Marketing Communications

566 CHAPTER 16 ETHICAL ISSUES IN MARKETING COMMUNICATIONS

Due to recent technological developments, the TV advertising landscape is changing

rapidly. Th e introduction of the personal video recorder and the ongoing convergence of TV

and the Internet are causing consumers to gain more and more control over which content

they want to see and when they want to see it. Marketers increasingly look at brand place-

ment (sometimes called ‘product placement’) as a powerful way to connect with consumers.

Brand placement is the paid inclusion of branded products or brand identifi ers through audio

and/or visual means within mass media programmes.^50 Paid brand placement spending grew

33.7% to $2.90 billion in 2007 and at a compound annual growth rate of 40.8% from 2002 to

2007, thereby signifi cantly outpacing that of traditional advertising.^51 Th e global spending on

brand placement amounted to $6.25 billion in 2009, the vast majority of which is spent on

traditional advertising media (e.g. TV, radio, feature fi lms, etc.).^52 Th e European Commission

has updated the ‘Television Without Frontiers Directive’, relaxing the rules of advertising to

allow for brand placements. Consequently, the phenomenon is expected to grow even more.

Brand placement can be considered a covert technique. According to Nebenzahl and Jaff e,

brand placement is the ultimate example of unethical, inherently deceptive advertising, since

it is both disguised and obtrusive. Oft en viewers are not aware of the fact that brands are

intentionally placed in TV programmes or movies, and they oft en do not pay conscious

attention to them. Placement works best if audiences do not perceive it as advertising, are not

particularly aware of its infl uence and do not develop defence mechanisms and counter-

arguments as a result of persuasion knowledge.^53 Th erefore, there may be an implicit confl ict

between the need to make a placement eff ective and the need to protect consumers from

being misled.^54 Brand placement disclosure, i.e. communicating to the viewers that brands

are placed in media content, may serve to increase the accessibility of the persuasive or com-

mercial intent behind placed brands, but may produce resistance to persuasive attempts and

lead to counter-arguments undermining persuasive power.

Targeting vulnerable groups

One of the most debated ethical issues is marketing to children. Estimates suggest that

children in the USA spend on average four hours per day watching TV and are exposed

to about 25 000 commercials per year. Th e Internet has further expanded the exposure of

children to advertising. In 2002, approximately $15 billion was spent in the USA on market-

ing communications directed at children, including TV and print ads, sales promotions,

In 2006, the US retailer Wal-Mart’s communications agency launched a blog sponsored by Wal-Mart called

‘Working families for Wal-Mart’. The blog described the adventures of Laura and Jim, two ordinary people who

travelled across the USA in a recreational vehicle, stopping at Wal-Mart locations, camping out in Wal-Mart

parking lots and talking to Wal-Mart staff who were, of course, all very positive about various aspects of Wal-Mart’s

business behaviour (social contribution, environmental policy, etc.). Upon exposure, Laura and Jim claimed that

they came up with the idea themselves, contacted ‘Working families for Wal-Mart’ and were then offered support

for their trip (the vehicle, fuel, writing the blog, etc.). This is a typical example of a ‘flog’.

The most powerful form of marketing is an advocacy message from a trusted friend. In 2001, Procter & Gamble

founded a teen network called Tremor. The network has 250 000 members who are considered to be ‘connectors’

in their social network of friends. Connectors are early adopters who have an extensive social network. P&G sends

them samples and encourages them to promote them with friends, family and strangers. Tremor was so successful

that P&G decided also to launch Vocalpoint, a network of 450 000 mothers that has actively supported campaigns

for more than 10 P&G brands. Buzz marketing initiatives like Tremor and Vocalpoint successfully use word of

mouth by giving products to consumers who, in turn, strongly advocate these products in their daily interpersonal

reactions. P&G claims that this does not prevent members from disclosing P&G’s support, and that therefore these

actions are not unethical.^49

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