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CHAPTER 3. ECONOMIC,SOCIAL AND REGULATORY ASPECTS OF ADVERTISING. ECONOMIC IMPACT OF ADVERTISING. GDP(2.3 %) VALUE OF THE PRODUCT PRICE OF THE PRODUCT COMPETITION CONSUMER DEMAND(PRIMARY AND SELECTIVE) CONSUMER CHOICE(ABUNDANCE PRINICIPLE) BUSINESS CYCLE. ETHICAL ISSUES OF ADVERTISING.

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chapter 3

CHAPTER 3

ECONOMIC,SOCIAL AND REGULATORY ASPECTS OF ADVERTISING

economic impact of advertising
ECONOMIC IMPACT OF ADVERTISING
  • GDP(2.3 %)
  • VALUE OF THE PRODUCT
  • PRICE OF THE PRODUCT
  • COMPETITION
  • CONSUMER DEMAND(PRIMARY AND SELECTIVE)
  • CONSUMER CHOICE(ABUNDANCE PRINICIPLE)
  • BUSINESS CYCLE
ethical issues of advertising
ETHICAL ISSUES OF ADVERTISING
  • ADVOCACY
  • ACCURACY
  • ACQUISITIVENESS
  • DETERMINE WHAT IS ETHICAL
  • WHO SHOULD AND SHOULD NOT BE TARGET MARKET
  • WHAT SHOULD OR NOT BE ADVERTISED
common criticism of advertising
COMMON CRITICISM OF ADVERTISING
  • DECEPTION IN ADVERTISING (PUFFERY)
  • SUBLIMINAL ADVERTISING
  • IMPACT ON VALUE SYSTEMS(ARTIFICIAL DEMAND,USE OF APPEALS)
  • ADVERTISING CONTROVERSIAL PRODUCTS(TOBACCO,ALCOHOL,PRESCRIPTION DRUGS
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PROLIFERATION OF ADVERTISING
  • USE OF STEREOTYPES IN ADVERTISING(WOMEN,RACIAL ,ETHNIC,SENIOR CITIZENS)
  • OFFENSIVENESS IN ADVERTISING(TASTE,SEX APPEAL)
  • CHECK AD LAB 3-A P65
social benefits of advertising
SOCIAL BENEFITS OF ADVERTISING
  • CREATES EMPLOYMENT
  • ACCEPTANCE OF NEW PRODUCTS AND TECHNOLOGY
  • PROVIDES CHOICES
  • KEEP PRICES DOWN
  • CREATE HEALTHY COMPETITION
  • SUPPORTS COST OF MEDIA
government regulations of advertisiement
GOVERNMENT REGULATIONS OF ADVERTISIEMENT
  • FREEDOM OF COMMERCIAL SPEECH
  • PRIVAY RIGHTS-ONLINE ADVERTISING
  • ADVERTISING TO CHILDREN(CHILDREN ADVERTISING REVIEW UNIT)
  • TOBACCO ADVERTISING
  • CHECK ADLAW.COM TO REVIEW SOME OF PENDING CASES ON ADVERTISING
major regulating agencies
MAJOR REGULATING AGENCIES
  • FEDERAL TRADE COMMISSION
    • DECEPTIVE ADVERTISING
    • ENVIRONMENTAL CLAIM
    • UNFAIR ADVERTISING
    • COMPARATIVE ADVERTISING
    • ENDORSMENTS AND SUBSTANTIATION
other regulatory agencies
OTHER REGULATORY AGENCIES
  • FEDERAL COMMUNICATION COMMISSION
  • FOOD AND DRUG ADMINISTRATION
  • PATENT AND TRADEMARK OFFICE
  • STATE GOVERNMENT OFFICES
  • BETTER BUSINESS BUREAU
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NATIONAL ADVERTISING REVIEW COUNCIL
  • REGULATION BY MEDIA
  • AD AGENCIES
  • CONSUMER ADVOCATES