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8/6/2019 Ethics in Advertising (1)
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Ethics in Marketing: The Ultimate
Oxymoron
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Determining What is Ethical
The social ethic
The professional
ethic
The personal
ethic
The Golden Rule
Social responsibility
motivates a business to
make a positive impact
on society
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Determining What is Ethical
The social ethic
The professional
ethic
The personal
ethic
Industry standards help
with a decision about
what is ethically correct
A code of standards
identifies how
professionals should
respond when facing an
ethical dilemma
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Determining What is Ethical
The social ethic
The professional
ethic
The personal
ethic
Personal judgment and
moral reasoning rests on
an intuitive sense of right
and wrong
Advertising professionals
must be aware of
industry standards as
well as ethical questions
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Ethical Criticisms of Marketing
High prices
Deceptive practices
High-pressure selling Shoddy, harmful, or unsafe products
Planned obsolescence
Poor service to disadvantaged consumers
Unethical Advertising
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Deceptive Practices
Deceptive Pricing
Falsely advertising factory, wholesale, clearance or otherseemingly large reductions from a phony high original retail (list) price.
Deceptive Promotion Overstating a products features or performance, running rigged or
fraudulent contests.
Bait-and-Switch advertising
Deceptive Packaging Exaggerating package contents through slick design, misleading
quantity or quality imagery and misleading labeling
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Deceptive Pricing
Misleading sales price (price on shelf label is different fromactual price charged)
Omitting conditions of sale (conditions not mentioned)
Misleading introductory offer (The price is described as a
'Special Introductory Offer' but the same price is charged after
the introductory period is over.)
Example :
Pushing customers into forced continuity programs. Person gets
something for free, usually with just a small shipping and handling
charge, but doesn't realize that they've also signed up for an ongoing,fee-based program.
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Deceptive Promotion
Overstating a products features or performance.
Overstating and misrepresenting discounts
Running fraudulent contests
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Deceptive Packaging Tricks
Downsizing
Size and price of a package remain the
same, but its contents decrease
Slack Fill
Difference between a container's
potential capacity and its actual contents
Environmental Claims
Misrepresenting environmental claims
Overpackaging
Small items are made to appear more
substantial packaged in this manner.
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High-Pressure Selling
Salespeople are trained to deliver smooth,
canned talks to entice purchase.
High-pressure selling persuades people to buy
goods they neither need nor want.
Driven by compensation structures (i.e. high
bonus potentials).
High-pressure selling ultimately destroys customerrelationships and goodwill.
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Includes
Poorly made products
Products that do not perform well
Products that deliver little benefit
Harmful products (cause bodily harm, illness, even death)
How it happens
Undue focus on profit, increased production complexity,poorly trained labor, and poor quality control
New products without safety track records
Outsourcing of production often leads to quality issues
Shoddy or Unsafe Products
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McDonalds and Obesity
A 2002 lawsuit unsuccessfully sued McDonalds on behalf of obese children,claiming McDs marketed food that is high in fat, salt, sugar, and cholesterol.
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Planned Obsolescence
Refers to:
Products needing replacement before they should because
they are obsolete. (computers and software)
Producers who change consumer concepts of acceptable
styles. (clothing and fashion)
Intentionally holding back attractive or advancedfunctional features, and introducing them later to make
the old model obsolete. (electronics)
How do consumers attempt to combat Planned Obsolescence?
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Examples
The poor are forced to shop in smaller storeswhere they pay more for inferior goods.
The poor receive worse service (or no service) atstores.
Redlining by national chain stores indisadvantaged neighborhoods.
Poor are targeted for rapid refunds and otherquick-money swaps.
Poor Treatment ofDisadvantaged Consumers
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ADVERTISING Types
AD:
Newspapers
Magazines
OUTDOOR
AD:
Billboards
Kiosks
Events
BROADCAST
AD:
Television
Radio
Internet
SURROGATE
AD:
Indirect Ads
PUBLIC
SERVICES
AD:
Social Causes
CELEBRITY
AD:
RenownedCelebrities
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ETHICAL ISSUES IN ADVERTISING
deceptive advertising (credit cards)
manipulative advertising (children ads)
subliminal advertising (coke)stereotyping (cooking oil)
fear appeal (insurance)
sexual advertising (axe)
misleading advertising (fast food)
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ASCI GUIDELINES
To ensure the truthfulness and honesty of representationsand claims made by advertisements and to safeguardagainst misleading advertising.
To ensure that advertisements are not offensive to
generally accepted standards of public decency. To safeguard against indiscriminate use of advertising for
promotion of products which are regarded as hazardous tosociety or to individuals to a degree or of a type which isunacceptable to society in large.
To ensure that advertisements observe fairness incompetition so that consumers need to be informed onchoices in the market place and the canons of generallyaccepted competitive behavior in business are both served.
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Marketings Impact on Society as a Whole
Marketing creates false wants
and needs
Marketing makes people
materialistic
Marketing promotes poor quality
products
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Cultural Pollution
Does constant exposure to advertisements assault
our senses?
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Global Marketing Ethics
Business standards and practices vary greatly
between countries. Bribery and kickbacks are illegal in the U.S., but are legal and even
standard business practice in other countries.
Should companies maintain a consistent set of ethical standards
to be used worldwide?
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