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FCS 226 Chapter 8 Advertising- What to Look For

FCS 226 Chapter 8 Advertising- What to Look For -...

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Unformatted text preview: Advertising Advertising The Influence of Our Purchases Advertising Advertising Who is the target audience? What is the product promoting? Is it effective? Why? Why not? Is it informative? Is it misleading? Continued… Continued… a. b. c. d. e. What is the appeal to the consumer? (Will be What more than one): more Sex Celebrity Values Intellect Emotions What can consumers do? What 1) Reject mailings -have name removed from list 2) Demand proof of advertising claims -write company, BBB, etc. 3) Fight back -complain 4) Be informed 5) Be cautious Advertising is One Method of Marketing Marketing U.S. advertisers spent $200 billion in the year U.S. 2000 2000 Approximately $450/person/year in the U.S. 55% spent at the national level 45% at the local level Continued… Continued… The top 10 advertisers spend 50% of all money The paid to the five major advertising media paid Super Bowl – more viewers, more expensive more Does the $ spent by advertisers affect media? advertisers How to reach consumers to advertise?? advertise?? TV, radio, magazines, newspapers, direct mail What else?? Billboards, word of mouth, free samples, focus Billboards, groups, tests panels groups, Does it pay to advertise? Does Results are mixed Not all successful companies advertise Not all companies who advertise are Not successful successful Certainly many companies believe it pays to Certainly advertise advertise Economic benefits outweigh the economic Economic costs costs Value of advertising on economic growth is Value minimal minimal 1.) Informational ads -offers useful data about products or services to -offers be sold be -(where things are, etc.) 2.) New products or services: -to make consumers aware of new products Claims of Advertising Claims Continued… Continued… -word-of-mouth is one of the most important -word-of-mouth forms (is too slow to be largely used) forms 3.) New uses for known products -Ex: baking soda Continued…. Continued…. 4.) Advertising prices: -providing price information, avoids shopping, -providing can shop from your chair in the living room can -allows consumers to compare prices Does advertising stimulate competition?? competition?? Advertisers claim it makes competition more Advertisers effective effective May assure product quality, price, service LOCALLY: may stimulate competition (ex: LOCALLY: grocery stores, or claims of “we will not be undersold”) undersold”) Continued… Continued… Some advertise to defend themselves against Some new competitors new Those who compare themselves to others by Those name are usually not first in the market share (companies with No. 1 product do not want to give free advertising to their competition) give Continued… Continued… Advertisers may be spending more money just Advertisers to maintain current sales volume to Competition is difficult to measure, we have Competition so many monopolies and oligopolies, and not a great number of sellers of each product great Criticisms of advertising: Criticisms 1.) Deception of advertising -deceitful ads, overt deception -bait and switch: is illegal, but difficult to -bait enforce enforce -(a product is advertised at a low price [bait], -(a and when the consumer offers to buy, the merchant discourages the Continued… Continued… consumer from buying the product or service consumer and recommends a higher-priced product or service [switch]) service -reduction from list price/manufacturers’ prices -reduction are sometimes deceptive are -be skeptical of “direct from factory”, -be “warehouse sale”, “below our cost”, etc. Continued… Continued… (some moving and/or going out of business sales (some are also deceptive) are 2.) Promoting illth or nealth -ex: alcohol, cigarettes 3.) Promoting dissatisfaction and fear -discard what you have, purchase their new -discard product product Continued… Continued… -ex: cure for baldness, insurance -ex: home security systems 4.) Missing the mark -not effective or annoying -ex: obnoxious jingles, Vern ads, Obsession ads Continued… Continued… 5.) Misuse of art, science, and/or language -twists things, touched up photographs -twists (ex: glamorous food, children’s toys) (ex: -use pseudo science -ex: “iceberg research”: reveals only favorable -ex: results (to the producer) results Continued… Continued… -puffery is overstated, or misused words, it is -puffery legal legal 6.) Encouraging spending -spend to keep the economy going -decide if the purchase is a need or want 7.) Questionable testimonials Continued… Continued… -impress people -dfn: endorsement of a product or service by -dfn: recognized person (ex: Candice Bergen, Burt Reynolds, Oprah, Justin Timberlake, Jessica Simpson) Simpson) Continued… Continued… 8.) Concentration of companies 8.) -some industries are over-advertised -some -ex: cereal, cars, soap, liquor, cigarettes REGULATION: REGULATION: Self-regulation: development by an industry of Self-regulation: minimum standards of conduct (ex: newspapers reject fortune telling and gun ads) newspapers BBB: doubtful claims are investigated, but BBB: may lack $support may Regulation continued… Regulation National Advertising Review Board: industryNational sponsored organization that attempts to attain high standards for national advertising through mediation mediation Work with BBB Federal Government: FTC: Federal Consent order: agreement between agency and Consent merchant to stop an action merchant Cease-and-desist: order by agency requiring Cease-and-desist: seller to discontinue (issued when a law violation is found) violation Different Approaches to Advertising: Advertising: 1.) The basic ad- tells people to buy a product, 1.) shows them what it looks like, repeats over and over again and 2.) Eye appeal- you suggest how good your food 2.) tastes by showing how good it looks or showing people eating the product and enjoying it (emotions) enjoying Continued… Continued… 3.) Happy family appeal- usually shows a 3.) pleasant family situation, implying that your family will also be happy if they use the product advertised product 4.) An expert says- people trust experts. To have 4.) an expert speak up for a product is convincing. You as the consumer You Continued… Continued… must decide if this person really is an expert or must just a famous person endorsing the product just 5.) Famous People - people want to be like the 5.) famous, so when the famous person says to buy a product, they will. But, does a rock group know more group Continued… Continued… about food than you? 6.) Everyone likes it - get on the bandwagon, our 6.) product is so popular you shouldn’t be without it. Don’t be left out it. 7.) Snob appeal- the ad appeals to the person 7.) who wishes to be or feel rich. It’s natural for people to wish that others see people Continued… Continued… them as better in some ways than they actually them are are 8.) Youth appeal- ad writers believe that many 8.) adults wish they were younger than they are. They want to feel young, look young, and sometimes act young sometimes continued… continued… 9.) Symbols- this is a quick way to give message 9.) about a product. (“white tornado” represents how fast and powerful Ajax is. “jolly green giant” represents the health and strength the vegetables are suppose to give you) vegetables Continued… Continued… 10.) It’s new (or improved)- slogans such as a 10.) new package, new flavor, new easy-to-open can, etc., are used to get the buyer’s attention can, 11.) The humble approach- the approach admits 11.) that they are not #1 or not the most popular, but their quality is superior but Last approach Last 12.) Statistics (numbers)- surveys and statistics 12.) are impressive and often persuade people to buy, especially if the results in the survey were good good ...
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