McGraw-Hill/Irwin

Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

PART VI: CONSUMER BEHAVIOR AND MARKETING REGULATION

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CHAPTER

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MARKETING REGULATION AND CONSUMER BEHAVIOR

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Consumer Behavior In The News

Legal or Not? You Be the Judge. McDonalds sponsored report cards in an elementary school. Heres how it worked McDonalds paid for the printing and in return Put their logo on the report card and offered a free Happy Meal for good grades or attendance.

Source: E. B. York, McDonalds Discontinues Report-Card Sponsorship, Advertising Age, January 21, 2008, p. 37.

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Consumer Behavior In The News

Legal or Not? You Be the Judge. If you said it is LEGAL you are correct! However, legality is only one factor. The school received complaints and bad PR after a parent contacted the Campaign for a Commercial Free Childhood. McDonalds retracted the sponsorship and paid for reprinting. The Irony? The school approached McDonalds about the sponsorship!
Source: E. B. York, McDonalds Discontinues Report-Card Sponsorship, Advertising Age, January 21, 2008, p. 37.

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Regulation and Marketing to Children

CARU Industry Self-Regulation Concerns about the Ability of Children to Comprehend Commercial Messages Concerns about the Effects of the Content of Commercial Messages on Children Controversial Marketing Activities Aimed at Children Childrens Online Privacy Issues
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Regulation and Marketing to Children

Self-Regulatory Body
The National Advertising Division of the Council of Better Business Bureaus is the primary self-regulatory body of the American advertising industry. The Childrens Advertising Review Unit (CARU) is a special unit created by this body to review advertising aimed at children.

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Regulation and Marketing to Children

Comprehension Concerns Two Major Issues Relating to Comprehension: Do Children Understand the Selling Intent of Commercials? Can Children Understand the Words and Phrases in Commercials?

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Regulation and Marketing to Children

Comprehension Concerns: CARU Guidelines

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Regulation and Marketing to Children

Concerns about the Effects of the Content of Commercial Messages on Children Health and Safety

Values
CARU Guidelines

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Regulation and Marketing to Children

Content Concerns: CARU Guidelines

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Regulation and Marketing to Children

Controversial Marketing Activities Aimed at Children Mobile Marketing and Children Commercialization of Schools Internet Marketing and Children

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Regulation and Marketing to Children

Mobile Marketing and Children

Sometimes referred to as the Third Screen, cell phones are an increasingly integral part of our lives. Marketers see younger children as the next big growth market.
Mobile Marketing Efforts ringtones mobile games text-in contests

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Regulation and Marketing to Children

Commercialization of Schools

There has been ongoing concern and controversy around the commercialization of elementary and high schools.
The following are commercialization activities as classified by the Consumers Union: In-school Ads Ads in Classroom Corporate-sponsored Educational Materials and Programs Corporate-sponsored Contests and Incentives Programs

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Regulation and Marketing to Children

Internet Marketing and Children

Children are major users of the internet, and marketers use the Internet to communicate with kids.
Two major concerns have emerged: 1. Invading childrens privacy 2. Exploitation of children through manipulative sales techniques, e.g., adver-games.

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Regulation and Marketing to Children

Childrens Online Privacy Issues

Childrens Online Privacy Protection Act (COPPA)

Online privacy relates to collection and use of information from web sites COPPA passed by Congress in 1998 FTC issued Childrens Online Privacy Protection Rule (a.k.a. The Rule) in 1999
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Regulation and Marketing to Children

Key Provisions of the Rule under COPPA

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Applications in Consumer Behavior

Education is a key aspect of the FTCs fight against online privacy invasion among children

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Regulation and Marketing to Adults

Marketing Communications Product Issues Pricing Issues

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Video Application

The following Video Clip demonstrates the importance of regulatory and ethical element considerations within the context of the marketing environment.

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Regulation and Marketing to Adults

Marketing Communications Advertising and Values Consumer Information Accuracy Adequacy of Consumer Information

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Applications in Consumer Behavior

Adequacy of Consumer Information New FDA label rule deals with trans fats. Provide opportunities for some food marketers and challenges for others. Weetabix can use trans fats as a point of differentiation.

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