7.04 ADVERTISING

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

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

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

Associating 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 that 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