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10. Children's TV Watching Behavior Children ages 2-11 watch an average of 22 hours of TV per week and see 30,000 commercials per year 80% of all advertising targeted to children falls in four product categories: Toys, cereal, candy & fast food restaurants

11. Advocates Argue That Children: Marketers Argue Children: Lack the knowledge and skills to evaluate advertising claims Cannot differentiate between programs and commercials Must learn through socialization Must acquire skills needed to function in the marketplace

12. Creates consumer needs, wants Promotes materialism, insecurity, and greed More propaganda than information Provides information Creates jobs Encourages higher standard of living Promotes competition Proponent arguments Critic arguments Helps new firms enter a market

14. Does advertising encourage materialism ? Does advertising make people buy things they don’t need? Is advertising just a reflection of society?

15. Advertising is the primary source of revenue for newspapers, magazines, television and radio Advertisers may exert control over the media by biasing editorial content, limiting coverage of certain issues, or influencing program content Media’s dependence on advertising for revenue makes them vulnerable to control by advertisers

16. They must report the news fairly and accurately to retain public confidence Advertisers need the media more than the media need any one advertiser Media maintain separation between news and business departments “The Wall”

17. Makes consumers aware of products and services Provides consumers with information to use to make purchase decisions Encourages consumption, fosters economic growth

24. From an economic perspective, advertising might lower the cost of a product by: A) Creating barriers to entry for less efficient firms B) Moving consumers to the consumer socialization stage of the buying process C) Making it possible for firms to realize economies of scale through expansion of sales volume D) Allowing firms to advertise at high levels along with competitors E) Doing none of the above

25. Change consumers’ tastes Reduces competition Lowers sensitivity to price Builds brand loyalty Advertising Equals Market Power Leads to higher prices Leads to fewer choices Results in higher profits

26. Provides useful information Pressure for lower prices Increases price sensitivity Increases competition Advertising Equals Information Forces inefficient firms out Pressure for high quality

27. “ It must be said that without advertising we would have a far different nation, and one that would be much the poorer-not merely in material commodities, but in the life of the spirit.” Excerpters is from a speech given by Leo Burnett on the American Association or Advertising Agencies’ 50th anniversary, April 20,1967

34. Criticisms of Advertising With Regard to Stereotyping Portrayal of women to reflect their changing role in society Portrayal of women as Beauty objects Ethnic stereotyping/ representation Gender stereotyping

35. Groups such as the National Organization for Women (NOW) are critical of advertising that: A) Portrays women in traditional sexist roles B) Contributes to violence against women C) Is insulting to women D) Stereotypes women E) Does any of the above