Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

16. Advertising and Sales
    Promotion

Text © The McGraw−Hill

Companies, 2002

Advertising and Sales Promotion 473

policies and want the rest of the European Union to adopt them. In Switzerland,

an advertiser cannot use an actor to represent a consumer. New Zealand and

Switzerland limit political ads on TV. In the United States, print ads must be iden-

tified so they aren’t confused with editorial matter; in other countries ads and

editorial copy can be intermixed. Most countries limit the number and length of

commercials on broadcast media. Until recently, an Italian TV ad could be shown

only 10 times a year.

What is seen as positioning in one country may be viewed as unfair or decep-

tive in another. For example, when Pepsi was advertising its cola as “the choice of

the new generation” in most countries, Japan’s Fair Trade Committee didn’t allow

it—because in Japan Pepsi was not “the choice.” Similarly, Hungary’s Economic

Competition Council fined Unilever $25,000 for running an ad that claimed that

its OMO detergent removed stains better than ordinary detergent. The Council

said the ad was unfair because Hungarian consumers would interpret the phrase

“ordinary detergent” as a reference to a locally produced detergent.^28

Differences in rules mean that a marketing manager may face very specific limits

in different countries, and local experts may be required to ensure that a firm doesn’t

waste money developing advertising programs that will never be shown or which

consumers will think are deceptive.

In the United States, the Federal Trade Commission (FTC) has the power to

control unfair or deceptive business practices—including deceptive advertising.

The FTC has been policing deceptive advertising for many years. And it may be

getting results now that advertising agencies as well as advertisers must share equal

responsibility for false, misleading, or unfair ads.

This is a serious matter. If the FTC decides that a particular practice is unfair or

deceptive, it has the power to require affirmative disclosures—such as the health

warnings on cigarettes—or corrective advertising—ads to correct deceptive

advertising. Years ago the FTC forced Listerine to spend millions of dollars on adver-

tising to “correct” earlier ads that claimed the mouthwash helped prevent colds.

Advertisers still remember that lesson. The possibility of large financial penalties

and/or the need to pay for corrective ads has caused more agencies and advertisers

to stay well within the law. That may explain why Microsoft quickly settled when

the FTC charged the firm with deceptive advertising concerning WebTV.^29

There are specialized advertising

agencies that help advertisers

with unique media—ranging from

posters that cover a whole

building to advertising messages

pressed into the sand on public

beaches.

FTC controls unfair

practices in the United

States