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Socio-economic Role of Advertising
- 10. 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
- 11. 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
- 12. Creates consumer needs, wants Promotes materialism, insecurity, and greed More propaganda than information Provides information Creates jobs Encourages higher standard of living Promotes competition Proponent arguments Critic arguments Helps new firms enter a market
- 14. Does advertising encourage materialism ? Does advertising make people buy things they don’t need? Is advertising just a reflection of society?
- 15. Advertising is the primary source of revenue for newspapers, magazines, television and radio Advertisers may exert control over the media by biasing editorial content, limiting coverage of certain issues, or influencing program content Media’s dependence on advertising for revenue makes them vulnerable to control by advertisers
- 16. They must report the news fairly and accurately to retain public confidence Advertisers need the media more than the media need any one advertiser Media maintain separation between news and business departments “The Wall”
- 17. Makes consumers aware of products and services Provides consumers with information to use to make purchase decisions Encourages consumption, fosters economic growth
- 24. 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
- 25. 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
- 26. Provides useful information Pressure for lower prices Increases price sensitivity Increases competition Advertising Equals Information Forces inefficient firms out Pressure for high quality
- 27. “ 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
- 34. Criticisms of Advertising With Regard to Stereotyping Portrayal of women to reflect their changing role in society Portrayal of women as Beauty objects Ethnic stereotyping/ representation Gender stereotyping
- 35. Groups such as the National Organization for Women (NOW) are critical of advertising that: A) Portrays women in traditional sexist roles B) Contributes to violence against women C) Is insulting to women D) Stereotypes women E) Does any of the above
Notes de l'éditeur
- Relation to text This slide relates to page 750 and Exhibit 22-14 of the text. Summary Overview The advertising industry believes that advertising reflects society, not the other way around. This ad was part of a campaign to address the criticisms of advertising. Use of this slide Use this slide to present the advertising industry’s position advertising’s effect on society.
- Relation to text This slide relates to material on pp. 745-749 of the text. Summary Overview One of the most controversial topics advertisers must deal with is the issue of advertising to children. The extensive amount of time children spend watching TV means they will be exposed to a great deal of advertising. This slide provides some statistics regarding children’s TV watching behavior. Children between the ages of 2-17 watch an average of 22 hours of TV per week, and may see 30,000 commercials per year The vast majority of advertising targeted to children falls in four product categories: toys, cereal, candy, and fast food restaurants Use of this slide This slide can be used to introduce the issue of advertising to children. The next slide will discuss two perspectives on advertising to children.
- Relation to text This slide relates to material on pp. 745-749 of the text. Summary Overview Critics of advertising to children argue that it should be banned or severely restricted. However, marketers argue that advertising is a part of life and children must learn to deal with it. Legislation by the government and self-regulatory group agreements have provided some protection for children. This slide summarizes the two perspectives on advertising to children: Consumer advocates argue that children are vulnerable to advertising because: They lack the knowledge and skills to critically evaluate advertising claims They cannot differentiate between programs and commercials Marketers argue that children must: Learn through the socialization process Acquire the skills needed to function in the marketplace Use of this slide This slide can be used to discuss the two perspectives on advertising to children.
- Relation to text This slide relates to material on p. 737 of the text. Summary Overview This slide shows the two views concerning the appropriateness and value of advertising. Proponents argue that advertising and promotion : Provide information Encourages a higher standard of living Creates jobs and helps new firms enter a market Promotes competition in the marketplace Critics argue that advertising and promotion : Creates needs and wants among consumers Is more propaganda than information Promotes materialism, insecurity, and greed Throughout the text, advertising and promotion has been discussed in the context of the business and marketing environment and from a perspective that these activities are appropriate. Critics argue that there are negative social and economic effects of advertising and promotion. Use of this slide This slide can be used to introduce the two different viewpoints regarding the value of advertising and promotion and the arguments for each.
- Relation to text This slide relates to material on pp. 749-751 8 of the text. Summary Overview This slide shows some of the social and cultural questions related to advertising. Does advertising make people buy things they don’t need? Pro advertising Advertising provides essential information It is difficult to separate the desirable advertising from the undesirable Consumers are free to choose Critics of advertising Information advertising is acceptable, but persuasive advertising is unacceptable Persuasive advertising fosters discontent among consumers Does advertising encourage materialism? Pro advertising Materialism is an acceptable part of the Protestant ethic, which stresses hard work and individual effort Acquisition of material possessions has positive economic impact Critics of advertising Advertisers seeks to create needs Surrounds consumers with images of the good life and suggest material possessions will lead to happiness Material possessions will lead to greater social acceptance Is advertising just a reflection of society? Some argue that advertising is merely a visible manifestation, good and bad, of the American way of life. Others feel that advertising reflects cultural values on a selective basis, echoing and reinforcing certain attitudes, behaviors, and values more frequently than others. Use of this slide This slide can be used to discuss the social and cultural consequences of advertising and arguments both for and against advertising.
- Relation to text This slide relates to material on pp. 756-757 of the text. Summary Overview This slide shows the arguments supporting the position that advertisers have control over the media. These include: Advertising is the primary source of revenue for newspapers, magazines, television, and radio Media’s dependence on advertising for revenue makes them vulnerable to control by advertisers Advertisers may exert control over the media by biasing editorial content, limiting coverage of certain issues, or influencing program content Use of this slide This slide can be used to discuss the position that advertisers control the media because a large part of their revenue is generated from advertising.
- Relation to text This slide relates to material on pp. 757-758 of the text. Summary Overview This slide shows arguments against the position that advertisers do have control over the media. These include: They must report the news fairly and accurately to retain public confidence Advertisers need the media more than the media needs any one advertiser The media maintains separation between news and business departments. This separation is often referred to as “The Wall.” Use of this slide This slide can be used to discuss the reasons why advertisers do not control or have undue influence over the media despite the financial dependence that newspapers, magazines, and radio and television stations have on advertising.
- Relation to text This slide relates to material on p. 760 and Exhibit 22-24of the text. Summary Overview Advertising plays an important role in a free market system. It informs customers of available goods and services, but also affects consumer choices, competition, and product/service costs and prices. This slide shows the role of advertising in the economy, which is: Making consumers aware of products and services Providing consumers with information to use to make purchase decisions Encouraging consumption and fostering economic growth Use of this slide This slide can be used to discuss the economic role of advertising.
- Relation to text This slide relates to material on pp. 760-764 of the text. Summary Overview This slide summarizes the economic impact of advertising on consumer choice, competition, and product costs and prices. The impact of advertising includes: Effects on consumer choice: differentiation and brand loyalty Effects on competition: barriers to entry and economy of scale Effects on product costs and prices Advertising is an expense that increases the cost of products Increased differentiation The economic effect can be divided into two schools of thought. The “Advertising equals market power” perspective views advertising as a way to change consumers tastes, lower their sensitivity to price, and build brand loyalty. However, this results in higher profits, higher prices, reduced competition, and fewer choices. The “Advertising equals information” perspective views advertising as providing consumers with useful information, increasing price sensitivity, and increasing competition. Proponents of this view believe the economic effects of advertising are favorable and it contributes to a more efficient and competitive market. Use of this slide This slide can be used to discuss the economic impact of advertising on consumer choice, competition, and product costs and prices.
- Answer: C
- Relation to text This slide relates to material on pp. 764-765 and Figure 22-3 of the text. Summary Overview Some believe that advertising equals market power. This reflects traditional economic thinking, which views advertising as a way to: Change consumers’ tastes Lower their sensitivity to price Build brand loyalty This, in turn, results in: Higher profits Reduced competition in the market Higher prices and fewer choices for consumers Use of this slide This slide can be used to discuss the “advertising equals market power” position on advertising.
- Relation to text This slide relates to material on pp. 764-765 and Figure 22-3 of the text. Summary Overview Some believe that advertising equals information, which is a more positive view of advertising’s economic effects. The believe that advertising: Provides useful information Increase price sensitivity, which moves consumers toward lower-priced products Increases competition in the market This, in turn, results in: Pressure from consumers for high-quality products at lower prices Less efficient firms being forced out of the market, which makes room for new entrants Use of this slide This slide can be used to discuss the “advertising equals information” position on advertising.
- Relation to text This slide relates to material on p. 766 and Figure 22-4 of the text. Summary Overview This slide shows an excerpt from a speech given by Leo Burnett summarizing the perspective of most advertising people on the economic effects of advertising. Many advertising and marketing experts agree that advertising and promotion play an important role in helping to expand consumer demand for new products and services and in helping marketers differentiate their existing brands. Use of this slide This slide can be used to discuss the positive economic effects of advertising. You might ask your students if they agree with the legendary adman regarding the positive effects of advertising.
- Relation to text This slide relates to material on pp. 751-756 of the text. Summary Overview Advertising is criticized for portraying various gender and ethnic groups in ways that are unflattering. Critics also argue advertising does not stay contemporary and reflect the changing roles of women. Despite the recognition that advertisers must be sensitive to the portrayal of specific types of people, ad agencies are finding it increasingly difficult not to offend some segment of the public. This slide shows the various forms of stereotyping that advertising is often accused of creating and perpetuating. These include: Gender stereotyping Portrayal of women to reflect their changing role in society Portrayal of women as sex objects Ethnic stereotyping/representation of minorities Gay-specific ads Use of this slide This slide can be used to discuss stereotyping in advertising.
- Answer: E