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A slogan is a memorable motto or phrase used in a political, commercial, religious and other context as a repetitive expression of an idea or purpose. Source:wikipedia • Descriptive: • For an uncommon or confusing product • a tagline can add clarity. • Benefit Based: • help customers visualize value and focusing attention on a benefit • Point of Difference: • In a highly competitive market place, moving beyond the benefit to what makes the brand better can help it stand out. • Witty Catchphrase • Personality: establish the brand's personality. • Visionary: suggests the image of the company can be very Provocative or Motivating: Telling customers what to do • why a brand is important can motivate action Resources: http://www.fastcompany.com/articles/20 08/09/the-best-advertising-slogans-ofall-time.html?page=0%2C0 http://www.adglitz.com/2010/08/24/topn-best-100-ad-slogans-taglinespunchlines-advertising-campaigns/ Lesson 1-1 pg 4: Needs and Wants Three criteria must be met for communication to be classified as advertising: 1. The communication must be paid for. 2. The communication must be delivered through mass media. 3. The communication must be attempting to persuade. 1–6 Copyright © 2006 Thomson Business and Economics. All rights reserved. Individuals own the resources and run the business (not the government) Purpose is to earn profit Dictated by Supply and Demand Supply Demand Supply increases with Price increases Demand increases as the price decreases CONSUMER: someone who uses products What consumer decisions did you make today before leaving home? NEED: something you cannot live without EX? WANT: something that you would like to have but can live without EX? How much do you need? Food at grocery store vs. dining at expensive restaurants Style vs. Function Coat from Abercrombie vs. Coat from Kohl's What’s the Difference? •Defined: everything that affects or is affected by consumer consumption (use) •Impacts purchasing decisions •Need it now or buy on sale later or online? •Functional or Emotional? •Ex 1.Design a market Strategy 2.Stand out of the Crowd 3.Contribute to revenue and profit earning 4.Enhance customer satisfaction Used to Promote and distribute a Product Define a difference between product and other similar products-must think it is different EXAMPLE Name Brand vs. Store Brand Define the market (type of person) that would buy the product and design your advertisement for a specific individual Ex Car vs. Truck Advertisement should help generate sales/increase sales if successful Ad should continue to reinforce the consumers reason for purchasing the product Functional Emotional Reg. washer and The product dryer or Steam makes you feel Washer/Dryer? proud or satisfied Cheap tires (don’t last as Toyota vs. Lexus long) vs. Same Head Expensive tires company that last longer House vs. apartment $$ Consumers spend 98% of income How much is saved for every $100 earned? Most spend more than they earn? Credit Cards/Loans Results: financial trouble (take accounting!) Bankruptcy How do your needs and wants determine what you buy? There were 1,408,041 bankruptcy filings in 1998. In 1990,that number was 718,107. Calculate the percent of increase in bankruptcy filings between 1990 and 1998. Hint*** To determine the percent of increase, first subtract the number of filings from 1990 from 1998, then divide the results by the number 1990 filings 1408041-718107 =.96 or 96% 78107 Bankruptcy increased by 96% from 1990 to 1998 How do you choose what you buy? Advertisement: •a paid public announcement •emphasis on desirable qualities of the product or service • intent to persuade you to buy an product or service •What Makes a Great Ad Three criteria must be met for communication to be classified as advertising: The communication must be paid for. The communication must be delivered through mass media. The communication must be attempting to persuade. 1–23 Copyright © 2006 Thomson Business and Economics. All What is this image advertising? Consumers are people who buy a product • for their own or someone else’s personal use. Reach • total number of different people or households exposed to an advertising message during a given time, usually four weeks. Frequency • number of times the same person or household is exposed to an advertising message in a specified time span. • Mass media, • Medium = • Radio Channel of • Television Communication • Paid method of presenting an ad to its target market • • • • • Newspapers Magazines Internet Billboards direct mail • Word of Mouth (WOM) • communication medium • not an advertising medium • Traditional Media, newspaper, television, and radio • Addressable Media, direct mail and email • Interactive Media, kiosks and the Internet • Non-traditional Media, shopping carts, blimps, videos/movies, sponsorships • newspapers and magazines • that sells advertising space to a variety of advertisers • Most newspapers are local • Most magazines are national but publish localized and specialized editions • Directories-Yellow pages; • school or church newspapers and yearbooks; • programs used at sporting events and theatrical performances Includes radio, television, and cable broadcasts U.S. Statistics More than 1,000 local commercial TV stations, in addition to major networks, including ABC, CBS, NBC, and Fox Nearly 10,000 local radio stations, More than 10,000 local cable systems Cable provides channels with specialized offerings, such as QVC and AMC, in addition to major networks, such as USA, A&E, and CNN Allows the audience to participate actively and immediately mass media less effective Internet creates instant access for even small companies, who could not afford to advertise in traditional forms of media Outdoor advertising = billboards Transit advertising = bus, taxi, subway Effective and inexpensive media to reach the public in the retail neighborhood advertising directly to prospective customers without using one of the commercial media forms. Ads may be simple sales letters, complex packages of coupons, brochures, samples, or other devices designed to stimulate a response. Direct mail using the postal service is most expensive, but also most effective because marketers can target customers directly without • previews in movie theaters. • Computers dial telephones and deliver messages by simulating speech and playing a prerecorded message. • Computers play prerecorded sales messages while callers are on hold. 1. 2. 3. 4. 5. 1–35 Brand Advertising Informative Advertising Comparative Advertising Defensive Advertising Persuasive Advertising Copyright © 2006 Thomson Business and Economics. All •Brand-purpose to remember the brand not just the product •Ex? •Informative-teaches you about the benefits of a product •Ex? •Defensive-The losing product defending itself •Ex? •Persuasive-Product makes you happy or more glamorous or more athletic Gross Domestic Product Business Cycles Competition Prices Value 1–37 Copyright © 2006 Thomson Business and Economics. All Coordinated promotional activities reinforce one another. C o u p o n s 1–38 Copyright © 2006 Thomson Business and Economics. All BRAND ADVERTISING http://www.metacafe.com/watch/ 424246/aarps_new_advertising_cr eative_focuses_on_the_needs_of_ multiple/ http://www.youtube.com/watch?v=Gb9vOp7 wCqQ INFORMATIVE ADVERTISMENT http://www.youtube.com/watch?v=ZTpXh33M beg&feature=related PERSUASIVE ADVERTISEMENT To promote Reebok’s night safety running shoes in Singapore, this ad targets consumers through a purely illustrative advertisement, overcoming any language barriers. InformativeStudent Example-Purrell http://vimeo.com/ http://www.youtube.com/ 23883753 watch?v=y26IPHcdY2s&s afety_mode=true&persis t_safety_mode=1&safe= active Mac Guy PC Guy DEFENSIVE ADVERTISING Informative- http://vimeo.com/23883753 Defensive-provides info about products strengths and weaknesses •Understanding consumer behavior •Successful products can often be traced to great advertising •Great Products that fail often are a result of poor advertising •Repeat business and reputation IMPORTANT! Lesson 1.2 1. How do you look? 2. Where do you live? 3. What do you think? Your Values-make own decisions and priorities What two version of yourself do you see in advertisements? Pros Cons • Educates consumer • Biased • Raises the • Buy better standard of living products for some • Pay lower prices • Spend less time shopping • Makes Products Cheaper Advertising Increases the cost of a product Who pays for the Advertising also increase in cost? LOWERS the cost when the demand is increased When more items are produced the cost to produce decreases Why is the newest technology used for television commercials? Discuss with partner Answer Advertisers want consumers to notice their commercials. However, viewers quickly become accustomed to special effects it is necessary to continually use the newest technology to generate the same level of interest. Lesson 1.3 1. Must be paid for 2. Deliverd by mass media 3. Attempt to persuade into an action or belief