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3NewBrand

Apr 14, 2018

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Terjani Khanna Goyal
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    &Advertising Society Today, we can discuss and debate

    the material in Chapter 3.

    Economics

    The effect of advertising on our economy

    Ethics

    The effect of advertising on our society

    Regulation

    Our attempts to manage those effects

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    The American Economy -

    Three Unique Influences:

    Caveat Emptor

    Commerce is a two-way street Tolerance

    Philadelphia Quakers

    Immigration of people and ideas The Marketplace of Ideas

    Competition is OK

    This includes the media

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    Power or Information?

    Market Power

    Advertising

    Persuades consumer to

    purchase one brand over

    another more often Excess brand profits

    Higher barriers to entry

    and more market power

    More advertising leads to

    greater brand loyalty

    Reduce quality/raise price

    Reduced consumer

    sovereignty

    Monopoly

    Market Information

    Advertising

    Increased consumer knowledge

    More substitute productsconsumers can consider

    Lower barriers to entry

    by new brands

    Reduced market power for

    any individual brand

    Better pricing/distribution

    more product innovation

    Optimal brand profits, consumer

    choice, and price benefits

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    What do you think?

    Advertising = Market Power

    Advertising = Market Information

    Or both?

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    Some Economic Questions:

    How does advertising affect the

    price of a new car?

    How does advertising affect the

    price of a latt from Starbucks?

    How does advertising affect theway that you spend your money?

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    Some Economic Questions:

    Can ads make people buy things

    they dont want or need?

    Can ads make people more

    materialistic?

    Are the benefits of advertisingworth the annoyance?

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    Ads destroy

    freedom of choice

    Ads give consumers

    more choices

    An Ethical Debate

    Ads simply reflect

    the real world

    Ads = freedom of

    speech

    Ads destroy

    democracy/media

    Advertising warps

    social values

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    3Ethical Issues:1) Advocacy What does the advertising advocate?

    2) Accuracy How accurate is the advertising?

    Some of this depends on susceptibility of the

    audience (i.e., children)

    3) Acquisitiveness What is the overall effect? Does it make us more materialistic?

    No single ad, but ads overall.

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    5 Controversial Issues:1) Puffery "Nothing beats a Bud

    2) Decency Sexual innuendo, violence

    3) Stereotyping Housewives, women,seniors, racial groups

    4) Children Violence, dangerous acts,unhealthy habits, overallmaterialism

    5) Controversial Condoms, alcohol, fashionProducts consumer credit

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    An Ethical Thought:

    All of uswhoprofessional ly

    usethemass mediaareshapersof society. Wecanbrutal izei t. Orwecanhelp l i f t

    i t on to ah igher level.

    -Bill Bernbach

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    Controversy as Opportunity

    Puffery vs. Irony

    Stereotyping as Context

    Social Tension gets Attention

    Anti-Tobacco Marketing

    The Story Behind Truth

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    Puffery vs. Irony

    HULU - Alec Baldwin

    QuickTime and aH.264 decompressor

    are needed t o see this picture.

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    Stereotyping as Context

    Dove Real Beauty

    QuickTime and aH.264 decompressor

    are needed t o see this picture.

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    Social Tension Gets Attention

    Nike If You Let Me Play

    QuickTime an d a

    Sorenson Video 3 decompressorare needed to see this picture.

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    The Story Behind Truth

    The Tobacco Industrys DontSmoke Ad Campaign wasDont smoke till youre an adult.Whats a big reason teens smoke? Right. Pretty clever, hm?

    Legal agreement said Ads cantvilify the tobacco industry.The tobacco industry knew this could

    be effective strategy. CP+B got the account - and

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    The Story Behind Truth

    QuickTime and a

    Sorenson Video 3 decompressorare needed to see this picture.

    Truth Bodybags

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Ads for Discussion:

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    Regulation - 2 Main Purposes

    Regulation - 3 Main Areas Purpose for advertising regulation

    To protect competition

    To protect consumers from economic or

    physical harm

    Regulations are concerned with

    Deceptive or unfair content

    How advertising is delivered

    Protection of susceptible groups (kids, etc.)

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    Regulatory Power

    From Low to High:5. Private Policy Companies regulating their own behavior

    4. Governmental Regulation States, FTC, Legislation, Supreme Court

    3. Media/Self-Regulatory Forces Media Forces, NAB, Industry Groups

    2. Organized Market Forces Boycotts, bad publicity, media pressure

    1. Natural Market Forces If no good, consumers wont buy it again

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    5 FTC Concerns:1) Deception Must lead to "material injury

    2) Comparisons Must substantiate with

    statistically significant data

    3) Endorsements Must be qualified,

    must use product

    4) Demonstrations Must be accurately depicted

    5) Bait & Switch Product must be available

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    4 Possible Remedies forDeceptive Ads:1) Consent Decree

    2) Cease & Desist

    4) Consumer Redress FTC mandates reimbursement

    FTC asks advertiser to stop

    FTC mandates new ads to

    correct false perceptions

    3) Corrective Ads

    FTC gets court order toforce advertiser to stop

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    6 Government RegulatoryGroups:1) FDA Packaging and labeling

    2) FCC Broadcast advertising

    3) Postal Service Magazines, direct mail

    4) ATF Liquor labeling, advertising

    5) Patent Office Trademarks

    6) Library of Congress Copyrights

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    2 Industry Watchdogs1) NAD (National Advertising Division)

    - Part of Better Business Bureau

    2) National Advertising Review Board- Represents advertisers and agencies

    - A division of the NAD

    Compliance is strictly voluntary

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    Questions on Regulation

    Does regulating advertising mitigate thenegative effects it has on our economy? On our society?

    Did the TV ban on liquor have a positive effect? 1996 - gentlemens agreement ended

    Now, broadcast media looking for more revenue

    Does regulating advertising extend the

    benefits it has on our economy? On our society?

    Who should do the regulating?

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    Big Questions

    What do you think is the biggest

    benefit of advertising?

    What do you think is the biggestproblem with advertising?

    What do you think is the best example

    of bad advertising? What do you think is the best example

    of good advertising?

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    Think.