Economic Social Ethical & Regulatory Aspects

of ADVT.
Role of ADVT. in Primary & Secondary Demand

 Social aspects of advertising

Advertising as a part of firms marketing effort
operates in the society. It has to therefore follow the
social norms.
Key areas of debate regarding society and advertising
are:
Deception (BLUFF)
Manipulation

Taste

Deception: it refers not only to the information

content in advertising but may also arise from
misplace emphasis in presentations.
Advertising as a whole must not create a misleading
impression although every statement, separately
considered, may be literally truthful

 Manipulation is done through emotional

appeals. These companies can utilize
advanced and very scientific advertising
techniques and thus make an
impression on consumers.
Taste:- Sometimes ads are offensive,
tasteless, irritating, boring and so on.
Sources of distaste
Sexual Appeals

 Some examples of the Advertisements

with social aspects: Grow-more-trees advertisements
Drink milk
Eat healthy food, eat eggs
Mothers milk is best for the baby
Say no to drugs every time
Get your child vaccinations in times

 Legal aspects of advertising

The government in each country has to make sure that
advertisements appearing do not flaunt of their rules &
regulations.
It should not: show anti-national feelings
contain misleading information about the product
Violate government rules

Legal aspects of advertising

Some examples of the Advertisements with legal
aspects: Get your car checked for pollution
Drinks & driving do not mix

Weight, price, manufacturing date, date of expiry

should be mentioned on the packing case

 Ethical aspects of advertising

Ethics are the moral standards against
which behavior is judged
Key areas of debate regarding ethics and
advertising are:
Truth in advertising
Advertising to children
Advertising controversial products

Ethical aspects of advertising

Truth in Advertising
Deception is making false or misleading
statements.
Puffery (commercial exaggeration) is legal.

 Advertising to ChildrenIssues
Advertising promotes superficiality and
materialism in children.
Children are inexperienced and easy prey.
Persuasion to children creates child-parent
conflicts.

Advertising Controversial Products

Critics question the targeting of minorities.
Tobacco, alcohol, gambling and lotteries are
product categories of greatest concern.

 Economic aspects of advertising

Making Consumers Aware of Products and
Services
Providing Consumers With Information to
Use to Make Purchase Decisions
Encouraging Consumption and Fostering
Economic Growth
Effects on Competition
Barriers to entry
Advertising as an expense that increases
the cost of products
Creates Differentiation

Primary Demand:
When an entire product category is advertised,
instead of a particular brand. This is generally
done when customers are unknown to a new
product or technology.It is generally used in two
scenarios:
i) either the product being launched is entirely
new.
ii) the product has already been launched, but is
not that well-known. Generally, some business
groups come together and advertise the product.
E.g. When VCR was introduced first time in 1970 in
USA, Radio Corporation of America, Panasonic and
Quasar introduced ad.

Secondary Demand:
Secondary demand stimulation, also
called selective demand stimulation, is
the better recognized form of
traditional marketing. It relates to the
advertisement of a particular brand
instead of whole product category.