Bellwork 1-1

1. Bellwork 1-1 • Think of three advertisements you have seen or heard lately: • Describe each advertisement. • Where did you see or hear them? • What type of advertisement was it?

2. Advertising and the Consumer Unit 8 Objective 7.04

3. Role of Advertising • Purpose: To inform consumers about goods and services; to encourage them to purchase • Forms of advertising • Print ads---newspapers, magazines, telephone directories • Direct mail advertising---catalogues, flyers, newsletters • Commercials---radio, television, movies • Infomercials---30-minute ads with demonstrations • Pop-up ads---web pages, emails • Billboards and signs---along the highway, in subways, on buses and trucks

4. Role of Advertising • Benefits for consumers • Helps save money by informing about sales • Helps save time by preventing unnecessary trips to stores • Provide information to help make better purchase choices • Promote health and safety through public service ads • Helps pay the costs of publishing and broadcasting

5. Role of Advertising • Drawbacks for consumers • Annoying ads, commercials interrupt programs, billboards spoil beautiful view • Consumers may be influenced to spend money on unneeded items • Misleading information or statements

6. Role of Advertising • Regulation of ads by Federal Trade Commission • Insures that ads are fair and accurate • Defines advertising standards for publishers and broadcasters • Pay special attention to health and safety claims and ads aimed at children • Monitors national advertising only • Discontinues false/inaccurate ads; orders that monetary damages be paid to customers

7. Advertising and Sales Methods • Incentives and promotions • Clearance sales---to reduce existing inventories of products • Seasonal sales---back to school, January white sales • Going-out-of-business sales---also called liquidation sales • Holiday and miscellaneous sales---Labor Day, Christmas, Valentine’s Day • Other price reductions---“special value” and other terms used

8. Advertising and Sales Methods • Incentives and Promotions • Coupons---entitles bearer to savings on a product • Found in magazines newspapers flyers, Internet • Offered by manufacturers to try their product • Rebates---partial refund of a product’s purchase price • Must mail in form or proof of purchase to get money returned • Companies count on customer not taking time to mail in forms • Sweepstakes and contests • Promote effective way to grab the consumers attention • Many are frauds---must pay handling fee • Spend money to enter---e.g., prize under pop bottle top, Scratch-off cards

9. Types of Advertisements Assignment • You are to find 2 examples of each of the following types of advertisements: • Print Ads (newspaper, magazine, etc) • Direct Mail (flyers, catalogues, etc) • Commercial (radio or tv) • Infomercial (gimmicky, ex: sham whoa) • Online (email, facebook, twitter) • Billboard (side of the road) • For each of these examples answer: • Who was the company sponsoring the ad? • What was the company’s message? • Who was the company’s target audience? • Did you believe the ad was effective? • Complete in PowerPoint and submit to Edmodo by end of class.

10. Bellwork 1-2 • Which illustrates a benefit of advertising---that it helps save money? • A. Ad photos making cold drinks look appealing, then buying an entire case for one person • B. After seeing commercials that stressed a large selection, finding few items of interest • C. Clipping coupons from the paper every week before going to buy groceries • D. Hearing ads on the radio and knowing exactly where to go for the best fresh produce • Which illustrates a drawback of advertising---getting misleading information? • A. Ad photos making cold drinks look appealing, then buying an entire case for one person • B. After seeing commercials that stressed a large selection, finding few items of interest • C. Clipping coupons from the paper every week before going to buy groceries • D. Hearing ads on the radio and knowing exactly where to go for the best fresh produce • Which illustrates a consumer responding to rebates as an advertising and sales method? • A. Being persuaded by a sales associate to purchase the cell phone with the most features • B. Buying a candy bar from the display next to the checkout counter • C. Mailing in proof of purchase and receiving 10% of the purchase price two weeks later • D. Using a newspaper clipping to save $1.50 when purchasing cereal

11. Advertising and Sales Methods • Personal selling • Sales associates in stores • Answer questions, help locate an item • Some work on straight salary, others on commission or a combination of both • Trading up---convincing customer to buy higher-priced item than intended • Telemarketers • Required by law to make it clear they are selling something • Must tell the name of company and avoid forms of deception • Limits are set on time of day to call • Must honor your request to be put on “do not call list” • Never give out credit card, Social Security number, other personal information • Ask for information to be sent in mail

12. Advertising and Sales Methods • Personal selling • Door-to-door sales representatives • Ask for business card for future contact • FTC allows consumers three business days to cancel purchases of $25 or more made in their own homes or a location outside seller’s normal place of business • Seller must provide customer with a cancellation form

13. Advertising and Sales Methods • Store facilities • Arrangement • Locating frequently purchased items in far corners of store • High-profit items in prominent positions/checkout areas to encourage impulse buying • Ambience • Store décor to promote an image and attract target customers • Relaxing music to encourage lingering in the store

14. Advertising and Sales Methods • Advertising Techniques • Slogans and jingles---catchy songs/rhymes to help consumers remember products • Logos---graphics or symbols that represent a company, used to identify products • Beauty appeal---product makes you this beautiful, makes you like this person • Testimonial---positive comments, usually by a famous person, about a product or service • Endorsement---statement of support for a product from a person 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 sell a product by convincing consumers that everyone is rushing to use and enjoy this product; peer approval

15. Advertising and Sales Methods • Advertising Techniques • Rebel---associating products with behaviors that contradict societal norms • Unfinished comparisons---claiming a product “works better” --- better than what? • Group identification---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---playing on fears of consumers: “Use this shampoo-no embarrassing dandruff” • Before-and-after comparison---“before/after” pictures show results of a product/treatment • Traditional values---trying to associate with home and family---e.g., sitting with dad eating peanut butter sandwich the way we always did when we were growing up • Puffery---exaggerated claims or descriptions intended to increase a product’s reputation or appeal; e.g., “great tasting”, “great hair” or “blondes have more fun”

16. Advertising and Sales Methods • Deceptive Advertising • Loss leader---item priced below retailer’s costs to attract customers to a store; often used in food stores • Price comparison---implying prices are below retail value or lower than at other stores • Bait and switch---retailer advertises a product, hoping to persuade customers to come and buy another product at a higher price; customer is often told the “bait” product is “sold out” • False promise of free gifts---customer must buy an item to get the “free” gift • Introductory offer---new merchandise selling at a price that will increase after the initial offer • Deceptive pricing---advertising a “sale” price that is actually no better than everyday price • Hidden catches---details not clearly disclosed---extra charges, processing fees, restrictions

17. Advertising Techniques Assignment • You are to find 8 examples of Advertising Techniques (ex: slogans, beauty appeal, endorsements, rebel, trendsetter, puffery) • You are to find 4 examples of Deceptive Advertising Techniques (ex: loss leader, bait and switch, hidden catches) • For each of these examples answer: • Who was the company sponsoring the ad? • What was the company’s message? • Who was the company’s target audience? • Did you believe the ad was effective? • Complete in PowerPoint and submit to Edmodo by end of class.

18. Bellwork 1-3 • Which illustrates a consumer responding to placement of high-profit items in prominent places as an advertising and sales method? • A. Being persuaded by a sales associate to purchase the cell phone with the most features • B. Buying a candy bar from the display next to the checkout counter • C. Mailing in proof of purchase and receiving 10% of the purchase price two weeks later • D. Using a newspaper clipping to save $1.50 when purchasing cereal • Which is an example of bandwagon advertising? • A. The ad read: "Twenty thousand teens couldn't be wrong. Use Ace and get rid of acne!“ • B. The ad read: "Use Fresh mouthwash. You'll be one of the 'In Crowd'!“ • C. The radio commercial ended with: "Let Soothe and Smooth take you away.“ • D. The spokesperson said that Oops-Away was the best stain remover on the market. • Which is an example of trendsetter advertising? • A. In the commercial, the subject wearing the advertised makeup took a lead role in the group. • B. The ad read: "Use the latest and greatest, the best of the best, use On Cue deodorant." • C. The designer clothing ad showed a slim, attractive young woman wearing a designer outfit. • D. The spokesperson said: "No bad breath, no cold shoulders; stay fresh with Fresh mints."