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Belch: Advertising and Promotion, Sixth Edition VII. Special Topics and Perspectives and premiums are subject to regulation. Recently many states have become very active in the regulation of contests and sweepstakes. Trade promotion practices, such as the use of promotional allowances and vertical cooperative advertising, are regulated by the Federal Trade Commission under the Robinson-Patman Act. The FTC also Key Terms self-regulation, 712 Better Business Bureau, 715 Council of Better Business Bureaus, 715 National Advertising Review Board, 716 National Advertising Review Council, 716 Federal Trade Commission, 722 commercial speech, 722 Central Hudson Test, 722 Federal Trade Commission Act, 723 Wheeler-Lea Amendment, 723 trade regulation rules, 724 unfairness, 725 Discussion Questions 1. Do you agree with the DISCUS argument that hard liquor is at a competitive advantage against wine and beer if it cannot advertise on television? Evaluate the decisions by NBC to become the first broadcast network to accept liquor advertising and then dropping its plans to do so. 2. Evaluate the controversy discussed in IMC Perspective 21-2 over the “Kenya” commercial from the perspective of both Just For Feet and the Saatchi & Saatchi advertising agency. With whom does the ultimate responsibility for the airing of this commercial lie, the client or the agency? 3. Discuss the role the media play in the self-regulation of advertising. Do you think media selfregulation is an effective way of protecting consumers from offensive or misleading advertising? 4. Do you agree with the decision by the California Supreme Court to 21. Regulation of Advertising and Promotion enforces laws in a variety of areas that relate to direct marketing and mail-order selling, while the FCC has rules governing telemarketing companies. Currently there are few specific laws governing marketing practices on the Internet. However, two major areas of concern with regard to marketing on the Internet are puffery, 725 deception, 726 affirmative disclosure, 726 advertising substantiation, 729 consent order, 730 cease-and-desist order, 730 view statements about a company’s labor policies or operations in ads or press releases as commercial in nature and thus subject to government regulation? Discuss how this ruling might affect various forms of integrated marketing communications used by companies such as Nike. 5. IMC Perspective 21-2 discusses the legal battle between Pizza Hut and Papa John’s over the latter’s use of the tagline “Better Ingredients. Better Pizza.” Which company do you side with in this controversy and why? 6. What is meant by advertising substantiation? Should advertisers be required to substantiate their claims before running an ad or should they be required to provide documentation only if their advertising claims are challenged? 7. Discuss the Lanham Act and how it affects advertising. What elements are necessary to win a © The McGraw−Hill Companies, 2003 privacy and online marketing to children. The Federal Trade Commission has called for voluntary industry codes rather than FTC rules to govern marketers’ use of the Internet. Concerns over online marketing to children have led to the passage of the Children’s Online Privacy Protection Act, which the FTC began enforcing in early 2000. corrective advertising, 731 Lanham Act, 738 National Association of Attorneys General, 740 Children’s Online Privacy Protection Act, 746 false advertising claim under the Lanham Act? 8. IMC Perspective 21-3 discusses the debate over direct-toconsumer advertising. Do you agree with the decision by the Food and Drug Administration to issue new guidelines making it easier for pharmaceutical companies to advertise prescription drugs on television as well as in print media? 9. The Federal Trade Commission is in the process of developing a national “do-not-call” registry. Discuss how this registry will impact the direct marketing industry. What arguments might direct markets use in trying to prevent the implementation of such a program? 10. What are the major areas of concern with regard to marketing on the Internet? Evaluate the steps being taken to address these concerns. 747
1 Part Five Developing the Integrated Marketing Communications Program Belch: Advertising and Promotion, Sixth Edition Chapter Objectives VII. Special Topics and Perspectives 1. To consider various perspectives concerning the social, ethical, and economic aspects of advertising and promotion. 2. To evaluate the social criticisms of advertising. 22. Evaluating the Social, Ethical, & Economic Aspects of Advtising & Promotion © The McGraw−Hill Companies, 2003 Evaluating the Social,Ethical, and Economic Aspects of Advertising and Promotion 22 3. To examine the economic role of advertising and its effects on consumer choice, competition, and product costs and prices.
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IN2 Name and Company Index Belch: A
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