Advertising…Do you know what you want?

Why do we buy what we buy?

Who or what influences our spending habits? Family Friends Media

Advertising

What is a promotion?

is any form of communication a business or organization uses to inform, persuade, or remind people about its products and improve public images.

Product Promotion used to convince potential customers to

buy products from it instead of from a competitor.

--explains major features and benefits --tells where products are sold -- advertises sales on those products -- answers customer questions -- introduces new products

© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing DecisionsFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

Advertising

Advertise To call public attention to a product or service

Advertiser A person or company that has a product they

want to sell Advertisement

Focuses attention to a product and grabs the attention of the consumer

How do companies create advertisements?

Step One: Determine and research a target audience Perception of needs and wants Problems consumers may encounter Emotions experienced Current or desired lifestyle

Who is the target audience?

Advertisements for female clothing

Men’s Clothing

How do companies create advertisements? Step Two: Grab the attention of the

target audience Use emotions that focus on

love, belonging, prestige and self-esteem

Show how the consumer can save money

Make promises of a better life

Solve consumer problems Use creative and appealing

layouts Z form Color Advertisement

placement Other techniques

Creative and Appealing Layouts

The Perfect Hamburger Sesame seeds are arranged with tweezers and glue A waterproof sealant is sprayed on the bun so it doesn’t get

soggy The outside of the hamburger is cooked, but the inside is left

raw so it looks plump and then painted with a brown paint Grill marks are put on with a hot metal skewer Paper towels are used to create a sponge below the

hamburger so no juices leak onto the bun A perfect lettuce leaf and slice from the center of the tomato

are carefully selected Entire hamburger is sprayed with glycerin to keep it fresh

looking

How do companies create advertisements?

Step Three: Differentiate the advertised brand from others Describe the product benefits Showcase unique qualities Illustrate the value and quality of the

product Create an advertisement consumers will

remember

© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing DecisionsFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

How do companies create advertisements?

Step Four: Change brand the consumers’ brand preference or habits If a consumer changes their preference

and begins using the advertised product or service, the advertiser has met his goal!

Analyze this Ad Target

audience Desired

lifestyle Gain Attention

Prestige Layout

Persuasion 5 star

ratings Picture

Advertising Techniques

Incentives/Promotions Slogans Logos Beauty Appeal Testimonial/Celebrity Endorsement Escape Lifestyle Peer approval/Bandwagon Rebel

© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing DecisionsFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

Incentives/Promotions

Incentives/Promotions Add value to the purchase

Examples: price savings, product samples, gifts and contests

Clearance, White Sale, Going-out-of-Business Consumers often purchase full price items when

shopping for the promoted items Need to read the details carefully to ensure money is

actually saved

Slogans

Slogans Short phrases Contain the entire advertising message Use rhythms, puns and alliteration

Quickly attract the attention of consumers and make the messages easy to remember

Slogans

“Think Outside the Bun” Taco Bell

“Go Brown” UPS

“Be All You Can Be” US Army

“Breakfast of Champions” Wheaties

Logos

Logos Pictures or symbols that represent a company Consumers identify a product or company with the

logo Do you recognize these logos?

Beauty Appeal

Beauty Appeal Beauty attracts people

Examples: beautiful people, places and things

Companies often use models to make consumers feel like they will experience the same benefits if they use the specific product

Beauty Appeal

Testimonial/Celebrity Endorsement

Testimonial/Celebrity Endorsement Use celebrities or “professional” individuals to sell

products Consumers are led to believe they will attain

characteristics similar to the individual trying to sell them

Testimonial/Celebrity Endorsement

Revlon

Nike

National Milk Processor Board Got Milk?

© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing DecisionsFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

Escape

Escape The idea of escape is a dream that

consumers desire Example: car companies use beautiful

setting and scenery in advertisements creating a feeling of escape

© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing DecisionsFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

Lifestyle

Lifestyle Associates the product with a particular style of living

Example: a daily vitamin or supplement If consumers purchase the vitamin they will gain

the same active and healthy lifestyle the individual in the advertisement portrays

Lifestyle

Peer Approval/Bandwagon

Peer Approval/Bandwagon Associates product use with friendship

and acceptance Advertisements make consumers feel

like they will not be well-liked if they don’t use a certain product

© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing DecisionsFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

Rebel

Rebel Associates a product with behaviors or

lifestyles that oppose society’s norms Marlboro Man

Unfinished Comparison

Unfinished Comparison The statements in the advertisements

may be true, but are not clear or “finished” Example: Works better in poor driving

conditions. Question? Works better than what?

Advertising Regulations

Federal Trade Commission (FTC) Regulates marketing activities Protects consumers from:

False advertising Misleading pricing Deceptive packaging and labeling

If a consumer feels an advertisement is false they can report it to the FTC

The FTC then issues a complaint If the company continues false advertising they can be

fined $10,000/day for every day they continue the advertisement

The company is also required to provide corrective advertising for any misleading claim

Review

Advertisement How do companies create

advertisements? Advertising techniques Regulations - FTC

Questions?