GOALS
GOALS
LESSON
1.1
NEEDS AND WANTS
Differentiate between a want and a need Explain the impact of advertising on your
Consumer Decisions
Need
Something that you need for life
Want
Something you would like to have but
can live without.
Consumer Decisions
What Do You Need?
Food
Clothes
Shelter
What Do You Want?
Ice cream
Designer jeans
Consumer Behavior
Consumer behavior is everything that affects
or is affected by human consumption.
Products may provide Functional Benefits
Same for everyone Easily measured
Products may provide Emotional Benefits
Consumer Spending and Overspending
• Americans spend 98% of their after tax income • Many people spend more than they earn. How? • When consumers overspend, many of their
items will become repossessed.
• People in serious money trouble may need to
file bankruptcy.
• Bankruptcy is a legal status of a person or
other entity that cannot repay the debts it owes to creditors.
• Bankruptcy is a legal condition that remains
Types of Advertising
Brand advertising – intended to
make you remember the brand
rather than the specific product
Informative advertising – Teaches
us about a products benefits.
Comparative advertising –
Types of Advertising
Defensive advertising – Used to
defend a product that was slammed
in comparative advertising.
Persuasive advertising – Show
happy people using the product.
GOALS
GOALS
LESSON
1.2
THE CONSUMER IS IN
CHARGE
Describe the relationship between your
values and advertising
Explain the advantages and
Advertising Images
Images in ads reflect two versions: 1)How
you are 2) How you would like to be.
How do you see yourself? How do you look?
Where do you live?
What do you think?
Stereotype: A widely held but fixed and
Pros and Cons of Advertising
Pros
Educates consumers
Learn the purpose benefit and value of the product
Makes products cheaper
If a greater quantity can be sold, price will be lower.
Reflects society’s priorities
Promotes the good life. Gives you something to work for.
Supports a variety of mass media
Pros and Cons of Advertising
Cons
Biased
Prejudiced in favor of the product being advertised
Only raises standard of living for some
Advertising won’t raise your standard of living if the the
customer can’t afford the product advertised. Promotes materialism
Advertisements present many products as symbols of
status and success.
GOALS
GOALS
LESSON
1.3
ADVERTISING AND THE
ECONOMY
Describe the role of advertising in a
company
Discuss the role of advertising in the
Advertising Criteria
Advertising – paid public
announcement to persuade
consumers to buy an item or service.
The message must be paid for.
The message must be delivered to the
audience by mass media.
Four Marketing Responsibilities
Design a marketing strategy
Promotion and distribution includes
advertising.
Make the product stand out and
target a market segment
Advertising is what makes the
Four Marketing Responsibilities
Contribute to revenue and profit
earning
Advertising plays a big role in profit
generation
Enhance customer satisfaction
Advertising can reinforce purchase
Advertising in the Economy
Gross domestic product – a measurement
of the total value of all the goods and
services produced within an economic
system.
Market economy – individuals, not the
government own the resources and run
the businesses.
Business cycles – businesses will boost
Advertising in the Economy
Competition – advertising stimulates competition. Pro – it can result in better products
Con – a struggling company could be run out of business.
Prices – Advertising affects prices
Advertising increases expenses to the
company, but can result in higher volume sales and lower prices for the customer.
