1. The Wonderful World of ADVERTISING Chapter 1.5

2. Why advertise? Make a profit! Make a profit!

3. Where do we see advertising? Newspapers Newspapers Magazines Magazines Commercials Commercials Movie previews Movie previews Billboards Billboards Freebies Freebies Bumper stickers Bumper stickers T-shirts T-shirts Sporting fields Sporting fields US Cellular Field Events Events Gillette Million $ Challenge Mail Mail Stores Stores End caps

4. Ads can.. Inform Inform Entertain Entertain Entice Entice

5. Brand Advertising If you remember their name, you’ll buy their product! If you remember their name, you’ll buy their product! Jingles Jingles Benefit of brands Benefit of brands If you like one brand, you can depend on the rest. If you like one brand, you can depend on the rest. Costs added to product Costs added to product GENERIC GENERIC HANDOUTS!

6. Informative Advertising Inform you about a product’s features and benefits Inform you about a product’s features and benefits Complex items or technical products Complex items or technical products Infomercials ?? Infomercials ??

7. Comparative Advertising Comparing products Comparing products Tooth whitening (strips, paint) Tooth whitening (strips, paint) Shows competitors’ weaknesses Shows competitors’ weaknesses Although exaggerated, may help Although exaggerated, may help

8. Defensive Advertising Counter attacks from competitors Counter attacks from competitors Philip Morris Philip Morris Does not provide a complete picture Does not provide a complete picture

9. Persuasive Advertising Appeals to your emotions to buy Appeals to your emotions to buy Doesn’t provide much useful information Doesn’t provide much useful information Owning this product will make you: Owning this product will make you: Happier Happier More successful More successful More satisfied More satisfied Ignore these – evaluate realistically Ignore these – evaluate realistically

10. More on Advertising How much was a 30-second commercial during the Super Bowl? How much was a 30-second commercial during the Super Bowl? Businesses spend $200 billion/year in advertising Businesses spend $200 billion/year in advertising Price reflected in cost of product Price reflected in cost of product Advertising = Higher sales = larger volume = lower costs = lower price to consumers Advertising = Higher sales = larger volume = lower costs = lower price to consumers

11. Deceptive Practices Deceptive advertising – deliberately misleads consumers Deceptive advertising – deliberately misleads consumers PUFFERY – innocent exaggeration (legal) PUFFERY – innocent exaggeration (legal) FACTUALLY WRONG – peanlties but hard to prosecute (sweepstakes) FACTUALLY WRONG – peanlties but hard to prosecute (sweepstakes) vague but difficult to prove vague but difficult to prove Is it really a sale? Is it really a sale?

12. Deceptive Advertising Courts ruled that companies cannot advertise “free” if customers are required to buy something to receive it. Courts ruled that companies cannot advertise “free” if customers are required to buy something to receive it. “All expenses paid.” “All expenses paid.” Photographs to imply Photographs to imply

13. Remember! The producer wants to make money! The producer wants to make money! You will only hear the positive side. You will only hear the positive side. You only hear and see what they WANT you to hear and see. You only hear and see what they WANT you to hear and see. Evaluate all your options thoroughly Evaluate all your options thoroughly