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Lecture Advertising and promotion (2/e) – Chapter 3: Social, ethical and regulatory aspects

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The goals of this chapter are: To consider various perspectives concerning the social and ethical aspects of marketing communication, to evaluate the social criticisms of advertising, to examine how advertising is regulated, including the role and function of various regulatory agencies,...

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Chapter 3

Social, ethical and regulatory

aspects

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1 To consider various perspectives concerning

the social and ethical aspects of marketing

communication.

2 To evaluate the social criticisms of advertising.

3 To examine how advertising is regulated,

including the role and function of various

regulatory agencies.

4 To examine the self-regulation of advertising

and evaluate its effectiveness.

Learning objectives

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Social and ethical criticisms

Government regulation

regulation

Self-of advertising

Regulation

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Crazy Domains

What are your thoughts?

Is this ad offensive or sexist? Or is it a light-hearted fantasy not be taken too seriously?

What are your thoughts?

Is this ad offensive or sexist? Or is it a light-hearted fantasy not be taken too seriously?

Source: © 2010 Crazy Domain Names

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Crazy Domains (cont.)

Selected comments from members of the public:

‘It is all about sex, got nothing to with domains, unless it’s to start a porn site. It’s 

totally inappropriate.’

‘This is overtly sexist and exploitative. It belittles women in the workforce and portrays  them as sexual property.’

‘The ad is misogynist.’

‘It sends a terrible message to young women; namely what they look like has more bearing  than their authority in the workplace . . . this ad is a reminder that women are still not  taken seriously in the workplace.’

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Advertising and society

 Marketing communication is intimately

connected with the social and cultural

environment

 Advertising is very prevalent and occupies an increasing amount of public space.

 Advertisers operate in a complex environment

of government rules and regulations.

 Many parties are concerned about advertising’s potential to offend, mislead, exploit or deceive.

 Advertising is a very powerful force with the

potential to offend.

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Advertising and promotion: two viewpoints

Is more propaganda than information

Creates jobs and helps new firms enter a market

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Junk food and The Parents Jury

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Ethics are moral principles and values

that govern the actions and decisions of

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Advertising and truthfulness

 Around the world, virtually all advertising codes require advertising to be truthful (not

misleading or deceptive).

 Advertisers are required to have a reasonable basis for making claims

 Few advertisers deliberately set out to deceive.

 Misleading or fraudulent claims can be made inadvertently.

 Many people believe that advertising should be primarily informative

 Advertisers argue that they have the right to

present the most favourable case for their

products/services.

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Source: Australian Association of National Advertisers, www.aana.com.au

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Source:

Advertising Standards Authority New Zealand, www.asa.co.nz

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Sources of distaste

Sex appeals and/or nudity

Sex appeals and/or nudity

appeals Fear/ Shock appeals

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Sex appeals in advertising

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Sex appeals in advertising (cont.)

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Advertising and children

Children’s media habits

commercials per annum

Exposed to more than 40 000

commercials per annum

22 hours per week

watching TV

22 hours per week

watching TV

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Perspectives on advertising to

children

Lack of skill/expertise for

Difficulty differentiating between programs and commercials

Children must learn

Need to acquire skills

to function in the marketplace

Consumer advocates argue that children are vulnerable to advertising due to:

Consumer advocates argue that children are vulnerable to advertising due to:

Marketers argue that:

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Advertising and children

 Given children’s vulnerability and natural guile, most advertising associations produce special codes to protect them.

 The Australian Communications and Media

Authority has strict guidelines for advertising to children, which include the following:

 advertising banned on preschool programs

 no alcohol advertising

 restrictions on prizes and competitions

 program hosts selling goods or services

 the number of times a commercial can be broadcast during children’s programs.

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Advertising and children (cont.)

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Advertising and children (cont.)

Source: Australian Association of National Advertisers (AANA), www.aana.com.au

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Social and cultural

consequences of advertising

Does advertising make people buy things they don’t need?

Does advertising make people buy things they don’t need?

Does advertising encourage materialism?  

Does advertising encourage materialism?  

Does advertising control

the media?  

Does advertising control

the media?  

Does advertising perpetuate stereotypes?  

Does advertising perpetuate stereotypes?  

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Advertising and materialism

Surrounds consumers with images of the ‘good life’

Surrounds consumers with images of the ‘good life’

Material possessions as symbols of status

Material possessions as symbols of status

regard to materialism

Criticisms of advertising with

regard to materialism

Acquisition of material possessions equated with accomplishment, popularity or sex

appeal

Acquisition of material possessions equated with accomplishment, popularity or sex

appeal

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Advertising and stereotyping

Preoccupation with beauty ideals

Preoccupation with beauty ideals

Portrayals of women fail

to reflect their changing

role in society

Portrayals of women fail

to reflect their changing

role in society

Portrayal of women as sex objects

Portrayal of women as sex objects

Ethnic stereotyping/

representation of minorities

Ethnic stereotyping/

representation of minorities

Criticisms of advertising with regard to stereotyping

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Stereotypical portrayal of women

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Social and ethical criticisms

Government regulation

regulation

Self-of advertising

Regulation

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Consumer protection laws

Fair Trading Act, 1986

Competition and Consumer

Act, 2010

Competition and Consumer

Act, 2010

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Competition and Consumer

Act, 2010

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Industry regulation

Self-regulation forms the basis of the advertising regulation system in both Australia and New

Zealand.

Flexible and responsive to

industry needs and public

opinion

Flexible and responsive to

industry needs and public

opinion

Limits government interference

Limits government interference

Benefits of self-regulation

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Industry self-regulation

Advertising Standards Authority

Advertising Standards Authority

Advertising Standards Bureau

Australian Advertising Standards

Council

Advertising Standards Bureau

Australian Advertising Standards

Council

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Industry self-regulation in

Australia

Advertising Standards

Bureau (ASB)

Advertising Standards

Bureau (ASB)

Advertising Claims Board (ACB)

Advertising Claims Board (ACB)

Australian Advertising Standards Council

Australian Advertising Standards Council

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Advertising Standards Board

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Industry self-regulation in New Zealand

Member organisations

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Levels of advertising regulation

Internal vetting procedures

Advertisers & agencies

Businesses

Voluntary codes of conduct Codes of conduct

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Has led to more stringent standards than legislation alone

Preferable to government intervention in a mature industry

serving

serving

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Self-Summary and conclusions

communication.

criticism regarding its social and economic impact.

members of the public.

influences and transmits social values or simply

mirrors those values.

internal regulation, self-regulation and government.

self-regulation is in operation.

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