1. Advertising

2. Types of Purchasers Promiscuous Purchaser Immune Purchaser Consider ads beneath their dignity Believe ads are aimed at promiscuous purchasers Account for 90% of all purchases of advertised products Believes self to be immune; does not take defensive action Hidden susceptibility • Buys 50% of products seen advertised • Highly responsive to advertising • Usually don’t have much money We are so convinced of our immunity to advertising that we allow it to become invisible

3. Cost/Benefit Analysis Super Bowl (Yglesias) Prime-Time TV (Crupi) 30 Second slot in 2011: $108,956 During American Idol: $475,000 During Grey’s Anatomy: 225,000 • 30 second slot in 2012: $4 million • 2010 (low point in advertising): 2.64 million • Super Bowls are “four of the five most-watched broadcasts in American history”

4. Benefits • Companies that advertise during the NFL game “outperform the S&P 500 during the subsequent week” (Yglesias) • Movies advertised during the game see “a 40% boost at the box office” (Yglesias) • Apple introduced Macintosh computer during Super Bowl • Grossed $30 million 1st week • $100 million following month

5. Aspects of Advertising

6. Colors • Red • highest action • Motivation quotient • Strong masculine appeal • Blue • Most widely appealing color • Cool, soothing, and relaxing • Yellow • Warm and antiseptic • Makes containers appear larger • Best signaling colors: • Red • Green • yellow

7. Packaging • Costs more than products contained • Color is attention-getting device • Color with pictures most effective

8. Generics • Usually surplus of products made by large manufacturers • Reflect the premium prices paid for brand recognition and advertising

9. Placement • Grocery Market Theory • Store is designed to encourage shoppers to buy high-profit, impulse items • Greet shoppers with display of low cost “Specials” • Target’s $1 aisles on entryway • Coupon bins shows store’s concern for shopper • Deli smell stimulates hunger • Main items placed on outside walls • Get shopper moving through store

10. Placement Con’t • High-profit items placed at eye-level • Candy (impulse item for adults) placed in racks near areas where customers will be waiting in line • Lower shelves hold children’s items

11. Wording • Weasel Words: • A word or phrase that weakens a statement • Deprives of real meaning • Used to avoid firm commitment to truth • Ex: helps, as much as, up to, many, most • “Cleans most hard to clean dishes” • “Up to ten more miles per tank of gas” • “helps control dandruff symptoms” • “From $19.95” • invisible to purchasers due to overuse

12. Psychology • Psychosell: ads work on two basic personality holes found in most people • Lack of genuinely pleasurable experiences • Lack of self-acceptance • Ads imply fun, excitement, adventure • Ads show owner/user of product being accepted by others

13. Pyschosell Example-- Pepsi • Commercial– “Now in a moment”

14. Psychology Con’t • Demonstration Ads • Used to show how product works • May often be deceiving • Use of color– Vidalia Chop Wizard • Consider black and white vs. color images