Advertising & Society:

Ethics, Regulation, and

Social Responsibility
Chapter 2
Social issues of Advertising

 Ethical Issues: such as rising clutter, invasion of

piracy
– Advocacy: By nature, ads persuade its audience to do
something, hence not neutral
– Accuracy: Perception, imagery etc are implied rather
than statement of facts
– Acquisitiveness: Symbol of materialism and spurs
desire to have more of everything
Questions for ethical advertising

1. Who should and should not be the target of an

advertisement? (kids)
2. What should and should not be advertised? (cigarettes)
3. What should and should not be the symbolic tone of the
advertising message? Humor, sincerity, sarcasm are all
examples of the symbolic tone an ad can convey
4. What should and should not be the relationship between
advertising and the mass media? Clearly ads containing
sexual innuendo should not be run on Sunday morning
television during the cartoon hours
5. What should and should not be advertising’s conscious
obligation to society? (Ad council’s Just say no campaign)
 Six key issues in advertising

1. Puffery: Advertising or other sales representations, which praise

the items to be sold with subjective superlatives, opinions, or
exaggerations, vaguely and generally stating no specific facts
2. Taste and Advertising: Offensive or not? Taboo or not? Creative
vs. Boring?
3. Stereotyping in Advertising: Presenting a group of people in an
unvarying pattern that lacks individuality
• Gender: Women+Kitchen (cooking oil)
• Racial and ethnic – Memons, Pathans (PSO)
• Senior citizens – Old age products can be patronizing
• Gay and Lesbian’s – Nestle Orange Juice
4. Advertising to Children
Can they tell the difference b/w an ad and facts?
 Six key issues in advertising
5. Advertising controversial products, namely:
 Tobacco: TV ads banned, Ban on Outdoor near schools,
ban on the use of cartoon characters; Response from the
industry: shop signs galore, indirect advertising (eg B&H
using & symbol in Arizona Grill, Activation floats/activities)
 Alcohol: Same issue, advertising to influence under age
consumers
 Gambling: Thanks to marketing databases, compulsive
gamblers can be targeted easily
 Prescription Drugs: Direct-to-consumer advertising
results in high demand for costlier drugs where generics
can suffice

6. Subliminal Advertising: Where receiver is unconsciously

receiving a “subliminal” message; research suggests it is
ineffective
Advertising’s Legal and Regulatory
Environment
Regulatory factors affecting advertising

Legislation

Social Responsibility/
Organized
Self Regulation
Groups

Government Agencies Advertising Media Groups

Audience Protection
 Five Areas of ‘FTC concern
1. Deception: Deceptive pricing, false criticism of competition, deceptive guarantees
(lifetime on fans), ambiguous statements and false testimonials

2. Reasonable basis for making a claim: 24 hour protection claim challenged by

Reckitt. Safeguard removed the words but kept the tick tick visual

3. Comparative advertising: Tetley vs. Lipton teabags. Competitive: Pepsi shows

youth becoming cool by growing up with Pepsi vs. Tea and Lal Sharbat. Qarshi
has responded by questioning ingredients in Pepsi

4. Endorsements and Product Placements: Nike using Jordon’s endorsement and

producing “What Women Want” for product placement

5. Demonstrations: Should not be misleading, Max uses demonstrations to project

its grease cutting power
Pakistan Advertiser’s Society
(formed in 1996)

 There is a legal body but not all companies are members for
e.g. Colgate Palmolive is not a member
 The body does not have any significant powers to take
remedial actions once objectionable campaigns are run
 Legal recourse is taken by competitors through their own
lawyers rather than PAS
 Legal clearance of storyboards is a normal practice by most
marketing companies to avoid hassles in future
 Legal cases can be filed but take very long e.g. Walls and
Yummy
 Pakistan Advertising Association formed in 1973
Social Responsibility & Self
Regulation
 Three aspects of social responsibility are:
1. Self-Discipline: An organization develops, uses,
and enforces norms by itself
2. Pure Self-Regulation: The industry develops, uses
and enforces norms e.g. PAS
3. Co-opted self-regulation: The industry voluntarily
involves non-industry people in the development,
application, and enforcement of norms e.g. Reader’s
Digest does not accept liquor and tobacco ads
Official Bodies in Pakistan
 ASSOCIATIONS
1. :: PAKISTAN ADVERTISERS SOCIETY (PAS) CHAIRMAN : Zubair
Soomrow
2. :: ALL PAKISTAN NEWSPAPERS SOCEITY (APNS)PRESIDENT: Mir
Shakil-ur-Rehman
3. :: CHANNEL PROVIDERS ASSOCIATION OF PAKISTAN (CPAP)
PRESIDENT: Mahmud Rizvi
4. :: MANAGEMENT ASSOCIATION OF PAKISTAN PRESIDENT: Javed Iqbal
5. :: MARKETING ASSOCIATION OF PAKISTAN (MAP)President: M. Rafiq
Rangoonwala
6. :: PAKISTAN ADVERTISING ASSOCIATION (PAA)Chairman: Mukthar
Ahmed Azmi
7. :: PAKISTAN ELECTRONIC MEDIA REGULATORY AUTHORITY
Chairman : Mian Muhammad Javed
National Advertising
Institutes
1. ».PAKISTAN ADVERTISING INSTITUTE KARACHI
2. »ARENA MULTIMEDIA PAKISTAN (APTECH) KARACHI
3. »ASIAN INSTITUTE OF ADVERTISING KARACHI
4. »INDUS VALLEY SCHOOL OF ART & ARCHITECTURE
KARACHI
5. »NATIONAL ACADEMY OF PERFORMING ARTS (NAPA)
KARACHI
6. »NATIONAL COLLEGE OF ARTS LAHORE
Advertising
&
The Marketing Process
Chapter 3
 Definition’s of Marketing &
Advertising
 Marketing: Process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges that
satisfy the perceived needs, wants, and objectives of the customer and the
organization
 Advertising: Is paid non-personal communication from an identified sponsor
using mass media to persuade or influence an audience. It is part of the marketing-
mix
 Marketing-Mix: A blend of activities such as designing the product and its
package, pricing the product, distributing the product so that it is accessible to
customers, and promoting or communicating about the product.
 Marketing Communications a.k.a. Promotion: Is an umbrella term for
many types of promotional activities; advertising, public relations, sales promotions,
personal selling, packaging, point-of-sale, and direct marketing. As a part of this,
advertising has the ability to reach mass audience repeatedly. It helps introduce
products, explains important changes, reminds and reinforces and helps persuade.
Types of Markets
Professional and Trade Advertising

Institutional

Business-to-Business Reseller
(Industrial)

Consumer

Consumer Advertising
 The Process of Approaching the Market
Undifferentiated or market
aggregation
strategy is when you treat
the market as homogenous
Segmentation is when you
recognize the
market differences and
adjust to them accordingly
Positioning is using tangible
and intangible differentiation
to create a unique place in
the consumer’s mind. It can
be done using attributes,
pricing, competitor’s,
application, users, product
class etc. Eg. Volvo is Safe,
Haleeb is Thick.
Step 1
Assess the needs of the market and the
Marketing Concept is
company’s ability to meet these needs
profitably when consumer needs
takes precedence in
Step 2 shaping a marketing
Choose an undifferentiated, segmentation, or mix
combination strategy
Integrated Marketing
is when all the elements
Step 3
For a segmentation or combination strategy, of the marketing mix
determine the target market(s) that would be work together to
most receptive to the product
position a brand
(message and media
Step 4 working in unison)
Select an approach to each target market
through Relationship
product differentiation and positioning
Marketing is when
Step 5 customer needs are
Take action to approach the target market(s) fulfilled through
personal attention
Marketing Mix Elements
Product Distribution
Design and Development Distribution Channels

Branding Market Coverage

Packaging Storage

Maintenance

Price Communication
Price Copy Personal Selling

Psychological Pricing Advertising

Price Lining Sales Promotion

Value Determination Direct Marketing

Marketing Public Relations

Point of Sale/Packaging
 Product Characteristics
The Product

Tangible Characteristics Intangible Characteristics

•Size Message Strategy to •Style
•Features Represent the Product •Quality
•Color •Image
•Durability •Prestige
•Package •Warranty
Advertising
•Taste •Brand Name
Message
•Others •Others

Product Interpretation and

Evaluation by Customer
 Branding
 Brand: A name, term, design, symbol (e.g. package, spokesperson) that identifies
the goods, services, institution, or idea sold by a marketer
 Brand Name: Part of a brand that can be spoken, such as words, letters, or
numbers e.g. Xerox, WD 40
 Brand Mark: a.k.a. the logo, is part of the brand that cannot be spoken. It is the
symbol, picture, design, distinctive lettering or color combination e.g. Shell, Swoosh
 Trade Mark: When a brand name or brand mark is legally protected through
registration. Usually given for specific categories unless unique e.g .Supreme is
registered only for tea and beverages
 Brand Equity: Set of assets (and liabilities) linked to a brand’s name and symbol
that adds to (or subtracts from) the value provided by a product or service to a firm
and/or that firm’s customers. Equity enhancing drivers include brand awareness,
brand loyalty, perceived quality and other brand associations.
 Brand Identity: Includes the essence, core and extended identity – the DNA of a
brand. This is how the marketer wants the consumers to think of the brand
 Brand Image: What the consumers actually perceives of the brand. Based on the
positioning and any contact the consumer has with the brand
 Channels of distribution
 Direct Marketing: Companies distributing their products directly without using
resellers e.g. Bombay Bakery
 Indirect Marketing: Product is distributed through a channel structure that
includes one or more resellers
 Cooperative Advertising Allowances: When producers and resellers
share the cost of placing the ad
 Push, Pull and Combination Strategies: Directing marketing efforts at
resellers in push and consumers in pull or using a combination of both as in most
cases
 Exclusive Distribution: Only one distributor is allowed to sell the brand in a
particular market e.g. Dabur in Pakistan uses only Muller and Phipps for
distribution
 Selective Distribution: Expands the number of outlets but restricts
participation to those that contribute most profitably to the manufacturer e.g. Walls
cabinets given to only those shops that sell a certain volume every month
 Intensive Distribution: Placing the product in every possible outlet (even
vending machines) to attain total market coverage e.g. colas
 Pricing
 Price Copy: Advertising copy which delivers information on pricing
 Customary or Expected Pricing: Uses a single, well known price for a long
period of time e.g. Sachets of tea, shampoo priced at Rs. 2
 Psychological Pricing: E.g. Prestige pricing, where a high price is set t make the
product seem worthy or valuable. Price reductions dine with slogans such as “Special
Sale” or “Rs. 100 and Rs. 50 shops at Park Towers”
 Luxury Products can be divided into four consumer categories namely:
1. Wealthiest of the Wealthy e.g. Advertising targeting Rolls Royce, Cartier users
2. Class gone Mass e.g. Tudor by Rolex, Fairfield Inn by Marriott
3. Mass gone Class e.g. Gul Ahmed’s “Ideas” or Suzuki’s “Baleno”
4. Everyday Luxury e.g. Starbucks CaffeLatte, Limoncello type restaurants
 Category and Media: Print advertising has a high value for advertising to the
affluent. Fashion brands choose a few magazines appealing to relevant high end
consumers e.g. Harpers Bazaar
 Price Lining: When a company offers variations of a product and prices them
accordingly e.g. Ads by Sony and Philips with price ranging from reasonable to
exorbitant depending on size and features

Advertising should clearly and consistently match the product’s pricing strategy
 Marketing Communications Mix
Comparison
Marketing Communication Objectives Customer Contact Time of Response
Element
Advertising Attention, attitude and Indirect Moderate or short
behavior change

Personal Selling Sales Direct Short

Sales Promotion Sales Semidirect Short

Direct Marketing Behavior change Semidriect Short

Public Relations Attitude change Semidirect Long

Point-of-sale and packaging Behavior change Direct Moderate

IMC or Integrated Marketing Communication is when all of the above communication mix
elements work in unison to deliver a consistent message across media
 Types of Agencies
 Full-Service: Includes four major staff functions including account management,
creative services, media planning and research (buying and account planning)
 Specialized: Specialized in certain functions e.g. copy writing, audiences e.g.
youth or industries e.g. health care. They can also specialize in communication
areas such as PR, Event Management, Activations etc.
 Industry-Focused: Concentration on one industry e.g. Government of
Pakistan, Computers, Medicine, NGO’s etc
 Minority: Focusing on certain ethnic groups. Not common in Pakistan
 Creative Boutiques: Ad agencies, usually small, that concentrate entirely on
preparing the creative execution i.e. from idea to the creative product
 Media-Buying Services: Specialize in the purchase of media for clients e.g.
Mindshare, Media Matrix
 Virtual: Agency operating as a group of free lancers. Usually operate without
conventional office space i.e. operating out of home, cars or client’s offices
 How Agencies are Organized and Reimbursed

 Account Management: Acts a liaison between the client and the agency. Typically has four levels:
management representative or supervisor (reporting to top management, looking after strategic issues, new
business opportunities, profit management) account director, account supervisor (primary contact between
agency and client, handling strategic plans, assigning task priorities), account executive and their assistants,
(handling day to day activities such as contact reports, budget adherence, supervising production of material
etc.).

 Creative Development and Production: Includes staff such as the creative directors (master creator
who conceives, writes, and produces innovative advertising), group heads or assistant creative directors (who
work as coaches i.e. delegate assignments, work with the staff to find an idea and then mold, improve,
nurture an inspire the staff), creative department managers, copywriters, art directors (people who design
ideas for print or TV) and producers (people who convert ideas into commercials)

 Media Planning and Buying: Media department (in-house) usually perform three functions: planning,
buying and research

 Account Planning and Research: Gathers all available intelligence on the market and consumers so
that ad messages should be based on consumer insights

 Internal Services: These include the traffic department (responsible for internal controls and tracking of
projects to meet deadlines), print production (taking a layout, a visual and page of copy and turning it into a
full page ad), financial services (managing agency cash flow, billing and receivables etc), human resources.
Can also include PR, Sales Promotion, Direct Marketing and Event Management

 Reimbursed through: Commission as a percentage of the media costs (usually 15%), fee – could be
hourly, fixed retainer plus actual expenses for artworks, ad productions etc.
THANKS!