Week 10

Week 10

1. Regulations of Advertising and Promotion

   • Why it should be of Concern
     • - encourages materialism - makes people buy what they don't need - creates stereotypes
   • Guiding Princple
     • - protection of the consumer is critical to the continued improvement of marketing communications - where the right is abused, regulation will follow
   • Advertising Controls
     • Lgeal
     • Decent
     • Honest
     • Self Regulation
       • - advertising industry - businesses - media - trade associations goals: - maintaint consumer trust and confidence - limit government interface - protect all parties from litigation
     • State Regulation
     • Federal Regulation
     • First Amendment
   • Self Regulation
     • Protective Measures
       • Advertisers and Agencies
         • - company guidelines, standards, and policies - corporate attorneys - agency/client contracts - substantial ad claims - creative review boards - specialized lawyers 
       • Businesses
         • Better Business Bureau (BBB)
           • - promotes fair selling and advertising practices across al industries - handles consumer complaints - supported by dues of the member firms - uses negative publicity to curb abuses 
     • Appraisals
       • Advertisers, Agencies, Media
         • - encourages truthful, ethical, responsible advertising - effective regulatory mechanism - preferable to government intervention - can be more stringent measures than those imposed by litigation
       • Critics
         • - takes too long to resolve complaints - problems with budgeting and staffing - lack of power or authority - self serving to advertiser or media
     • Main Areas of Concern
       • Liquor and Alcoholic Beverages
       • Tobacco
       • Pharmaceuticals
       • Products for Children
       • Legal and Medical Services
   • Internet Marketing
     • Privacy Issues
     • Marketing to Children
       • Children's Online Privacy Protection Act
         • - enacted to protect the privacy of children when they use the internet - places restrictions on collecting information from children via the internet - privacy policies must be on home page and where data is collected
     • Unsolicited Emails (SPAM)
     • Social Media
       • - safeguarding of personal information - guidelines for online endorsements - paid endorsers posting on social media and e-commerce sites must identify themselves as such