021ETH_1.pptx

marketing

1. Chapter - 21 Ethics in Marketing Communications

2. Ethics in Marketing Communications 2 Objectives Social Responsibility Ethics in Advertising Ethics in Sales Promotion Ethics in Advertising Research Ethics in Advertorials and Infomercials Regulations The Economic Effects of Advertising

3. Ethics in Marketing Communications 3 Ethics Standards or moral principles which individual of groups follow Decisions are governed by principles If it is not done ethically, advertising won’t be trusted – Jef I. Richards Marketing communication strategies come under fire for Encouraging materialism, Consumption, Stereotyping, Encouraging impulse purchase of products that a person does not need Taking advantage of children Manipulating consumer behavior Using sex appeal to sell Contributing to the degradation of values

4. Ethics in Marketing Communications 4 Social Responsibility A social responsible business is one that engages not only in activities that are profitable for the business but also beneficial to the community Social responsibility involves being Ethical Accountable and Reactive to the needs of society Levels Level 1 Companies which include social responsibilities in their business philosophy Level 2 Companies who sponsor messages that are aimed at promoting a social cause

5. Ethics in Marketing Communications 5 Ethics in Advertising Ethical issues in advertising Ethical Dilemma The pros and cons regarding a particular issue are even, where ethics are concerned Ethical Lapse Unethical behavior that is a violation or deviation from standards knowingly Conveying an accurate message through an advertisement while being aware that it is wrong Parameters to know whether ad is ethical or not Advocacy What the advertising is trying to say is objective or neutral Accuracy Whether the claim made by the company is true and verifiable Acquisitiveness Whether it is promoting materialism

6. Ethics in Marketing Communications 6 Ethics in Advertising Ethical Issues Puffery Making exaggerated claims about the product being advertised The claims can not be supported by evidence It cannot be considered illegal either but is preferable to avoid Taste Different people have different liking and tastes Ad which touch on sex, vulgarity, nudity, violence, and use double entendre are considered in bad taste Stereotyping Give a particular image to a group of people Women with dark skin are unsuccessful in personal or professional life Ad promoting household products depicts women as housewives Men are used in ad which need a strong, intelligent, decision-making image Some ads are targeted to racial group

7. Ethics in Marketing Communications 7 Ethics in Advertising Ethical Issues Advertising to Children A company places a commercial message within or immediately following a children’s program (Any program targeted at individuals below 12 years) Children are impressionable and vulnerable therefore easy to target Children attract the attention of advertisers because of their increasing ‘Pester Power’ Children could not be expected to be an authentic source of an information Laws like the Cable TV Networks (Regulation) Act, 1995 and the Infant Milk Substitutes, Feeding Bottles and Infant Food Act give only vague guidelines for regulating, advertisements involving children

8. Ethics in Marketing Communications 8 Ethics in Advertising Ethical Issues Promoting Unhealthy Products Most Aggressive ads are from junk-food sector. Ex. Adv., from McDonalds, KFC, Pepsi and Cola. Most of the products high in Fat, sugar, salt beyond a limit. Promoting the products like Tobacco, Alcohol, Prescription drugs, Habits like gambling in casinos Subliminal Advertising Vicary coined the term subliminal advertising and formed the Subliminal Projection Company based on a six-week test. Vicary claimed that during the presentation of the movie ‘Picnic’. He used a tachistoscope to project the words "Drink Coca-Cola" and "Hungry? Eat popcorn" for 1/3000 of a second at five-second intervals. Vicary asserted that during the test, sales of popcorn and Coke in that New Jersey theater increased 57.8 percent and 18.1 percent respectively A Message designed to pass the normal limits of perception…….yet register on the consciousness Adv. aimed at a point below the normal threshold level of the audience

9. Ethics in Marketing Communications 9 Ethics in Sales Promotion Contests and Sweepstakes Slotting Allowances

10. Ethics in Marketing Communications 10 Ethics in Advertising Research Responses to be kept secret Methodology of survey should also be released Disguised Survey - unethical

11. Ethics in Marketing Communications 11 Ethics in Advertorials and Infomercials Advertorial An advertisement, in a newspaper or a magazine that has the appearance of a news column or an editorial Readers confuse an advertorial with a regular editorial and tend to take the discussion as emanating from a neutral party Make advertorials as a ‘Special Advertising Section’ Infomercial A long television commercial (about 30 minutes) that gives information about a product Viewers tend to believe the content has been prepared by an independent source

12. Ethics in Marketing Communications 12 Regulations Make sure that the claims made by the company are verifiable and do not offend people Framed to ensure that promotional activities are ethical Main purpose is to promote healthy competition and guard customers from economic or physical harm Self-Regulation People involved in preparing promotional campaign - manufacturers, advertising agencies, media - come together to ensure that the communication is authentic and ethical Levels Self-discipline Pure self-regulation Co-opted self-regulation

13. Ethics in Marketing Communications 13 Regulations Self-Regulation Self-discipline The organizations make their own guidelines, standards and policies and abide by them Pure self-regulation When companies from industry come together to form regulations Co-opted self-regulation The advertising industry voluntarily comes together to form a regulatory body Regulatory Bodies Government has formed MRTPC through 1969 act. It is applicable when Wrong information is conveyed Element of deception Consumer protection law is violated Manipulation of sales prices by seller

14. Ethics in Marketing Communications 14 Guidelines for Advertisers ASCI (The Advertising Council of India)- a representative body of people from the world of adv and also draws experts from the industry and public domain To maintain and enhance public confidence in ads - ASCI code of regulation Truthful and fair to consumer and competitors Within the bounds of generally accepted standards of public decency and propriety. Not to be used indiscriminately for the promotion of products hazardous or harmful to the society. Adv should be designed as to conform not only to the laws but also to the moral, aesthetics and religious sentiments Ads likely to bring contempt or disrepute not permitted Ads should be truthful, avoid distorting facts and misleading information No exaggerated claims No Direct comparisons No indecent, vulgar, suggestive, repulsive or offensive themes No offer to refund money paid No derides any race, caste, color, creed, nationality.

15. Ethics in Marketing Communications 15 Guidelines for Advertisers Drugs and Cosmetics Act, 1940 Drugs Control Act 1950 Copyright Act, 1957 Prevention of Food Adulteration Act, 1954 Prize Competition Act, 1955 Emblems and Names Act, 1950 Consumer Protection Act, 1950 Indecent Representation of Women Act, 1986 Code of Ethics by ASCI Monopolistic and Restrictive Trade Act Some Common examples of non-ethical advertisements which were banned by MRTP and ASCI…………………

16. Ethics in Marketing Communications 16 The Economic Effects of Advertising Consumer Choice Competition Product Costs and Prices

17. Ethics in Marketing Communications 17 Summary Social Responsibility Ethics in Advertising Ethics in Sales Promotion Ethics in Advertising Research Ethics in Advertorials and Infomercials Regulations The Economic Effects of Advertising

18. Thank you