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,...
Chapter Social, ethical and regulatory aspects Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-1 3-1 Learning objectives 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 To examine the self-regulation of advertising and evaluate its effectiveness Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-2 3-2 Deceptive Offensive Advertising and children Government regulation Social and ethical criticisms Ethics Regulation Social and ethical consequences Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Selfregulation of advertising 1-3 3-3 Crazy Domains Source: © 2010 Crazy Domain Names What What are are your your thoughts? thoughts? Is Is this this ad ad offensive offensive or or sexist? sexist? Or Or is is itit aa light-hearted light-hearted fantasy fantasy not not be be taken taken too too seriously? seriously? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-4 3-4 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.’ Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-5 3-5 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-6 3-6 Advertising and promotion: two viewpoints Proponents’ Proponents’ arguments arguments Encourages Encourages aa higher higher standard standard of of living living Provides Provides information information Creates Creates jobs jobs and and helps helps new new firms firms enter enter aa market market Promotes Promotes competition competition in in the the marketplace marketplace Critics’ Critics’ arguments arguments Creates Creates artificial artificial needs needs and and wants wants Is Is more more propaganda propaganda than than information information Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Promotes Promotes materialism materialism 1-7 3-7 Junk food and The Parents Jury Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-8 3-8 Ethics Ethics are moral principles and values that govern the actions and decisions of an individual or group Laws are formal, codified rules that are recognised as binding in a community Activities that are lawful may not be ethical! Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-9 3-9 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-10 3-10 Advertising and materialism Surrounds Surrounds consumers consumers with with images images of of the the ‘good ‘good life’ life’ Creates Creates artificial artificial needs needs Criticisms Criticisms of of advertising advertising with with regard regard to to materialism materialism Material Material possessions possessions as as symbols symbols of of status status Acquisition Acquisition of of material material possessions possessions equated equated with with accomplishment, accomplishment, popularity popularity or or sex sex appeal appeal Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-22 3-22 Advertising and stereotyping Preoccupation Preoccupation with with beauty beauty ideals ideals Gender Gender stereotyping stereotyping Portrayal Portrayal of of the the elderly elderly Portrayals Portrayals of of women women fail fail to to reflect reflect their their changing changing role role in in society society Criticisms Criticisms of of advertising advertising with with regard regard to to stereotyping stereotyping Portrayal Portrayal of of women women as as sex sex objects objects Ethnic Ethnic stereotyping/ stereotyping/ representation representation of of minorities minorities Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-23 3-23 Stereotypical portrayal of women Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-24 3-24 Deceptive Offensive Advertising and children Government regulation Social and ethical criticisms Ethics Regulation Social and ethical consequences Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Selfregulation of advertising 1-25 3-25 Regulatory aspects Advertising is controlled through laws and regulations Laws are formal, codified rules recognised as binding in a community Regulations are internal rules governing the behaviour of groups Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-26 3-26 Consumer protection laws Competition and andConsumer Consumer Competition Act,2010 2010 Act, Fair Trading TradingAct, Act,1986 1986 Fair Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-27 3-27 Competition and Consumer Act, 2010 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-28 3-28 Industry regulation Self-regulation forms the basis of the advertising regulation system in both Australia and New Zealand Benefits Benefits of of self-regulation self-regulation Flexible Flexible and and responsive responsive to to industry industry needs needs and and public public opinion opinion Limits Limits government government interference interference Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-29 3-29 Industry self-regulation AdvertisingStandards StandardsBureau Bureau Advertising AustralianAdvertising Advertising Standards Standards Australian Council Council AdvertisingStandards Standards Advertising Authority Authority Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-30 3-30 Industry self-regulation in Australia Australian Australian Advertising Advertising Standards Standards Council Council Advertising Advertising Standards Standards Bureau Bureau (ASB) (ASB) Public Public complaints complaints Advertising Advertising Claims Claims Board Board (ACB) (ACB) Competitive Competitive complaints complaints Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-31 3-31 Advertising Standards Board Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-32 3-32 Industry self-regulation in New Zealand Member Member organisations organisations AANZA AANZA Advertising Advertising Standards Standards Authority Authority (ASA) (ASA) ANZA ANZA NZDMA NZDMA NZTBC NZTBC RBA RBA Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-33 3-33 Levels of advertising regulation Government Government regulation regulation Federal, Federal, state state and and local local laws laws Industry Industry self-regulation self-regulation Advertising Advertising Standards Standards Bureau Bureau Advertisers Advertisers & & agencies agencies Internal Internal vetting vetting procedures procedures Trade/professional Trade/professional associations associations Voluntary Voluntary codes codes of of conduct conduct Businesses Businesses Codes Codes of of conduct conduct Media Media Codes Codes of of conduct conduct Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-34 3-34 Appraising self-regulation Advertising Advertising industry industry perspective perspective Demonstrated Demonstrated as as an an effective effective mechanism mechanism Preferable Preferable to to government government intervention intervention in in aa mature mature industry industry Has Has led led to to more more stringent stringent standards standards than than legislation legislation alone alone Critics’ Critics’ perspective perspective Time-consuming Time-consuming complaint complaint resolution resolution process process SelfSelfserving serving Lacks Lacks power power and and authority/problems authority/problems with with enforceability enforceability Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-35 3-35 Summary and conclusions Advertising is a powerful and pervasive form of communication Advertising has been the target of considerable criticism regarding its social and economic impact Advertising has the potential to offend some members of the public There is ongoing debate over whether advertising influences and transmits social values or simply mirrors those values Regulation and control processes stem from internal regulation, self-regulation and government In Australia and New Zealand a system of industry self-regulation is in operation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-36 3-36 ... both Australia and New Zealand Benefits Benefits of of self-regulation self-regulation Flexible Flexible and and responsive responsive to to industry industry needs needs and and public public... & Powell 1-2 3-2 Deceptive Offensive Advertising and children Government regulation Social and ethical criticisms Ethics Regulation Social and ethical consequences Copyright 2012 McGraw-Hill Australia... needs needs and and wants wants Is Is more more propaganda propaganda than than information information Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion