Chapter 9 Advertising Unusual places where you have seen ads? - PowerPoint Presentation

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Chapter 9

Advertising

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Unusual places where you have seen ads?

Social Media-Naming Rights-Chik-fil-a bowl, Naming Rights DealsSuperbowl Ads-a 30s spot cost $4 million in 2014 $133,000 a second 111.3 million viewerHowever, increases in brand exposure and brand consideration took place for 40 percent of the companies advertising during this football frenzy.Russian Rocket carrying a Pizza Hut logo Scope: $143 billion in 2005Internet display ads- $8.3 billion in 2005

Proliferation of Advertising

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Objectives of Advertising

Create a need or perception of a product/serviceCreate or dramatize/inflate problems or offenses (e.g. B.O., halatosis)Cater to ego/self-centeredness- “have it YOUR way”, stand above the crowd, You deserve a break today”Any others?

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Types of Advertising

Informative advertising provides useful information about the product.Misleading or deceptive advertising intentionally deceives or confuses consumers.Puffery uses exaggeration, hyperbole, or imagery to market products.

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Ways that Ads Mislead or Deceive

Claims for which there is no documented evidence. Testimonials – anecdotes from users or people who are paid to say they are users. Palming off – creating the impression that the products or services are those that are furnished by a competitor. Misrepresentation – when an advertiser makes false or misleading claims about its products.

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Ways that Ads Mislead or Deceive

Product disparagement – when an advertiser intentionally makes false or misleading negative remarks about a competitor’s goods or services.(Comcast and Dish Network) Bait-and-switch – when goods and services are offered at a low price but the salesperson attempts to lead the consumer into purchasing a more expensive product or service.

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Advertising Techniques and Tricks

Word-of-mouth marketing Testimonials and endorsements- must not be deceptive, must be a bona fide user of the product (commonly violated). “Results may vary” covers them. Weasel words- lose up to 30 lbs per month, so zero would qualify. “part of a healthy breakfast”- Would it be healthier w/o it? Which part? Attention grabbers- “All Natural”, “Money Back Guarantee” Appeal to basic human weaknesses and fears-loneliness, fear, failure, aging, etc.

Visual imagery

- associate an attractive image with the product

Statistics-

“ Average”, 2/3, etc.

Comedy

- we tend to remember funny things,

e.g

. Bud frogs, Eat More Chicken”

Sex

– attracted to sexual

images P & G assembled 250,000 teenagers to promote the product to friends and relatives.

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Advertising Techniques and Tricks

Product placement- movies, video clips, background of interviews, music videos, (drinks, cars, junior mints, etc. Paid comments on blogs, facebook, etcSony Ericson- word of Mouth campaign with mobile/phone and camera in Tourist Spots

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Examples of Testimonials

Celebrities and athletes serving as spokespersons and/or claiming that they use the product, e.g. Michael Jordan in underwear commercialsEveryday people claiming to have used the product with remarkable results, e.g. weight loss products.Physicians or those claiming to be physicians who testify to the product’s value.

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Examples of Attention Grabbers

Actors in medical clothing stating that a product is “hospital tested”An attractive person(s) at the beginning of a television advertisementThe smell of food cooking to attract customersLoud music or other noise to attract attentionDepiction of unusual settings or activities

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Examples of Comedy in Advertising

A cute gecko selling insurance.A buffoonish father falling into a pool or making outrageous statements.A ridiculously dressed man in a beer commercial.A man who is more interested in a mundane product than in a beautiful woman.

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Advertising Prescription Drugs

Direct-to-consumer advertising – advertising aimed directly at consumers rather than physicians and pharmacists Effective Mostly informative; some contain puffery Can target specific groups, most often seniors Regulated by the U.S. Food and Drug Administration Three types of DTC ads:Product-claim ads-most common- name, condition, risks/benefits (summary of risks, phone no., web-address)

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Advertising Prescription Drugs

Reminder ads-name of product onlyHelp-seeking ads – “ ask your doctor about using…”

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Benefits of DTC Advertising

Favorable claims about DTC prescription drug advertising:May increase awareness of possible treatmentsPatients with undertreated conditions may receive treatment they may not have otherwise receivedMay increase doctor-patient interaction- MDs claim ads encourage questions/interactions with patients.

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Risks of DTC Advertising

Negative aspects of DTC prescription drug advertising: May not convey information about risks very well. May be harmful to the doctor-patient relationship. Physicians may be pressured to prescribe a widely advertised drug. Patients may insist on name brand drugs when generics would be just as effective.Do they create fear? Shy or Social Anxiety Disorder?Erectile Dysfunction Drugs now being prescribed for men in 20ss, 30s, 40s, and porn stars. Really? Oversight- FDA warning letters to big pharma 142 in 1979, 21 in 2007 despite a increase in Ad $$$ of 330%

Big

Pharma

–

spent $800 million in federal lobbying and campaign donations over 7 year period.

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Advertising Nonprescription/OTC Drugs

Advertised directly to consumers Often use testimonials, puffery, and imagery Sometimes use statistics in ways that are designed to promote the product Ads often fail to identify the active ingredients

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Targeting Special Groups

Groups may be targeted by:AgeGender-females diet, exercise, beautyEthnicityLocationInterests and attitudesTargeted marketing allows companies to limit ads to people who are likely to buy their products.This saves advertising dollars.

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Marketing to Children

Companies use research to identify characteristics of ads that appeal to children. Marketers use research to exploit the suggestibility of children. Children younger than age 6 may not be able to distinguish between television program content and commercials. Advertisements sometimes encourage children to pester their parents to buy certain products, undermining parental authority.

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Marketing to Children

“Spokes-characters” are used to appeal to children. Television advertising toward children are often for unhealthy food. Marketers attempt to build brand awareness and loyalty in youth. Toys and characters from movies are used to market to children. Advertising often takes place in schools. Due to lack of public funds schools using more sponsorships.Regulation of advertising toward children is voluntary.

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Marketing Cigarettes to Children

The Master Settlement Agreement of 1998 banned marketing cigarettes to children. What did we learn from the tobacco lawsuits? Tobacco companies continued to advertise cigarettes in magazines with youth readership. Product placement of cigarettes in movies has continued. The Family Smoking Prevention and Control Act of 2009 granted power to the Food and Drug Administration to regulate tobacco products. The Act required tobacco manufacturers to release all marketing research documents, including those relating to youth-oriented advertising, to the FDA.

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Marketing Alcohol to Youth

Alcoholic beverages are often marketed in media and with items – tee-shirts, caps – that appeal to youth. Magazine advertising of alcohol appears to be associated with adolescent readership. Research indicates that alcohol advertising influences youth attitudes and help create an environment that promotes drinking. Parents can influence their children’s attitudes by monitoring television, reading material, and Internet use. Consumers can affect the advertising of alcoholic beverages through collective action. What is worse alcohol or cigarettes? Which was restricted and litigated more?

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Unmeasured Media

“Unmeasured media” include strategies such as direct mail, sales promotion, couponing, catalogs, and special events, for which ad buy data are difficult to obtain. They may also include product placement, advertising included in games, branded Internet environments, web-based cross promotions, and cell phone and text messaging advertisement. Some companies use a strategy that creates interest in a product through online modes such as social media, instant messaging, and chat rooms.

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Infomercials

Infomercials are broadcast ads that fill an entire program slot. Many often resemble regular talk shows. Infomercials may use testimonials, questionable statistics, and spokespersons who claim to be experts in the field. Regulation of infomercials is mostly voluntary.

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Marketing on the World Wide Web

Internet sites, including those that sell products, store consumers’ personal information, putting consumers at risk. Bogus products may be marketed on the World Wide Web.Protect Yourself:GhosteryDuck-Duck-GoNever use debit cardPasswordsReviews, Angie’s List, etc.

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Protecting Yourself while Web Shopping

Common sense practices can provide some protections. Examples include:Never enter personal or credit card information unless the address line begins with https:// and a symbol of a lock is displayed.Know the exchange/return/cancellation policies.Purchase with a credit card.Keep all of your records.Notify authorities if you believe you have been cheated.