FHCE 3100 1nd Edition Lecture 13Outline of Last Lecture II. Ch.7 part 2Current LectureCh.4 Finishing ch.7… Message execution Choose a tone Life insurance v. Doritos  **(EXAM) MARKET SEGMENT—smaller subdivision of the overarching target audience whose needs are slightly different, ex) females who would buy that car –their needs would be different than females in general Use memorable, attention-getting words “Snap, crackle, pop”  Planning the best message  What should an ad accomplish 1. Gain your attention and interest  2. Inform and persuade  3. Lead to the person buying  **cost of advertising and the benefits—know the difference for TEST** “AIDA” A—Attention (ad must draw your attention)  I—Interest (ad must create interest) D—Desire (ad must create desire) *this is the point where you are assessing your level ofwellbeing/look at your utility…they want to create desire to make a change A—Action  Selecting Advertising Reach The percentage of people exposed to the ad Ex: if you want to advertise to ATL don’t publish ad in the Red & Black in Athens, this is not your target audience FrequencyThese 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. Number of times a person is exposed to an ad Media impact  The qualitative value of a message exposure through a given medium  Deciding on Media Timing Must decide how to schedule the advertising over the course of the year Follow seasonal pattern- Ex: no sunscreen ads right now because it is fall  Oppose seasonal pattern- Ex: Advertise cruise during fall for Spring break  Same coverage all year American’s Top 5 Advertisers*****test  Proctor and GamblePhillip Morris (Kraft and cigs) aka Altria..changed name b/c Philip Morris is for tobacco, now Kraft stands alone when investing…mothership is Phillip Morris  General Electric (wash, stove, refrigerator, etc.)  Time Warner (CNN, magazines, etc.)  Walt Disney  Federal Trade Commission’s role in advertising Can issue a consent decree Can ask for ad substantiation (ex. Prove this product is fat free) Can issue a cease or desist order Can require a corrective ad  Corrective advertising Also called Counteradvertising FTC requires company found liable for deceptive advertising to issue anew that corrects the earlier misinformation  FTC Concerns: targeting children Marketing to children because children do not have the cognitive ability to understand many advertisements. The average man rule doesn’t work.  *6th grade reading level *TEST—The indifference curves will be on exam—know what is in no mans land beyond the curve, compare points on the curves, throw in a point on U1 to compare it to the two points on U3 (which point is the better choice); indifference curves further from point of origin are better because you get more of something. But you cannot get to those b/c of BUDGET CONSTRAINTS*TEST—budget constraints, you want the point that lies tangent to budget constraint…that is your optimal bundle *Graph of Li’s Budget Constraint—you have to calculate either how many units are purchased orthe price per unit and likely will be given a graph demonstrating it, the slope will tell what theexchange rate is between the two goods, *if asked something about intercepts on budget constraint—this tells you they bought all of one thing. Intercept on (0,10) tells Li bought nothingbut wheat, (20,0) tells Li bought nothing but rice *TTYP: Graph of Ali’s budget constraint, * budget constraint stays the same but consumer was able to buy more bottles of wine because the price dropped (common sense)price discrimination—what falls into it and what doesn’t , types of advertising, costs v benefits, costs of cheerios ad—suffered negative comments as result but came back with a second one, who makes up identity markets, what is an example of consumerspace, product placement, informative v. puffing (etc), who engages in advertising (used by…)***BE COMFOTABLE WITH CHAPTER 6! LOTS COMING FROM IT Ch.4: Consumer Responsibilities, Redress and Law*Comes in order after ch.6 Key legislation—Federal food/drug and cosmetic act, FTC, civil rights act, TILA, fair credit reporting act, equal credit opportunity act, fair credit billing act, fair debt collection act, foodlabeling act  Know what these agencies do on our behalf  Video—how hard is it to cancel AOL account?  Phone proctor tries to convince you out of it, saying you do use it enough, keeps asking if there is a problem with the software  *this happened at step 6, AFTER STEP 6 POST PURCHASE—not happy with decision so likely to tell 11 people (AOL customer posted on internet)  ***STEPS IN THE CONSUMPER BUYING PURCHASE Consumer’s options (if you feel you have been harmed) What are consmers’ options during the postpurchase step of a product… Redress Consumers have a “right to redress which is the right to seek and obtain satisfaction for damages incurred through the use of a product or service”  Complaint procedure Local business-place from where you purchased, likely first place you go, but if that doesn’t work go to… Manufacturer  Non-governmental organizations Government protection agencies Small claims court Class action suits  Effective Consumer Redress No emotional outburst  Act promptly  *Don’t wait, usually standard 30 day return policy  Know your rights Get organized (receipts, when, where, model number, etc.)  Put in writing  Sending a letter in writing is powerful, send through certified mail (so that someone signed for it and you can see who signed it)  Records slide NOT ON TEST Step One Returning to the place where the item was purchased or service rendered Currently no laws regulate refunds and stores are not required to post their policy but some do  Individual stores set their own refund policies (maybe store credit)  Be prepared to explain the problem  Step Two  Contact the company’s headquarters by phone, e-mail, or letter The following information should be included when a complaint is in writing: 1. Describe the purchase or service 2. The date and place of purchase or service 3. Name of the product or person who