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7.04Personal Finance

Advertising and Sales Methods

Print ad An ad in a newspaper, magazine, telephone directory, or other publication.
Direct mail advertising Printed advertising sent by mail to consumers' homes.
Commercial A brief, one minute or less, TV or radio ad used to promote a product.
Informercial A TV or radio ad that promotes a product and lasts 30 minutes or longer.
Pop-up ad An ad that suddenly appears on a web page or in an email message.
Billboard An ad posted on a sign along the highway.
Federal Trade Commission (FTC) An agency that regulates advertising to ensure that ads are fair and accurate.
Clearance sale Sale to reduce existing product inventories.
Seasonal sale Sale at particular times of year.
Going-out-of-business sale Sale when a business is being liquidated.
Holiday sale Sale during a holiday times.
Incentive A reward used to encourage spending.
Coupon A small paper clipping that entitles the holder to savings on a product.
Rebate A partial refund of a product's purchase price.
Sweepstakes A drawing to select a winner of money or valuable prizes.
Commission A percentage of sales income given to the salesperson.
Trading up Convincing customers to but higher-priced item than they intended.
Telemarketer A person who sells a line of products over the telephone.
Door-to-Door Representative A person who goes house to house selling a line of products.
Decor The way in which a store or place of business is decorated.
Slogan/Jingle Catchy songs,rhymes,phrases used to help consumers remember products.
Logo Graphics or symbols that represent a company, used to identify products.
Beauty appeal Product that makes you this beautiful,makes you like this person.
Testimonial A positive statement made by a person who is endorsing a product or service---usually a famous person
Endorsement An advertising message that reflects opinions, beliefs, findings, or experiences of a person or group other than the advertiser.
Escape Associating products with beautiful, adventurous settings to create the illusion of escape for viewers.
Lifestyle Associating a product with a desirable style of living.
Bandwagon Attempting to convince consumers that everyone is using the product.
Rebel Associating products with behaviors that contradict societal norms.
Unfinished comparison Claiming a product “works better”---better than what?
Group identification A message that, if you use this product, you will fit in with this group.
Trendsetter A message that, if you use this product, you will stand out from the crowd.
Hidden fears A strategy of playing on the fears of consumers.
Before-and-After comparison “Before” and “after” pictures show results of a product or treatment.
Traditional values Trying to associate with home and family.
Puffery Exaggerated claims intended to increase a product’s reputation or appeal.
Loss leader An item priced below the retailer’s costs in order to attract customers.
Price Comparision Offering products below retail value or implying that the same item is sold at higher prices at other stores.
Bait and Switch A retailer advertises a product thtat it has no intention of selling, hoping to persuade consumers to come and buy a product at a higher price; customer is often told that the “bait” product is “sold out”.
False promise A promise of a free gift that actually requires that another item be bought first.
Introductory offer Indicates new merchandise selling at a price that will soon increase.
Deceptive pricing Advertising a “sale” price that is actually no better than the everyday price.
Hidden catch When details of an offer are not all clearly disclosed---extra charges, processing fees, other restrictions.
Created by: BoneyMa1