advertising dont park under this ad!. lets think… why do businesses advertise? what are brand name...
TRANSCRIPT
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?
What are these advertisements for?
Taste the rainbow…
Just do it!
Where do we see advertising?
• Magazines • Commercials • Movie Preview • Product
Placement • Billboards • Freebies
• Bumper Stickers• Sporting Fields • Internet• Events • Mail • Stores
THE AVERAGE AMERICAN IS EXPOSED TO 3,000 ADS
EACH DAY!
Brand Advertising
If you remember their name, you’ll buy their products
Slogans, Jingles, logos
Lets take a look at some classics…..
Classic Slogans and Jingles
Brand Advertising
• Benefits– Loyalty– Time
• Costs– Increase price of product
Informative Advertising
• Informs 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 Advertising
Comparing 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
Persuasive Advertising
• Appeals 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 Advertising
• How 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!– Cokespent $2.1 BILLION!
Consumer Problems with Ads
• FTC 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 advertising – deliberately 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 bargain• Lower prices than
customary• Before it can go on
sale a retailer must sell the item regularly at the nonsale price
Competitive Pricing
• Retailer cannot legally say that its prices are lower than a competitor’s without actual proof
• Only imply lower prices
• Do not provide proof
Trading Up• Practice 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 practice
• Generally the retailer makes a bigger profit on more expensive items
• Be prepared to say NO!!!
Deceptive Practice
Examples• Companies 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.
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.
Loss Leader
• The 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
Consumers Union
• Consumer Report Magazine– Test Products and rates them on the
basis of quality
Consumer Reports Online
Terry TateOffice Linebacker
Terry Tate