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Business Ethics

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Business Ethics ­MGT610
VU
LESSON 40
ADVERTISING IN TODAY'S SOCIETY
Advertising is a huge global business. No business can succeed without it, no name products
appear on the market without being backed by advertising. Food, clothing, furniture,
accessories, cosmetics, books, toys, everything displayed in the store is a result of intensive
competition and expensive promotion on the part of each manufacturer to induce the stores to
stock and stack his product. Each year billions of dollars are spent in attempts to influence our
decisions and to persuade us to spend more.
On the high street, on public transport, in newspapers and magazines and on television we are
bombarded with images and slogans (between four-hundred and three-thousand advertising
messages per day!) designed to make us part with our cash. But for the most part we love it,
secretly at least. We may resent the hideous sign that invades the beauty spot, loathe the
commercial that interrupts a TV show, but we reach for our newspaper or favorite magazine
not only for an update on the news but to scan the ads for bargains or to enjoy looking at them.
Because of the enormous amount of advertising there is around, the advertising industry is
constantly trying to come up with new ways of getting our attention ("Sex sells!",...).
3. Advertising agencies and the making of an ad
In very general terms, the function of an agency ­ this usually consists of executive, creative,
research, media, technical, and administrative departments ­ is to present to its client a new,
catchy, and practical idea for a campaign, furnish an outline with mockups and estimates, and
after final approval see the project in the end. In the area of graphics, the art director, working
in close cooperation with the copywriter and client, decides on the kind of illustration or spot
best suited to the selling theme, the product, and kind of image the advertiser wishes to project.
In the world of advertising, everyone's thinking is focused on now or on the future, never on
the past.
3.1. Keywords:
The Influence of Advertisements on the Customers Shopping Behavior
All adverts need to use specific stimuli (for example: colorful pictures, erotic poses,...), so that
the customer becomes aware of the advert and can store the given information over a longer
period of time. For effective advertising, basic conditioning psychology has to be brought into
effect, whereby the product is coupled with pleasant feelings and emotions (Coca-Cola in
conjunction with fun and joy - "Enjoy the taste...enjoy the fun ...always Coca-Cola"
6.1. Psychological tricks:
Packaging: The design of the package decides whether the product will be accepted by the
customer or not. An extravagant packaging and attractive colors are important factors, which
influence his decision. Positioning and arrangement of the shelves: Luxury goods and goods the
most profits are mainly to be found on the right hand shelves. This is due to an inborn tendency
to look and reach to the right. In addition, these things are to be found at eye or arm level
because at this height the products are easy to reach. Articles of everyday use are usually found
at the back of the store, farthest away from the entrance. This is to force the customer to pass as
many items as possible and to force him to make a purchase.
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Business Ethics ­MGT610
VU
"Muzac", soft background music, is played, as it has a relaxing effect and produces a pleasant
atmosphere. In order to give the customer the feeling that time is no problem, there are no
clocks to be found. Sweets and toys are often to be found just before the cash desk, in a bid to
give children a "reward" for waiting. Fully filled shelves are always an inducement to buy, so
shelves are repeatedly filled. Stands are always well decorated because they bring an increase
in sales.
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Table of Contents:
  1. INTRODUCTION:Business Issues
  2. INTRODUCTION (CONTD.)
  3. THEORY OF ETHICAL RELATIVISM
  4. MORAL DEVELOPMENTS AND MORAL REASONING
  5. MORAL REASONING:Arguments For and Against Business Ethics
  6. MORAL RESPONSIBILITY AND BLAME
  7. UTILITARIANISM:Utilitarianism: Weighing Social Costs and Benefits
  8. UTILITARIANISM (CONTD.):rule utilitarianism, Rights and Duties
  9. UNIVERSALIZABILITY & REVERSIBILITY:Justice and Fairness
  10. EGALITARIANS’ VIEW
  11. JOHN RAWLS' THEORY OF JUSTICE:The Ethics of Care
  12. THE ETHICS OF CARE:Integrating Utility, Rights, Justice, and Caring
  13. THE ETHICS OF CARE (CONTD.):Morality in International Contexts
  14. MORALITY IN INTERNATIONAL CONTEXTS:Free Markets and Rights: John Locke
  15. FREE MARKET & PLANNED ECONOMY:FREE TRADE THEORIES
  16. LAW OF NATURE:Theory of Absolute Advantage, Comparative Advantage
  17. FREE MARKETS AND UTILITY: ADAM SMITH:Free Trade and Utility: David Ricardo
  18. RICARDO & GLOBALIZATION:Ricardo’s Assumptions, Conclusion
  19. FREE MARKET ECONOMY:Mixed Economy, Bottom Line for Business
  20. COMPETITION AND THE MARKET:Perfect Competition
  21. PERFECT COMPETITION
  22. MONOPOLY COMPETITION:Oligopolistic Competition
  23. OLIGOPOLISTIC COMPETITION:Crowded and Mature Market
  24. OLIGOPOLIES AND PUBLIC POLICY:Ethic & Environment, Ozone depletion
  25. WORLDWATCH FIGURES:Population Year, Agriculture, Food and Land Use
  26. FORESTS AND BIODIVERSITY:The Ethics of Pollution Control
  27. THE ETHICS OF POLLUTION CONTROL:Toxic Chemicals in Teflon
  28. THE ETHICS OF POLLUTION CONTROL
  29. THE ETHICS OF POLLUTION CONTROL:Recommendations to Managers
  30. COST AND BENEFITS:Basis of social audit, Objectives of social audit
  31. COST AND BENEFITS:The Ethics of Conserving Depletable Resources
  32. COST AND BENEFITS:The Club of Rome
  33. THE ETHICS OF CONSUMER PRODUCTION AND MARKETING:DSA Comments
  34. THE ETHICS OF CONSUMER PRODUCTION AND MARKETING:Should Consumers Bear More Responsibility?
  35. THE CONTRACT VIEW OF BUSINESS' DUTIES TO CONSUMERS
  36. THE CONTRACT VIEW OF BUSINESS' DUTIES TO CONSUMERS:The Due Care Theory
  37. THE SOCIAL COSTS VIEW OF THE MANUFACTURER’S DUTIES
  38. ADVERTISING ETHICS:The Benefits of Advertising, The harm done by advertising
  39. ADVERTISING ETHICS:Basic Principles, Evidence, Remedies, Puffery
  40. ADVERTISING IN TODAY’S SOCIETY:Psychological tricks
  41. ADVERTISING IN TODAY’S SOCIETY:Criticism of Galbraith's Work
  42. ADVERTISING IN TODAY’S SOCIETY:Medal of Freedom
  43. ADVERTISING IN TODAY’S SOCIETY:GENERAL RULES, Substantiation
  44. ADVERTISING IN TODAY’S SOCIETY:Consumer Privacy, Accuracy
  45. THE ETHICS OF JOB DISCRIMINATION:Job Discrimination: Its Nature