Effects in Economic Decisions: Consumer Education

UNIVERSITY OF CALOOCAN CITY
CONSUMER EDUCATION
TLE 807
EFFECTS IN ECONOMIC
DECISIONS
JINKY L. HASSAN
Professor
COURSE DESCRIPTION
They say good advertising does not just circulating
information. It penetrates the public mind with desires and
belief. Effective advertisement of product and/or services
indeed attract target costumer’s attention. This is also an
effective tool for any marketer. Why advertising important in
today’s economy? How does advertising help the customers?
Does advertising help or hurt consumers? And what are the
benefits of advertising to consumers? Let’s try to answer all
these questions as we go beyond this topic
TLE 807 CONSUMER EDUCATION
WEEK 9
This module includes the following topics:

Lesson 1 – Advertising
Lesson 2 – Elements of Advertising
Lesson 3 – Objectives of Advertising
Lesson 4 – Types of Advertising
Lesson 5 – Classification of Advertising


LEARNING OUTCOME
Recognize the meaning of advertising;

Explain the elements, objectives and types of
advertising;
Articulate the role of advertising consumer
education

WEEK 9
Each lesson presented in this module aims to achieve some learning outcomes.

Lesson 1 – Advertising
LO 1 – Define advertising
LO 2 – State the importance of advertising
Lesson 2 – Elements of Advertising
LO 1 – Identify the elements of advertising
Lesson 3 – Objectives of Advertising
LO 1 – Explain the objectives of advertising
LO 2 – Value the importance of standardization
Lesson 4 – Types of Advertising
LO 1 – Enumerate the types of advertising
LO 2 – Discuss each type of advertising
Lesson 5 – Classification of Advertising
LO 1 – Enumerate the classification of advertising
LO 2 – Discuss each classification


ENGAGE: Guess What??? Guess What???
The students will identify the product/service using the tag line shown by the instructor
LOVE KO TOH WE FIND WAYS
BIDA ANG SAYA ITO ANG TAMA

FINGER LICKIN’ SARAP NG MAY

GOOD PINAGSAMAHAN
MASARAP KAHIT
LIVER LOVER BOY
WALANG SAUCE

SIKRETO NG MGA
CONNECTING PEOPLE
GWAPO
JUST DO IT OBEY YOUR THIRST

GUIDE QUESTIONS:
GUIDE QUESTIONS:
How do you know the tag line of each product?
Where do you get the information of tag line?
In what form of advertisement do you get the tag lines?

EXPLORE! What type am I?
The teacher will show various advertisement and the students will identify it
according to its type





GUIDE QUESTIONS
PARTS OF
PURPOSE
PACKAGING
1. What do these pictures have in common?

2. How effective do you their strategy is in

promoting their products?


ADVERTISING
• Any paid form of non-
personal presentation
and promotion of ideas,
goods or services
through mass media such as
newspapers,
magazines, television or
radio by an identified
sponsor
DEFINITION OF ADVERTISING
• Advertising simply means a way of communication that reaches all types of sector. It provides
information and creates awareness among people relating to a product.
PARTS OF
PURPOSE
• "Advertising is the non-personal communication

of information usually paid for and usually
PACKAGING
persuasive in nature about products, services

or ideas
by identified sponsors through the various

media ."(Bovee, 1992). In Advertisement
we use AIDA

Principle:

• Advertising is a way of sharing of with

the buyers of a product or service. Advertisement is a paid
message by the organization (of the product/service)
with an intention to inform or influence buyers

(Concept given by the Advertising Association
of the
UK).

• An advertisement is "salesmanship in print”.. (defined
by John E. Kennedy, the Canadian-US
advertising pioneer (1864-1928).


DEFINITION OF ADVERTISING
• “Advertising presents the most persuasive possible selling message to the
right prospects for the product orPARTS service
OF
at the lowest possible cost”…(defined
PURPOSE
PACKAGING
by the Institute of Practitioners in Advertising).

• Advertising is “any paid form of non-personal presentation and promotion of
ideas, goods and services through

mass media

such as newspapers, magazines,
television or radio by an identified

sponsor”…(definition

by P. Kotler)
• According to Oxford Dictionary

the word

‘to advertise’ means ‘to make
generally or publicly known’, It describes something publicly with a view to

increasing sales.

• The word advertising is a Latin word, which
means “to turn attention of

people to a specific thing.” It is a paid form of publicity.


WEEK 9: AIDA MODEL IN ADVERTISING
PARTS OF
PURPOSE
PACKAGING


CHARACTERISTICS OF ADVERTISING
• Advertising presents and upholds the ideas, commodities and services of a
recognized advertiser, which provides as a communication link between the
producer and the potential buyers.
• It gives the information to the would-be buyers who are interested in seeking the
information about a product and the manufacturer.
• Advertising may be taken as the most efficient means of reaching people with
product information
• Advertising presents a mass persuasion apart from disseminating information to the
prospective buyers about the product and the producer.
• While creating awareness and achieving popularity, it seeks to persuade. It is a more
effective and extensive and less expensive way of creating contacts.
• Advertising is a combination of creativity, marketing research, economic and media
buying.

CHARACTERISTICS OF ADVERTISING
• Advertising may cost a lot of money but that cost is justified if it works effectively and
economically.
• Advertisement has become an integral part in today’s marketing scenario. In earlier
times, advertisement was not given as much emphasis as it is being given today.
• Advertising is the paid, non-personal communication of information about products or
ideas by an identified sponsor through the mass media in an effort to manipulate
customer behaviour.
• Advertising is non-personal because it's a fantasy created by a computer that selects
one part of the target audience. It communicates information about products or i
ideas.

UNIQUENESS OF ADVERTISING
 Possible use of media means such as direct mail, telephone,
print, radio, television, and internet.
 Integral part of marketing communication
 Public communication message about the reason to buy
 Non-personal communication
 Paid form of publicity
 Information on goods and services, ideas organizations, people
and places

PURPOSE OF ADVERTISING
The main purposes of advertising are:

- to disseminate information,
- to establish attitudes
- to persuade action aiming to provide profit for the advertiser.
purpose of advertising is to sell something :
(a product, a service, an idea )
• The real goal of advertising is an effective communication between

goods and clients and increasing awareness.

• Advertisements are designed:
- to inform
- to motivate
- to create a market

• The intentions are:
- To change the thinking pattern (or buying behaviour) of
the consumers.
- To persuade to take the action desired by the
advertiser.
ELEMENTS OF ADVERTISING
An advertisement copy is the product based message that reaches to the

consumers. The ad copy includes the whole text of an advertisement comprising
various elements like:
- slogan,
- headline,
- subheads,
- body matter
- Company name/ product name
- Logo
- USP Picture
- Address
An advertiser or a copy writer
should have extra ordinary
creativity to reach and convince
the target audience.
SLOGAN - Slogan is a short and

striking or memorable phrase used
in advertising expressing the aims
or nature of an enterprise, PEPSI: That’s What I Like
organization, or candidate; a motto
and is used repeatedly, as in
advertising or in promotion.


CREAMSILK: Go Beyond Beautiful JET AIRWAYS: The Joy of Flying


CEBU PACIFIC: It’s time everyone flies


PUNCH LINE OR TAG LINE ‘Punch line is a climactic phrase or sentence in
a joke, speech, advertisement, or humorous story that produces the desired effect’
(defined by Dictionary.com). In entertainment, a tagline is a small amount of text
which serves to clarify a thought for, or designed with a form of, dramatic effect.
Many tagline slogans are reiterated phrases associated with an individual, social
group, or product. As a variant of a branding slogan, taglines can be used in
marketing materials and advertising.
Examples:
Apple: Think different.
Nike: Just do it.


HEADLINE Headline is a sentence with full idea on the product/ service.
One sentence expresses the full story of the promotion.
It plays the responsibility to grasp the mind as well as concentration of the
viewers just like a newspaper's headline.
It is basically designed in order to be effective with bold, large font size and
various colors if required which makes a difference from the competitors.

SUB HEADLINE: This increases the authenticity and gravity of the message that headline contains.
Subhead lines bridges between the headline and ad body matter.

BODY MATTER: Except slogan, headline, sub headline, picture, USP and address, all the written text is
considered as body matter. It tells the whole story about the product or service, which an advertiser wants to
convey to the ultimate buyers. It comprises the features, benefits and utility of the product as much as possible
in detail way.


IDENTIFICATION MARK: The identification mark is generally known as logo.
Some time different sign is used as the logo of the product, sometimes the
writing style either of the product or the company name is considered as logo.
CLOSING IDEA: This contains the seal, signature or logo of the company or the
product itself, which helps to recognize the advertiser. Closing idea insists the
consumers to buy the product by providing information on main content,
changes in the product, attitudes etc.
PICTURE: In advertisement, picture is very influential element. As we know
one picture can be considered with thousands of words. Instead of picture
sometimes we may get illustrations combining with drawings, charts etc
aiming to gain quick concentration and understanding of the product idea.


COMPANY NAME/ PRODUCT NAME: Advertisement usually carries the name
of the advertised product or company name or both simultaneously.
ADDRESS: The advertisement may carry the dealer address or the home web
site or the communication address of the company.
USP: A unique selling proposition (USP, also seen as unique selling point) is a
factor that differentiates a product from its competitors, such as the lowest
cost, the highest quality or the first-ever product of its kind. A USP could be
thought of as “what you have that competitors don't.” It depicts the exclusive
and exceptional qualities of the product that make the product different
identity in the contemporary market.



OBJECTIVES OF ADVERTISING

• To make an immediate sale.

• To build primary demand.
• To introduce a price deal.
• To build brand recognition or brand proposition.
• To help salesman by building an awareness of a
product among retailers.
• To create a reputation for service, reliability or
research strength.
• To increase market share.

FUNCTIONS OF ADVERTISING

• To distinguish products from their competitors

• To communicate the product information
• To create the urge of product use
• To expand product distribution
• To establish and extent the brand preference
• To reduce the overall sale cost.

NUTSHELL:

Advertising performs some functions:
• It can inform the customers about a product, service, or idea.
• It can persuade the consumers to buy products, services, and ideas.
• It can remove cognitive dissonance from the minds of the customers to
reinforce the feeling that they have bought the best product, service, or idea
and their decision is right.
• It can remind existing customers about the presence of the product, service,
or idea in the market till now.
• It can dissuade the public at large from buying certain products or services
that are harmful for them.

CLASSIFICATIONS OF ADVERTISING

Classification Advertising can be classified based on various

criteria
• Based on Function,
• Based on Region,
• Based on Target Market,
• Based on Company demand,
• Based on Desired response and
• Based on use of Media.

BASED ON FUNCTIONS
• Informative advertising : This type of advertising informs the customers about the
products, services, or ideas of the firm or organization.
• Persuasive advertising: This type of advertising persuades or motivates the
prospective buyers to take quick actions to buy the products or services of the firm.
Example: “Buy one, get one free”.
• Reminder advertising: This genre of advertising reminds the existing customers to
become medium or heavy users of the products or services of the firm that have been
purchased by them at least once. This type of advertising exercise helps in keeping the
brand name and uses of the products in the minds of the existing customers.
•Negative advertising: This type of advertising dissuades target audience from
purchasing such products and services which would not only harm them but also the
society in general. Examples: Advertisements of various civil authorities against alcohol,
tobacco, and narcotics.

BASED ON REGIONS

•Global or international advertising: It is executed by a firm in its global market niches. Reputed global
magazines like Time, Far Eastern Economic Review, Span, Fortune, Futurist, Popular Science. Satellite TV
channels also use to advertise the products through out world. Supermodels and cinema stars are used to
promote high- end products.
•National advertising : It is executed by a firm at the national level. It is done to increase the demand of its
products and services throughout the country. Examples: BPL (Believe in the best). Whirlpool Refrigerator
(Fast Forward Ice Simple) etc, which have the market in India.
•Regional advertising : If the manufacturer confines the product selling and the advertising to a single
region of a country, its promotional exercise is called Regional Advertising. This can be done by the
manufacturer, wholesaler, or retailer of the firm. Examples: Advertisements of regional newspapers
covering those states or districts where these newspapers are circulated.
•Local advertising : When advertising is done only for one area or city, it is called Local Advertising. Some
professionals also call it Retail Advertising. It is sometime done by the retailer to persuade the customer to
come to his store regularly and not for any particular brand.


BASED ON TARGETED MARKETS

•Consumer product advertising: This is done to impress the ultimate consumer. An ultimate consumer is a person who
buys the product or service for his personal use. This type of advertising is done by the manufacturer or dealer of the
product or service.
•Industrial product advertising: This is also called Business-to-Business Advertising. This is done by the industrial
manufacturer or his distributor and is so designed that it increases the demand of industrial product or services
manufactured by the manufacturer. It is directed towards the industrial customer.
•Trade advertising : This is done by the manufacturer to persuade wholesalers and retailers to sell his goods. Different
media are chosen by each manufacturer according to his product type, nature of distribution channel, and resources at
his command. Hence, it is designed for those wholesalers and retailers who can promote and sell the product.
•Professional advertising : This is executed by manufacturers and distributors to influence the professionals of a
particular trade or business stream. These professionals recommend or prescribe the products of these manufacturers
to the ultimate buyer. Manufacturers of these products try to reach these professionals under well-prepared
programmes. Doctors, engineers, teachers, purchase professionals, civil contractors architects are the prime targets of
such manufacturers.
• Financial advertising: Banks, financial institutions, and corporate firms issue advertisements to collect funds from
markets. They publish prospectuses and application forms and place them at those points where the prospective
investors can easily spot them.

BASED ON COMPANY DEMANDS

(A) Market Demand: Advertising is the total volume that would be bought by a defined
customer group, in a defined geographical area, in a defined time period, in a defined
marketing environment under a defined marketing programme.
(B) Company Demand: It is the share of the company in the market demand.
Under Company Demand, there are two types of advertising:
Primary demand advertising: It is also called Generic Advertising. This category of
advertising is designed to increase the primary demand. This is done by trade
associations or groups in the industry. The idea is to generate a continual demand for the
product.
Selective demand advertising: This is done by a company or dealer to increase the
company demand. The company would advertise its own brand only. The retailer can also
advertise a particular brand.


BASED ON COMPANY DEMANDS

(A) Market Demand: Advertising is the total volume that would be bought by a defined
customer group, in a defined geographical area, in a defined time period, in a defined
marketing environment under a defined marketing programme.
(B) Company Demand: It is the share of the company in the market demand.
Under Company Demand, there are two types of advertising:
Primary demand advertising: It is also called Generic Advertising. This category of
advertising is designed to increase the primary demand. This is done by trade
associations or groups in the industry. The idea is to generate a continual demand for the
product.
Selective demand advertising: This is done by a company or dealer to increase the
company demand. The company would advertise its own brand only. The retailer can also
advertise a particular brand.


BASED ON DESIRED RESPONSE

An ad can either elicit an immediate response from the target customer, or create a
favorable image in the mind of that customer. The objectives, in both cases, are different.
Thus, we have two types of advertising under this classification.
•Direct action advertising: This is done to get immediate responses from customers.
Examples: Season's sale, purchase coupons in a magazine. We generally find direct action
in primary demand product. As it does not take time to decide to buy.
•Indirect action advertising: This type of advertising exercise is carried out to make a
positive effect on the mind of the reader or viewer. After getting the advertisement s/he
does not rush to buy the product but develops a favorable image of the brand in his
mind. It is also considered as the selective demand advertising where the buyer thinks
many times to decide to buy.
•Surrogate advertising : This is a new category of advertising. In this type of promotional
effort, the marketer promotes a different product.

BASED ON MEDIA USED

•Audio advertising: It is done through radio, P A systems, auto- rickshaw promotions,
and four-wheeler promotions etc.
•Visual advertising : It is done through PoP displays, without text catalogues, leaflets,
cloth banners, brochures, electronic hoardings, simple hoardings, running hoardings etc.
•Audio-visual : It is done through cinema slides, movies, video clips, TV advertisements,
cable TV advertisements etc.
•Written advertising : It is done through letters, fax messages, leaflets with text,
brochures, articles and documents, space marketing features in newspapers etc.
•Internet advertising: The world wide web is used extensively to promote products and
services of all genres.
•Verbal advertising: Verbal tools are used to advertise thoughts, products, and services
during conferences, seminars, and group discussion sessions. Kinesics also plays an
important role in this context.

BASED ON EXECUTION OF AN ADVERTISEMENT

•Broadcasting advertising: Advertising through broadcast media. Like radio, television
advertisement.


•Print advertisement: Advertising through print media like advertisement
through newspaper, magazine etc.


•Outdoor advertising: Advertising through billboards, street furniture,
stadiums, rest areas, subway advertising, taxis, transit .


•Online advertising: Mobile advertising, email ads, banner ads, search engine result
pages, blogs, newsletters, online classified ads, media ads.


•Direct marketing: direct mail, telemarketing, catalogs, shopping channels, internet
sales, emails, text messaging, websites, online display ads, fliers, catalog distribution,
promotional letters, outdoor advertising, telemarketing, coupons, direct mail, direct
selling, grassroots/community marketing, mobile .


•Online/internet marketing: E-commerce:-Search engine optimization (SEO)Search
engine marketing (SEM)Mobile Marketing Email marketing Content marketing Social
Media (Facebook, Twitter, LinkedIn, Google +, Foursquare, Pinterest, YouTube, Wikipedia,
Instagram).

ADVERTISEMENT COPY
Advertisement copy is material written for advertisement and publicity. it contains words,
narration,picture,and sketches about the products or services.

According to Business Dictionary, ‘Text of a print, radio, or television advertising message that
aims at catching and holding the interest of the prospective buyer, and at persuading him or her
to make a purchase all within a few short seconds. The headline of an advertising copy is said to
be the most important part, and quite often a small change in its wording brings
disproportionate results. Although a short advertising copy is more common in consumer-
product advertising’

According to the UK advertising guru David Ogilvy (1911-1999), people do read (and listen or
attend to) lengthy advertisements if they are skillfully written. Most advertising copy is based on
advertising/consumer research and is composed by professional copywriters hired by
advertising agencies. It is also called advertisement copy, ad copy, or just copy.

EFFECTIVE ADVERTISEMENT COPY

Attractive
Informative
Convincing
Rememberable
Create interest
Simple
Realistic
Educative


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UNIVERSITY OF CALOOCAN CITY

TLE 807 CONSUMER EDUCATION

Recognize the meaning of advertising;

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

LOVE KO TOH WE FIND WAYS

BIDA ANG SAYA ITO ANG TAMA

TLE 807 CONSUMER EDUCATION

FINGER LICKIN’ SARAP NG MAY

TLE 807 CONSUMER EDUCATION

JUST DO IT OBEY YOUR THIRST

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

1. What do these pictures have in common?

2. How effective do you their strategy is in

promoting their products?

TLE 807 CONSUMER EDUCATION

persuasive in nature about products, services

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

The main purposes of advertising are:

• The real goal of advertising is an effective communication between

TLE 807 CONSUMER EDUCATION

An advertisement copy is the product based message that reaches to the

SLOGAN - Slogan is a short and

CREAMSILK: Go Beyond Beautiful JET AIRWAYS: The Joy of Flying

TLE 807 CONSUMER EDUCATION

CEBU PACIFIC: It’s time everyone flies

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

• To make an immediate sale.

TLE 807 CONSUMER EDUCATION

• To distinguish products from their competitors

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

Classification Advertising can be classified based on various

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION

TLE 807 CONSUMER EDUCATION