Đề tài Ethical, Regulatory, and  Environmental Issues

© 2010 South-Western, a part of Cengage Learning All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama Eighth Edition Ethical, Regulatory, and  Environmental Issues CHAPTER 21 1. Appreciate the ethical issues associated with advertising, sales promotions, and other marcom practices. 2. Understand why the targeting of marketing communications toward vulnerable groups is a heatedly debated practice. 3. Explain the role and importance of governmental efforts to regulate marketing communications. 4. Be familiar with deceptive advertising and the elements that guide the determination of whether a particular advertisement is deceptive. Chapter Objectives After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–2 5. Be acquainted with the regulation of unfair business practices and the major areas where the unfairness doctrine is applied. 6. Know the process of advertising self-regulation. 7. Appreciate the role of marketing communications in environmental (green) marketing. 8. Recognize the principles that apply to all green marcom efforts. Chapter Objectives (cont’d) After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–3 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–4 Ethical Issues in Marketing Communications • Ethics in Marcom  Involves matters of right and wrong, or moral, conduct pertaining to any aspect of marketing communications  Honesty, honor, virtue, integrity • Ethical Conduct  Lack of consensus about what it is  Ethical lapses and moral indiscretions occur under pressures of trying to meet business goals and attempting to satisfy the demands of the financial community © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–5 Sources of Ethical Issues Ethical Issues in Marketing Activities and Communications Advertising Targeting Marcom Public Relations Internet Marketing Sales PromotionsPackaging Communications © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–6 The Ethics of Targeting • Ethical Debate  Is it ethical to target products and communications efforts to segments that vulnerable or put at risk by these actions? • Is Targeting Unethical or Just Good Marketing? When does a good targeting strategy become a method of unfair (unethical) advantage? © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–7 Is Targeting Unethical or Just Good Marketing? • Positive  Targeting benefits rather than harms consumers—providing them with products best suited to their particular needs and wants • Negative  Targeting is not concerned with fulfilling consumers’ needs and wants, but rather with exploiting consumer vulnerabilities © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–8 The Ethics of Targeting Targeting Food and Beverage Products Targeting Tobacco and Alcohol Products Targeting Miscellaneous Products Ethical Issues in Targeting Children and Teens © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–9 Targeting to Children and Teens • Negative Targeting Outcomes  Products targeted to kids are unnecessary and the communications involved are exploitative  Posters, book covers, free magazines, advertising, and other so-called learning tools that are ads for products  Movies with tie-in merchandise programs  Targeting adult products (e.g., beer) to pre-adults  Using unacceptable cartoon-like images (e.g., Joe Camel)  Promoting adult-oriented entertainment (e.g., violent films, video games, and music products) to children and teens  Marketing food products (e.g., high-fat, high-calorie snacks) that contribute to childhood obesity © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–10 Targeting to Economically Disadvantaged Consumers • Billboards advertising tobacco and alcohol disproportionately appear in inner-city areas • Examples:  R.J. Reynolds attempt to market new brands cigarettes to African-Americans and downscale young women  Heileman Brewing Company’s targeting of “Power Master” high-alcohol malt liquor to inner-city neighborhoods © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–11 Targeting Tobacco Products Figure 21.1 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–12 Ethical Issues in Advertising Advertising Creates and Perpetuates Stereotypes Advertising Persuades People to Buy Things They Do Not Need Advertising Plays on People’s Fears and Insecurities Criticisms of Advertising Advertising Is Untruthful and Deceptive Advertising Is Manipulative Advertising Is Offensive and in Bad Taste © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–13 American Association of Advertising Agencies’ Code of Ethical Standards • Ethical Code and Standards of Practice  Set lofty goals for the advertising industry and provides a framework for evaluating whether or not ads meet the high standards specified © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–14 Ethical Issues in Public Relations • Publicity  Involves disseminating positive information about a firm and its products and handling negative publicity  Like advertising—the same ethical issues apply • Negative Publicity When firms confess to product shortcomings and acknowledge problems or, instead, attempt to cover up the problems © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–15 Ethical Issues in Packaging and Branding Label Information Packaging Safety Packaging Graphics Environmental Implications Packaging and Branding Ethical Issues Brand Naming and Brand Name Theft © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–16 Ethical Issues in Sales Promotions • Sales Promotions  Manufacturer promotions directed at wholesalers and retailers and to consumers • Slotting Allowances  Manufacturers have to pay retailers to handle a new product—Is this a form of bribery and is it unethical? • Consumer-Oriented Sales Promotions  A promoter offers a reward for a consumer’s behavior that not delivered or lies about the odds of winning  Consumers who make false claims for coupon redemptions and refunds © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–17 Ethical Issues in Online Marketing • Consumer Privacy Issues  Consumer’s privacy rights to personal information and shopping behaviors collected by online marketers  Security of personal information collected online  Selling of personal information to other parties without consent of consumer  Bogus positive product evaluations and blogs deceptively extolling products © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–18 Fostering Ethical Marketing Communications The Professional Ethics Test Take only actions that would be viewed as proper by an objective panel of your professional colleagues The Golden Rule Act in a way that you would want others to act toward you The TV test Would l feel comfortable explaining this action on television to the general public?” © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–19 Regulation of Marketing Communications • Justifications for Regulation  When consumer decisions are based on false or limited information  When benefits realized exceed the costs • Benefits of Regulation  Improved consumer choices  Improved product quality  Reduction in prices • Costs  Regulatory compliance  Enforcement costs  Unintended side effects © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–20 Regulation by Federal Agencies Deceptive Advertising Unfair Practices Information Regulation Federal Trade Commission (FTC) Regulatory Authority © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–21 Regulation by Federal Agencies (cont’d) Misleading Misrepresentation or Omission Reasonable Consumer Test Material Misrepresentation Elements of the FTC’s Deception Policy © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–22 Regulation of Unfair Practices • Unfair Advertising  Acts or practices that cause or are likely to cause substantial injury to consumers, which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or competition (emphasis added) • FTC’s Criteria for Unfair Business Acts  Act offends public policy established by statutes  Act is immoral, unethical, oppressive, or unscrupulous  Act causes substantial injury to consumers, competitors, or othe businesses © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–23 Regulation by Federal Agencies (cont’d) • FTC’s Corrective Advertising Program  Requires a firm that misleads consumers to use future advertisements to rectify any deceptive impressions it has created in consumers’ minds • Food and Drug Administration (FDA)’s Regulation of Product Labeling  Responsible for regulating information on the packages of food and drug products  Requires advertisers to present a balanced perspective when advertising drugs © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–24 Regulation by Federal Agencies (cont’d) • Drug Advertising  FTC regulates deceptive and unfair advertising for over-the-counter (OTC) drugs  FDA regulates advertisements for prescription drugs in requiring advertisers to present a balanced perspective when advertising drugs © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–25 Regulation of Marketing Communications • Regulation by State Agencies  Most, if not all, states have departments of consumer affairs or consumer protection • Advertising Self-Regulation  Is undertaken by the advertising community itself (i.e., advertisers, industry trade associations, and ad media) rather than by governmental bodies. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–26 Advertising Self-Regulation • Advertising Clearance Process 1. Advertising agency clearance 2. Approval from the advertiser’s legal department and perhaps also from an independent law firm 3. Media approval © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–27 The National Advertising Review Council • National Advertising Review Council (NARC)  Responsible for receiving or initiating, evaluating, investing, analyzing and holding initial negotiations with an advertiser on complaints or questions from any source involving truth or accuracy of national advertising • NARC Organizational Units  The Children’s Advertising Review Unit (CARU)  National Advertising Review Board (NARB)  Council of Better Business Bureau’s National Advertising Division (NAD) © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–28 Environmental Marketing Communications • Legitimate Green Marketing  Is a firm’s introduction of environmentally oriented products and its undertaking of marcom programs to promote them  Seeks to accomplish two objectives:  Improve environmental quality  Satisfy customers © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–29 Green Marketing Initiatives • Green Marketing Communications  Advertisements that promote green products  Environmentally friendly packaging  Seal-of-approval programs promoting green products  Cause- and event-oriented marcom efforts that support environmental consciousness  Point-of-purchase display materials that are environmentally efficacious  Direct marketing programs that reduce resource usage by developing more efficient solicitations  Outdoor adv tising efforts that reduce the usage of environmentally damaging materials. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–30 Green Advertising Addressing the Biophysical Environment Figure 21.2 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–31 Guidelines for Green Marketing • FTC’s Green Guides  Qualifications and disclosures should be sufficiently clear and prominent to prevent deception  Claims should make clear whether they apply to the product, the package, or a component of either  Claims should not overstate an environmental attribute or benefit, either expressly or by implication  Comparative claims should be presented in a manner that makes the basis for the comparison sufficiently clear to avoid consumer deception © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–32 Green Advertising Presenting an Image of Environmental Responsibility Figure 21.4 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–33 Guidelines for Green Marketing Make Specific Claims Reflect Current Disposal Options Make Substantive Claims Make Supportable Claims General Recommendations for Environmental Claims © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21–34 Green Advertising Promoting a Green Lifestyle Figure 21.3