Ethics in Advertising-group 12 Tsb

8/6/2019 Ethics in Advertising-group 12 Tsb

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ETHICS IN ADVERTISINGGROUP 12

PRESENTED BY- SACHIN MITRUKA (41)TANYA TIBREWAL (42) ANURAG JAISWAL (43)

PRATIK SHAW (45)RAJRUP BISWAS (51)

PREKSHA SHAH (52)CHANDNI DASSANI (54)

NIKET GADODIA (55) VIDHI MEHTA (56)


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Researchers said that about 51% of the viewers are of the opinion that the level of ethics in television

advertising is average and about 19%feel that it is low. The study shows a balanced opinion with more or equalnumber of people agreeing anddisagreeing on this issue.

When asked about advertising of which product out of a given set of products would they consider moreunethical, the opinion poll pointedtowards tobacco and cigarettes

followed by ads on contraceptiveproducts or family planning.Obviously, it is an endorsement by the consumers on the ban of tobaccoadvertisements on television.


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Even today, some advertising issimply and deliberately untrue.The problem of truth inadvertising is somewhat moresubtle: it is not that advertising says what is explicitly false, but that it can distort the truth by implying things that are not so or

withholding relevant facts. Thereare numerous such examples of advertisements related tocosmetics, bathing soaps,detergent soaps, health drinks,etc. claiming brand supremacy over their competitor's brands ondebatable grounds.


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Most of the advertisements of `Fair & Lovely' beauty cream (a product of Hindustan UnileverLtd.) focused on a "fairer girlgets the boy". In one of theadvertisements, they haveportrayed the young woman

who, after using Fair & Lovely

becomes attractive andtherefore gets a good job. Thisimplies that the mainqualification for a woman to get a job is the way she looks. Many people in India thought that Hindustan Unilever Limited(HUL) had violated Indianadvertisement ethics by openly insulting a majority of dark skinned Indian women.


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Does advertising create power or provides information?

Market Power Market InformationPersuades consumer to purchase onebrand over another more often

Increased consumer knowledge

Excess brand profits More substitute products consumers

can considerHigher barriers to entry and moremarket power

Lower barriers to entry by new brands

More advertising leads to greaterbrand loyalty

Reduced market power for any individual brand

Reduced consumer sovereignty Better pricing/distribution moreproduct innovation

Monopoly Optimal brand profits, consumerchoice, and price benefits


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Some concentrated

industries (e.g. soaps,breakfast cereals)expend large amount on advertisements but others (e.g. drugs,medicines) do not.Moreover, in someoligopoly industries(e.g. aviation industry),

smaller firms spendmore per unit onadvertising than thelarge major firms.


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SOCIAL EFFECTS OF ADVERTISING - ADVERTISING AND CREATION

OF CONSUMER DESIRES ?

In recent times, the word 'Advertising' has become a fiercely mooted topic. Advertising has positive as well asnegative, social and economic impacts on our society.Considering advertising as a public welfare is a positive socialimpact whereas exposing women as a sex tool comes at thenegative side. As far as economic factors are concerned,funding for the media and stimulating an active and competitive

economy, are the major examples.


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Assorted techniques are enforced for persuading consumers that they want theproduct which is being advertised. These techniques usually give attention to thebenefits that would be brought to the consumers rather than focusing on the

actual products. For instance, an automobile advertisement adverting themechanical attributes of a vehicle, most likely concentrates the exhilaration,reputation and social progression it may bring to the buyer. This swarming advancement is habitually sexual, or involving the opposite gender to attract theconsumers with the glamorous women/men's fancy car.There are various blames that advertising is causing a negative social impact onthe lives. The chief unfavorable judgment for advertising is that it hales the publicto buy things that they are not their real want. It is arrogated that advertising plays

with emotions and encourages people to think that buying and depleting are theactivities of life.

According to advertisers, they state that people are capable enough to set their

mind and no one can force them to buy anything which they dislike or whichthey think is not a necessity. Advertisers also think that there are positive impactsof advertising on our society and culture. For example, it can be used to generateawareness among the public that which product is OK or to which they shouldsay NO. In other words, advertising also acts as an educator in the sense that it educates people what is good and what is bad for them and puts a ceiling on theharmful products like smoking and drinking etc.


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There are not only social benefits of advertising, but it also has some economicadvantages. Without advertising, the media, including newspapers, televisionand radio would never be much strong. Advertising provides revenue for

commercial mediums which would otherwise need to be funded by the actualconsumer of these mediums. So, we can see a major economic infrastructurebased around advertising, in which the big companies fund and subsidize thecommercial media by the way of advertisements.The major economic negative aspect of advertising is that it boosts the price of goods and services. The source of this contention is that, when organizationssubsidize the mass media with advertising, we, the purchaser, subsidizeadvertising by compensating a grossly increased price for heavily advertisedgoods and services. An easy example of this is that a box of Omo washing powder generally costs around two to three dollars while the market price of theproduct would be seven to eight dollars. The fact behind this is that the

remaining proportion goes in heavy advertising in television and print media.So, the impact of advertising on our society is in a jumble form, depending onthe functions and implementations of numerous campaigns. Our society and themarketing of products depend very badly upon advertising. The companieshave become much dependent of advertising that even its negative impacts cannever outweigh the many positive social and economic effects.


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We all know that the main motive of using advertising as a marketing tool is to persuade

consumers to purchase a brand, product or service.The success of advertising rests on whether it influences behavior. Product advertisers want consumers to buy their product; political advertisers

want voters to vote for their candidate; and sponsorsof public-service announcements related to theharmful effects of smoking want the incidence of smoking to decline.

Advertising being a form of communication can be

truthful or deceptive. And it is often seen that thispersuasion of to promote sales leads to deceptiveadvertising, which is one its criticisms.


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How advertising has its effect on consumer beliefs:Some fraudulent forms of advertising involve more

complex schemes.For example- 1) Kelloggs, the worlds leading producer of cereal was recently involved inmisleading advertising and two of its advertisements

were shot down by the FTC. At first it was a healthclaim for Frosted Mini-Wheats, with benefits tocognitive health. The unsubstantiated claim wasshot down by the FTC, but within a few months,Kelloggs came out with its immunity cereal . But the fact is that Cocoa Rice Krispies are over 40%sugar by weight and contain trans-fat. How doesthat contribute to immunity? So now the company is again in trouble.


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The authors- they are the creators of advertisements, often known as ad agencies,people who create advertising copy and those

who endorse a product. Deceptive ads includesthree conditions in the author of a communication-The author must intend the audience to believe

something false;The author must know it is false;The author must knowingly do something that

will lead the audience to believe the falsehood.However, the advertiser cannot be help morally

responsible for misinterpretations of anadvertisement when these are the unintendedand unforeseen results of audiencesinterpretation.


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The medium- this isthe storage and transmission channels or tools usedto store and deliver information or data . As activeparticipants in the transmission of a message, they shouldaim to make advertisement successful as well as become

morally responsible for its effect. Hence it is theirresponsibilities to ensure that the contents of the ads aretrue, not misleading. For example- advertisers promoting the sale of liquor should always keep in mind to state thegeneral message do not drink and drive.


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The audience- these are the people who see the advertisements,for whom the ads are created, or better known as target consumers. The meaning attributed to a message depends inpart on the capacities of the person who receives the message.But the main problem is to estimate till what extent the

consumers possess the capacity to filter out the false informationand bias which most ads carry.For e.g.- the recent ad of Pantene shows guarantee reduction of hair fall from 99 to 2. And the people who endorse the product are big film stars like Shilpa Shetty and Katrina Kaif. But doesthis actually happen, are the results true? Here it is theresponsibility of the consumers to decide whether they will fallfor these gimmicks or not.


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Conclusion:

The moral issues raised by advertising are vast and complex,hence certain factors should be taken into consideration while assessing an advertisement:The effect which is intended by the advertiser through theadvertisement?

Actual effect of the advertisement on individuals andsociety?Is the ad informative or persuasive?Does the ad create irrational and ambiguous desire?Is the content of ad true?Is the ad misleading?Is the product useful for oneself?

Are there any standards of the product manipulated?Does the product promise unreal results?


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A DVERTISING AND W ASTE

Advertisement is wasteful.

The costs of resources consumed by advertising, criticclaim, are essentially selling cost

They are not used to improve the product, but merely persuade people to buy it.

It produce and transmits the information.

The information content of advertisements is minimal

and could be transmitted by substantially less expensivemeans.


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A DVERTISING AFFECTS ON THE ECONOMY First - Advertising makes jobs.

Second- Advertising reduces selling costs.

Third- Advertising increases company profits.

Fourth- Advertising increases company security.

and finally, our enormous and growing productivity needs advertising to speed up consumption.


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Consumer privacy How does advertising invade consumer privacy ?

Right to privacy is the right of persons to determine what, to whom, and how much information about themselves will be disclosed to the other parties.

Psychological privacy is privacy with respect to a persons inner life, which

includes the persons thoughts and plans, personal beliefs and values,feelings wand wants. These inner aspect of a person are so intimately connected with the person that to invade them is almost an invasion of the

very person.

Physical privacy is privacy with respect to a persons physical activities. Sincepeople inner lives are revealed by their physical activities and expressions,physical privacy is important in part because it is a mean for protecting thepsychological privacy.


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Protective functions of privacy

y It prevents others from acquiring information about us that would expose us to

shame, ridicule, or even blackmail.y It prevents others from interfering in our plans simply because they do not hold the same values as we hold.y It protects those whom we love form being injured by having their beliefs about us shaken.y It protects individuals from being led to incriminate themselves.

Enabling functions of privacy

y Privacy enables intimacy which involves sharing confidences whichrequires having confidences.y Privacy enables various professional relations to exist

o attorney-client o doctor-patient

y It enables individuals to sustain distinct social roles.y It enables individuals to control their own image or self-presentation.


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Considerations to balance business needs with the right to privacy of the

consumers:

Relevance Database which contains information on the consumers shouldinclude on the information that is relevant to the purpose for which thedatabase is being compiled.

For example, data collected by the banks while issuing the credit cards shouldcontain only the credit information of the consumer and should not includethe information about sexual orientation or political affiliations or any information which is not relevant to the subject.

Informing The consumers should be informed about the information whichis being collected and the reason for collecting those information. This willhelp the consumers to decide in transactions which might reveal unnecessary information about them.


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CONSENT T HE INFORMATION SHOULD BE COLLECTED ABOUT AN INDIVIDUALPERSON ONLY IF THE PERSON HAS EXPLICITLY CONSENTED TO PROVIDE THAT

INFORMATION TO THE ENTITY AND IF THE INFORMATION IS TO BE USED ONLY FOR

THE PURPOSE FOR WHICH THE PERSON HAS CONSENTED .

A CCURACY A GENCIES COLLECTING INFORMATION ON A PERSON MUST TAKEREASONABLE STEPS TO ENSURE THAT THE INFORMATION THEY STORE IS ACCURATE

AND THAT ANY INACCURACIES CALLED TO THEIR ATTENTION SHOULD BE

CORRECTED .

PURPOSE T HE PURPOSE FOR WHICH THE INFORMATION ABOUT THE CONSUMER ISCOLLECTED SHOULD BE LEGITIMATE AND THIS IS SO WHEN IT RESULTS IN BENEFITS

THAT ARE GENERALLY ENJOYED BY THE PEOPLE ABOUT WHOM THE INFORMATION

IS BEING COLLECTED .

R ECIPIENTS AND SECURITY A GENCIES COLLECTING INFORMATION ON INDIVIDUALSMUST ENSURE THAT INFORMATION IS SECURE AND NOT AVAILABLE TO THIRD

PARTIES THAT THE INDIVIDUAL HAS NOT EXPLICITLY OR IMPLICITLY CONSENTED TO

BE A RECIPIENT OF THAT INFORMATION .


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C ASES WHERE CONSUMER PRIVACY IS INVADED BY ADVERTISING :

A RE NEW FORMS OF ADVERTISING INVASIVE TO THE LIVES OF PEOPLE ? I T CAN BE ARGUED THAT NEW FORMS SUCH AS POP -UPS AND AD LINKS THAT APPEAR WHEN ONEDOES A SEARCH ONLINE ARE INSIDIOUS TO ONLINE USERS . C OMPANIES USE PERSONALINFORMATION FOR ADVERTISEMENT PURPOSES , OFTEN WITHOUT CONSENT , SO THEY CAN GEAR PARTICULAR ADVERTISING TO PARTICULAR INDIVIDUALS . PERSONALIZED

ADVERTISING BOMBARDS THE PERSONAL SPACE OF EVERY INDIVIDUAL WHO GO

ONLINE . A DVERTISERS CAN TRACE WHATEVER ONE IS DOING AND THAT S SCARY THOUGHT FOR MANY . L IKE THE B IG BROTHER CONCEPT , ONE S ACTIONS ARECONSTANTLY WATCHED AND MONITORED , AS IF AN EVER -PRESENT SURVEILLANCECAMERA IS CONSTANTLY FOLLOWING YOU . T AKE FOR INSTANCE , F ACEBOOK , ANONLINE SOCIAL NETWORKING SITE THAT ALLOWS ONE TO KEEP IN TOUCH WITH

FRIENDS , FAMILY , AND CO - WORKERS . A DVERTISING FIRMS HAVE INFILTRATED THESITE , WITH ADDED FEATURES SUCH AS BEACON , FOR THE PURPOSE OF INCREASINGTHEIR REVENUE BY ADVERTISING TO NEW PEOPLE .


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A FTER SEARCHING THROUGH THE INTERNET AND FINDING VARIOUS ARTICLES ANDRESOURCES , IT IS READILY APPARENT THAT A PERSON S PRIVACY IS INVADED WHENTHEY USE INTERNET . T HIS INVASION OF PRIVACY IS USED ON BEHALF OF

ADVERTISERS TO TARGET THEIR MARKETS AND ADVERTISE TO THE PEOPLE THAT ARE

MOST LIKELY TO PURCHASE THEIR PRODUCTS . T HE INVASION OF PRIVACY OCCURSBECAUSE THESE ADVERTISERS ARE TRACKING WHAT PEOPLE ARE DOING ONLINE

( WHETHER IT BE FOR SHOPPING , PLAYING GAMES , OR DOING RESEARCH ), AND WHAT WEBSITES THEY ARE GOING TO . FOR EXAMPLE , IF I WAS ONLINE AND WENT TO J.C REW S WEBSITE , DOWNLOADED A COUPLE OF SONGS FROM ITUNES , AND WENT TOZ APPOS .COM , AN ADVERTISER COULD TRACK THIS AND INFER THAT I ENJOY ONLINESHOPPING AND COULD PROBABLY GUESS MY MUSIC TASTES FROM WHAT IDOWNLOADED ON ITUNES . T HE ADVERTISERS WOULD THEN GO TO COMPANIES ANDPRESENT MY PROFILE AND SAY IF YOU ARE LOOKING FOR THIS MARKET YOU SHOULDBE ADVERTISING ON THESE WEBSITES . A DVERTISERS ARE ABLE TO TRACK WHATPEOPLE DO ONLINE THROUGH THE USE OF COOKIES AND OTHER TECHNOLOGIES

THAT ALLOW FOR THIS . T HE RESEARCH BELOW WILL FOCUS ON WHAT COOKIES ARE AND THE USE OF THEM BY COMPANIES TO TRACK WHAT PEOPLE ARE DOING ONLINE .


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P IC 2 : T EN SPORTS P IC 3: T EN SPORTSP ICS 2 & 3 ABOVE ARE FROM T EN SPORTS ' LIVE TELECAST OF THE INDIA -SOUTH

A FRICA TEST CURRENTLY UNDER WAY . I N THE PIC ON THE RIGHT THE H AYWARDSLOGOS APPEAR SUDDENLY ON EITHER SIDE OF THE WICKET / BATSMAN AS THE BOWLER DELIVERS THE BALL . IS THIS LEGITIMATE ADVERTISING OR INVASION OF YOUR TIME

AND PRIVACY ? I N THE PIC ON THE LEFT THE T ISSOT BRAND IS FLASHED AS THEBOWLER IS ON THE WAY BACK . H AYWARDS HAPPENS TO BE AN ALCOHOL BRANDPARADING AS A SOFT BEVERAGE . T HESE ARE MATCHES BEING WATCHED BY ALL AGEGROUPS , INCLUDING CHILDREN . SUCH PERVERTED ADVERTISING HAS TO STOPIMMEDIATELY .


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"If harmful or utterly useless goods are touted to the public,

if false assertions are made about goods for sale, if less thanadmirable human tendencies are exploited, thoseresponsible for such advertising harm society and forfeit their good name and credibility. More than this,unremitting pressure to buy articles of luxury can arousefalse wants that hurt both individuals and families by making them ignore what they really need. And thoseforms of advertising which, without shame, exploit thesexual instincts simply to make money or which seek to

penetrate into the subconscious recesses of the mind in a way that threatens the freedom of the individual ... must beshunned."


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Economic Harms of Advertising The practice of "brand"-related advertising can raise seriousproblems. Often there are only negligible differencesamong similar products of different brands, and advertising may attempt to move people to act on the basis of irrational motives ("brand loyalty," status, fashion, "sex

appeal," etc.) instead of presenting differences in product quality and price as bases for rational choice.Today, the advertisers influence the mass audience and try to create needs for those products and services that are not at all required by the customers. Example- Fair n Lovely beauty products.


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Cultural Harms of Advertising Advertising also can have a corrupting influence upon cultureand cultural values. In the competition to attract ever larger audiences and deliver them to advertisers, communicators canfind themselves tempted in fact pressured, subtly or not sosubtly to set aside high artistic and moral standards andlapse into superficiality, tawdriness and moral squalor.Communicators also can find themselves tempted to ignore theeducational and social needs of certain segments of theaudience the very young, the very old, the poor who donot match the demographic patterns (age, education, income,habits of buying and consuming, etc.) of the kinds of audiences

advertisers want to reach. In this way the tone and indeed thelevel of moral responsibility of the communications media ingeneral are lowered.


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Most of the advertisements of `Fair & Lovely' beauty cream (a product of Hindustan UnileverLtd.) focused on a "fairer girlgets the boy". In one of theadvertisements, they haveportrayed the young woman

who, after using Fair & Lovely

becomes attractive andtherefore gets a good job. Thisimplies that the mainqualification for a woman to get a job is the way she looks. Many people in India thought that Hindustan Unilever Limited(HUL) had violated Indianadvertisement ethics by openly insulting a majority of dark skinned Indian women.


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Moral and Religious Harms of Advertising Advertising can be tasteful and in conformity with high moral

standards, and occasionally even morally uplifting, but it also canbe vulgar and morally degrading. Frequently it deliberately appeals to such motives as envy, status seeking and lust. Today,too, some advertisers consciously seek to shock and titillate by exploiting content of a morbid, perverse, pornographic nature.

Advertising sometimes is used to promote products andinculcate attitudes and forms of behavior contrary to moralnorms. That is the case, for instance, with the advertising of contraceptives, abortifacients and products harmful to health,and with government-sponsored advertising campaigns forartificial birth control, so-called "safe sex", and similar practices.


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A DVERTISING IS THE MOST IMPORTANT TOOL IN THE MARKETING OF PRODUCTS ANDSERVICES . C OMPANIES ALL OVER THE WORLD UNIVERSALLY ACCEPTED THIS FACT .T HE EXPENSES ON ADVERTISING ARE CONSIDERED TO BE A PROFITABLE INVESTMENTTHAT REAPS PROFITS BOTH IN THE LONG AND SHORT RUN . B USINESSES THAT KEEP

ON ADVERTISING REGARDLESS OF RISE OR FALL IN THE ECONOMIC TIMES GET A COMPETITIVE ADVANTAGE OVER THOSE THAT CUT THEIR AD BUDGETS .

T HERE ARE MANY BENEFITS OF ADVERTISING WHICH INCLUDE :

INFORMATION TO THE CUSTOMER .

A DVERTISEMENT ABOUT NEW PRODUCTS KEEPS THE CUSTOMER INFORMED ABOUTTHE NEW DEVELOPMENTS IN THE INDUSTRY . T HEY HELP TO PROVIDE THEMINFORMATION REGARDING THE NEWLY LAUNCHED PRODUCTS .

T AKES CARE OF CUSTOMERS .

A DVERTISING TAKES CARE OF CUSTOMERS . I T HELPS IN HOLDING ON TO THE LOYALCUSTOMER , DECREASING THE NUMBER OF LOST CUSTOMERS AND ENLISTING NEW CUSTOMERS . T HUS THE OVERALL EFFECT OF ADVERTISING IS INCREASE IN THENUMBER OF CUSTOMERS THAT WILL GRADUALLY BECOME LOYAL TO THE PRODUCT .


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INCREASE EMPLOYMENT .

A DVERTISING IS A COMPLICATED TASK AND A LOT OF PEOPLE ARE INVOLVED IN THEMAKING OF AN ADVERTISEMENT . R ESEARCH TEAM , DESIGN TEAM AND MANY OTHER

PEOPLE ARE REQUIRED TO MAKE AND DELIVER IT . SO , ADVERTISEMENTS GENERATEEMPLOYMENT FOR A LOT OF PEOPLE .

ECONOMIC PROGRESS . A DVERTISING INCREASES SALES , EMPLOYMENT AND PROFITS . T HE OVERALL EFFECTOF ALL THIS IS ECONOMIC PROGRESS FOR THE NATION , OR MORE BROADLY FOR THE

WORLD AS A WHOLE .

R ELIGIOUS AND MORAL BENEFITS .

SOCIAL AND RELIGIOUS INSTITUTIONS USE ADVERTISING FOR COMMUNICATINGTHEIR MESSAGES LIKE MESSAGES OF PATRIOTISM , FAITH , COMPASSION TOLERANCE ,

AND CHARITY TOWARD NEEDY , MESSAGES RELATED TO HEALTH AND EDUCATION .T HESE EDUCATE PEOPLE AND GUIDE BETTER BEHAVIOUR . A DVERTISING THROUGHEVERY MEDIUM OFFERS SOME OR THE OTHER BENEFITS . B UT NOWADAYS THE MOSTPOPULAR MEDIUM OF ADVERTISEMENT IS THROUGH TELEVISION . A LTHOUGH THECOST OF ADVERTISING IS QUITE HIGH BUT THE BENEFITS IN THE LONG RUN BALANCE

THE HIGH COST ASSOCIATE TO IT .


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A DVERTISING PROMOTES CHOICE

CLOTHES , CAR INSURANCE , COMPUTERS , HOLIDAYS . T HERE HAVE NEVER BEEN SOMUCH CHOICE AS CONSUMERS . Y ET WE ALL HAVE DIFFERENT TASTES AND NEEDS . N O

SINGLE PRODUCT IS RIGHT FOR EVERYONE . C OMPANIES USE ADVERTISING TO TELL US ABOUT THE DISTINCT PRODUCTS THEY OFFER IN RESPONSE TO THIS DIVERSITY . W HEN YOU SEE AN AD FOR COFFEE , FOR EXAMPLE , IT CAN INFORM YOU ABOUTLOWER PRICES (E.G . 'BUY ONE GET ONE FREE ' PROMOTION ).T ELL YOU ABOUTDIFFERENCES IN QUALITY (E.G . IMPROVED PACKAGING THAT KEEPS THE COFFEEFRESH LONGER ).T ELL YOU ABOUT THE OPTIONS THAT BEST FIT YOUR INDIVIDUAL

TASTES AND VALUES (E.G . COFFEE CERTIFIED WITH THE 'F AIR T RADE ' LABEL ).INFORM YOU ABOUT THE OPTIONS THAT BEST SUIT YOUR LIFESTYLE (E.G . COFFEECAPSULES FOR INSTANT ESPRESSO ). A DVERTISING , IN OTHER WORDS , ALLOWSCOMPANIES TO PROVIDE A MUCH BROADER RANGE OF OPTIONS THAN WOULD

OTHERWISE BE THE CASE . B Y TELLING US ABOUT THEM , ADVERTISING ENSURESTHAT WE DON 'T NEED TO SETTLE FOR SECOND BEST . I T HELPS US EXERCISE OUR

RIGHT TO CHOOSE .

A DVERTISING INCREASES VALUE FOR CONSUMERS

B Y ALLOWING COMPANIES TO DIFFERENTIATE THEMSELVES AND HIGHLIGHT THEIR UNIQUE SELLING POINTS , ADVERTISING STIMULATES COMPETITION IN THEMARKETPLACE . C OMPETITION , IN TURN , MEANS COMPANIES NEED TO KEEPIMPROVING THE VALUE OF THEIR PRODUCTS FOR THEIR CONSUMERS .


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PUSHING DOWN PRICES AND PUSHING UP QUALITY . JUST THINK HOW COMPETITION AMONG TV MANUFACTURERS HAS BROUGHT ABOUT A STEEP FALL IN THE PRICE OFFLAT -SCREEN TELEVISIONS WHILE SIMULTANEOUSLY INCREASING BOTH THEIR IMAGEQUALITY AND THEIR SIZE . A DVERTISING DRIVES ECONOMIC GROWTH

IN HELPING COMPANIES SUCCEED , ADVERTISING PLAYS A KEY ROLE IN A DYNAMICECONOMY . SUCCESSFUL COMPANIES CREATE MORE JOBS , PAY MORE TAX ANDCONTRIBUTE DIRECTLY TO ECONOMIC GROWTH . I N FACT , THERE IS A PROVEN LINK BETWEEN ADVERTISING AND ECONOMIC GROWTH . T HERE IS A POSITIVECORRELATION BETWEEN THE RATES OF INVESTMENT IN ADVERTISING AND GDPGROWTH IN MAJOR MARKETS . B USINESS SECTORS WITH THE HIGHEST RATES OFINVESTMENT IN ADVERTISING ARE THOSE WHERE COMPETITION , A RECOGNIZEDDRIVER OF GROWTH , IS LIVELIEST . C OUNTRIES WHERE RELATIVELY LITTLE ISINVESTED IN ADVERTISING ARE ALSO THOSE WHERE ECONOMIC GROWTH IS

WEAKEST .

A DVERTISING HELPS CONSUMERS DECIDE WHAT TO BUY .

T HE ADVERTISEMENT INFORMS THE CONSUMER ABOUT QUALITIES AND PRICE OFGOODS AND THIS MAKES PURCHASING EASY FOR THE CONSUMERS . A S THE PRICES

ARE ALREADY ADVERTISED , THE CONSUMERS CANNOT BE OVER CHARGED .


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R ESULTS IN LOWERING OF THE PRICE OF THE PRODUCT .B Y REGULAR ADVERTISEMENT , THE MANUFACTURER CAN SELL THE GOODS DIRECTLY TO THE CONSUMERS WITHOUT DEPENDING ON MIDDLEMEN THIS ELIMINATES THE

MIDDLEMEN 'S CHARGES AND PROFIT . I T MEANS HIGHER PROFIT TO THEMANUFACTURER AND LOWER PRICES TO THE CONSUMERS . I T HELPS IN IMPROVEMENTOF THE QUALITY OF THE GOODS .S AVES TIME FOR THE CONSUMERS .T HE CONSUMERS ARE ATTRACTED BY THE QUALITY OF THE PRODUCTS THAT ARE

ADVERTISED . IF THE CONSUMERS ARE CONVINCED THAT THE QUALITY IS THE SAMETHAT IS ADVERTISED , THEY CONTINUE BUYING . I T HELPS THE CONSUMER TO SAVETIME . A S THE CONSUMER HAS ALREADY BEEN THE CONSUMER IS NOT REQUIRED TOSPEND TIME IN GETTING THE PRODUCTS .INFORMS ABOUT THE EXISTENCE OF NEW PRODUCTS .IT PROVIDES KNOWLEDGE ABOUT THE NEW DESIGNS OF THE COMMODITIES TOCONSUMERS AND THUS CONSUMERS CONSUME THOSE COMMODITIES AND INCREASE

THEIR LIVING STANDARD .INFORMS ABOUT NEW USES FOR EXISTING PRODUCTS .

A DVERTISEMENTS HELP IN INFORMING THE CONSUMERS ABOUT THE NEW USES OFTHE EXISTING PRODUCTS THAT THEY DID NOT KNOW . I T STIMULATES ECONOMICGROWTH BY CONNECTING MORE OF CONSUMERS NEEDS AND WANTS WITH

SOLUTIONS .


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SOME ADVERISEMENTSTHOSE PROMOTE SOCIALMESSAGE FOLLOWS ARESHOWN FURTHUR.


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STANDARDS TAKEN BY THE G OVERNMENT TO

OVERCOME THE LOOPHOLES IN A DVERTISING


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Advertising In order to ensure that certain ethical standards are followed in advertising government has taken the onus on itself by bringing the code for Commercial Advertising on Doordarshan.

This code was presented to Parliament in mid-1987. It incorporates the Indecent Representation of

Women Act and the Consumer Act, both of which were passed by parliament in 1986. It suggests33 Dos and Donts for advertisers. Here are some of them:

Company Product DetailsSymphony Comfort Systems

Kaizer Air Coolers Discounted price but concealed that the cooler at discounted price had no

humidity control system.Hindustan Lever Sunsilk Fruitamins

ShampooExternal use of vitamins could it nourish hair? Claimnot substantiated.

Voltas Indias largest airconditioning company

Carrier is perceived to bethe largest.

Weekender Kids Children Wear Cowboy shoots a board that falls onother children.

Promotes violence.

Beauty Cosmetics

.

Fairever Fairness Cream Saffron content to prevent melanin formation thisproposition was not

substantiated


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The Director-General shall be the sole judge of the Code.

The following advertisements should not be permitted:

1. Ads, which deride any race, caste, color, creed and nationality or are against the Directive Principles or theConstitution.

2. Ads, which tend to incite people to crime or cause order or adversely affect friendly relations with foreign states.

3. Ads, which exploit national emblem, any part of the constitution, or the person/personality of national leaders orstate dignitaries.

4. No advertisement shall be presented as news.

5. Ads, which have any relation to religion, political or industrial dispute.

6. Ads, which promote chit funds, moneylenders, jewelers, fortune letters, foreign goods, and private saving schemes.

7. Guaranteed goods will have to be made available to Director General of Doordarshan for inspection if necessary.

8. No disparaging or derogatory remarks of other products or comparison with them should be made.

9. Ads, which portray women as passive or submissive.

10. Ads which are likely to startle viewers- such as gunfire, sirens, bombardments, screams, andraucous laughter.


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Also, Youth led campaigns appealing the government for a comprehensive ban on tobaccoadvertising through NGOs such as HRIDAY (Health Related Information Dissemination

Amongst Youth)-SHAN (Student Health Action Network), created a supportive environment to

enforce tobacco control measures. These examples show that role of NGOs should berecognized and they should be given more autonomy to work on such issues. (2)

However, in India, there are no specific advertising laws that relate to children and food-relatedadvertisements in particular. Parents have to monitor and control their childrens viewing habits.

Conclusion

Advertisement is integral part of the industry which wants its product to be reached to thecustomer & then converts those customers into consumers. But in this process they should not forget that its their social responsibility to take care of the future of the country which are beentargeted tactfully to earn profits.

Parents should make the kids more aware of the surrounding so that starts taking proper &logical decision.Parents should be aware that advertising is going on, and it's influencing their children more thanthey think. Also governments role is important here. It can do it by implementing proper foodlaws and harmonization of various laws into single unified law.


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Example of Ethical advertisement include Padhega India tabhi to Badhega India is the slogan of Shiksha program, use mobile save paper is theslogan of Idea, Pulse Polio: Do boondh zindagi etc.


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THANK YOU

Documents

Ethics in Advertising-group 12 Tsb