CHAPTER FIVE: MARKETING AND ADVERTISING ETHICS Two ...
CHAPTER FIVE: MARKETING AND ADVERTISING ETHICS Two questions about advertising ethics: 1. What scope is there for ethical concern about the practice of advertising and the particular content of individual ads? 2. Is there anything morally peculiar to the situation of advertising and should any special considerations be taken into account here that might be absent from the moral arena in other situations?
Answer: there is plenty of room for moral concern, and that is because of the nature of advertising and its audience
Moral concerns about advertising are present on 3 levels: o Macro level – moral justification of the practice of advertising and its place overall in society o Micro level – consider particular advertisements and evaluate them morally o Special considerations should apply to advertisements concerning alcohol, cigarettes, slimming and therapeutic products
Ads can be objectionable in different ways and according to different criteria Ads can deceive by means other than telling lies, they can deceive by means of halftruths and implying something that is not the truth without actually lying
Ads can coerce and manipulate The extreme of manipulation is subliminal advertising The message need not be subliminal for it to be manipulative The extent to which the ad is manipulative or coercive depends not only on the construction of the ad itself but also on the audience for the ad
E.g. ads aimed at children are slotted into children’s TV timeslots
On one hand, a concern for respecting people’s autonomy is a reason to consider the imposition of formal legal limits on advertising On the other hand, a concern for people’s autonomy can offer reasons for refraining from imposing limits o The imposition of legal limits amounts to taking a paternalistic role with regard to the people that are exposed to advertising Unethical advertising can also include scams and not advertising at all – sometimes there are no actual products on the other end
FORMAL REGULATION IN CANADA
Advertising is subject to formal regulation and legislation from a number of sources particularly the Competition Act. The Consumer Packaging and Labeling Act etc. Advertising Standards Canada (ASC) – does not preview or function as a clearance body for ads. o Its role is to respond to complaints from members of the public concerning ads that have seen or heard o In order to impose any sanction on ad, ASC would have to prove that the ad breached one or more clauses in the code Canadian RadioTV and Telecommunications Commission (CRTC) is an independent public organization that regulates and supervises the Canadian broadcasting and telecommunications system Primary role in broadcasting is to ensure that Canadians have access to a variety of programming; it is also responsible for maintaining the Broadcast Code for Advertising to Children and for Alcoholic Beverages. Developed own set of advertising standards Canadian Marketing Association (CMA) is a national nonprofit corporation Advocate on public policy issues affecting both businesstoconsumer and businesstobusiness marketers Issued code of ethics
THE STORY OF ADVERTISING
The basic function of advertising is to inform buyers about what is available in the market Allows sellers to attract customers by praising the virtues of their goods and services Most of the services and products advertised are consumer goods that depend on volume of sales for their success – advertising must persuade as well as inform Central ethical issue in advertising is deception Outright lying is wrong
Puffery = untruths or exaggerations that are assumed to be recognized as such by people who are exposed to them
It is generally accepted that advertising does exaggerate but it is not always clear that this is wrong Law has recognized puffery as acceptable Most of the time, exaggerated advertising is obvious Advertising that makes false statements that the public is expected to take at face value is wrong
The term ‘sexist’ implies that women are being demeaned or dominated for the purposes of men The use of women is sexual advertising is held by some feminists to be objectifying A market oriented view would take the position that if ads are sexist or offensive they will not work and will be killed off
THE MORAL PROBLEM IN ADVERTISING
Advertisers often strive to shock people through controversy, arguing that an advertisement that outrages or offends is more likely to be remembered The worst thing that can happen to an advertisement is that it is not easily remembered or it is forgotten
ADVERTISING PLACEMENTS AND ENDORSEMENTS
Product placement involves buying a place for a product in a film or TV show Can enhance the prominence of a product Product placement is an ethical problem because consumers are exposed to a form of subliminal advertising
Endorsements: The danger of unpaid endorsements is that the credibility of the public figures and public interest organizations can be brought into question BAIT ADVERTISING AND THE BAITANDSWITCH Bait Advertising = advertising a very limited number of items at a very low price as a means of attracting customers
The practice is for the seller to harness the interest of the potential of the potential buyer in the unavailable item and use it to sell another product – false pretenses
Baitandswitch advertising = advertising a product that is either unavailable or that seems to be a bargain with the intention of substituting it with a more expensive item Example: online travel industry is an area that has been hit by accusations of baitand switch tactics
MORALS AND MARKETING Negative Option Billing = the practice of automatically providing a good or service to the customer without the customer having requested it – placing the onus on the customer to cancel the good or service or be billed accordingly
It will not always be possible to monitor the ethics of marketing but this does not relieve marketers of their responsibility to have a strong regard for the core ethical principles
Answer: there is plenty of room for moral concern, and that is because of the nature of advertising and its audience
Moral concerns about advertising are present on 3 levels: o Macro level – moral justification of the practice of advertising and its place overall in society o Micro level – consider particular advertisements and evaluate them morally o Special considerations should apply to advertisements concerning alcohol, cigarettes, slimming and therapeutic products
Ads can be objectionable in different ways and according to different criteria Ads can deceive by means other than telling lies, they can deceive by means of halftruths and implying something that is not the truth without actually lying
Ads can coerce and manipulate The extreme of manipulation is subliminal advertising The message need not be subliminal for it to be manipulative The extent to which the ad is manipulative or coercive depends not only on the construction of the ad itself but also on the audience for the ad
E.g. ads aimed at children are slotted into children’s TV timeslots
On one hand, a concern for respecting people’s autonomy is a reason to consider the imposition of formal legal limits on advertising On the other hand, a concern for people’s autonomy can offer reasons for refraining from imposing limits o The imposition of legal limits amounts to taking a paternalistic role with regard to the people that are exposed to advertising Unethical advertising can also include scams and not advertising at all – sometimes there are no actual products on the other end
FORMAL REGULATION IN CANADA
Advertising is subject to formal regulation and legislation from a number of sources particularly the Competition Act. The Consumer Packaging and Labeling Act etc. Advertising Standards Canada (ASC) – does not preview or function as a clearance body for ads. o Its role is to respond to complaints from members of the public concerning ads that have seen or heard o In order to impose any sanction on ad, ASC would have to prove that the ad breached one or more clauses in the code Canadian RadioTV and Telecommunications Commission (CRTC) is an independent public organization that regulates and supervises the Canadian broadcasting and telecommunications system Primary role in broadcasting is to ensure that Canadians have access to a variety of programming; it is also responsible for maintaining the Broadcast Code for Advertising to Children and for Alcoholic Beverages. Developed own set of advertising standards Canadian Marketing Association (CMA) is a national nonprofit corporation Advocate on public policy issues affecting both businesstoconsumer and businesstobusiness marketers Issued code of ethics
THE STORY OF ADVERTISING
The basic function of advertising is to inform buyers about what is available in the market Allows sellers to attract customers by praising the virtues of their goods and services Most of the services and products advertised are consumer goods that depend on volume of sales for their success – advertising must persuade as well as inform Central ethical issue in advertising is deception Outright lying is wrong
Puffery = untruths or exaggerations that are assumed to be recognized as such by people who are exposed to them
It is generally accepted that advertising does exaggerate but it is not always clear that this is wrong Law has recognized puffery as acceptable Most of the time, exaggerated advertising is obvious Advertising that makes false statements that the public is expected to take at face value is wrong
The term ‘sexist’ implies that women are being demeaned or dominated for the purposes of men The use of women is sexual advertising is held by some feminists to be objectifying A market oriented view would take the position that if ads are sexist or offensive they will not work and will be killed off
THE MORAL PROBLEM IN ADVERTISING
Advertisers often strive to shock people through controversy, arguing that an advertisement that outrages or offends is more likely to be remembered The worst thing that can happen to an advertisement is that it is not easily remembered or it is forgotten
ADVERTISING PLACEMENTS AND ENDORSEMENTS
Product placement involves buying a place for a product in a film or TV show Can enhance the prominence of a product Product placement is an ethical problem because consumers are exposed to a form of subliminal advertising
Endorsements: The danger of unpaid endorsements is that the credibility of the public figures and public interest organizations can be brought into question BAIT ADVERTISING AND THE BAITANDSWITCH Bait Advertising = advertising a very limited number of items at a very low price as a means of attracting customers
The practice is for the seller to harness the interest of the potential of the potential buyer in the unavailable item and use it to sell another product – false pretenses
Baitandswitch advertising = advertising a product that is either unavailable or that seems to be a bargain with the intention of substituting it with a more expensive item Example: online travel industry is an area that has been hit by accusations of baitand switch tactics
MORALS AND MARKETING Negative Option Billing = the practice of automatically providing a good or service to the customer without the customer having requested it – placing the onus on the customer to cancel the good or service or be billed accordingly
It will not always be possible to monitor the ethics of marketing but this does not relieve marketers of their responsibility to have a strong regard for the core ethical principles
