Chapter Six Outline - Chapter 6 The Regulatory and Ethical...

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Chapter 6 The Regulatory and Ethical Environment of Promotions
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Social Impact of Brand Promotion On the positive side , promotional efforts are said to: benefit society by increasing the standard of living through lowered product costs (by stimulating demand, increasing probability new products will succeed, fueling competition and improvement, diffusing innovations) foster innovation, especially artistic creations provide revenues to support mass media deliver a constant flow of information valued by consumers inform people about political and social issues
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Social Impact of Brand Promotion At the same time, critics have said: promotional expenditures are wasteful, intrusive, and manipulate consumers into buying something they may want but don’t really need ( NOTE: Remember that advertising cannot stimulate a basic need, but it can stimulate a person to act on an existing desire) messages are often offensive to society and frustrating to those who can’t afford a lavish lifestyle advertisements are superficial and rarely furnish useful information advertisements perpetuate superficial stereotypes some critics have been concerned that advertisers are controlling consumers with subliminal advertising messages (this claim is not well supported)
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Social Impact of Brand Promotion, Continued Exhibit 6.1 Pros and Cons of Brand Promotion
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Ethical Issues in Promotion Ethical considerations that frequently arise involve: truthfulness ( puffery is considered legal ) concern for the impact of promotional messages on children the promotion of controversial products and practices such as firearms, gambling, alcohol, cigarettes, and junk food Ethical standards are a matter for personal reflection; for example, there are many shades of gray between purely fact-
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This note was uploaded on 02/29/2012 for the course ADV 300 taught by Professor Hall during the Spring '08 term at University of Illinois, Urbana Champaign.

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Chapter Six Outline - Chapter 6 The Regulatory and Ethical...

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