Regulatory, Ethical, and Social Issues for Integrated Marketing Communications

1. Regulatory, Ethical, and Social Issues for Integrated Marketing Communications

2. Advertising Regulation in Canada Government Regulation Self Regulation CRTC ASC

3. Canadian Radio-Television and Telecommunications Commission (CRTC) • Mandate: To ensure that the Broadcasting Act of 1991 and the Telecommunications Act of 1993 are upheld throughout Canada. • Objective of each Act is to ensure all Canadians can receive broadcasting and telecommunications services.

4. CRTC and Advertising Regulations • Advertising limits • Infomercials • 900 Numbers • Alcohol and drugs

5. CRTC and Advertising Non-Regulation • False or misleading ads • Internet

6. Other Regulations • Regulation of Tobacco Advertising • Quebec Regulations on Advertising to Children

7. Advertising Standards Council (ASC) • A not-for-profit, self-regulatory industry body. • Mandate is to create and maintain community confidence in advertising. • Standards Division: • Administers the industry’s self-regulatory codes. • Handles complaints about advertising. • Administers any disputes arising between advertisers.

8. Canadian Code of Advertising Standards • “The Code” describes acceptable advertising. • Pertains only to content of ads. • Does not limit promotion of legal products or the demonstration of products for their intended purpose. • Does not supersede any other laws or regulations. • Intent: To provide standards for responsible and effective advertising without minimizing the right of firms to advertise.

9. The Code • Complaint process • Sets standards • Clearance

10. Accuracy and Clarity Disguised Advertising Techniques Price Claims Bait and Switch Guarantees Comparative Advertising Testimonials Professional or Scientific Claims Imitation Safety Superstitions and Fears Advertising to Children Advertising to Minors Unacceptable Depictions and Portrayals Clauses of the Code

11. Creates Needs and Wants Among Consumers Provides Information Promotes Materialism, Insecurity and Greed Creates Jobs and Helps New Firms Enter a Market Promotes Competition in The Marketplace Promotes Competition in The Marketplace Advertising and Promotion: Two Viewpoints Proponents Argue That Advertising and Promotion: Provides Information Encourages A Higher Standard Of Living Encourages A Higher Standard Of Living Creates Jobs and Helps New Firms Enter a Market Critics Argue That Advertising and Promotion Creates Needs and Wants Among Consumers Is More Propaganda Than Information Is More Propaganda Than Information

12. General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers Unethical and/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing Internet Scams and Abuses Advertising and Promotion as Deceptive General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers Unethical and/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing

13. Use of Shock Ads Objections to Advertising Of Certain Products Use of Sexual Appeals And/or Nudity Advertising as Offensive or In Bad Taste Objections to Advertising Of Certain Products Use of Sexual Appeals And/or Nudity

14. Many People Found Benetton’s “Sentenced to Death” Campaign Offensive

15. Children between ages 2-11 watch on average 15.5 hours of TV per week. Television is an important source of information for children about products. Advertising and Children Children's TV Watching Behaviour

16. They Lack the Knowledge and Skills to Critically Evaluate Advertising Claims They Cannot Differentiate Between Programs and Commercials Children Must Learn Through the Socialization Process Need to Acquire Skills Needed To Function in the Marketplace Perspectives on Advertising to Children Consumer Advocates Argue That Children Are Vulnerable to Advertising Because: They Lack the Knowledge and Skills to Critically Evaluate Advertising Claims They Cannot Differentiate Between Programs and Commercials While Marketers Argue That: Children Must Learn Through the Socialization Process

17. Does Advertising Make People Buy Things They Don’t Need? Does Advertising Encourage Materialism? Is Advertising Just A Reflection of Society? Social and Cultural Consequences of Advertising Does Advertising Make People Buy Things They Don’t Need? Does Advertising Encourage Materialism?

18. Portrayal of Women to Reflect Their Changing Role in Society Gender Stereotyping Portrayal of Women As Sex Objects Portrayal of The Elderly Ethnic Stereotyping/ Representation of Minorities Advertising and Stereotyping Portrayal of Women to Reflect Their Changing Role in Society Gender Stereotyping Portrayal of Women As Sex Objects Criticisms of Advertising With Regard to Stereotyping Ethnic Stereotyping/ Representation of Minorities

19. Is This Woman Portrayed As a Sex Object? Does This Ad Contain Cues That Are Sexually Suggestive? Does This Ad Present an Image of Sexual Submissiveness? What is your opinion of this ad? Is This Woman Portrayed As a Sex Object? Does This Ad Contain Cues That Are Sexually Suggestive?

20. Making Consumers Aware of Products and Services Providing Consumers With Information to Use to Make Purchase Decisions Encouraging Consumption and Fostering Economic Growth Role of Advertising in the Economy Making Consumers Aware of Products and Services Providing Consumers With Information to Use to Make Purchase Decisions +

21. Effects on Consumer Choice • Differentiation • Brand Loyalty • Effects on Competition • Barriers to entry • Economies of scale • Effects on product costs and prices • Advertising as an expense that increases the cost of products • Increased differentiation Economic Impact of Advertising • Effects on Consumer Choice • Differentiation • Brand Loyalty • Effects on Competition • Barriers to entry • Economies of scale