Ethical Issue in Marketing Communication &Advertising as a Manegement Funcation

8/3/2019 Ethical Issue in Marketing Communication &Advertising as a Manegement Funcation

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JitendraVirahyas

[email protected]


2/15

APRESENTATION

ON

Ethical Issue In Marketing

Communication

&

Advertisement As Marketing

Function

Deepshikha College Of Technical Education,

Jaipur

Submitted To: Submitted By:Sn JITENDRA VIRAHYAS


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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


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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 fourcolor 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.


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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 morerequires 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.


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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 doesnt overstep social norms. Most

marketer work hard to communicate openly and honestly with

consumers.


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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

household expose to a particular media at least once during

a specific time period.

II. FREQUENCE(F): THE number of times within the specific

time period that an average person or house hold is expose

to the message.

III. IMPECT(I): the qualitative value of an exposure through a

given media.

B) 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


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media planners make their choice among media category by

considering the following variables:

I. Product: women dresses are the best shown in the

magazines, and Polaroid cameras are best

demonstration on television.

II. Message: a message is the most conman way to be in

marketing. major sales promotion is by newspaper,

radio, T.V.

III. Cost: television is very expensive, whereas promotion in

newspaper ads are very effective. So it is conman way of

promotion.

IV. 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. Circulation : the number of physical units carrying ,the

advertising.

II. Audience:The number of people exposed to the vehicle.

III. 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 adson 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.


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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 producers

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: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.

II. 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.


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1) Marketing causes people to buy more than they can effort:

Marketing critics voice the concern that advertising and other marketingcommunication 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 allowpeople to borrow more than they should to finance their purchases in any case,the problem has been created by more than just marketing and financedepartment.

Overspending is epidemic in society. People seeking immediategratification tend to live beyond their mean, and the relatively easy escapeoffered by filing for bankruptcy makes matters worse. Unfirtunstunely, critics pointan accusatory finger toward marketing managers, arguing that they offer

consumers luxurious goods and services that are out of their price ranges andattract 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 arethe criticism that marketing created has a materialistic society. The debate canteron one issue has the marketing of goods and services created an attitude ofmaterialism, or has marketing merely responded to the materialistic desires ofsociety?

Underlying this argument is the assumption that materialism is wrong. Inresponse, those who defend this aspect of free enterprise suggest thatmaterialism, 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 marketingcommunication is that it increases the cost of merchandise. Indeed, advertisedgoods do cost more and allow producers to charge higher prices

4) Marketing perpetuates stereotyping

Some critics of advertising believe that negative stereotypes of womenand minorities are common in marketing. They argue that many advertisementsstill portray women as the weaker gender whose primary responsibility is to carefor the children and home or as sex objects. The elderly are often depicted asdumb and helpless. Individual critics suggest that various ethnic minorities areoften portrayed as being inferior to whites.


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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 ofnudity and sexual suggestiveness in various advertisements. More recently thecompany has been cited for the manner in which children are used in ads. CalvinKlein has a history of pushing sex and nudity to the limit.

6) Marketing create advertisements linked to bad habits and intimatesubjects

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 toadvertising these item. Other condemns the marketing of personal products suchas condoms and feminine hygiene items.

7) Marketers use unfair tactics

A sensitive ethical issue in advertising concerns the tactics marketers usewhen 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 tomany women therefore; it is unfair to create an advertisement that feeds oninsecurities about looks.

8) Marketers prepare deceptive and misleading advertisements

Marketers prepare deceptive and misleading advertisements: Anothercriticism 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 regulatoryagencies to keep these practise from occurring regularly.


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9) Advertising professional services is unethical

Advertising professional services is unethical: Many citizens are frustratedwhen 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 servicesare simply filling a need and doing what the law allows. They would suggest thatonly 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 companieshave 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 banishedcompletely, because they believe children lack the mental ability to interpretadvertisements correctly. They contend that marketers take advantage of aChilds inability to weigh evidence and make an informed decision. Other groupdo not promote eliminating advertising to children, but do want it limited andregulated.


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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


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Summary

There are ethical issue in an organization. ethical issues in various marketing

communication instruments like advertising, sales promotions, etc. The main ethicalissues 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 self-

regulation 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.

JitendraVirahyas

[email protected]

Ethical Issue in Marketing Communication &Advertising as a Manegement Funcation

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