Chapter 2 - The environment of advertising. After completing this chapter, students will be able to: Describe the impact of advertising on the economy, examine the validity of the various social criticisms of advertising, explain the difference between social responsibility and ethics in advertising, | Chapter Two The Environment of Advertising Arens|Schaefer|Weigold Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives Describe the impact of advertising on the economy Examine the validity of the various social criticisms of advertising Explain the difference between social responsibility and ethics in advertising Learning Objectives Describe how government agencies regulate advertising to protect both consumers and competitors Discuss the activities of nongovernment organizations in fighting fraudulent and deceptive advertising Impact of Advertising on the Economy Effect of Advertising on the Value of Products Effect of Advertising on Prices Effect of Advertising on Competition Effect on Consumers and Businesses Social Impact of Advertising Advertisers’ Social Responsibility Advertising’s role Influences a society’s stability and growth Secures large armies Creates entertainment events, drawing fans Affects the outcome of political elections Need to maintain ethical standards Buy, create, produce, and sell advertising to contribute to the society and economic system Ethics of Advertising Components Traditional customs and principles Attitudes, feelings, and beliefs that form a personal value system Singular ethical concepts Advertisements are reviewed and modified to create complete information and to reduce unwanted externalities Regulatory Issues Affecting . Advertisers Children’s Advertising Review Unit’s Guidelines for Advertising to Children Advertising should not: Be deceptive or unfair to the children Stimulate children’s unreasonable expectations about the product Directly advertise inappropriate content or products to children Advertisers should: Avoid social stereotyping and prejudice Include minority groups in the ads Present positive role models Capitalize on the potential to serve an educational role Influence positive personal | Chapter Two The Environment of Advertising Arens|Schaefer|Weigold Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives Describe the impact of advertising on the economy Examine the validity of the various social criticisms of advertising Explain the difference between social responsibility and ethics in advertising Learning Objectives Describe how government agencies regulate advertising to protect both consumers and competitors Discuss the activities of nongovernment organizations in fighting fraudulent and deceptive advertising Impact of Advertising on the Economy Effect of Advertising on the Value of Products Effect of Advertising on Prices Effect of Advertising on Competition Effect on Consumers and Businesses Social Impact of Advertising Advertisers’ Social Responsibility Advertising’s role Influences a society’s stability and growth Secures large armies .
