ads 2.pdf

Advertising - visible activities of business] - companies risk public criticism and attack - both applauded and criticized not only for its role in selling products but also for its influence - critics have denigrated advertising for a wide range of sins – some real, some imagined....

Advertising - visible activities of business] - companies risk public criticism and attack - both applauded and criticized not only for its role in selling products but also for its influence - critics have denigrated advertising for a wide range of sins – some real, some imagined. Economic Impact of Advertising - Marcel Bleustein-Blanchet, the father of modern French advertising no coincidence that the level of advertising investment in a country is directly proportional to its standard of living - is like the opening break shot in billiards Effects on Prices - advertising adds value to products, it follows that advertising also adds cost - if companies stopped all that expensive advertising, products would cost less, right? WRONG! - Advertising is one element of the mass distribution - In retailing, price is a prominent element in many ads, so advertising tends to hold prices down Short-term manipulative arguments - criticisms focus on the style of advertising, saying it’s deceptive or manipulative Long-term macro arguments - criticisms focus on the social or environmental impact of advertising. Ethical Advertising - doing what the advertiser and what the advertiser’s peers believe is morally right in a given situation Social Responsibility - doing what society views as best for the welfare of the people in general Arguments in Favor of Advertising - Advertising stimulates demand - Advertising encourages competition. - Advertising enables people to make informed choices - Advertising industry directly and indirectly offers employment Arguments against Advertising - Deceptive advertising as any ad that contains a misrepresentation, omission Puffery – refers to exaggerated, subjective claims that can’t be proven true or false, such as “the best” “premier” or “the only way to fly”. Defamation – false or derogatory  statement that gives a negative impression that if allegation made cannot be proven, a defamation lawsuit may be filled. Subliminal Advertising Myth - seduce consumers, advertisers intentionally create ads with sexual messages Controversial advertising - In here we take the case of cigarette advertising. While tobacco is a legal product, the harm created by smoking ends up killing or disabling more than half a million people annually and costing taxpayers billion of dollars every year in health costs. Issue of Advertising to Children - Self-Regulatory Guidelines Childrens Advertising Consumer Privacy - With the increased use of wireless handheld devices,the issue of privacy rights Unfair advertising - occurs when a consumer is “unjustifiably injured” or there is a “violation of public policy” (such as other government statutes). Comparative advertising - to claim superiority to competitors in some aspect. iRemedies for Unfair or Deceptive Advertising - A consent decree is a document the advertiser signs agreeing to stop the objectionable advertising without admitting any wrongdoing. - Corrective advertising for some period of time to explain and correct offending ads. - Endorsements or testimonials celebrity endorsers must actually use the product or service (if portrayed), and they can be held personally liable if they misrepresent it - Affirmative disclosure of their product’s limitations or deficiencies (hazardous to one’s health) - Nutritional Labeling and Education Act - Intellectual property - By registering trademarks and copyrights, the government helps businesses protect their investments - Trademark is “any word, name, symbol, or device or any combination thereof adopted and used by a manufacturer - copyright An exclusive right granted by the Copyright Act - Broadcast standards department A department at a TV network - Consumerism Social action designed to dramatize the rights of the buying public - Consumer advocate An individual or group that actively works to protect consumer rights,