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
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
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
© 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
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