Professional Documents
Culture Documents
For
Against
1. The intent of advertising is to persuade, not to inform. Ads only provide positive
information about a brand
2. On a macroeconomic basis, advertising spending is largely wasted because it
primarily causes consumers to switch from one brand to another without any net gain
to society.
3. Many economists challenge the notion that advertising lowers the price of products
and services. Primary goal of advertising is to insulate a brand from price competition
by creating emotional appeals so price becomes less and less important.
4. The high rate of advertising expenditures in many product categories makes it
difficult, if not impossible for new products to enter the market.
-Explain the difference between inadvertent and intentional social roles of advertising
Overt role: Campaigns whose primary objective is promoting social change. Ads that
promote safe driving, adult literacy, and environmental causes. Interest groups have seen the
value in effective advertising.
Issue-advocacy: the tone of many of these ads is negative, as groups seek to derail proposed
legislation or emphasize shortcomings in an opponent’s plan. Rich companies can invest
millions in a campaign including commercials, public relations, and media buying to
influence the debate.
Cause-related: Companies market their good deeds in the same way they market their
products. American Express sponsored a campaign promising to make a donation to the
renovation of the Statue of Liberty each time someone used their card.
Their role is to create a free marketplace based on dissemination of complete, truthful, and
nondeceptive advertising. They also investigate various sales practices and illegal pricing
activities. Advertisers must be able to substantiate their claims.
-Discuss the primary roles of the NARC, NARB, and the CARU in supporting
advertising regulation
They're located in the discussions under the requests/offers of notes section titled Notes
for Test #3. The first section of them is reading notes, the second is lecture notes, and
the third is group presentation notes.