Marketing bán hàng - Chapter 21: Evaluating the social, ethical, and economic aspects of advertising and promotion

Chapter 21Evaluating the Social, Ethical,and Economic Aspects of Advertising and PromotionAdvertisingProvides information to consumersEncourages higher standard of livingPromotes competition Helps new firms enter a marketCreates jobs Proponents’ argumentsMore propaganda than informationCreates consumer needs and faultsPromotes materialism, insecurity, and greedCritics’ arguments2Advertising and Promotion EthicsEthics: Moral principles and values that govern the actions and decisions of an individual or groupMarketing or promotion action may be legal but not ethicalMarketers must base their decisions on ethical considerations3Advertising as Untruthful or DeceptiveConsumers rely on word of mouth Difficult to prove deception Projects only positive points Exists more at the local level4Advertising as Offensive or in Bad TasteSources of distasteAds of personal products or services Ads of products and brands that consumers do not use or would not buyType of appeal or the manner of presentationSexual appeal in adsOffensive and tends to demean women or menPromotes a decline of moral and social valuesShock advertising: Using nudity, sexual suggestiveness, or other startling images to get consumers’ attention5Advertising and ChildrenPopular medium - TV and the InternetCritics argue that children:Lack the knowledge and skills to evaluate advertising claimsCannot differentiate between programs and commercialsMarketers’ arguments Children must deal with advertisingConsumer socialization process: Acquiring skills needed to function in the marketplace6Advertising and ChildrenExisting restrictions are adequateGreater knowledge of the marketplace required for teensAreas of potential concernCable television programmingInternet adsIncrease in ads encouraging children to call 900 numbersIncrease in toy-based programsMarketing of violent entertainment7Guidelines for Advertising Directed to ChildrenLevel of knowledge, sophistication, and maturity of the audience should be taken into accountShould refrain from unfair exploitation of the imaginative quality of childrenShould not advertise products and content inappropriate for children directly to them8Guidelines for Advertising Directed to ChildrenInformation should be communicated in an accurate manner and in a language understandable to childrenAdvertisements should portray positive and beneficial social behaviorMinority groups should be incorporated in advertisements9Social and Cultural ConsequencesAdvertising influences and transmits social valuesAdvertising agencies should consider the impact of the advertising messages they create10Advertising Encourages MaterialismMaterialism: Preoccupation with material things rather than intellectual or spiritual concernsAdvertisements that contribute to materialism:Seek to create needsSurround consumers with images of the good life Suggest it leads to contentment and happiness11Arguments Favoring MaterialismProtestant ethic: Stresses on hard work, individual effort, and initiativeViews the accumulation of material possessions as evidence of successDoes not rule out interest in intellectual, spiritual, or cultural valuesAdvertisements only reflect the values of society12Advertising Makes People Buy Things They Don’t NeedCritics’ argument - Advertising should only provide information useful in making purchase decisionsDefenders’ argument Advertising is informational in natureAdvertising should not be limited to dealing with basic functional needsConsumers are free to choose 13Advertising and StereotypingGender stereotyping Portrayal of womenPreoccupied with beauty, household duties, and motherhood Decorative objects or sexually provocative figuresPortrayal of menConstructive, powerful, autonomous, and achieving14Advertising and StereotypingAdvertisers are striving to: Increase the incidence of minority groups Avoid ethnic stereotyping Develop advertising that has specific appeals to various ethnic groupsBe sensitive to the portrayal of specific groups of people in their ads for ethical and commercial reasons15Advertising and the MediaAds are the primary source of revenue for newspapers, magazines, television, and radio Advertisers have an influence over media Economic censorship - Media present biased news coverage in compliance with the advertiserReasons for media not being influenced by advertisersPublic confidence should be retained by being fair, accurate, and truthfulAdvertisers need the media more than the media need any one advertiserThe Wall 16Economic Effects of AdvertisingEffects on consumer choice - Helps achieve:Differentiation: Products or services of large advertisers are perceived as unique or better than competitors’Brand loyaltyEffects on competition - Large firms with huge budgets:Act as a barrier to entry, resulting in less competition and higher pricesCan achieve economies of scaleEffects on product costs and pricesIncreases the cost of products and servicesIncreases product differentiation that adds to the perceived value of the product in consumers’ mindsLowers prices by making a market more competitive17Figure 21.6 - Two Schools of Thought on Advertising’s Role in the Economy18