Advertising and the Consumer 22.2

Objectives Explain advantages and disadvantages of advertising Identify different advertising techniques Describe sales traps to advoid

ROLE OF ADVERTISING Sellers of goods and services use advertising to attract potential buyers. Advertising is any type of public notice or message intended to aid in the sale of a product or service Ad are all around us in newspapers, magazines, television, buses, signs, billboards, and the web Direct-mail advertising is a type of advertising you receive through mail Advertising is important for both buyers and sellers

ROLE OF ADVERTISING Without advertising many of your favorite programs would go off air Advertising has disadvantages. Consumers pay for it. The cost of advertising often ranges from 0 to 5 percent of the selling price per a product or service.

ADVERTISING TECHNIQUES To get us to remember their produces or services, advertisers use means such as pictures, slogans and jingles( catchy tunes and slogans) Advertiser use proven methods Endorsements – Famous people present the advertising message. Familiarity – Hearing a jingle over and over the advertiser want you to become familiar with it. Association – Often seen during the holiday season. Intellectual appeal – Products claim to help you become more informed or better educated. Health and comfort – Use for products such as aspirin, skin cream, and vitamins. Tells you how much the produce will improve your health or make you feel better.

ADVERTISING TECHNIQUES Goodwill – Some advertiser work hard to create a good public image. Successful living –This approach appeals to people’s desire for success, wealth status, or beauty. Emotional appeal – Many ads contain messages related to happiness, friendship, and other pleasant emotions Economic appeal – Messages about spending, saving, and making money are featured in many ads. Conformity – This approach encourages you to by something because someone else has it. Scare tactics – Avoid situations what are dangerous, embarrassing, or otherwise unpleasant. This ad wants you to think you’ll have an accident if you don’t use the product.

SALES TRAPS Problems occur when advertising is misleading. Be alert to the following deceptive practices. False pricing – When consumers see a price market down they naturally believe it is a bargain. Some merchants raise the price before marking it down. Bait and switch – This occurs when an ad offers a product or service that isn’t available. The ad was used as bait to get you to the store. The clerk then tries to sell you a more expensive cut (the switch). Referral sale plans- A few sellers of services and expensive products use this technique.

SALES TRAPS Unclear, untrue, and overstated claims- Some products are advertised as being improved or lasting longer. Others use descriptions like stain resistant or never need iron. Ads say a product is guaranteed or often unclear and untrue. Guarantee- A pledge that something is exactly as stated or advertised. Clever sales tactics- Salespeople use various techniques to get you to buy.

CHECK POINT Advertising has advantages and disadvantages for consumers. Name two of each. Identify the advertising technique used in each of the following ads: (a) a famous person speaks for the product, (b) a company provides athletic uniforms with its name on them, (c) a company explains how its products will make you more attractive, (d)you are told how a certain serveice will save you money, (e)an accident or other dangerous situation is shown What is meant by “bait and switch” Give an example.