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

Chapter 3
Social, ethical and regulatory
aspects

Copyright 2012 McGraw-Hill Australia Pty Ltd
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Learning objectives
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.
Copyright 2012 McGraw-Hill Australia Pty Ltd
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Deceptive
Offensive
Advertising

and children
Government
regulation

Social and
ethical
criticisms

Ethics

Regulation

Social and
ethical
consequences

Copyright 2012 McGraw-Hill Australia Pty Ltd
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Selfregulation
of
advertising

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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
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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.’

Copyright 2012 McGraw-Hill Australia Pty Ltd
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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.
Copyright 2012 McGraw-Hill Australia Pty Ltd
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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

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Promotes
Promotes
materialism
materialism

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Junk food and The Parents Jury

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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
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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.
Copyright 2012 McGraw-Hill Australia Pty Ltd

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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
Sensitive
Sensitive products
products

Sex
Sex appeals
appeals
and/or
and/or nudity
nudity

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Fear/
Fear/ Shock
Shock
appeals
appeals

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Sex appeals in advertising

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Sex appeals in advertising (cont.)

Copyright 2012 McGraw-Hill Australia Pty Ltd
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Advertising and children
Children’s
Children’s media
media habits
habits

Average
Average of
of 55 hours
hours
per
per day
day using
using

media
media including
including

television,
television,
videogames
videogames and
and
the
the internet
internet

22
22 hours
hours per
per
week
week
watching
watching TV
TV

Exposed
Exposed to
to more
more
than
than 40
40 000

000
commercials
commercials per
per
annum
annum

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Perspectives on advertising to
children
Consumer
Consumer advocates
advocates argue
argue that
that children
children
are
are vulnerable
vulnerable to
to advertising
advertising due
due to:
to:
Lack

Lack of
of
skill/expertise
skill/expertise for
for
critical
critical evaluation
evaluation of
of
advertising
advertising claims
claims

Difficulty
Difficulty
differentiating
differentiating
between
between programs
programs
and
and commercials
commercials

Marketers
Marketers argue
argue that:
that:
Children
Children must

must learn
learn
through
through the
the
socialisation
socialisation

Need
Need to
to acquire
acquire skills
skills
to
to function
function in
in the
the
marketplace
marketplace

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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.

Copyright 2012 McGraw-Hill Australia Pty Ltd
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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

Copyright 2012 McGraw-Hill Australia Pty Ltd
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Social and cultural
consequences of advertising
Does
Does advertising
advertising make
make
people
people buy
buy things
things they

they don’t
don’t
need?
need?
Does
Does advertising
advertising
encourage
encourage materialism? 
materialism? 
Does
Does advertising
advertising
perpetuate
perpetuate stereotypes? 
stereotypes? 
Does
Does advertising
advertising control
control
the
the media? 
media? 
Copyright 2012 McGraw-Hill Australia Pty Ltd
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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
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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

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Stereotypical portrayal of women

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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

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