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Advertising Chapter 32 1 Advertising Chapter 32 1

Main purpose of advertising… § Make people want to buy what they are selling Main purpose of advertising… § Make people want to buy what they are selling § Business’s spend tens of billions of dollars § Some directed towards other business’s but mostly its directed towards consumer 2

Power of Advertising § Consider how easily ads become part of popular culture § Power of Advertising § Consider how easily ads become part of popular culture § Preschoolers recite jingles § Ads become a shared experience that brings people together 3

Consumers are…. § People who buy and use products and services § Able to Consumers are…. § People who buy and use products and services § Able to make decisions about where and when to spend their money 4

Advertisements § Pros § Help shoppers with information § Inform of new products or Advertisements § Pros § Help shoppers with information § Inform of new products or businesses § Announce improvements § Shoppers can compare § Cons § Impulse buying § Buy products you don’t need § Get inferior products 5

Advertising Media § Print Advertising § Buy space in newspaper (local advertising) § Magazines Advertising Media § Print Advertising § Buy space in newspaper (local advertising) § Magazines – reach general audience to specific, ie –retired people or teens 6

§ Electronic Advertising § Infomercials – programs are usually devoted to selling one product § Electronic Advertising § Infomercials – programs are usually devoted to selling one product and included demonstrations and ordering information § Consists of radio and television § Buy airtime instead of space § 30 to 60 seconds during and between program time 7

Television Sweeps Weeks § § § 3 times a year Help set advertising rates Television Sweeps Weeks § § § 3 times a year Help set advertising rates “network premieres” are aired to draw in more viewers § Charge more for airtime 8

Computer Use § Can use computer today § Banner ads § Coalition Against Unsolicited Computer Use § Can use computer today § Banner ads § Coalition Against Unsolicited Commercial E-mail can be found at www. cauce. org § Focuses on solutions and efforts to control spam through legislation 9

§ Direct Mail Advertising § Direct mail ads are ads delivered directly to consumers’ § Direct Mail Advertising § Direct mail ads are ads delivered directly to consumers’ homes § Catalogs, circulars, coupon booklets § Other Advertising Formats § Students wearing clothing with designer label § Billboards § Business’s neon sign § E-bay sold space on someone’s forehead § Blimps and race cars § Athletic events 10

School Districts § Districts sell space on sides of buses to advertisers § District School Districts § Districts sell space on sides of buses to advertisers § District have accepted Channel 1’s offer to install television set in their classrooms provided student watch the station’s daily news show § 1. do these decisions compromise school’s integrity? § 2. Endorse commercialization? 11

Types of Advertising § Information ads § One that highlights specific information about a Types of Advertising § Information ads § One that highlights specific information about a product, such as its size, color, price and special features § Supplies facts § Image ads § Ads that attempt to associate a product with a popular image or positive emotion § Ads feature glamorous people driving sports cars § Famous people sipping soft drinks 12

Advertising Techniques § Attention-getting headlines § “Best Deal in Town” § “Tremendous Savings” § Advertising Techniques § Attention-getting headlines § “Best Deal in Town” § “Tremendous Savings” § “Lose 10 pounds in 1 week” § Demonstration § Show one or more advantages of a product or service, ie paper towels (strength) 13

§ Testimonials § Celebrities are paid to endorse product § Customers who used and § Testimonials § Celebrities are paid to endorse product § Customers who used and liked product § Actor portraying a doctor or someone in authority § Animation § Identify product with cartoon character 14

§ Presenters § Give facts about product § May be a professional announcer § § Presenters § Give facts about product § May be a professional announcer § Officials with company § Actor portraying the chef who is selling a certain spice, etc 15

§ Emotional appeals § Ad promises you will be happier, smarter, more popular and § Emotional appeals § Ad promises you will be happier, smarter, more popular and attractive § More athletic § Slogans and jingles § Catchy slogans § Set to music 16

§ Traveling salesmen once sold “patent medicines” said to cure all kinds of ails § Traveling salesmen once sold “patent medicines” said to cure all kinds of ails § Some flavored syrups § Others were alcohol § “Patent medicine” is now a drug that can be sold without a prescription 17

§ The United States’ advertising industry is the world’s biggest with a yearly outlay § The United States’ advertising industry is the world’s biggest with a yearly outlay of more than $131 billion. § Madison Avenue , New York City address of many ad agencies’ main offices, have become a synonym for the industry. 18

Public Relations § PR experts place ads and encourage news outlets to feature clients Public Relations § PR experts place ads and encourage news outlets to feature clients in positive stories § Advise clients on how to deal with media and with consumers 19

Regulating Advertising § Advertisers can be challenged legally for making false or misleading representations Regulating Advertising § Advertisers can be challenged legally for making false or misleading representations about their products § Regulated by the federal government § FTC- Federal Trade Commission § Can force advertisers to prove their claim § May be required to run new ad 20

§ Consumers may complain when they believe that an ad is deceptive § Attorney § Consumers may complain when they believe that an ad is deceptive § Attorney General of ND § http: //www. ag. state. nd. us/ (website) § State Capitol 600 E. Boulevard Ave. Dept. 125 Bismarck, ND 58505 § ndag@state. nd. us 21

Making Evaluations § Separate facts from fiction § Be skeptical of promises that seem Making Evaluations § Separate facts from fiction § Be skeptical of promises that seem too good to be true 22

§ 1. Unclear wording § Can, often, many, value point to misleading information § § 1. Unclear wording § Can, often, many, value point to misleading information § $59. 00 value is what advertiser values not what it is worth 23

§ 2. Misleading sale pricing § Advertise a sale price that is not a § 2. Misleading sale pricing § Advertise a sale price that is not a bargain § Price they state for retail is high-than-normal 24

§ 3. Bait and switch § Advertising that is used to draw the buyer § 3. Bait and switch § Advertising that is used to draw the buyer into a store under false pretenses § Learn low-priced product in ads are out of stock or in poor quality § Salesperson steers you to another more expensive product 25

Vitamins § Ads for nutritional supplements and diet aids are often an example of Vitamins § Ads for nutritional supplements and diet aids are often an example of misleading advertisements. § Claim to be healthy § Organic, natural 26

Activity § § § In pairs, chose 2 ads. Analyze the ads for fact Activity § § § In pairs, chose 2 ads. Analyze the ads for fact and opinion. Identify statements that are factual and those that express opinion 27

Activity § Keep a list of 10 ads seen in one day. § § Activity § Keep a list of 10 ads seen in one day. § § § Make a list of the medium for the ads. Is it an image or informational ad? What advertising techniques are used? 28

Activity § Write a complain letter to the attorney general 29 Activity § Write a complain letter to the attorney general 29