Advertising

1
Advertising RegulationForces of Regulation

• Natural Market Forces
• Organized Market Forces
• Self-Regulatory Forces
• Governmental Forces
• Media Forces

2
Natural Market Forces

• The market is presumed to be self-regulating by
  itself.
• Self-interest of the participants of the market.
• Are consumers always rational economical? Do
  they act based on pure self-interest?

3
Organized Market ForcesConsumerism

• ..an effort to put the buyer on an equal footing
  with the seller.
• Questioning products of malign advertising
  activities (e.g., deceptive and/or misleading
  advertising)
• Existence of advertising questioned

4
Organized Market Forces Consumerism

• Four Basic Consumer Rights by JFK
• The right to safety
• The right to be informed
• right to know whether a message is sponsored
  (Nebenzahl Jaffe)
• The right to choose
• The right to be heard
• consumer interest

5
Organized Market Forces Consumerism

• Shifted the focus of the movement to the consumer
  rights.
• Regulation
• Encouraging fair competition
• ? Strengthening consumer protection

6
Organized Market Forces Consumerism- Today

• Use of (mass) media
• powerful in influencing advertisers
• Diversified issues
• Business beware.

7
Self-Regulatory Forces

• Admission of insufficient natural market force
  for regulation vs. Reaction to increased concerns
  from consumers government
• primary motive is enlightened self-interest
• to dampen criticism and to forestall government
  legislation.

8
Self-Regulatory Forces NAD/NARB
Natl Advertising Review Council
NAD
NARC
Natl Advertising Division
Natl Advertising Review Board
NARB
9
Self-Regulatory Forces NAD/NARB

• Focuses on truth and accuracy in advertising
• ? false misleading advertising
• No codes or guidelines of its own
• Complaints monitoring

10
Self-Regulatory Forces CARU
CARU
Childrens Advertising Review Unit
11
Self-Regulatory Forces CARU

• www.bbb.org/advertising/childrensMonitor.asp
• Funded by major childrens advertisers
• CARU tries to ensure that childrens advertising
  is fair.
• Guidelines for advertising directed to children
  under 12

12
Self-Regulatory Forces CARU

• Six Basic Principles
• Focuses on childrens limited capacity, educating
  role of advertising,
• anti-stereotyping, etc.
• Scope
• Product presentation, Disclaimers, Safety..
• Excuses parents guidance, many influence

13
Governmental Forces

• FEDERAL LEVEL
• Regulations are generated with high consumer
  involvement, but the philosophy of the White
  House is exerts greater influence.

14
Governmental Forces

• FTC in Clinton Administration
• Tobacco / alcohol industries promotions
• Health claims in food advertising
• Childrens ad
• Green claims
• Generally more severe restrictions

15
Media Forces

• No formal standards for broadcasting TV
  commercials.
• Individual networks keep their own guidelines.
• Cable TVs criticized for being less rigid in
  terms of guidelines

16
New Grading Criteria

• Facilitation 100
• Reaction paper 100
• 2 Exams 200
• Group project 80
• Peer evaluation 20
• Attendance 30 extra

• Facilitation 100
• Reaction paper 90
• 2 Exams 160
• Group project 70
• Peer evaluation 20
• Attendance 40
• Quiz / Assignment 20
• Past attendance (until 2/10)
• up to 7 extra
• Past assignment 5 extra

17
Activities (if time permits)

• Make up teams, and
• School advertising being allowed?
• Why or why not?
• Pope being used for ads?
• Why or why not?
• Or, make up teams, and
• set up a simple guidelines about these issues.