Chapter 20 - Regulation of advertising and promotion. The main goals of this chapter are: To examine how advertising is regulated, including the role and function of various regulatory agencies; to examine self-regulation of advertising and evaluate its effectiveness; to consider how advertising is regulated by federal and state government agencies, including the Federal Trade Commission.
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APROMOTION
An Integrated Marketing Communications PerspectiveChapter 20 Regulation of Advertising and Promotion
TT Towayd 2422
George E Belch Michael A Belch
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ulation and Control of Advertising content of the ad
ad to offend, exploit, mislead, and/or
: Voluntary internal regulation promoted within an industry
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elf-Regulation by Businesses
usiness Bureau (BBB): Promotes fair
nd selling practices across industries at Business Bureaus: Provide
over advertising practices at the
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dvertising Self-Regulatory Council (ASRC) own as the National Advertising Review RC) tain high standards of truth and | advertising
ountability Program - Regulates ioral advertising (OBA) across the
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tional Advertising Division of the Council
{f Better Business Bureaus (NAD)
product performance, superiority, d technical claims
crutinize all types of media to find
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ational Advertising Review Board (NARB)
for additional review by advertisers who uth NAD’s findings
vertising professionals and interest members
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CARU Activities ¢ General activities ¢ Review and evaluate child-directed advertising in all media °Ò Oversee online privacy issues that affect children
¢ Advise advertisers and agencies ¢ Maintain self-regulatory guidelines
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Mission of the ERSP
Enhance consumer confidence in electronic retailing
Discourage advertising and marketing in the electronic retailing industry that
contains unsubstantiated claims
Demonstrate a commitment to meaningful and effective self-regulation
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Advertising Associations
Association of Advertising Agencies sues guidelines for specific types of
ing Federation (AAF)
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Self-Regulation by Media
Newspapers and magazines
¢ Have requirements and restrictions depending on the size and nature of the publication
¢ Some test the products advertised and offer refunds if they are later
found to be defective
Television and radio
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Major Divisions of the FTC
Bureau of Competition
¢ Seeks to prevent business practices that restrain competition ¢ Enforces antitrust laws
Bureau of Economics
¢ Provides economic analysis and support to antitrust and consumer protection investigations
¢ Analyzes the impact of government regulation on competition and consumers
Bureau of Consumer Protection
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Puffery
Bayer — ; BMW —
Hàn wonee! drug “The ultimate at WOr ‘S driving machine” wonders
CNNestle — Snapple —
“The very best “Made from the chocolate” best stuff on