Advertising… Do you know what you want? Take Charge of Your Finances.

Advertising…Do you know what you want?

“Take Charge of Your Finances”

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© 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

Why do we buy what we buy?

□Who or what influences our spending habits?□Family□Friends□Media

□Advertising

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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

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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

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Who is the target audience?

□Advertisements for female clothing

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□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

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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

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□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

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□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!

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Analyze this Ad

□Target audience□Desired

lifestyle

□Gain Attention□Prestige□Layout

□Persuasion□5 star ratings□Picture

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Advertising Techniques

□Incentives/Promotions□Slogans□Logos□Beauty Appeal□Testimonial/Celebrity Endorsement□Escape□Lifestyle□Peer approval/Bandwagon□Rebel□Unfinished Comparison

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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

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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

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Slogans

□“Think Outside the Bun”□Taco Bell

□“Go Brown”□UPS

□“Be All You Can Be”□US Army

□“Breakfast of Champions”□Wheaties

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Logos

□Logos□Pictures or symbols that represent a

company□Consumers identify a product or

company with the logo

□Do you recognize these logos?

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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

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Beauty Appeal

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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

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Testimonial/Celebrity Endorsement

□Revlon

□Nike

□National Milk Processor Board□Got Milk?

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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

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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

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Lifestyle

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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

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Rebel

□Rebel□Associates a product with behaviors or

lifestyles that oppose society’s norms□Marlboro Man

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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

Advertising… Do you know what you want? Take Charge of Your Finances.

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