Role of Advertising

PRINT AD  An ad in a newspaper, magazine, telephone directory, or other publication

DIRECT MAIL ADVERTISING  Printed advertising sent by mail to consumers’ homes

COMMERCIAL  A brief, one minute or less, TV or radio ad used to promote a product

INFOMERCIAL  A TV or radio ad that promotes a product and lasts 30 minutes or longer

POP-UP AD  An ad that suddenly appears on a web page or in an message

BILLBOARD  An ad posted on a sign along the highway

FEDERAL TRADE COMMISSION (FTC)  An agency that regulates advertising to ensure that ads are fair and accurate

Advertising and Sales Methods

CLEARANCE SALE  Sale to reduce existing product inventories

SEASONAL SALE  Sale at particular times of year

GOING-OUT-OF-BUSINESS SALE  Sale when a business is being liquidated

HOLIDAY SALE  Sale during a holiday time

INCENTIVE  A reward used to encourage spending

COUPON  A small paper clipping that entitles the holder to savings on a product

REBATE  A partial refund of a product’s purchase price

SWEEPSTAKES  A drawing to select a winner of money or valuable prizes

COMMISSION  A percentage of sales income given to the salesperson

TRADING UP  Convincing customers to buy higher-priced items than they intended

TELEMARKETER  A person who sells a line of products over the telephone

DOOR-TO-DOOR REPRESENTATIVE  A person who goes house to house selling a line of products

DÉCOR  The way in which a store or place of business is decorated

SLOGAN/JINGLE  Catchy songs, rhymes, phrases used to help consumers remember products

LOGO  Graphics or symbols that represent a company, used to identify products

BEAUTY APPEAL  Product that makes you this beautiful, makes you like this person

TESTIMONIAL  A positive statement made by a person who is endorsing a product or service---usually, a famous person

ENDORSEMENT  An advertising message that reflects opinions, beliefs, findings, or experiences of a person or group other than the advertiser

ESCAPE  Associating products with beautiful, adventurous settings to create the illusion of escape for viewers

LIFESTYLE  Associating a product with a desirable style of living

BANDWAGON  Attempting to convince consumers that everyone is using the product

REBEL  Associating products with behaviors that contradict societal norms

UNFINISHED COMPARISON  Claiming a product “works better”---better than what?

GROUP IDENTIFICATION  A message that, if you use this product, you will fit in with this group

TRENDSETTER  A message that, if you use this product, you will stand out from the crowd

HIDDEN FEARS  A strategy of playing on the fears of consumers

BEFORE-AND-AFTER COMPARISON  “Before” and “after” pictures show results of a product or treatment

TRADITIONAL VALUES  Trying to associate with home and family

PUFFERY  Exaggerated claims intended to increase a product’s reputation or appeal

LOSS LEADER  An item priced below the retailer’s costs in order to attract customers

PRICE COMPARISON  Offering products below retail value or implying that the same item is sold at higher prices at other stores

BAIT AND SWITCH  A retailer advertises a product that it has no intention of selling, hoping to persuade consumers to come and buy a product at a higher price; customer is often told that the “bait” product is “sold out”

FALSE PROMISE  A promise of a free gift that actually requires that another item be bought first

INTRODUCTORY OFFER  Indicates new merchandise selling at a price that will soon increase

DECEPTIVE PRICING  Advertising a “sale” price that is actually no better than the everyday price

HIDDEN CATCH  When details of an offer are not all clearly disclosed---extra charges, processing fees, other restrictions