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Transcript of 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
1-2Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-2
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
1-3Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-3
Social and ethical
criticisms
Governmentregulation
Deceptive
Offensive
Advertising and children
Ethics
Social and ethical
consequences
Self-regulation
of advertising
Regulation
1-4Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-4
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
1-5Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-5
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.’
1-6Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-6
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.
1-7Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-7
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
1-8Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-8
Junk food and The Parents Jury
1-9Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-9
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!
1-10Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-10
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.
1-11Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-11
Source: Australian Association of National Advertisers, www.aana.com.au
1-12Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-12
Source: Advertising Standards Authority New Zealand, www.asa.co.nz
1-13Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-13
Sources of distaste
Sex appeals and/or nudity
Sex appeals and/or nuditySensitive productsSensitive products Fear/ Shock
appeals
Fear/ Shock appeals
1-14Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-14
Sex appeals in advertising
1-15Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-15
Sex appeals in advertising (cont.)
1-16Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-16
Advertising and children
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
1-17Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-17
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:
1-18Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-18
Advertising and children
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.
1-19Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-19
Advertising and children (cont.)
1-20Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-20
Advertising and children (cont.)
Source: Australian Association of National Advertisers (AANA), www.aana.com.au
1-21Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-21
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?
1-22Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-22
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
1-23Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-23
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
1-24Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-24
Stereotypical portrayal of women
1-25Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-25
Social and ethical
criticisms
Governmentregulation
Deceptive
Offensive
Advertising and children
Ethics
Social and ethical
consequences
Self-regulation
of advertising
Regulation
1-26Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-26
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.
1-27Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-27
Consumer protection laws
Fair Trading Act, 1986Fair Trading Act, 1986
Competition and Consumer Act, 2010Competition and Consumer Act, 2010
1-28Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-28
Competition and Consumer Act, 2010
1-29Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-29
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
1-30Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-30
Industry self-regulation
Advertising Standards Authority
Advertising Standards Authority
Advertising Standards Bureau
Australian Advertising Standards Council
Advertising Standards Bureau
Australian Advertising Standards Council
1-31Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-31
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
1-32Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-32
Advertising Standards Board
1-33Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-33
Industry self-regulation in New Zealand
Advertising Standards Authority
(ASA)
Advertising Standards Authority
(ASA)
AANZAAANZA
ANZAANZA
RBARBA
NZTBCNZTBC
NZDMANZDMA
Member organisationsMember organisations
1-34Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-34
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
1-35Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-35
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
1-36Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 3-36
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.