Download Advertising and Consumerism

Introduction to Business
Confronting Issues with Images
 A corporation just might be watching you. What you
buy. How you act. Anything that pushes your buttons
is of interest to corporations that have something to
sell.
 What they sell you is a product through an image.
Buying a product when there’s an image attached—
that something that makes you look better or cooler—
is exactly what the company wants you to do. This way
you help their profits.
Advertising Media
 Advertisements are everywhere you look. You see them
on TV, in movie theaters, on the streets, at checkout
counters, in magazines, on the Internet and on Tshirts!
 The average person sees hundreds of ads each week. In
a world with so many choices for essential the same
product, advertisers use their wit, wisdom, and
originality to get consumers’ attention.
Advertising
 Often companies with deep pockets gobble up the
market share by spending the most on advertising
campaigns.
 Advertising is the paid, nonpersonal form of
communication that businesses use to promote their
products. Creating and using a catchy advertising
slogan over and over again is one way a company sells a
product.
Mass Media
 Most ads consist of short messages designed to attract
your attention, identify a product, and tell you
something about it. They are sent using one or more
types of mass media.
 Mass media are means of communication such as TV,
radio, newspaper, Internet. The type of medium an
advertiser uses depends on the market it wants to
reach.
Print Media
 Print media uses writing and pictures to communicate.
It includes, newspapers, magazines, signs, and
billboards. In fact, the age of advertising began with
the invention of the printing press in the fifteenth
century. Fliers could be mass produced and put in
newspapers or posted in public places.
Print Media
 Newspapers
 Magazines
Direct-Mail Advertising
 Consists of ads sent by mail to people’s homes. It is the
biggest advertising medium after TV and newspapers.
Direct mail allows advertisers to reach a specific target
market. A business can put together a mailing list of
customers according to a certain demographic.
Direct Advertising Formats
 Letters, fliers, postcards, and catalogs, coupons,
samples.
 Direct mail can also be used to make sales by including
order forms.
 The cost of sending ads through the mail can be very
high. Mailing lists have to be constantly updated.
Direct mail is often referred to as “junk mail” because
people who receive direct-mail ads often throw it away.
Broadcast Media
 Broadcast media (primarily TV and radio) are the most
effective means of advertising.
 The popularity of broadcast media makes it possible
for advertisers to read a mass audience.
 Forms of broadcast media:
 TV
 Radio
 Webcasting
Television
 Television has an advantage over any other media
because it combines sounds, images, and motion.
Advertisers can be more informative, entertaining, or
creative with TV ads. Some ads are so effective that
they become part of our everyday language.
 TV ads can be shown on national or local stations to
reach any kind of market. Advertisers can also reach
target markets by showing ads during certain types of
shows. Ads for an animated movie are shown during
Saturday morning cartoons.
TV used as Advertising
 Most TV ads are 30- or 60-second “spots” Another type
of TV ad is the infomerical.
 An infomerical is a TV program, usually 30 minutes
long, made to advertise a product. It is often set up like
a talk show with a live studio audience and a celebrity
guest who demonstrates the product.
Radio
 Radio ads can reach a very wide audience. Radio ads
may not be as effective as TV or even magazine ads,
because they can’t use images.
 Radio uses music, dialogue, and sound effect creatively
to get an audience’s attention.
Consumer
 Person who buys and uses good or services.
 A wise consumer is an informed consumer.
 Customer is a person who purchases a product or
service, but may not be the final user.
Advertising
 Widely available and popular
 Main purpose is to convince you to buy a product or
service.
 Used carefully—it is a source of information.
Labels
 Attached to or printed on a product.
 Provides useful written information about a product.
 Label can include:
 Content of a product
 Care and use
Opportunity Cost
 The value of any alternative that you give up when you
buy something else or make another choice.
Comparison Shopping
 Comparing the price, quality, and services of products.
 Studying ads to determine of what is being offered on
sale is a real value.
 Smart consumers are comparison shoppers.
Unit Price
 A price per unit of
measure
Calculate Unit Price
 Divide the price of the
item by the number of
units per measure.
Promotional Sales
 Sales in which businesses promote the sale of regular
merchandise by reducing prices
 Retailers do this when:
 Opening a new store
 Introducing an new item
 Introducing a new store
Clearance Sales
 Used to clear
merchandise that stores
no longer want to carry.
 End of season items,
discontinued items, or
out-of-date items.
Deciding How to Buy
 Business’s Reputation
 Brand Names or National Brands
 Types of Businesses
Business Reputation—it’s
important
 Most valuable business asset is a good reputation.
 Good reputation means
 Knowledgeable sales people
 Excellent customer service
 Wants to satisfy customers
 Ethical business practices
Brand Names
 Name of a product or
service that is intended
to distinguish it from
competitors products.
 Designed to build
customer loyalty.
Generic Brands
 Store brands
 Lower cost because don’t
require advertising and
fancy packaging.
 Saves manufacturer
money.
Types of Retailers
 Full-service stores
 Discount stores
 Specialty stores
 Factory outlet stores
 Supermarket
 Warehouse market
 Convenience stores
Full-Service Stores
 Offer a wide variety of goods and emphasize customer
service.
 Often called department stores
 Usually have higher prices.
 Service likely provided:
 Delivery
 Gift wrapping
 Personal shopper
Discount stores
 Focus is on lower prices
 Base success on high volume of sales and low prices.
 Limited services for customers
Specialty Stores
 Stores that have a special line of products.
 Wide variety in a narrow line
 Sporting goods
 Jewelry
 Women’s shoes
Factory Outlet Stores
 Have a reputation for selling high quality items at low
prices.
 Direct from factory
 May have minor flaws
Food Retailing Categories
 Supermarket
 Warehouse market
 Convenience stores
Supermarket
 Large
 Full-service
 Carries a wide variety of national, store and generic
brands
 Moderately priced
Warehouse market
 NO FRILLS
 Food outlet
 Emphasizing the sale of large quantities
Convenience Stores
 Small
 Emphasize the sale of food items
 Accessible location
 Long operating hours
 Stock popular items at higher prices
Factors that influence
consumers
 Peer pressure
 Impulse buying
 Desire for status
 Advertising techniques
Impulse buying
 Buying too rapidly
without giving much
thought to whether you
can do without a
purchase.
Desire for status
 Appealing to people’s
desire for success,
wealth, status, beauty,
success.
Advertising
Advertising—A need to sell
 Make a statement; sell a product
 Colorful and attractive
 It needs to crab attention
 Appealing to the consumer
Purpose of advertising
 To attract consumers,
 Inform consumers about products and services.
 Persuade consumers to buy.
Advertising Techniques
 Endorsement
 Testimonial
 Bandwagon
 Snob appeal
 Emotional appeal
Endorsement
 A well-known person
uses a product and
suggests that other buy
it.
Testimonial
 Spokesperson talks
about their personal
experience with the
product.
Bandwagon
 Everyone else has an
iPod.
 Personal buys because
associates it with
friendship and
acceptance.
Snob appeal
 Buy things because they
make you look successful
and rich!
Summary--Advertising
 To attract
 Testimonial
 To inform
 Endorsement
 To persuade
 Bandwagon
 Snob Appeal
Questions!