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

2. Why do we buy what we buy? Who or what influences our spending habits?
Family
Friends
Media
Advertising
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

3. Advertising Advertise Advertiser Advertisement
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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

4. 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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

5. Who is the target audience?
Advertisements for female clothing
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

6. How do companies create advertisements?
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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

7. 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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

8. How do companies create advertisements?
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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

9. How do companies create advertisements?
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!
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

10. Analyze this Ad Target audience Gain Attention Persuasion
Desired lifestyle
Gain Attention
Prestige
Layout
Persuasion
5 star ratings
Picture
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

11. Advertising Techniques
Incentives/Promotions
Slogans
Logos
Beauty Appeal
Testimonial/Celebrity Endorsement
Escape
Lifestyle
Peer approval/Bandwagon
Rebel
Unfinished Comparison
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

12. 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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

13. 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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

14. Slogans “Think Outside the Bun” “Go Brown” “Be All You Can Be”
Taco Bell
“Go Brown”
UPS
“Be All You Can Be”
US Army
“Breakfast of Champions”
Wheaties
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

15. Logos Logos Do you recognize these logos?
Pictures or symbols that represent a company
Consumers identify a product or company with the logo
Do you recognize these logos?
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

16. 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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

17. Beauty Appeal
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

18. 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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

19. Testimonial/Celebrity Endorsement
Revlon
Nike
National Milk Processor Board
Got Milk?
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

20. 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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

21. © Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

22. 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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

23. Lifestyle
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

24. 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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

25. © Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

26. Rebel
Rebel
Associates a product with behaviors or lifestyles that oppose society’s norms
Marlboro Man
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

27. Unfinished Comparison
The statements in the advertisements may be true, but are not clear or “finished”
Example: Works better in poor driving conditions.
Question? Works better than what?
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

28. 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
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

29. Review Advertisement How do companies create advertisements?
Advertising techniques
Regulations - FTC
© Family Economics & Financial Education – March 2007 – Consumer Decisions Unit – The Impact of Advertising on Purchasing Decisions
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

30. Questions?