advertising management unit 1

1. ECONOMIC,SOCIAL
AND REGULATORY
ASPECTS OF
ADVERTISING

2. ECONOMIC IMPACT OF
ADVERTISING
 GDP
 VALUE OF THE PRODUCT
 PRICE OF THE PRODUCT
 COMPETITION
 CONSUMER DEMAND(PRIMARY AND
SELECTIVE)
 CONSUMER CHOICE(ABUNDANCE
PRINICIPLE)
 BUSINESS CYCLE

3. ETHICAL ISSUES OF ADVERTISING
 ADVOCACY
 ACCURACY
 ACQUISITIVENESS
 DETERMINEWHAT IS ETHICAL
 WHO SHOULD AND SHOULD NOT BE
TARGET MARKET
 WHAT SHOULD OR NOT BE ADVERTISED

4. COMMON CRITICISM OF
ADVERTISING
 DECEPTION IN ADVERTISING
 SUBLIMINAL ADVERTISING
 IMPACT ON VALUE SYSTEMS(ARTIFICIAL
DEMAND,USE OF APPEALS)
 ADVERTISING CONTROVERSIAL
PRODUCTS(TOBACCO,ALCOHOL,PRESC
RIPTION DRUGS

5.  PROLIFERATION OF ADVERTISING
 USE OF STEREOTYPES IN
ADVERTISING(WOMEN,RACIAL
,ETHNIC,SENIOR CITIZENS)
 OFFENSIVENESS IN ADVERTISING

6. SOCIAL BENEFITS OF
ADVERTISING
 CREATES EMPLOYMENT
 ACCEPTANCE OF NEW PRODUCTS AND
TECHNOLOGY
 PROVIDES CHOICES
 KEEP PRICES DOWN
 CREATE HEALTHY COMPETITION
 SUPPORTS COST OF MEDIA

7. GOVERNMENT REGULATIONS OF
ADVERTISEMENT
 FREEDOM OF COMMERCIAL SPEECH
 PRIVAY RIGHTS-ONLINE ADVERTISING
 ADVERTISING TO CHILDREN(CHILDREN
ADVERTISING REVIEW UNIT)
 TOBACCO ADVERTISING
 CHECK ADLAW.COM TO REVIEW SOME
OF PENDING CASES ON ADVERTISING

8. MAJOR REGULATING AGENCIES
 FEDERAL TRADE COMMISSION
– DECEPTIVE ADVERTISING
– ENVIRONMENTAL CLAIM
– UNFAIR ADVERTISING
– COMPARATIVE ADVERTISING
– ENDORSMENTS AND SUBSTANTIATION

9. OTHER REGULATORY AGENCIES
 FEDERAL COMMUNICATION
COMMISSION
 FOOD AND DRUG ADMINISTRATION
 PATENT AND TRADEMARK OFFICE
 STATE GOVERNMENT OFFICES
 BETTER BUSINESS BUREAU

10.  NATIONAL ADVERTISING REVIEW
COUNCIL
 REGULATION BY MEDIA
 AD AGENCIES
 CONSUMER ADVOCATES