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

2. 1.2.3.G1 © 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 Why do we buy what we buy? Who or what influences our spending habits? Family Friends Media Advertising

3. 1.2.3.G1 © 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 Advertising Advertise 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

4. 1.2.3.G1 © 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 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

5. 1.2.3.G1 © 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 Who is the target audience? Advertisements for female clothing

6. 1.2.3.G1 © 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 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

7. 1.2.3.G1 © 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 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 doesnt 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

8. 1.2.3.G1 © 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 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

9. 1.2.3.G1 © 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 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!

10. 1.2.3.G1 © 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 Analyze this Ad Target audience Desired lifestyle Gain Attention Prestige Layout Persuasion 5 star ratings Picture

11. 1.2.3.G1 © 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 Advertising Techniques Incentives/Promotions Slogans Logos Beauty Appeal Testimonial/Celebrity Endorsement Escape Lifestyle Peer approval/Bandwagon Rebel Unfinished Comparison

12. 1.2.3.G1 © 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 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

13. 1.2.3.G1 © 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 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

14. 1.2.3.G1 © 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 Slogans Think Outside the Bun Taco Bell Go Brown UPS Be All You Can Be US Army Breakfast of Champions Wheaties

15. 1.2.3.G1 © 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 Logos Pictures or symbols that represent a company Consumers identify a product or company with the logo Do you recognize these logos?

16. 1.2.3.G1 © 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 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

17. 1.2.3.G1 © 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 Beauty Appeal

18. 1.2.3.G1 © 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 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

19. 1.2.3.G1 © 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 Testimonial/Celebrity Endorsement Revlon Nike National Milk Processor Board Got Milk?

20. 1.2.3.G1 © 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 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

21. 1.2.3.G1 © 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. 1.2.3.G1 © 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 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

23. 1.2.3.G1 © 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 Lifestyle

24. 1.2.3.G1 © 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 Peer Approval/Bandwagon Associates product use with friendship and acceptance Advertisements make consumers feel like they will not be well-liked if they dont use a certain product

25. 1.2.3.G1 © 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. 1.2.3.G1 © 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 Rebel Associates a product with behaviors or lifestyles that oppose societys norms Marlboro Man

27. 1.2.3.G1 © 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 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