Jitendra Virahyas
[email protected]
A PRESENTATION ON
Ethical Issue In Marketing Communication &
Advertisement As Marketing Function Deepshikha College Of Technical Education, Jaipur Submitted To:
Submitted By:
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JITENDRA VIRAHYAS
CONTENT Advertising as a management function Setting the advertising objective Deciding the advertising objective choosing the advertising message Deciding on media Evaluating advertising effectiveness
Ethical issues in marketing communication Marketing causes people to buy more than they can effort Marketing overemphasizes materialism Marketing increases the cost of goods and service Marketing perpetuates stereotyping Marketers create offensive advertisement Marketing creates advertisements linked to bad habits and intimate subjects Marketers use unfair tactics Marketers prepare deceptive and misleading advertisements Advertising professional services is unethical Advertising to children is unethical Salespeople use deceptive practices
ADVERTISING AS A MANAGEMENT FUNCTION Advertising management involve the major decisions in the management. Broadly it include the following activities: 1) SETTING THE ADERTISING OBJECTIVE 2) DECIDING THE ADVERTISING OBJECTIVE 3) CHOOSING THE ADERTISING MESSAG 4) DECIDING ON MEDIA 5) EVALUATING ADVERTISING EFFICTIVENEES
1) SETTING THE ADERTISING OBJECTIVE: Main objective is that the companies are set first the target market, market positioning, and marketing mix. Advertising objectives can be classified according to their uses as inform, persuasive and remind. a) Informative Advertising: Figure heavily in the pioneering stage of a product category, where the objective is to build primary demand. b) Persuasive advertising becomes important in the competitive stage, where a company s objective is to build selective demand for a particular brand. c) Reminder advertising is important with mature product. It is used to remind buyers about a product s existence. For example, Expensive four–color Coca-cola ads in magazines are intended to remind people to purchase coca-cola. A related form of advertising is reinforcement advertising, which seeks to assure current purchaser that they have made the right choice.
2) DECIDING ON THE ADVERTISING BUDGET: HOW does a company known if it will be spending right amount ? if it spends too little, the effect will be negligible . if spend too much it can increase the overall cost of the product. this cost would be used better utilised. Advertising has a carryover effect that lasts beyond the current period. Although advertising is treated as a current expenses that is created the brand equity. So it is important to utilise the whole amount of advertising as useful as the company can. A) STAGE IN THE PRODUCT LIFE CYCLE: NEW PRODUCT ARE requires large amount on the advertising. Advertising can be very effective at the lunching level or starting level of the product. The need to high marketing is required for good response of our goods and services. B) MARKET SHARE AND CONSUMER BASE: high market share brands usually required less advertising because it was well established and known by the people and vice versa. To build share by increasing market size requires larger size advertising budget. It is less expensive to reach of consumer of a widely used brand than to reach low share brand. C) COMPETETIVE AND CLUTTER: with high competitive time it is more requires high amount in advertising. Because everyone wants to increase their sells. And to increase in sells as well as profit this is very important. A brand must more advertising it is heavily to be heart. Even simple clutter form advertisements not directly competitive to the brand creates a need for heavier advertising. D) ADVERTISING FREQUENCE: THE NUMBER of repetitions needed to put across the brands messages to consume has an impact on the advertising budget. E)
PRODUCT SUBSITUTABILITY: Brands in commodity class (cigarettes, beer, soft drinks) requires heavy advertising to establish a different image. Advertising is requires different image is also important when a brand can offer unique physical benefits or features.
3) CHOOSING THE ADVERTISING MESSAGES: The task now is to translate all of objective info a specific advertising message to meet the goals. Advertising campaigns vary in their creativity. Advertisers go through four steps to develop a creative strategy: message generation, message evaluation and selection, message execution, and social responsibility review. a) message generation: the products” benefit” message should be decided as part of developing the product concept. Yet there is usually latitude for a number of possible messages. Over time, the marketers might want to change the message, especially if consumers seek new or different benefits from the product. b) Message evaluation and selection: A good ad normally focuses on one core-selling proposition. Tweed suggested that message be rated on desirability, exclusiveness, and believability. For example, the advertiser should conduct market research to determine which appeal works best with its target audience. c) Message execution: the messages impact depends not only upon what is said but also on how it is said .some ads aim for rational positioning and other for emotional positioning. d) Social responsibility: Advertising and their agencies must be sure that their creative advertising doesn’t overstep social norms. Most marketer work hard to communicate openly and honestly with consumers.
4) DECIDING ON MEDIA : A) DECIDING ON REACH, FREQUENCY AND IMPACT: MEDIA SELECTION involves finding the most cost efficient media to deliver the desire number of exposures to the target audience. I. REACH (R): THE NUMBER OF Different persons or
II.
III.
B)
household expose to a particular media at least once during a specific time period. FREQUENCE(F): THE number of times within the specific time period that an average person or house hold is expose to the message. IMPECT(I): the qualitative value of an exposure through a given media.
CHOOSING AMONG MAJOR TYPE: THE MEDIA planner has to know the capacity of the major type of delivery, reach, frequency, impact . The media are as follows:
Newspapers Television Direct mail Radio Magazines Outdoor Yellow Pages Newsletters Brochures Telephone Internet
media planners make their choice among media category by considering the following variables: I.
II.
III.
IV.
Product: women dresses are the best shown in the magazines, and Polaroid cameras are best demonstration on television. Message: a message is the most conman way to be in marketing. major sales promotion is by newspaper, radio, T.V. Cost: television is very expensive, whereas promotion in newspaper ads are very effective. So it is conman way of promotion. Target-audience media habits: For example, radio and television are the most effective media for reaching teenagers.
C) SELLECTING SPECIFIC VECHICAL: THE most effective media vehicles within each level of media type. I. II. III.
Circulation : the number of physical units carrying ,the advertising. Audience: The number of people exposed to the vehicle. Effective Audience: the number of people with target audience characteristics exposed to the vehicle.
D) DICIDING ON MEDIA TIMING: In choosing the media , the advertiser should faces a macro scheduling problem. The macro scheduling problem involves scheduling the advertising in a relation to seasons and the business cycle. Like a firms estimate their sale for a definite period. as in June to September 70% at whole. Most firm pursue a seasonal policy. E) DECIDING ON GEOGRAPHICAL ALLOCATION: A company has to decide how to allocate its advertising budgets over space as well as over time.the company makes “national buyes” when it palace ads on national TV network or in nationally circulated magazines. It makes “spot buys” when it buys TV time in just a few markets or in regional editions of magazines. These markets are called areas of dominant influence or designenated marketing areas , and ads reach a market 40 to 50 miles from a city center. The company makes “local buys” when it advertises in local newspaper , radio or outdoor sites.
5) EVALUATION ADVERTISING EFFECTIVENESS : An advertising measurement is adopted both defore and after an advertising campaign is launched. While the advertising plans are being implemented, the advertiser and the producer must know the extent of the success that has been achieved. The competitors success, the producer’s objective, the tasks given to distributors price policy, etc. All these are considered while measuring advertising effectiveness. The methods of measuring of sales and communication performance.
a) objectives of measuring advertising: some advertising do not bother to measure advertising effectiveness. They expect that the sales will ultimately increase of advertising have been forced to measure the effectiveness. The producers themselves adopt a measuring device because they incur a sizeable amount of expenditure on advertising. Problems and difficulties have compelled them to measure advertising effectiveness. The effectiveness of media and message are also assessed for their use in future. b) measuring sales and communication performance: the advertising effectiveness is measured in the light of sales and communication objectives. These are the two important aspects of measurement. I. Measuring sales:
II.
sales measurement makes a realistic approach to the assessment of advertising effectiveness. It is a very useful tool where advertising is the predominant contributor to sales, when internal and external factors affecting sales are held constent or are ineffective. Measuring communication effects: advertising is basically a communication process. The effectiveness of advertising can be measured by how much the communication process has been useful in motivating consumers. This approach is considered more economical and easy because communication effect can be measured by research, opinion, mathematical models, etc. The communication objectives, i.e., establishing brand awareness, improving recall, increasing brand recognition, bringing about an attitude change, etc., can be measured because these are realistic.
Ethical issues in marketing communication
Ethics are principles that serve as guidelines for organization to conduct function in an appropriate manner. In shaping its promotion mix a company should be aware of the ethical issues surrounding marketing communication. Though company takes precaution in communicating with the consumer, still abuses may occur. The ethical issues regarding marketing communication are: Marketing causes people to buy more than they can effort Marketing overemphasizes materialism Marketing increases the cost of goods and service Marketing perpetuates stereotyping Marketers create offensive advertisement Marketing creates advertisements linked to bad habits and intimate subjects Marketers use unfair tactics Marketers prepare deceptive and misleading advertisements Advertising professional services is unethical Advertising to children is unethical Salespeople use deceptive practices
1) Marketing causes people to buy more than they can effort: Marketing critics voice the concern that advertising and other marketing communication efforts persuade individuals to purchase goods and services they do not need cannot afford. The question remains, however, whether marketers are the cause. Perhaps some of the blame should be assigned to credit companies that allow people to borrow more than they should to finance their purchases in any case, the problem has been created by more than just marketing and finance department. Overspending is epidemic in society. People seeking immediate gratification tend to live beyond their mean, and the relatively easy escape offered by filing for bankruptcy makes matters worse. Unfirtunstunely, critics point an accusatory finger toward marketing managers, arguing that they offer consumers luxurious goods and services that are out of their price ranges and attract them to create personal financial problems as a result.
2) Marketing overemphasizes materialism Closely tied to the notion that people buy too many goods and services are the criticism that marketing created has a materialistic society. The debate canter on one issue has the marketing of goods and services created an attitude of materialism, or has marketing merely responded to the materialistic desires of society? Underlying this argument is the assumption that materialism is wrong. In response, those who defend this aspect of free enterprise suggest that materialism, like many other things, is only bad if carried to an extreme.
3) Marketing increases the cost of goods and service Another reason people find fault with advertising and marketing communication is that it increases the cost of merchandise. Indeed, advertised goods do cost more and allow producers to charge higher prices
4) Marketing perpetuates stereotyping Some critics of advertising believe that negative stereotypes of women and minorities are common in marketing. They argue that many advertisements still portray women as the weaker gender whose primary responsibility is to care for the children and home or as sex objects. The elderly are often depicted as dumb and helpless. Individual critics suggest that various ethnic minorities are often portrayed as being inferior to whites.
5) Marketers create offensive advertisement Many citizens believe that advertisements are becoming more offensive. Sex and nudity are the most troubling and controversial issues. For example, critics have highly disparaged Calvin Klein for the level of nudity and sexual suggestiveness in various advertisements. More recently the company has been cited for the manner in which children are used in ads. Calvin Klein has a history of pushing sex and nudity to the limit.
6) Marketing create advertisements linked to bad habits and intimate subjects Many products that people buy simply are not good for them. For example, alcohol and tobacco have a negative impact on many persons, and on society as a whole, this had led some activists to object to advertising these item. Other condemns the marketing of personal products such as condoms and feminine hygiene items.
7) Marketers use unfair tactics A sensitive ethical issue in advertising concerns the tactics marketers use when products or services are of a highly personal nature. Some find these approaches to be objectionable. For example, one tactic used to promote goods is to stress the idea that happiness depends on physical attractiveness. Appearance is a critical issue to many women therefore; it is unfair to create an advertisement that feeds on insecurities about looks.
8) Marketers prepare deceptive and misleading advertisements Marketers prepare deceptive and misleading advertisements: Another criticism of marketing communications messages is that they are too often deceptive and misleading. Certainly some companies and marketing firms are guilty of this offense. As a result, the government has stepped in, passed laws, and created regulatory agencies to keep these practise from occurring regularly.
9) Advertising professional services is unethical Advertising professional services is unethical: Many citizens are frustrated when professional such as attorneys; dentists and physicians advertise their services. In a since, these ads can appear to be forms of “ambulance chasing”. On the other hand, marketers who help professionals vend their services are simply filling a need and doing what the law allows. They would suggest that only individual judgments and professionals standards should be the guide, rather than seeking a total ban on advertising by professionals.
10)
Advertising to children is unethical
Several strong advocacy group oppose the current freedom companies have to advertise to children, especially preschoolers, and work diligently to curtail these advertising programs. The most radical group want ads directed at children to be banished completely, because they believe children lack the mental ability to interpret advertisements correctly. They contend that marketers take advantage of a Childs inability to weigh evidence and make an informed decision. Other group do not promote eliminating advertising to children, but do want it limited and regulated.
Some other Ethical Issues in Marketing Communications Ethics in Advertising Puffery Taste Stereotyping Advertising to Children Promoting Unhealthy Products Subliminal Advertising
Regulations Self-regulation Regulatory Bodies
The Economic Effects of Advertising Consumer choice Competition Product Costs and Prices
Summary There are ethical issue in an organization. ethical issues in various marketing communication instruments like advertising, sales promotions, etc. The main ethical issues in advertising are puffery, bad taste, stereotyping, targeting children, promoting unhealthy products and subliminal advertising. Puffery refers to making exaggerated claims about the product, which cannot be proved. Advertisements are said to be in bad taste when they offend people. Stereotyping refers to portraying men or women in a particular role, with a negative image. Advertisements targeted at children are considered unethical as children are not capable of processing the given information. Consumption of unhealthy products like fast food and tobacco products lead to bad health. So promoting such products is not good. In subliminal advertising, the viewer is exposed to product messages and pictures in such a way that he is not aware of watching them. We also discussed ethical issues in sales promotion, advertising research, advertorials and infomercials. We went into the various regulations applicable to the advertising industry. The selfregulation and regulatory bodies operating in India were discussed in detail. Finally, we discussed the economic effects of advertising on consumer choice, competition and product cost & prices. Advertising influences people to buy heavily advertised products and pay more, as advertising costs are often passed on to the customers.
Jitendra Virahyas
[email protected]
