HIGHER EDUCATION PROGRAMMES

MEMORANDUM

Academic Year 2024: January - June

Formative Assessment 1 (FA1): Advertising 1 (HADV100-1)
NQF Level, Credits: 5, 16
Weighting: 40%
Assessment Type: Essay Questions
Educator: C. Watambgwa
Examiner: C. Watambgwa
Due date: 28 March 2024
Total: 100 Marks

Instructions:

• This paper consists of four (4) questions.

• It is based on units 1 – 4 (Chapters 1 – 6) of your prescribed textbook.
• All questions are compulsory.
• Your assessment must be typed using the following:
o Font: Arial
o Font size: 12
o Line spacing: 1.5
• A Copyleaks Report will be issued via ColCampus once the assignment is
submitted. Please ensure that you follow the correct steps when uploading your
assignment to ensure that the Copyleaks Report is correctly issued. You should
be working towards a similarity rating of 30% or less. Where a Copyleaks Cheat
Detection Report is issued, your submission will automatically be treated as if you
received a similarity rating in excess of 30%. Currently, no marks will be deducted
for a similarity rating that exceeds 30%.

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Question 1: [30 Marks]
Read the excerpt below and answer ALL questions that follow. Questions 1 - 3
are based on the excerpt.
Ford South Africa has been ordered to withdraw or amend a fuel consumption claim
following a complaint by a customer to the Advertising Standards Authority of South
Africa (ASA). Claire Ben Haim complained with the ASA against Ford following her
use of a Ford Kuga 1.5 Ecoboost Ambiente. Haim said the vehicle’s advertising stated
that its fuel consumption was 7 litres per 100km. She said she was unable to attain
fuel consumption that compared with the claimed figure, and her “day-to-day
consumption was sitting at 15 litres/100km”.

“The best average she managed was 12 litres per 100km, even after taking the vehicle
on the open road as suggested by the sales representative,” said the ASA. “Attempts
to upgrade the software have lowered the daily average to 12.5 litres per 100km, which
is still substantially more than advertised, and the respondent does not offer any
further assistance.”

Ford responds
Ford said it conforms to the Economic Commission for Europe standards for fuel
economy claims, which are “conducted and ratified independently for the sake of
standardised comparison”. Fuel consumption was open to variables that render it
“difficult to compare individual economy figures”. "Geographic and climatic
differences" have the "greatest practical impact", said Ford in its response. "Road
conditions and routes are factors in other cases, as well as individual driving styles."
Ford said. "Fuel consumption claims should be taken as an indication of a vehicle's
economy and not as a fixed figure obtained on every tankful". It said its marketing
brochures contain a notice detailing fuel consumption claims and the necessary
disclaimers.

ASA ruling
The ASA said Ford’s brochures provide a “wealth of information” about the vehicles it
sells – including information on fuel consumption stats – but that information does not
appear on the same page as the fuel consumption claim. There was also a “strong

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likelihood that the average reader would not even notice the disclaimer quoted”, said
the ASA, adding that the consumption figure "provides no indication" that there are
conditions attached to it. The ASA upheld the complaint and ordered Ford to withdraw
or amend the claimed fuel consumption figure immediately.
Source: News24. 2016. Ford SA false fuel claims saga: More kuga owners respond,
Life. Available at: https://www.news24.com/life/ford-sa-false-fuel-claims-saga-more-
kuga-owners-respond-20160824. [Accessed: 14 January 2024].

Guided by the case study:

Discuss the advertising ethical issues arising from the Ford Case study. Your
discussion must focus on:
• The current ethical and regulatory controls on advertising in South Africa.
• Types of advertising ethical violations evident in the advertising by Ford South
Africa company.
Sample Answer: Unit 1: Chapter 2, pages 22, 35, 36-37 & Unit 3: Chapter 5, pages
143.
Note to the grader: Allocate one (1) mark for stating and one (1) mark for a suitable
brief explanation of current ethical and regulatory controls on advertising in South
Africa and types of advertising ethical violations evident in the. Discretionary grading
is advised as explanations vary. Award a maximum of thirty (30) marks.

• Since advertising and marketing are inherently aimed at influencing people, one
can ask to what extent that influence can be carried. √ It is a grey area, and
advertisers are, to a large extent, left to govern themselves. √ However, the public
and government expect advertisers to adhere to ethical standards. √
• Currently, the Advertising Regulatory Board (ARB) is the advertising industry’s self-
regulatory body that administers the Code of Advertising Practice, which sets out
the rules for advertising in South Africa across all media types. √ The Advertising
Regulatory Board (ARB) is the body that regulates the practices of the marketing
and communication industry and holds the industry accountable for the content it
produces. √ The body has two purposes (Advertising Regulatory Board, n.d.):
• It ensures that the Code of Advertising Practice (the Code) is applied in the
field. √

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 • It acts as the foundation of mediation for disputes within the industry or between
advertisers and consumers. √
• Ultimately, advertisers must consider the ethical implications of the content of their
adverts and remain within the guidelines stipulated by the ARB. √ Non-compliance
with the code may result in termination of membership. √
• In advertising, ethics can be described as a collection of clearly defined principles
that govern how the seller and the buyer communicate. √ Ethical considerations
link to the areas of concern we have discussed, such as not making false claims,
√ not misleading consumers, not making exaggerated claims, not demeaning any
person, and not causing harm. √
• Misleading advertising: √ Advertising that aims to create wrong ideas or
impressions. √
• Advertising is untruthful and deceptive: √ Often, advertising is perceived to
contain exaggerated, false, misleading and untruthful claims. √ Although
consumers should rightfully receive accurate and truthful information regarding the
product or service being promoted, √ advertisers have been known to explore the
limits of these concepts when wanting to gain a competitive advantage in the
market√. The Ford advert created unrealistic consumer expectations which the
product performance could not meet. √
• Unsubstantiated advertising: √ Advertising products is a concern when
unsubstantiated claims are made about what these products can do for the
consumer. √ For example, Ford's response mentions conformity to Economic
Commission for Europe standards for fuel economy claims, but it does not provide
specific evidence or data to substantiate the claimed fuel consumption figure of 7
litres per 100km. √ If Ford cannot demonstrate that their claims are accurate and
based on reliable testing methods, it raises concerns about the validity of the
advertised figure. √
• False advertising: √ Advertisements often lead consumers to believe a product
can do something that it cannot, √ or they might make claims that the product is
pure, natural or organic when this is untrue. √ For example, there was a
discrepancy in the fuel consumption claims. √ The complainant, Claire Ben Haim,
alleges that Ford advertised a fuel consumption figure of 7 litres per 100km for the
Ford Kuga 1.5 Ecoboost Ambiente. √ However, she claims that her day-to-day fuel

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 consumption was significantly higher at 15 litres/100km, and even after attempts
to address the issue, the best average she achieved was 12.5 litres/100km. This
points to a substantial gap between the advertised claim and the actual
performance experienced by the consumer. √
• Truthful presentation: √ Advertisers must not make misleading claims, must be
able to substantiate their claims, and must clearly state their sources where
appropriate (e.g., scientific studies or expert opinions). √ The value of goods, using
the words 'free' and 'up to' and 'from' claims, are also regulated. √

The following Learning Outcomes are assessed in this question:

• Briefly discuss the concept of ethical advertising.
• Explain how the legal environment affects advertising, with specific reference to
the South African context.

Question 2: [20 Marks]

There is a closer relationship between public relations and publicity.

Required:
2.1 Define publicity. (5 marks)

Unit 4: Chapter 6, page 15.

Note to the grader: Allocate five (5) marks for a valid point defining publicity.
Discretionary grading is advised as explanations vary.

• Publicity is an activity that is associated with public relations. √ Publicity is the

‘process of gaining public visibility or awareness for a product, service or company
via the media’. √
• It involves presenting public speeches, conducting interviews, conducting
seminars, promoting social responsibility activities, hosting special events and
arranging publicity stunts, all to attract the mass media's attention. √√√

The following Learning Outcome is assessed in this question:

• Outline the various tools in the marketing communication mix.

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2.2 Outline the role of publicity within public relations while also explaining how their
objectives differ. (15 marks)

Unit 4: Chapter 6, page 15.

Note to the grader: Allocate one (1) mark for a valid point outlining the role of
publicity within public relations while also bringing out how their objectives differ.
Award a maximum of fifteen (15) marks. Discretionary grading is advised as
explanations vary.

• Publicity plays a distinct role in terms of building a strong brand and obtaining free
media coverage. √ The terms publicity and public relations are often used
interchangeably, but it is important to note that publicity is, in fact, just one aspect
of public relations. √
• Publicity helps a business build credibility and brand awareness. √ Furthermore, it
offers a cost-effective strategy if the stories told to the media are interesting, timely
and relevant. √
• Dull stories that have no merit stand little chance of being published. √ Moreover,
such stories could harm a business by causing people to lose interest and stop
listening. √√
• Another distinction between publicity and public relations is that these two tools
have different objectives. √ Public relations aims to accomplish an organisation's
goals by sending strategic messages to a target audience, √ hoping to impact their
knowledge, behaviour or attitude. √ In short, it manages the overall reputation of a
company or brand √ and is focused on building relationships. √
• In addition, public relations often deal with damage control, which is often used to
minimise any possible damage to a company's reputation. √ Publicity, on the other
hand, is used solely to attract attention √ and gain media coverage cost-efficiently
and immediately. √

The following Learning Outcome is assessed in this question:

• Outline the various tools in the marketing communication mix.

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Question 3: [25 Marks]
Find adverts in any newspaper, magazine or online, and categorise those that execute
fear and humour types of advertising appeal.

Required:
Provide a picture of each type of advertising appeal and comprehensively substantiate
each choice.

Unit 3: Chapter 5, pages 134; 140-142.

Note to the grader: Use the rubric to allocate marks guided by the sample answer.
Award a maximum of five (5) marks for the pictures and twenty (20) marks for the
theory (substantiation). Discretionary grading is advised as explanations vary.

Fear appeal

Image Source: Boshoff, C., & Toerien, L. (2017). Subconscious responses to fear-appeal health
warnings: An exploratory study of cigarette packaging. South African Journal of Economic and
Management Sciences, 20(1), 1-13. √√√

• The advertisers are well aware that consumers live in a world where threats and
disasters are everywhere. √ The reasoning behind appealing to consumers’ fears
as a persuasive tactic √ is that it serves as an effective motivator for people to
process information and take action. √

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• This advertising strategy leads consumers to believe that they are exposing
themselves to a potential risk if they decide to purchase cigarettes. √
• Appealing to consumers' fear through advertising may take one of two forms: social
disapproval or physical danger. √ Thus, the advert uses the physical danger form.
√ Physical danger is a danger that involves your body or physical person √ and
includes instances where death or serious bodily harm could take place. √ Fear of
physical danger, such as being in a car accident without being insured, may
motivate consumers to act. √
• Using images and phrases that evoke fear is an effective technique when using
the appeal-to-fear approach to persuade target audiences. √

Humour appeal

Image Source: Financial Mail (2020) Chicken Licken honours SA’s everyday lockdown entertainers,
BusinessLIVE. Available at: https://www.businesslive.co.za/redzone/news-insights/2020-10-01-native-
chicken-licken-honours-sas-everyday-lockdown-entertainers/ (Accessed: 15 January 2024). √√

• If executed correctly, humour can be a powerful tool to persuade target audiences.

√ For example, when applying humour to an advert, the full extent of the meaning
of the advert may not be clear to the target audience when it is seen or heard for
the first time. √ Therefore, the consumer is provoked to continually see, watch or
listen to the advert until they understand the full meaning of the message. √
• This realisation will, in turn, lead to a humorous response by the consumer, who
will be more inclined to have a favourable attitude toward the advert and the brand
itself. √ Humour works best when the sender and the receiver share the same
frame of reference. √

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 • In the absence of a shared frame of reference, the opportunity for
misunderstanding is increased and may result in the receiver not fully
understanding the message. √ Catanescu and Tom (2001) distinguish between
seven ways that humour may be applied to persuade target audiences:
comparison, personification, exaggeration, puns, sarcasm, Silliness and surprise.
√√
• This advert uses Silliness√. Silliness is portrayed in advertising when advertisers
add an element of ridiculousness to everyday situations to mirror the target
audience's own Silliness and ultimately sell a product or service. √
Grading Rubric
Criteria

Criterion 1: Excellent and Very good examples of A good pictorial

Provide a picture of accurately pictures (2) of each example of pictures Incorrect / no
each type of referenced pictures type of advertising (2) of each type of pictorial example
advertising appeal: (2) of each type of appeal: Fear and advertising appeal: provided
Fear and Humour advertising appeal: Humour types of Fear and Humour
types of appeal Fear and Humour appeal with an types of appeal with
types of appeal with incorrect Boston no referencing
correct Boston Harvard referencing Or is only one picture
Harvard referencing provided
Mark allocation 5-4 3 2-1 0
Criterion 2: Provides a specific Provides good Provides a vague or Fails to substantiate
Substantiation of each and detailed substantiation for each superficial each of these
of these choices: Fear substantiation of of these choices: Fear substantiation of choices: Fear and
and Humour types of each of these and Humour types of each choice: Fear Humour types of
appeal choices: Fear and appeal, but lacks a and Humour types of appeal or provides
Humour types of convincing appeal. an incorrect
appeal, demonstration of Or only one type of interpretation.
demonstrating a understanding of the appeal is
clear understanding execution styles substantiated.
of the execution
styles
Mark allocation 20-15 14-12 11-7 6-0

The following Learning Outcome is assessed in this question:

• Describe the role of persuasive communication with reference to marketing
communication and advertising.

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Question 4: [25 Marks]
You are hired as a consultant at a newly established advertising agency in Cape Town.
The agency owner and chief executive officer (CEO), Shaun, informs you that the
agency requires expert assistance with establishing its working structure and
developing policy guidelines when dealing with clients. As part of your consultancy
tasks:

4.1 Advise Shaun of his roles and responsibilities in the agency. (5 marks)

Unit 2: Chapter 3, page 10.

Note to the grader: Award a maximum of five (5) marks for the roles and
responsibilities of a CEO. Discretionary grading is advised as explanations vary.

The CEO determines the structure and strategy of the agency and leads the agency
to success and profitability. √√ They play a role to different extents regarding support
services; for example, HR matters, IT matters, client relationships, etc. √ Importantly,
the CEO must ensure profitability, growth and the appointment of suitable key
personnel, and they must determine the direction in which the agency should go. √√

The following Learning Outcome is assessed in this question:

• Outline the structure of an ad agency and highlight relevant roles and
responsibilities.

4.2 Highlight some of the emerging complexities in agency-client relationships and

strategies to improve agency-client collaboration. (15 marks)

Unit 2: Chapter 3, pages 23-24.

Note to the grader: Award a maximum of fifteen (15) marks guided by the sample
answer highlighting the emerging complexities in agency-client relationship and
strategies to improve agency-client collaboration. Discretionary grading is advised
as explanations vary.

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• The agency-client relationship has changed over the years. √ In the current
situation, conflict of interest is not allowed, and agencies may take on only one
organisation in a particular category. √
• The explosion in digital media options the rapidly reducing advertising in traditional
media, √ the very long list of possible media, and the increasing fragmentation have
posed new challenges to agency-client relationships. √
• Moreover, it becomes difficult for any planner to understand all of the media and
their options and for the organisation to know who the lead agency should be
(traditionally the creative agency) and, therefore, whom it should approach or allow
to pitch. √√
• These changes affect the agency's relationship with clients, as friction or frustration
can be due to the tumultuous advertising environment that affects all those who
function within it. √
• Thus, while a collaborative partnership is crucial for the relationship to deliver on
the advertising objectives, this is sometimes tested despite any good intentions. √
• While a trusting relationship is key, it is equally important that the agency measures
and assesses its performance and reports on this in order to provide the client with
feedback on its performance. √
• With this in mind, an annual review of the relationship should be done, including a
review of its effectiveness, a spending analysis and a review of the fee system. √
In the final analysis, the agency and the client must work more closely and put
more effort into ensuring advertising success in an increasingly complex and
competitive world. √
• This is especially true for integrated marketing campaigns, as IMC requires close
collaboration between the client and the agency but may yield significant results if
it is successful. √
• However, it may be challenging to make this collaboration work due to the shifts in
the industry that we have discussed previously. √ For this reason, agencies will
need to find ways to become crucial strategic partners for their clients, and they
will need to focus on building relationships. √√

The following Learning Outcome is assessed in this question:

• Describe the agency-supplier relationship.

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4.3 Explain why agency-client confidentiality is important. (5 marks)

Unit 2: Chapter 3, pages 23-24.

Note to the grader: Award a maximum of five (5) marks explaining why agency-
client confidentiality is important. Discretionary grading is advised as explanations
vary.

Confidentiality in advertising is extremely important since ad agencies have novel

creative ideas and intellectual property. √ Their clients may also need to share
important information with the agency, which they may want to keep secret from
competitors or the public. √ Finally, some agencies may collect consumer data for
analysis, including their personal information. √ The agency is responsible for the
security of all this information. √ Any loss of intellectual property or the release of
confidential information and data due to poor security could result in a lawsuit. √

The following Learning Outcome is assessed in this question:

• Explain why confidentiality is crucial in an agency context.

[Total: 100 Marks]

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