ADVERTISINGDon’t park under this ad!

LET’S THINK…Why do businesses advertise?

What are brand name products?What are the benefits and costs of brands for consumers?

How can informative advertising help you make a good decision?

A FEW MORE QUESTIONS…

Who pays for advertising?

How does advertising benefit the consumer?

Magazines

Commercials

Movie Preview

Product Placement

Billboards

Freebies

Bumper Stickers

Sporting Fields

Internet

Events

Mail

Stores

WHERE DO WE SEE ADVERTISING?

THE AVERAGE

AMERICAN IS

EXPOSED TO 3,000 ADS

EACH DAY!

WHO DOES ADVERTISING TARGET? Age

Race

Gender

Profession

Others:

BRAND ADVERTISINGIf you remember their name, you’ll buy their products

Slogans, Jingles, logos Lets take a look at some classics…..Classic Slogans and Jingles

Now let’s test you slogan knowledge!

BRAND ADVERTISING

BenefitsLoyaltyTime

CostsIncrease price of product

INFORMATIVE ADVERTISINGInforms you about a products features and benefits.

Complex items or technical products Appeals to your need for intellectual information

Infomercials!!!

INFORMATIVE ADVERTISING

Cadillac Commercial

Mac vs. PC

Mazda Protégé 5

COMPARATIVE ADVERTISINGComparing Products to competitors! Shows competitors weaknesses and showcases the best qualities of the brand being advertised

EX: Tooth Whitening, paste vs. strips

COMPARATIVE ADVERTISING

4 out of 5 Dentists Agree (old school!)

Teeth Whitening

Charmin Toilet Paper

PERSUASIVE ADVERTISINGAppeals to your emotions to buy

Doesn’t provide much useful information Owning this product will make you…Happier More successful More satisfied

Ignore these, evaluate reality

PERSUASIVE ADVERTISING

Tide to go

Cadillac (Kate Walsh)

MORE ON ADVERTISINGHow much was a 30-second spot during

last year’s Super Bowl? $2.6 Million

Businesses spend $200 billion a year in advertising.

In 2005…Pepsico spent $1.8 BILLION on advertising!Coke spent $2.1 BILLION!

CONSUMER PROBLEMS WITH ADSFTC defines Deception as a material “representation, omission, or practice that is likely to mislead a (reasonable) consumer…to the consumer’s detriment

Fraud is a deliberate deception that, with full knowledge of the perpetrator, misleads or gains an unfair advantage and results in financial loss to the consumer

DECEPTIVE PRACTICE

Deceptive advertisingDeliberately misleads consumers

PUFFERY

Using claims or descriptions to exaggerate (“puff up”) a product’s reputation or appeal“New”“Unique”“Extra-strength”“Super-strength”

FACTUALLY WRONG – penalties but hard to prosecute vague but difficult to prove

SALES PRICESSALES PRICES

Implies a bargainLower prices than customary

Before it can go on sale a retailer must sell the item regularly at the nonsale price

COMPETITIVE PRICINGRetailer cannot legally say that its prices are lower than a competitor’s without actual proof

Only imply lower pricesDo not provide proof

TRADING UPPractice of convincing customers to buy

a higher-priced item than they originally intended

i.e., VCR - $300 and sales person shows you a $500 VCR

More features – Do you need these features?

Nothing illegal about this practiceGenerally the retailer makes a bigger profit on more expensive items

Be prepared to say NO!!!

DECEPTIVE PRACTICEExamplesCompanies may advertise sales at 50% off. However, the company first marks the product way up and then marks them down 50% so that they still make a profit.

LOSS LEADERThe item priced below cost to attract you to the store

Retailer will lose money if you only buy that item, but it gets you to the store in hopes of purchasing other items

FTC (FEDERAL TRADE COMMISSION)Most important federal consumer protection agency

Responsible for protecting consumers from unfair or deceptive business practices, such as misleading information in advertising or product labels.

FINAL THOUGHTS

Each advertisement should…Target a specific groupThis is your TARGET MARKET

Fit into ONE type of adInformative, comparison, persuasive

MORE ADVERT

ISEMENTS

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