Notes on Obj 7.04- Exemplify persuasive methods used in advertising and sales.
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
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
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
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
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
Notes on Obj 7.04- Exemplify persuasive methods used in advertising and sales.
OBJECTIVE:
7.04
B2
4%
Exemplify persuasive methods used in advertising and
sales.
UNPACKED CONTENT

Incentives and promotions, continued
 Coupons---entitles bearer to savings on a product
 Rebates---partial refund of a product’s purchase price
 Sweepstakes and contests
 Personal selling
 Sales associates in stores
 Telemarketers
 Door-to-door sales representatives
 Store facilities
 Arrangement
 Ambience
 Advertising Techniques
 Slogans and jingles
 Logos
 Beauty appeal
 Testimonial
 Endorsement
 Escape
 Lifestyle
 Bandwagon
 Rebel
 Unfinished comparisons
 Group identification
 Trendsetter
 Hidden fears
 Before-and-after comparison
 Traditional values
 Puffery
Role of Advertising
 Deceptive
Purpose: Advertising
To inform consumers about goods and services; to encourage them to purchase

Loss
leader

Forms of advertising
 Price
Print comparison
ads---newspapers, magazines, telephone directories
 Bait
and
switch
Direct mail
advertising---catalogues, flyers, newsletters
promise of free gifts
 False
Commercials---radio,
television, movies
 Introductory
offer
Infomercials---30-minute ads with demonstrations
pricing pages, emails
 Deceptive
Pop-up ads---web
catches
 Hidden
Billboards
and signs---along the highway, in subways, on buses and trucks

Benefits for consumers
Directions: Review these explanations and examples to aid in understanding advertising and selling methods
 Helps save money by informing about sales
 Helpsand
savepromotions
time by preventing unnecessary trips to stores
 Incentives
Provide information
to helpexisting
make better
purchase
choices
Clearance
sales---to reduce
inventories
of products
 Promote health and safety through public service ads
 Helps pay the costs of publishing and broadcasting

Drawbacks for consumers
Advertising and Selling Methods
Notes on Obj 7.04- Exemplify persuasive methods used in advertising and sales.
 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
 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
 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
 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
 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
Appendix 7.04C
Advertising and Selling Methods, continued

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
Notes on Obj 7.04- Exemplify persuasive methods used in advertising and sales.
 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
 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”

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
Notes on Obj 7.04- Exemplify persuasive methods used in advertising and sales.
Key Terms: Advertising and Sales Methods
Term
Explanation
Role of Advertising
print ad
An ad in a newspaper, magazine, telephone directory, or other publication
direct mail advertising
Printed advertising sent by mail to consumers’ homes
commercial
A brief, one minute or less, TV or radio ad used to promote a product
infomercial
A TV or radio ad that promotes a product and lasts 30 minutes or longer
pop-up ad
An ad that suddenly appears on a web page or in an email message
billboard
An ad posted on a sign along the highway
Federal Trade
Commission (FTC)
An agency that regulates advertising to ensure that ads are fair and accurate
Advertising and Sales Methods
clearance sale
Sale to reduce existing product inventories
seasonal sale
Sale at particular times of year
going-out-of-business sale
Sale when a business is being liquidated
holiday sale
Sale during a holiday time
incentive
A reward used to encourage spending
coupon
A small paper clipping that entitles the holder to savings on a product
rebate
A partial refund of a product’s purchase price
sweepstakes
A drawing to select a winner of money or valuable prizes
commission
A percentage of sales income given to the salesperson
trading up
Convincing customers to buy higher-priced items than they intended
telemarketer
A person who sells a line of products over the telephone
door-to-door
representative
A person who goes house to house selling a line of products
décor
The way in which a store or place of business is decorated
slogan/jingle
Catchy songs, rhymes, phrases used to help consumers remember products
logo
Graphics or symbols that represent a company, used to identify products
Notes on Obj 7.04- Exemplify persuasive methods used in advertising and sales.
beauty appeal
Product that makes you this beautiful, makes you like this person
testimonial
A positive statement made by a person who is endorsing a product or
service---usually, a famous person
Key Terms: Advertising and Sales Methods
Term
Explanation
Advertising and Sales Methods, continued
endorsement
An advertising message that reflects opinions, beliefs, findings, or
experiences of a person or group 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 convince consumers that everyone is using the product
rebel
Assocating products with behaviors that contradict societal norms
unfinished comparison
Claiming a product “works better”---better than what?
group identification
A 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
A strategy of playing on the fears of consumers
before-and-after
comparison
“Before” and “after” pictures show results of a product or treatment
traditional values
Trying to associate with home and family
puffery
Exaggerated claims intended to increase a product’s reputation or appeal
loss leader
An item priced below the retailer’s costs in order to attract customers
price comparison
Offering products below retail value or implying that the same item is sold
at higher prices at other stores
bait and switch
A retailer advertises a product thtat it has no intention of selling, hoping to
persuade consumers to come and buy a product at a higher price; customer
is often told that the “bait” product is “sold out”
false promise
A promise of a free gift that actually requires that another item be bought
first
introductory offer
Indicates new merchandise selling at a price that will soon increase
deceptive pricing
Advertising a “sale” price that is actually no better than the everyday price
hidden catch
When details of an offer are not all clearly disclosed---extra charges,
processing fees, other restrictions