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Marketing Communications - Chapter 21

Appreciate the ethical issues associated with advertising, sales promotions, and other marcom practices. Understand why the targeting of marketing communications toward vulnerable groups is a heatedly debated practice. Explain the role and importance of governmental efforts to regulate marketing communications. Be familiar with deceptive advertising and the elements that guide the determination of whether a particular advertisement is deceptive. Ethical, Regulatory, and CHAPTER 21 Environmental 

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  1. Ethical, Regulatory, and  CHAPTER 21 Environmental Issues © 2010 South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie Cook All rights reserved. The University of West Alabama Eighth Edition
  2. Chapter Objectives After reading this chapter you should be able to: 1. Appreciate the ethical issues associated with advertising, sales promotions, and other marcom practices. 2. Understand why the targeting of marketing communications toward vulnerable groups is a heatedly debated practice. 3. Explain the role and importance of governmental efforts to regulate marketing communications. 4. Be familiar with deceptive advertising and the elements that guide the determination of whether a particular advertisement is deceptive. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–2
  3. Chapter Objectives (cont’d) After reading this chapter you should be able to: 5. Be acquainted with the regulation of unfair business practices and the major areas where the unfairness doctrine is applied. 6. Know the process of advertising self-regulation. 7. Appreciate the role of marketing communications in environmental (green) marketing. 8. Recognize the principles that apply to all green marcom efforts. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–3
  4. Ethical Issues in Marketing Communications • Ethics in Marcom  Involves matters of right and wrong, or moral, conduct Involves moral conduct pertaining to any aspect of marketing communications pertaining Honesty, honor, virtue, integrity  • Ethical Conduct  Lack of consensus about what it is  Ethical lapses and moral indiscretions occur under Ethical pressures of trying to meet business goals and attempting to satisfy the demands of the financial community community © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–4
  5. Sources of Ethical Issues Targeting Marcom Public Relations Advertising Ethical Issues in Marketing Activities and Communications Packaging Sales Promotions Communications Internet Marketing © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–5
  6. The Ethics of Targeting • Ethical Debate  Is it ethical to target products Is and communications efforts to segments that vulnerable or put at risk by these actions? put • Is Targeting Unethical or Just Is Good Marketing? Good  When does a good targeting When strategy become a method of unfair (unethical) advantage? unfair © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–6
  7. Is Targeting Unethical or Is Just Good Marketing? Just • Positive • Negative  Targeting benefits  Targeting is not Targeting Targeting rather than harms concerned with fulfilling consumers—providing consumers’ needs and them with products wants, but rather with best suited to their exploiting consumer particular needs and vulnerabilities vulnerabilities wants wants © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–7
  8. The Ethics of Targeting Ethical Issues in Targeting Children and Teens Targeting Tobacco and Targeting Food and Targeting Miscellaneous Alcohol Products Beverage Products Products © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–8
  9. Targeting to Children and Teens • Negative Targeting Outcomes  Products targeted to kids are unnecessary and the Products communications involved are exploitative communications Posters, book covers, free magazines, advertising, and other Posters,  so-called learning tools that are ads for products so-called Movies with tie-in merchandise programs  Targeting adult products (e.g., beer) to pre-adults  Using unacceptable cartoon-like images (e.g., Joe Camel)  Promoting adult-oriented entertainment (e.g., violent films, Promoting  video games, and music products) to children and teens video Marketing food products (e.g., high-fat, high-calorie snacks) Marketing  © 2010 South-Western, achildhood obesity that contribute to part of that Cengage Learning. All rights reserved. 21–9
  10. Targeting to Economically Disadvantaged Targeting Consumers Consumers • Billboards advertising tobacco and alcohol Billboards disproportionately appear in inner-city areas disproportionately • Examples: Examples:  R.J. Reynolds attempt to market new brands R.J. cigarettes to African-Americans and downscale young women women  Heileman Brewing Company’s targeting of “Power Heileman Master” high-alcohol malt liquor to inner-city neighborhoods neighborhoods © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–10
  11. Figure 21.1 Targeting Tobacco Products © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–11
  12. Ethical Issues in Advertising Advertising Creates and Advertising Is Untruthful Perpetuates Stereotypes and Deceptive Advertising Persuades Criticisms of Advertising Is People to Buy Things Manipulative Advertising They Do Not Need Advertising Plays on Advertising Is Offensive People’s Fears and and in Bad Taste Insecurities © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–12
  13. American Association of Advertising American Agencies’ Code of Ethical Standards Agencies’ • Ethical Code and Ethical Standards of Practice Standards  Set lofty goals for the Set advertising industry and provides a framework for evaluating whether or not ads meet the high standards specified standards © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–13
  14. Ethical Issues in Public Relations • Publicity  Involves disseminating positive information about a Involves firm and its products and handling negative publicity firm  Like advertising—the same ethical issues apply • Negative Publicity  When firms confess to product shortcomings and When acknowledge problems or, instead, attempt to cover up the problems up © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–14
  15. Ethical Issues in Packaging and Branding Label Information Packaging Graphics Packaging and Branding Packaging Safety Ethical Issues Environmental Implications Brand Naming and © 2010 South-Western, a part of Brand Name Theft Cengage Learning. All rights reserved. 21–15
  16. Ethical Issues in Sales Promotions • Sales Promotions  Manufacturer promotions directed at wholesalers and Manufacturer retailers and to consumers retailers • Slotting Allowances  Manufacturers have to pay retailers to handle a new Manufacturers product—Is this a form of bribery and is it unethical? product—Is • Consumer-Oriented Sales Promotions  A promoter offers a reward for a consumer’s behavior promoter that not delivered or lies about the odds of winning that  Consumers who make false claims for coupon Consumers © 2010 South-Western, a part of redemptions and refunds redemptions Cengage Learning. All rights reserved. 21–16
  17. Ethical Issues in Online Marketing • Consumer Privacy Issues  Consumer’s privacy rights to personal information and Consumer’s shopping behaviors collected by online marketers shopping  Security of personal information collected online  Selling of personal information to other parties without Selling consent of consumer consent  Bogus positive product evaluations and blogs Bogus deceptively extolling products deceptively © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–17
  18. Fostering Ethical Marketing Communications Act in a way that you would want others to act The Golden Rule toward you The Professional Take only actions that would be viewed as proper by The Ethics Test an objective panel of your professional colleagues Ethics Would l feel comfortable explaining this action on The TV test television to the general public?” © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–18
  19. Regulation of Marketing Communications • Justifications for Regulation  When consumer decisions are based on false or limited When information information  When benefits realized exceed the costs • Benefits of Regulation  Improved consumer choices  Improved product quality  Reduction in prices • Costs  Regulatory compliance  Enforcement costs © 2010 South-Western, a part of  Unintended side effects Cengage Learning. All rights reserved. 21–19
  20. Regulation by Federal Agencies Federal Trade Commission (FTC) Regulatory Authority Unfair Deceptive Information Practices Advertising Regulation © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–20
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