Regulatory, Ethical, and Social Issues for Integrated Marketing Communications

Regulatory, Ethical, and Social Issues for

Integrated Marketing Communications

Advertising Regulation in Canada

Government Regulation

Government Regulation

Self Regulation

Self Regulation

CRTCCRTC ASCASC

Canadian Radio-Television and Telecommunications Commission (CRTC)

Mandate: To ensure that the Broadcasting Act of 1991 and the Telecommunications Act of 1993 are upheld throughout Canada.

Objective of each Act is to ensure all Canadians can receive broadcasting and telecommunications services.

CRTC and Advertising Regulations

Advertising limitsInfomercials900 NumbersAlcohol and drugs

CRTC and Advertising Non-Regulation

False or misleading adsInternet

Other Regulations

Regulation of Tobacco AdvertisingQuebec Regulations on Advertising to

Children

Advertising Standards Council (ASC)

A not-for-profit, self-regulatory industry body. Mandate is to create and maintain community

confidence in advertising. Standards Division:

Administers the industry’s self-regulatory codes. Handles complaints about advertising. Administers any disputes arising between

advertisers.

Canadian Code of Advertising Standards

“The Code” describes acceptable advertising. Pertains only to content of ads.

Does not limit promotion of legal products or the demonstration of products for their intended purpose.

Does not supersede any other laws or regulations. Intent: To provide standards for responsible and

effective advertising without minimizing the right of firms to advertise.

The Code

Complaint processSets standardsClearance

Clauses of the Code

1. Accuracy and Clarity

2. Disguised Advertising Techniques

3. Price Claims

4. Bait and Switch

5. Guarantees

6. Comparative Advertising

7. Testimonials

8. Professional or Scientific Claims

9. Imitation

10. Safety

11. Superstitions and Fears

12. Advertising to Children

13. Advertising to Minors

14. Unacceptable Depictions and Portrayals

Advertising and Promotion: Two Viewpoints

Creates Needs andWants Among

Consumers


Consumers

Promotes Materialism,

Insecurity and Greed

Promotes Materialism,

Insecurity and Greed

Is More PropagandaThan Information


ProvidesInformationProvides

InformationCreates Jobs and Helps New Firms Enter a Market

Creates Jobs and Helps New Firms Enter a Market

EncouragesA Higher Standard

Of Living


Of Living

PromotesCompetition in

The Marketplace


The Marketplace




Consumers


Consumers




Of Living


Of LivingProvides

InformationProvides

Information

Proponents Argue That Advertising and Promotion:

Proponents Argue That Advertising and Promotion:

Critics Argue That Advertising and Promotion

Critics Argue That Advertising and Promotion


The Marketplace


The Marketplace

Advertising and Promotion as Deceptive

General Mistrust of Advertising and Among Consumers. Many Do Not

Perceive Ads As Honest or Believable







Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium

Offers


Offers

Unethical and/or Deceptive Practices Involving Mail Order, Telemarketing and

Other Forms of Direct Marketing



Internet Scams and AbusesInternet Scams and Abuses


Offers


Offers





Advertising as Offensive or In Bad Taste

Objections to Advertising

Of Certain Products


Of Certain Products

Use of SexualAppeals And/or

Nudity


Nudity


Of Certain Products


Of Certain Products


Nudity


Nudity

Use of Shock Ads

Use of Shock Ads

Many People Found Benetton’s “Sentenced to Death” Campaign Offensive

Advertising and Children

Children's TV Watching Behaviour

Children's TV Watching Behaviour

Children between ages 2-11 watch on average 15.5 hours of TV per week.

Children between ages 2-11 watch on average 15.5 hours of TV per week.

Television is an important source of information for children about products.

Television is an important source of information for children about products.

Perspectives on Advertising to Children

They Lack the Knowledge and

Skills to Critically Evaluate

Advertising Claims



Advertising Claims

They Cannot Differentiate

Between Programs and Commercials



Children Must LearnThrough the Socialization

Process


Process


Process


Process







Advertising Claims



Advertising Claims

Need to Acquire Skills Needed

To Function in the Marketplace

Need to Acquire Skills Needed

To Function in the Marketplace

Consumer Advocates Argue That Children Are Vulnerable to

Advertising Because:

Consumer Advocates Argue That Children Are Vulnerable to

Advertising Because:

While Marketers Argue That:While Marketers Argue That:

Social and Cultural Consequences of Advertising

Does Advertising Make People Buy ThingsThey Don’t Need?


Does Advertising Encourage Materialism?






Is Advertising JustA Reflection of Society?

Is Advertising JustA Reflection of Society?

Advertising and StereotypingPortrayal of Women to Reflect Their Changing

Role in Society

Portrayal of Women to Reflect Their Changing

Role in Society

Portrayal ofWomen AsSex Objects


Ethnic Stereotyping/

Representation of Minorities









Gender Stereotyping

Gender Stereotyping

Gender Stereotyping

Gender Stereotyping


Role in Society


Role in Society

Portrayal ofThe ElderlyPortrayal ofThe Elderly

Criticisms of Advertising

With Regard to Stereotyping

Criticisms of Advertising

With Regard to Stereotyping

What is your opinion of this ad?

Is This Woman Portrayed As a Sex Object?


Does This Ad ContainCues That Are Sexually

Suggestive?


Suggestive?

Does This Ad Present an Image of Sexual Submissiveness?

Does This Ad Present an Image of Sexual Submissiveness?


Suggestive?


Suggestive?



Role of Advertising in the Economy

Making Consumers Aware of Products and Services


Providing Consumers With Information to Use to Make

Purchase Decisions


Purchase Decisions


Purchase Decisions


Purchase Decisions



Encouraging Consumption and Fostering Economic

Growth

Encouraging Consumption and Fostering Economic

Growth+

Economic Impact of Advertising

Effects on Consumer Choice• Differentiation • Brand Loyalty


Effects on product costs and prices• Advertising as an expense that

increases the cost of products• Increased differentiation

Effects on product costs and prices• Advertising as an expense that

increases the cost of products• Increased differentiation

Effects on Competition• Barriers to entry • Economies of scale






Regulatory, Ethical, and Social Issues for Integrated Marketing Communications

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