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Advertising

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  • 1. Advertising… Do you know what you want? “Take Charge of Your Finances”
  • 2. 1.2.3.G1 © 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 Why do we buy what we buy? □ Who or what influences our spending habits? □ Family □ Friends □ Media □Advertising
  • 3. 1.2.3.G1 © 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 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
  • 4. 1.2.3.G1 © 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
  • 5. 1.2.3.G1 © 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 Who is the target audience? □ Advertisements for female clothing
  • 6. 1.2.3.G1 © 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 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
  • 7. 1.2.3.G1 © 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 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
  • 8. 1.2.3.G1 © 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 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
  • 9. 1.2.3.G1 © 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 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!
  • 10. 1.2.3.G1 © 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
  • 11. 1.2.3.G1 © 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 Advertising Techniques □ Incentives/Promotions □ Slogans □ Logos □ Beauty Appeal □ Testimonial/Celebrity Endorsement □ Escape □ Lifestyle □ Peer approval/Bandwagon □ Rebel □ Unfinished Comparison
  • 12. 1.2.3.G1 © 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 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
  • 13. 1.2.3.G1 © 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
  • 14. 1.2.3.G1 © 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 □ “Think Outside the Bun” □ Taco Bell □ “Go Brown” □ UPS □ “Be All You Can Be” □ US Army □ “Breakfast of Champions” □ Wheaties
  • 15. 1.2.3.G1 © 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 Logos □ Logos □ Pictures or symbols that represent a company □ Consumers identify a product or company with the logo □ Do you recognize these logos?
  • 16. 1.2.3.G1 © 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 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
  • 17. 1.2.3.G1 © 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 Beauty Appeal
  • 18. 1.2.3.G1 © 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 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
  • 19. 1.2.3.G1 © 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 Testimonial/Celebrity Endorsement □ Revlon □ Nike □ National Milk Processor Board □ Got Milk?
  • 20. 1.2.3.G1 © 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 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
  • 21. 1.2.3.G1 © 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
  • 22. 1.2.3.G1 © 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
  • 23. 1.2.3.G1 © 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
  • 24. 1.2.3.G1 © 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 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
  • 25. 1.2.3.G1 © 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
  • 26. 1.2.3.G1 © 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
  • 27. 1.2.3.G1 © 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 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?
  • 28. 1.2.3.G1 © 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 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
  • 29. 1.2.3.G1 © 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 Review □ Advertisement □ How do companies create advertisements? □ Advertising techniques □ Regulations - FTC
  • 30. Questions?

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