MKTG 477 1st Edition Lecture 21 Outline of Last Lecture I Considerations when setting a promotional budget II Budget effects Outline of Current Lecture I Budget effects continued II Federal Trade Commission Current Lecture March 11 Budget effects continued Delayed response consumers see ads but don t buy the product immediately Bad Hold over consumers are able to retain information in memory do not have to see the ad again before buying the product Bad Decay in the absence of further promotion the effects of past promotional dollars on consumer goodwill brand name awareness sales etc will be diminished Bad o Number 1 incentive for why advertisers overspend they are fearful they are not spending enough which would lead to decay Competitor your competitors promotional programs and the amount of money they re spending on them will influence how effective your campaign will be Bad Quality the effectiveness of your ad program is dependent upon the unique content presentation and placement of the promotion not solely on the dollars spent Bad o If your ad is placed properly in the correct medium with the right niche targeting strategy then it will be successful not necessarily how much you spend A good ad will have greater impact on consumers than will a bad ad Regulatory Environment Situation analysis other forces trends What regulatory body is probably most influential in scrutinizing advertising practices especially deceptive practices Federal Trade Commission o AT T to pay 80 million to FTC for consumer refunds in mobile cramming case Federal Trade Commission FTC These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute FTC Act 1914 established the Federal Trade Commission o Focused on competitive injury Wheeler Lea Amendment 1938 amended the FTC Act o Added consumer injury to the FTC s focus o And intent to defraud did not have to be proven to rule that deceptions had occurred FTC protects o Consumers re fairness and deception Consumer Protection Division Target groups of fairness Children Elderly Financially disabled Deceptive Before and after ads Lean Cuisine ad All the things we make we make sense o Businesses re competitive practices Anti Trust Competition Division Determining deception 3 criteria
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