Marketing Clow
Chapter 14
Regulations and Ethical Concerns
LEARNING OBJECTIVES
Students should be able to answer the following questions:
1) What agencies and laws regulate marketing communications? 2) Why is it that puffery is legal and deception is not? What role does substantiation play in the process? 3) What legal remedies can be used to correct deceptive communications practices? 4) How do the three major industry regulatory agencies help keep advertising and business practices from injuring customers or other businesses? 5) What ethical criticisms have been registered against advertising and marketing practices? 6) What marketing tactics raise ethical concerns? 7) How can marketers apply the various ethical frameworks and ethics programs to their activities and actions? 8) What international issues influence the discussion of legal and ethical marketing activities?
LEAD-IN VIGNETTE
A Salty Situation
Many health care professionals are concerned about the amount of sodium in food products, especially processed foods. These concerns have been well known for many years. Food companies must balance the need for better taste and food preservation with negative effects on health for customers. There has been some response with newer, low-sodium products.
Questions for Students:
1. Is this an ethical issue, a legal issue, or both? 2. Do your parents suffer from high blood pressure? Have they changed their diets in response? 3. Is this an individual responsibility, should companies become more responsible, or is this a matter for the government?
CHAPTER OVERVIEW
The final level of an IMC program includes making certain the communications program meets ethical and legal requirements and is properly evaluated. Figure 14.1 displays the final, top level of an IMC program in relation to the other elements.
The first part of this chapter describes
Regulations and Ethical Concerns
LEARNING OBJECTIVES
Students should be able to answer the following questions:
1) What agencies and laws regulate marketing communications? 2) Why is it that puffery is legal and deception is not? What role does substantiation play in the process? 3) What legal remedies can be used to correct deceptive communications practices? 4) How do the three major industry regulatory agencies help keep advertising and business practices from injuring customers or other businesses? 5) What ethical criticisms have been registered against advertising and marketing practices? 6) What marketing tactics raise ethical concerns? 7) How can marketers apply the various ethical frameworks and ethics programs to their activities and actions? 8) What international issues influence the discussion of legal and ethical marketing activities?
LEAD-IN VIGNETTE
A Salty Situation
Many health care professionals are concerned about the amount of sodium in food products, especially processed foods. These concerns have been well known for many years. Food companies must balance the need for better taste and food preservation with negative effects on health for customers. There has been some response with newer, low-sodium products.
Questions for Students:
1. Is this an ethical issue, a legal issue, or both? 2. Do your parents suffer from high blood pressure? Have they changed their diets in response? 3. Is this an individual responsibility, should companies become more responsible, or is this a matter for the government?
CHAPTER OVERVIEW
The final level of an IMC program includes making certain the communications program meets ethical and legal requirements and is properly evaluated. Figure 14.1 displays the final, top level of an IMC program in relation to the other elements.
The first part of this chapter describes