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

Advertising To call public attention to a product or service 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 © Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions Funded 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 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

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

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

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

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 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?

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

Lifestyle

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 Decisions Funded 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 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?