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Chapter 3:Brand Communication and Society
Part 1Enduring Principles in Times of Turmoil
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1. What is the social impact of brand communication?
2. What ethical and social responsibilities do communicators bear?
3. Why and how is advertising regulated?
Questions to Explore
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What is the Social Impact of Brand Communication?
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Demand Creation Critics say advertising
creates demand, driving consumers to buy products unnecessarily.
Proponents say companies invest in research to find out what consumers want.
Audiences can refuse to buy products they don’t need.
What are the debates about Marcom’s social role?
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Shaping versus mirroring Does advertising create or reflect social
values?
Critics say advertising abuses its influence on children and teenagers.
Critics say advertising creates social trends, dictating how people think, act.
What are the debates about Marcom’s social role?
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Advertisers say they spot trends and develop messages that connect with them.
Advertising both mirrors and shapes values.
Shaping versus mirroring
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The poster is an example of a message aimed at stimulating business after 9/11. Do you think messages like these impact social trends?
Overcommercialization
Does advertising lead people to be too materialistic?
Critics say advertising heightens expectations.
The lines between advertising, news, and entertainment have become blurred.
What are the debates about Marcom’s social role?
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Poor taste and offensive advertising
Viewer reaction may be affected by sensitivity to:
◦ the product category◦ the timing◦ whether the viewer is alone or with others◦ the context
Other social responsibility issues
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Poor taste and offensive advertising
Creating guidelines is difficult because “good taste” varies.
What is considered “offensive” changes over time.
Other social responsibility issues
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Sex appeals, body image
Advertising that portrays people as sex objects is considered demeaning.
Playing on consumers’ insecurities about their appearance can lead to dangerous practices.
Responsible advertisers now use models of normal size and weight to reduce pressure on young people.
Other social responsibility issues
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Diversity and stereotypes Gender stereotypes Racial and ethnic
stereotypes Cultural differences
in global advertising Age-related stereotypes Advertising to children
Other social responsibility issues
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This ad was created by the Carson/Roberts agency in 1964 during debate over the Civil Rights Voting Guarantee Bill.
Message-related issues
Misleading claims and puffery
Comparative advertising
Endorsements and demonstrations
Other social responsibility issues
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Dunkin Donuts hopes to convince coffee drinkers to switch from Starbucks based on results from a national taste test.
Product-related issues Marketers must carefully consider what
they choose to produce and advertise.
Areas of concern: ◦Controversial products◦Unhealthy or dangerous products
Other social responsibility issues
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What are Communicators’ Ethical Responsibilities?
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Ethical decisions involve complex, conflicting forces:
strategy vs. ethics costs vs. ethics effectiveness vs. ethics
Personal and professional ethics
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Personal and professional ethics
In a Gallup poll, advertising practitioners ranked just above HMO managers and car salesmen.
The American Association of Advertising Agencies publishes a code of standards.
What are communicators’ ethical responsibilities?
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Ethical decision-making tools Codes of ethics can help guide your actions.
However, they are only broad statements, and do not explain how to handle every situation.
You must develop a strong personal and professional sense of right and wrong.
What are communicators’ ethical responsibilities?
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Ethical decision-making tools…
The TARES Test of Ethical Advertising
Ask yourself:
1. Are the ad claims in the message Truthful? 2. Is the claim an Authentic one? 3. Does the ad treat the receiver with Respect? 4. Is there Equity between the sender and
receiver? 5. Is the ad Socially responsible?
What are communicators’ ethical responsibilities?
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Why and How is Advertising Regulated?
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Key advertising legislation
1. Pure Food and Drug Act (1914) 2. Federal Trade Commission Act (1914) 3. Wheeler-Lea Amendment (1938) 4. Lanham Act (1947) 5. Magnuson-Moss Warranty/FTC Improvement Act (1975) 6. FTC Improvement Act (1980) 7. The Telemarketing and Consumer Fraud Act
and Abuse Protection Act (1994)
Marketing communication’s legal environment
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Trademark protection A trademark is a brand, corporate or store name,
or a distinctive symbol identifying a seller’s brand and differentiating it from other brands.
◦ Registering through the Trademark Office provides exclusive use, as long as it’s for a specific product.
◦ The Lanham Trademark Act of 1947 protects unique trademarks from infringement.
Marketing communication’s legal environment
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Copyright protection A copyright gives organizations exclusive rights
to use or reproduce an ad or package design, for a period of time.
Copyright infringement occurs when a product is used in an ad without proper permission, including copycat ads.
Marketing communication’s legal environment
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Marketing communication and the First Amendment
First Amendment protection extends to commercial speech, but not on an absolute basis.
The Supreme Court permits some restrictions on commercial speech.
Only truthful speech is protected – not misleading or deceptive statements.
Marketing communication’s legal environment
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International laws and regulations Legal and regulatory restrictions vary by country.
Some countries ban ads for certain products.
Thailand, Hungary, Hong Kong, and Malaysia have bans on certain types of tobacco advertising.
Contests, promotions, and direct mail are illegal in some countries.
Marketing communication’s legal environment
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Federal Trade Commission (FTC) Regulates deceptive and misleading
advertising, focusing on:◦ Unfairness◦ Deception◦ Violations
It also oversees advertising involving weight loss products, children and elderly people, telemarketing, and the entertainment industry.
Marketing regulatory environment
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Food and Drug Administration (FDA) Regulatory division of the U.S. Department of Health
and Human Services.
Oversees package labeling, ingredient listings, and advertising for food and drugs.
Determines the safety and purity of foods, cosmetics.
It is also a watchdog for drug advertising.
Marketing regulatory environment
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Federal Communications Commission (FCC) Regulates radio and television broadcast
communications (media, not advertisers).
Can issue and revoke licenses, ban deceptive messages or those in poor taste.
It responds to complaints but doesn’t initiate actions.
Works closely with FTC to eliminate false and deceptive advertising.
Marketing regulatory environment
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Other regulatory bodies Bureau of Alcohol, Tobacco, and Firearms
(BATF) Regulates deception in advertising and establishes labeling requirements for the liquor industry.
U.S. Postal Service regulates direct mail and magazine advertising including the areas of obscenity, lotteries, and fraud.
The States’ Attorneys General regulate advertising at the state level.
Marketing regulatory environment
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The FTC and children’s advertising
Children’s Advertising Review Unit (CARU) evaluates ads directed at children under 12.
The Children’s Television Advertising Practice Act (1990) placed ceilings on ads during TV programs.
As of 1996, all stations must air three hours per week of educational programming.
The impact of regulation
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Regulating deception
Deceptive advertising misleads consumers by making false claims, failing to fully disclose important facts, or both.
Current FTC policy contains three elements:
1. Misleading: representation, omission, practice2. Reasonableness: “reasonable consumer”3. Injurious: must cause material injury
The impact of regulation
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Regulating substantiation
Does the advertiser have a reasonable basis to make a claim about product performance?
Factors considered:◦ Type and specificity of claim made ◦ Type of product ◦ Possible consequences◦ Degree of reliance◦ Type and accessibility of evidence◦ What substantiation is reasonable
The impact of regulation
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Remedies for deception and unfair advertising
Cease and desist ordersA process similar to court trial precedes the order.
Corrective advertisingAdvertiser runs messages correcting the false impressions.
Consumer redressCancel or reform contracts, refund money, return property, pay for damages, or public notification.
The impact of regulation
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Remedies for deception and unfair advertising
A question for you…Can the ad agency be held liable along with
advertiser?
Answer: Yes, when the agency is an active participant in
preparing the ad and knows it is false or deceptive.
The impact of regulation
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The media screens and rejects advertising that violate standards of truth, good taste.
The First Amendment allows publishers refuse to run ads.
Media review of advertising
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Self-Discipline
Organizations develop and use their own norms
Major advertisers and agencies utilize in-house procedures.
Several U.S. companies have their own codes of behavior and criteria for acceptable advertising.
Self-regulation
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Industry Self-Regulation
National Advertising Review Council (NARC)
National Advertising Division (NAD)
National Advertising Review Board (NARB)
Self-regulation
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Self-Regulation by Public and Community Groups
Better Business Bureau Advises local businesses on legal aspects of advertising.
Consumer activist groups◦ Action for Children’s Advertising◦ Public Citizen◦ Cultural Environment Movement
Self-regulation
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