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Integrated Advertising, Promotion, and Marketing Communications

Kenneth E. Clow, Donald E. Baack

Chapter 14

Regulations and Ethical Concerns - all with Video Answers

Educators

Chapter Questions

Problem 1

In the United States, which organization has jurisdiction over mailed marketing materials?

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Problem 2

How are consumers referred to in terms of rules regarding misrepresentation?

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02:15

Problem 3

Why would the word "best" be acceptable when "better" is not?

Natalie Britton
Natalie Britton
Numerade Educator

Problem 4

Give an example of qualifying language on an advertisement.

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02:08

Problem 5

If the FTC believes that a violation has been committed, it will issue a consent order. What happens next?

Tommy Nguyen
Tommy Nguyen
Numerade Educator

Problem 6

What is a consent order, and what does it mean for both parties?

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02:08

Problem 7

If a judge issues a "cease and desist" order in the United States, what are the implications for the business?

Tommy Nguyen
Tommy Nguyen
Numerade Educator
00:51

Problem 8

What is a consent order?

Jennifer Stoner
Jennifer Stoner
Numerade Educator

Problem 9

What is an administrative complaint?

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Problem 10

What is the purpose of a corrective advertisement?

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Problem 11

What is a trade regulation ruling? How does it differ from other Federal Trade Commission rulings?

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Problem 12

What is the relationship between the Council of Better Business Bureaus and the National Advertising Division?

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Problem 13

What is the primary function of the National Advertising Review Board?

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Problem 14

How does the Children's Advertising Review Unit operate?

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02:12

Problem 15

Define ethics and morals.

Jennifer Stoner
Jennifer Stoner
Numerade Educator

Problem 16

Identify the types of ethical complaints regarding advertising.

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Problem 17

What is brand infringement?

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Problem 18

What types of ethical issues have been raised regarding the marketing of professional services?

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Problem 19

Describe the ethical issues associated with internet marketing.

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Problem 20

Describe all of the forms of ambush marketing.

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Problem 21

What is stealth marketing? How does it create an ethics debate?

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00:55

Problem 22

Name the three types of ethics programs that can be used to help marketing professionals cope with moral challenges.

Muhammad Ahsan
Muhammad Ahsan
Numerade Educator
03:05

Problem 23

Manufacturers of processed foods need to pay particular attention to ensuring that full ingredients are listed on the packaging. These need to be accurate and list the ingredients in order of their weight or contribution to the overall volume of the product. Some products need to be marked as suitable for or unsuitable for particular people for religious reasons. Equally, there is a requirement to show whether the product is suitable for vegetarians, vegans, or those with allergies or intolerances. How is this managed by manufacturers in your own country? What guidelines and legal requirements are in force?

Sana Riaz
Sana Riaz
Numerade Educator

Problem 24

Should grossly misleading advertisements be stopped before they are ever broadcast or printed? What are the checks and balances in place in your own country to perform this task? Is it a fool-proof system?

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05:23

Problem 25

One of the industries closely watched by the FTC is the weight-loss industry. Find three advertisements from magazines, newspapers, or television that deal with weight loss. What claims were made? Do you believe the claims are truthful and legitimate? How do you, as a consumer, distinguish between what is truthful and what is deceptive?

Jennifer Stoner
Jennifer Stoner
Numerade Educator

Problem 26

Advertising directed toward children remains a hot topic among parents and educators. Many feel that advertising unfairly targets children and creates materialistic desires. By the time a child is three years old, she already knows many brands of products, such as McDonald's. What is your opinion of advertising to children? Is the current regulation enough, or should it be more stringent?

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Problem 27

One of the criticisms of advertising is that it causes people to buy more than they can afford. Each year, a large number of people in United States declare bankruptcy, often because they have overspent. Do you agree that advertising causes people to buy more than they can afford, or is advertising just responding to the materialistic desire of individuals? Defend your response.

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02:25

Problem 28

Advertising does increase the cost of goods and services, but a common defense is that advertising provides people with knowledge about availability of products, which allows consumers to make more intelligent decisions. Do you think this is a valid defense of advertising? Why support the importance of advertising? What other defense could you offer to support the value of advertising?

Jennifer Stoner
Jennifer Stoner
Numerade Educator

Problem 29

Think about advertisements you have seen or heard recently and identify one that you believe is offensive. Why was it offensive? Why do you think the advertiser ran the ad if it is offensive? Do you think offensive ads can be effective? Why or why not?

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03:21

Problem 30

What is your opinion of alcohol and tobacco advertising? Should alcohol and tobacco companies have the same freedom to advertise as other product manufacturers? Do you think it is a danger for children to see alcohol or tobacco ads? Does it influence their desire to use these products?

Christina Sorrentino
Christina Sorrentino
Numerade Educator
01:47

Problem 31

Using sex to sell products is another area that many consumers find offensive. Locate two print ads or ads on television that are highly sexual in nature, one that you consider offensive and one that you consider to be appropriate. What makes the difference? Are there too many ads that use sexual themes?

Nick Johnson
Nick Johnson
Numerade Educator
01:58

Problem 32

You have seen advertisements by attorneys and medical professionals. Discuss your opinion about these advertisements. Do you think ads by attorneys just increase the number of lawsuits and bankruptcies? Why do medical professionals such as doctors and dentists advertise? Does it affect your opinion of their professionalism? Why or why not?

Xiaomin Bian
Xiaomin Bian
Numerade Educator

Problem 33

What is ambush marketing? Describe each type of ambush marketing that can be used by brands. What are your thoughts about ambush marketing? Is it unethical? Why or why not? Which forms of ambush marketing do you believe are legitimate? Why?

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Problem 34

What is stealth marketing? Do you believe stealth marketing is an ethical marketing practice? Why

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Problem 35

Do you believe that ethics can be learned, or is it something an individual has internally? Why or why not? Suppose a company has hired you to teach ethics to its employees. Discuss the concepts of hedonism, homeostasis, law, religion, and common sense as it would relate to teaching a seminar to new employees on ethics. How would ethics training, codes of ethics, and an ethics consulting system be used as part of the training class?

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Problem 36

The Advertising Standards Council of India is the primary agency that oversees advertising and other marketing-related communications. Access the website at www.ascionline.org. The ASCI is a proactive user of social media. Choose one of the current stories featured and write a short report on it.

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Problem 37

The Australian Competition and Consumer Commission (ACCC) has the responsibility of enforcing compliance with the Australian Competition & Consumer Act (2010) as well as a range of fair trade and other consumer protection legislation. At the state level, there are other organizations with similar investigative and enforcement roles. Research these organizations and how they operate at state levels and with the ACCC.

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Problem 38

Access the UAE consumer rights website (www. consumerrights.ae) Access two of the following components of the site. Explain the consumer rights involved and compare it to those of another country.
a. Refunds
b. Complaint Handling
c. Prices, tags, and store signs
d. Damaged goods
e. Shopping advice

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03:22

Problem 39

The Advertising Standards Authority (www.asa.org.uk) regulates advertising in all media in the United Kingdom and is responsible for applying advertising codes. They also handle complaints and check advertising to ensure they are not misleading, harmful, or offensive. Each year, the ASA releases a list of the most complained-about advertisements. Check their website and choose two from the top 10. Summarize the case and the outcome.

KS
Kathleen Snyder
Numerade Educator

Problem 40

Access the ASA website (www.asa.org.uk) and locate the "News" section. Read through the list of recent news items. Find two that are interesting to you. Write a brief report about each case and comment on the benefits to either consumers or businesses. Provide the URL for the two news items in your report.

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Problem 41

The Consumers Association of Singapore (CASE) is a not-for-profit, non-governmental organization that has the responsibility of protecting consumers in Singapore. Access their website (www.case.org.sg) find the case study section, and write a short report on CASE rulings in these examples.

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Problem 42

Access the CASE website again. In the "Company Alert" section of the site, select one of the businesses that are featured. Read the information for that business. Provide a screenshot of the report or save it as a file. Evaluate the business based on the report provided and discuss its usefulness to consumers.

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Problem 43

Access the Advertising Standards Authority of South Africa (ASASA) website at www.asasa.org. za. Locate the "Rulings" section. Look through the recent cases the ASASA has investigated. Find two of interest to you. Write a report about each case, discussing the issues and the findings of the ASASA. Provide the URL for the two you selected.

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03:45

Problem 44

Access the "Ad Alerts" section of the ASASA website. Look through the recent cases the ASASA has highlighted. Find two of interest to you. Investigate the situation and the problems with the advertisement. Based on your own judgement, what might the outcome be?

Jennifer Stoner
Jennifer Stoner
Numerade Educator

Problem 45

Access the authors’ blog for this textbook at the URLs provided to complete these exercises. Answer the questions that are posed on the blog.
Reebok - blogclowbaack.net/2014/04/24/reebokchapter-14

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01:44

Problem 46

Access the authors’ blog for this textbook at the URLs provided to complete these exercises. Answer the questions that are posed on the blog.
Federal Trade Commission - blogclowbaack.net/ 2014/04/24/federal-trade-commission-chapter- 14

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator

Problem 47

Access the authors’ blog for this textbook at the URLs provided to complete these exercises. Answer the questions that are posed on the blog.
Better Business Bureau blogclowbaack. net/2014/04/28/bbb-chapter-14

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Problem 48

How do the concepts of deception, puffery, and substantiation apply to this case?

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Problem 49

Could Dannon's executive team have avoided such an expensive outcome? If so, how?

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01:11

Problem 50

Do you agree that the term "clinical studies show" is significantly different from "scientifically proven" or "clinically proven"? Should the judge have been more specific about what wording could or could not be used?

Crystal Wang
Crystal Wang
Numerade Educator

Problem 51

What ethical or moral guidelines, if any, did Dannon violate?

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02:21

Problem 52

What role should advertising and marketing communications play in explaining the health benefits of basic products such as yogurt?

Jennifer Stoner
Jennifer Stoner
Numerade Educator

Problem 53

What role should the government play in controlling social media influencers?

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Problem 54

Do you consider the use of social media influencers to be a fair marketing tool? Defend your answer.

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Problem 55

How could a set of guidelines to control the actions of bloggers and other influencers?

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Problem 56

As a marketing professional, what instructions might you give a social influencer in private to support your brand?

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Problem 57

Do you believe that ethics can be learned, or is it something an individual has internally? Why or why not? Suppose a company has hired you to teach ethics to its employees. Discuss the concepts of hedonism, homeostasis, law, religion, and common sense as it would relate to teaching a seminar to new employees on ethics. How would ethics training, codes of ethics, and an ethics consulting system be used as part of the training class?

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Problem 58

Describe the responsibilities and role of each of the advertising industry agencies used to regulate the industry: Better Business Bureau, National Advertising Review Board, and Children's Advertising Review Unit. How do these agencies protect consumers? How do they protect businesses? Overall, do you think the advertising industry can police itself with these agencies? Why or why not?

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