Advertising Ethics and Global Business

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Here is information. It was alot of work.

1. Describe the concept of "truth in advertising".

According to the Federal Trade Commission, an ad "must be truthful, not misleading, and when appropriate backed by scientific evidence" (FTC, 2013). This means that companies must be honest in their claims, avoiding claims that may cause consumers to make judgments based on questionable information. Ultimately, truth in advertising, however, is much more than a law. While truth in advertising serves to protect consumers from fraud and deception, it also protects the company in many ways: by stating reliable, up front information about products to customers they are more likely to understand the product and be pleased with the actual results. This promotes repeat sales and satisfied customers, which helps enable a business to remain in the market. Making false claims is bad for consumers and bad for business. It is interesting to note that the FTC's mission is, "to prevent business practices that are anticompetitive, deceptive, or unfair to consumers" (FTC, 2013). This is ultimately what truth in advertising helps prevent, as well. Giving consumers reliable information through advertising claims is helpful to all.

FTC. (2013). FTC Resources for Reporters. Retrieved from http://www.ftc.gov/opa/reporter/advertising/

2. Should there be any special ethical review considerations given to social media and online advertisements? Why or why not?

I do not think that the government should necessarily be involved in any special ethical review considerations for social media and online advertisements, however, it does seem reasonable for each company to review their own stance and procedures prior to releasing social media and online advertisements. This is important since each of Tweet, Facebook posting or blog entry is ultimately representations of the company. Companies should be fanatical in managing their brand and corporate image. There should be a corporate understanding of appropriate content, as well as a review procedure to ensure that all content aligned with the brand and corporate image that is desired. By operating in this manner, companies will more likely release higher quality information and material to customers, and thus be better off in the long run. Relying on the government or a national code of ethics should not be necessary if companies are taking these precautions and self-policing their own activities.

3. What advertising approaches (radio, internet, magazines, TV, other?) should you take with Generation Y audience? Support your answer with examples of effective ads.
Generation Y, or the Millennial Generation, were born between the time period of 177 and 1994 (Williams & Page, 2010). Since they have been surrounded by media their entire lives this generation is quite comfortable receiving advertising messages electronically. Integrated marketing is important, combining brand sponsorships on television (think of Coca Cola on American Idol), that is then supported with social media (recently Carly Rae Jepson performed a song on the show crowdsourced from Coca Cola's "Perfect Harmony" social media program) then it is a winning ad campaign. Another successful campaign has been the Axe commercials, supported through YouTube, on the television and in print. It creates conversation about the brand, thus increasing sales. Another effective campaign that has been targeted at Generation Y has been the Spartan Mud Races. Advertisements for these events can be found on body building sites, blogs offer training advice (and coupons for discounts on entry fees), and there are YouTube videos featuring training advice and actual races. In addition, advertisements are run in Sports Illustrated and Men's Health and Runner's World in both print and online versions. Again, the company is working on combining its message in a variety of mediums to add integrity as well as impact to the message. This generation tends to get its news online, watches television online, and interacts with friends online. The more an advertiser can connect through the Internet, be it ...