects on Product Costs and Prices
• Advertising as an expense that increases the
cost of products
• Increased differentiation
Effects on Competition
• Barriers to entry
• Economies of scale

19. Do you agree with Leo Burnett?
“It must be said that without advertising we
would have a far different nation, and one
that would be much the poorer-not merely
in material commodities, but in the life of
the spirit.”
Excerpters is from a speech given by Leo Burnett on the American
Association or Advertising Agencies’ 50th anniversary, April 20,1967

20. Why ‘Ethical’ Advertising?
Not to hurt sentiments of the society
Maintain a code of conduct
Avoid misrepresentation
Adhere with social norms
Social acceptance
Helps in image building