ADVERTISINGSOCIAL,LEGAL,ETHICAL & ECONOMICAL ASPECTS

ADVERTISING

Advertising is any paid form of non personal presentation and promotion of goods, services & ideas by an identified sponsor.

Advertising is a general phrase used for the announcements made by sellers to promote the sales of their products.

SOCIAL ASPECTS OF ADVERTISING

Advertising as a part of firms marketing effort operates in the society. It has to therefore follow the social norms. Key areas of debate regarding society and advertising are: Deception Manipulation Taste

SOCIAL ASPECTS OF ADVERTISING

Deception: it refers not only to the information content in advertising but may also arise from misplace emphasis in presentations.

According to federal trade commission of the USAAdvertising as a whole must not create a misleading impression although every statement, separately considered, may be literally truthful

SOCIAL ASPECTS OF ADVERTISING

Manipulation :- The freedom of choice of consumers is restricted by the power of advertising since it can manipulate buyers into making a decision against their will or interest.

Manipulation is done through emotional appeals. These companies can utilize advanced and very scientific advertising techniques and thus make an impression on consumers.

SOCIAL ASPECTS OF ADVERTISING

Taste:- Sometimes ads are offensive, tasteless, irritating, boring and so on. a) Sources of distaste b) Sexual Appeals c) Shock advertising

SOCIAL ASPECTS OF ADVERTISING

Some examples of the Advertisements with social aspects: Grow-more-trees advertisements Drink milk Eat healthy food, eat eggs Mothers milk is best for the baby Say no to drugs every time Get your child vaccinations in times

LEGAL ASPECTS OF ADVERTISING

The government in each country has to make sure that advertisements appearing do not flaunt of their rules & regulations. It should not: show anti-national feelings contain misleading information about the product Violate government rules

LEGAL ASPECTS OF ADVERTISING

Some examples of the Advertisements with legal aspects: Get your car checked for pollution Drinks & driving do not mix Weight, price, manufacturing date, date of expiry should be mentioned on the packing case

ETHICAL ASPECTS OF ADVERTISING

Ethics are the moral standards against which behavior is judged Key areas of debate regarding ethics and advertising are:
Truth

in advertising Advertising to children Advertising controversial products

ETHICAL ASPECTS OF ADVERTISING

Truth in Advertising
Deception

is making false or misleading statements. Puffery (commercial exaggeration) is legal. Cannot legislate against emotional appeals

ETHICAL ASPECTS OF ADVERTISING

Advertising to ChildrenIssues
Advertising

promotes superficiality and materialism in children. Children are inexperienced and easy prey. Persuasion to children creates child-parent conflicts. What does the literature say about kids abilities to process persuasive information?

ETHICAL ASPECTS OF ADVERTISING

Advertising Controversial Products
Critics

question the targeting of minorities.

Tobacco,

alcohol, gambling and lotteries are product categories of greatest concern.

How

does the concept of primary demand provide insights here? What does the literature say about advertisings impact on these product categories?

ECONOMIC ASPECTS OF ADVERTISING

Making Consumers Aware of Products and Services Providing Consumers With Information to Use to Make Purchase Decisions

Encouraging Consumption and Fostering Economic Growth

ECONOMIC ASPECTS OF ADVERTISING

Effects on Consumer Choice

Differentiation Brand Loyalty

Effects on Competition
Barriers to entry Economies of scale

Effects on product costs and prices

Advertising as an expense that increases the cost of products Increased differentiation