Chapter_3_Adv

Chapter_3_Adv - Economic, Social, & Regulatory Aspects...

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  Principles of Advertising 1 Regulatory Aspects of  Advertising: Chapter 3
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  Principles of Advertising 2 Chapter 3 Topics Controversies Economic Impact Social Impact Social Responsibility and Ethics Government Regulation Government Restraints of International Advertising Regulatory Issues Federal Regulation State and Local Regulation Non-government Regulation
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  Principles of Advertising 3 Controversies Economic Role Does Advertising increase cost to consumers? Societal Effect Does Advertising make us more materialistic? Does it influence us in ways we cannot control? How does it affect art and culture? Does it debase our language?
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  Principles of Advertising 4 Economic Impact Advertising accounts for 1.1% of Gross  Domestic Product Spending of $567 per capita…the highest in  the world: US: $568 UK  395  Canada  283  Japan  242 Germany  229 Spain  215
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  Principles of Advertising 5 Economic The level of national Advertising is directly  proportional to a country’s standard of living
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  Principles of Advertising 6 Economic Impact: Effect on Product Value Advertising gives a brand added value Brand vs. Generic Advertising is an inherent feature of the product itself Positive image from advertising implies quality Advertising educates consumers on new uses Kleenex: From make-up remover to disposable tissue Our free-market system allows us to buy the products  we want, with the features we want. We communicate who we are through the products we buy
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  Principles of Advertising 7 Economic Impact: Effect on Prices Advertising is paid by consumers But. ..Advertising is one element in the mass- distribution system Mass production lowers unit cost When price is an element in advertising,  prices are held down Consequently, advertising does not  necessarily mean the consumer pays higher  prices
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Principles of Advertising 8 Economic Impact: Effect on Competition Does Advertising restrict competition?  Maybe. On one hand: it’s a barrier to entry
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Chapter_3_Adv - Economic, Social, & Regulatory Aspects...

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