APR 221 Chapter Notes - Chapter 2: Ftc Fair Information Practice, Commercial Speech, Capitalism

• School: University of Alabama
• Department: Advertising and Public Relations
• Course: APR 221
• Professor: Michael Little

Document Summary

How advertising may contribute to, or detract from, the basic goal of free enterprise: the most good for the most people . Social responsibility: doing what society views as best for the welfare of people in general or for a specific community of people. Helps secure large armies, creates entertainment events attracting hundreds of thousands of fans and often affects the outcome of political elections. The economic effect of advertising is like the break shot in billiards or pool. Added value: brands with familiarity (heavily advertised)- advertising adds value to a brand. Advertising contributes to self-interest for both the consumer and advertiser. Effects of prices- advertising does not necessarily add cost to a product for a customer. Effects on competition- some people believe advertising restricts competition because small companies can"t compete with the big firms- but only has a limited effect. Effects on consumers and businesses- can help get new products off the ground by giving people more.