Place: Mumbai Date: 24th

May 2008

ACKNOWLEDGMENT

First of all, I wish to thank my guide, Joseph Fernandes , Area Service Incharge, LG

India, Mumbai who has provided great help and encouragement throughout the

completion of this project. He made all the efforts to improve the quality and the lay out of

the presentation.

I wish to thank the team at LG India who provided all the required information to

complete this project. I would appreciate the positive attitude shown by all respondents,

without which this project would have not come to the conclusion.
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 I would also like to thank my family who could contribute their knowledge and support in

ensuring the completion of this project work.

(NIKHIL M. NANDE)

UNDERTAKING BY CANDIDATE

I declare that project work entitled Impact of Advertising on Sales of New

Product is my ownwork conducted as part of my syllabus. I further declare
that project work presented has been prepared personally by me and it is
not sourced from any outside agency. I understand that, any such
malpractice will have very serious consequence and my admission to the
program will be cancelled without any refund of fees. I am also aware that,
I may face legal action, if I follow such malpractice.

Candidate: XXXX XXXX XXXXX (Admission No HPGD/AP16/XXXX)

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 TABLE OF CONTENTS

ABSTRACT..................................................................................................................iv

ACKNOWLEDGEMENT ............................................................................................vi

LIST OF TABLES ........................................................................................................x

LIST OF FIGURES ......................................................................................................xi

CHAPTER 1: INTRODUCTION .................................................................................1

1. Background of the Study ............................................................................1

2. Rationale and Problem Statement...............................................................8

3. Objectives of Study ....................................................................................9

4. Research Question. .....................................................................................10

5. Scope of Study. ...........................................................................................11

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 6. Significance of the Study ...........................................................................11

7. Definition of Terms ....................................................................................12

CHAPTER 2: LITERATURE REVIEW .....................................................................14

1. Segments of Cosmetic Brands ....................................................................14

2. Global Standardized/localized Advertising Strategy of International Brands

16

3. Conceptual Framework ..............................................................................17

CHAPTER 3: METHODOLOGY ...............................................................................29

1. Research Design .........................................................................................29

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 TABLE OF CONTENTS (Continued)

Page

CHAPTER 3: METHODOLOGY (Continued)

2. Population and Sample Selection ...............................................................30

3. Research Procedure ....................................................................................33

4. Research Instrument and Data Analysis .....................................................36

5. Validity .......................................................................................................36

6. Reliability ...................................................................................................37

CHAPTER 4: FINDINGS ............................................................................................38

1. General Information of Sample ..................................................................38

2. Findings ......................................................................................................39

CHAPTER 5: DISCUSSION ......................................................................................52

1. Summary of Findings .................................................................................52

2. Discussions .................................................................................................56

3. Limitations .................................................................................................57

4. Recommendations for Further Application. ...............................................58

5. Recommendation for Further Research......................................................58

BIBLIOGRAPHY ........................................................................................................60

APPENDIX ..................................................................................................................64

BIODATA .....................................................................................................................68

LICENSE AGREEMENT ............................................................................................69

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 LIST OF TABLES

PageTable

1.1: Classification of Chinese cosmetics industry ........................................................3

Table 2.1: Classification Standard of Brands in Chinese cosmetics industry ..............16

Table 2.2: Classification Standard of Global Standardized and Localized Advertising

Strategy .......................................................................................................18

Table 2.3: Execution Styles Classified by Four Scholars .............................................24

Table 3.1: Variables of Each Commercial Need to be Coded. ......................................36

Table 4.1: Summary of the Selected Cosmetic Television Commercials .....................39

Table 4.2: Advertising appeals used in cosmetic television commercials aired in China

(n=72) ..........................................................................................................40

Table 4.3: Execution styles used in cosmetic television commercials aired in China(n=

72) ..............................................................................................................43

Table 4.4: Advertising appeals used in each segment of cosmetic television commercials

aired in China (n = 72) .................................................................................46

Table 4.5: Execution styles used in each segment of cosmetic television commercials aired

in China (n = 72) ..........................................................................................48

Table 4.6: Execution styles used in global standardized strategy vs localized strategy (n =

48) ................................................................................................................51

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 LIST OF FIGURES

Page

Figure 1.1: Market Size of Chinese cosmetics industry ...............................................2

Figure 1.2: Annual Report of Commercial Revenue ....................................................4

Figure 3.1: An example of commercials by international brands considered global

standardized strategy ..................................................................................48

Figure 3.2: An example of commercials by international brands considered localized

strategy .......................................................................................................33

Figure 4.1: Use of emotional appeals in Dior television commercial: Miss Dior ........41

Figure 4.2: Use of rational appeals in Dabao television commercial: Dabao Hydrating

Moisture Serie ............................................................................................42

Figure 4.3: Use of imagery execution style in Dior television commercial: Poison Girl

44

Figure 4.4: Use of demonstration execution style in Innisfree Television. ..................45

Figure 4.5: Use of straight sell execution style in Chando Television Commercial: Snowfield

Essence Serie..............................................................................................50

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Advertising appeals are the persuasive pressures that stimulate
a person to buy a product or service by speaking to an
individual's needs, interests, or wants. The goal of an ad is to
persuade customers, and advertising appeals provide just the right
hook to allow persuasion to occur.

A customer needs to understand the message very clearly though

the promotional campaigns. Advertising appeal helps in delivering
that messaging in a way through which customer not only
understands the message but also responds to it

Message appeal In marketing communications, marketers utilize

message appeals to attract customers' attention, persuade them
to like the products or services and influence them to make a
purchase

What are the characteristics of advertising appeal?

Essential Features of Good Advertising Appeal

• Creative Concept.
• Meaningful.
• Believable.
• Distinctive.
• Based on a Theme.
• Communicative.
• Interesting.
• Complete.

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 The most common advertising appeals include use of fear,

humor, rational, sex or bandwagon propaganda.
• Fear as a Motivator. ...
• Humor Creates Emotional Connections. ...
• Rational Appeals to the Practical Side. ...
• Sex and Sensuality Sell. ...
• Fear of Missing Out.

Commercial, print and online ads use some form of appeal to reach
potential customers. Advertisers use appeal to in uence a customer
to purchase a product or support a cause. Appeals speak to an
individual’s need, wants or interest and entice him to take the
desired action.

Top Five Appeals That

Advertisers Use to Sell a
Product

Tip
The most common advertising appeals include use of fear, humor,
rational, sex or bandwagon propaganda.
Fear as a Motivator
Fear appeals focus on the negative outcomes that can happen
because of an action or inaction. Advertisers use fear appeals to
promote an immediate behavior change such as eating healthier or
not smoking. Another fear tactic involves isolation. People will

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purchase a product to avoid isolation from others because of bad

hygiene. Deodorant and toothpaste ads often employ this tactic.
Government agencies appeal to an individual’s fear of death or
incarceration to prevent drinking and driving. Fear appeals work
when the recommended action is speci c, effective and plausible.
For example, ads geared toward smokers can be ineffective if the
person does not believe quitting is within reach.

Humor Creates Emotional Connections

Humor appeals make consumers laugh and create an emotional
link with the product. A well-executed humor appeal enhances
recollection, evaluation and the intent to purchase the product.
Advertisers link the product with the humor. For example, a
humorous insurance ad hits the mark when the humor shows the
consumer why having insurance is bene cial.
Using humor at the expense of one group may lead to resentment.
Senior citizens may resent a product that portrays them as grumpy,
while women may refuse to purchase a product that portrays them
as overbearing. Humorous ads work best with established and
commonly purchased products such as cellphones, fast food and
alcoholic beverages.
Rational Appeals to the Practical Side
Rational or logical appeals focus on the consumer’s need for
practicality and functionality in a product. Advertisers relay this
message by focusing on product features and cost. These ads tell
consumers the bene ts associated with the purchase of a product.
The advertiser then provides proof to back up the claims.
An automobile advertisement focuses on gas ef ciency, mileage
and prices to reach consumers who want a cost-ef cient, reliable
vehicle. Household appliance manufacturers may place emphasis
on features that lower home utility costs and protect the
environment. Printed and business-to-business advertisements are
better suited for rational appeals.
Sex and Sensuality Sell
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 Sex appeals capture attention, but seldom promote product

consumption. Effective sex appeal ads convey a speci c message
to the target demographic group. Beer advertisers often use sex
appeal to promote their product to men. The typical scene involves
several young, average-looking men in a bar. The men purchase
the beer and gain the attention of an attractive young woman.
Fragrance products use sex appeal to convey romance to women
by indicating the use of the product will help her nd the man of her
dreams. Generally done by showing the woman spraying the
fragrance and then capturing the attention of an attractive male who
passes her on the street. Overly overt images subtract from the
overall message the advertiser wants to convey.
Fear of Missing Out
A bandwagon appeal makes consumers believe they are missing
out by addressing the consumer’s need to belong. Food and drink
ads show hip young adults enjoying a product and ignoring the
individual who chooses the less popular product. Medical products
show consensus by indicating the number of medical professionals
who support the product. For example, a cold medicine ad may say,
"Eight out of 10 doctors recommend this product" to show product
effectiveness.
Automobile dealers and cellphone providers give sales and user
statistics to indicate why their product is the more preferred. This
type of message says buy this product because everyone does. If
done correctly, the consumer will purchase the product. Bandwagon
appeals can back re in that the consumer’s desire to t in can
con ict with the ability to make a rational decision.

Fear Appraisal in
Advertising
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 In advertising, a fear appraisal, or fear appeal, uses consumers'
fears to motivate them to purchase a product or contribute to a
cause. The consumer appraises the product in light of their fear of
the consequences of not buying. For example, an ad campaign may
appeal to people's fear of body odor to convince them to buy
deodorant. Consumers who are afraid of sweat stains or odor are
more likely to respond and buy the deodorant.

Fear Advertising Commercials

Fear appeals are one of most commonly used types of advertising,
suggests design platform Visme, because it can be used in
convincing people to appraise and change their behavior such as
quitting smoking or not drinking and driving. Some behavior-change
commercials may feature photos of corpses or very strong wording,
such as the anti-smoking ads showing terminal cancer patients and
stating “Smoking Kills.”
Fear appeal commercials are widely used in the nonpro t sector,
encouraging people to help save the environment or help eliminate
poverty by giving money to charities. The ads encourage
consumers to appraise and change their behavior regarding
charitable giving. Some fear appraisal ads focus on less well-
de ned fears, such as ads for plastic surgery or skin creams that
focus on consumers' fears of looking old.

Does It Work?
For years, researchers thought that some types of fear appeal
advertising would have little long-term effect. One reason for this is
people will try to avoid unpleasant ads and images. Fear appeals
with too strong a message may also be ineffective if they cause
consumers to tune out or decide the threat does not apply to them.
Consumers may also decide the ads are too strong and, therefore,
cannot be accurate. This can also lead consumers to lose trust in
the advertiser or campaigner.
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 More recently, the American Psychological Association conducted a
comprehensive review of over 50 years worth of research on the
subject, concluding that fear appeals do indeed work in changing
behaviors, especially in women.
Get the Style Right
As the AMA research discovered, fear-based advertising is most
effective when it meets three criteria:
• The ad is very scary;
• It offers specific ways for overcoming the fear; and
• The recommended method for overcoming the fear is
easy to achieve.
For example, anti-smoking ads may be very scary and may offer a
clear way to eliminate the fear, but it can be very dif cult for people
to stop smoking. Consequently, these ads may convince few people
to stop smoking. However, an ad convincing people to buy
deodorant as a remedy for body odor may convince a large number
of people, as buying deodorant is very easy. Fear appeals are also
most effective when they come from a trusted source.
Memorable Ads

Fear appraisal ads may be more effective if they appeal to

consumer's preexisting beliefs about a fear. The use of strong
images can also make fear appraisal ads more memorable. For
example, the World Wildlife Federation uses ads with disturbing
images, such as a man with the head of a sh, emphasizing the
need to “stop climate change before it changes you.” A Volkwagon
Jetta ad featured car passengers being saved by their airbag and
the tagline “Safe Happens”; the ad was so realistic that it prompted
consumers to phone Volkswagen and ask if anyone had been hurt
in the ad.

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Framing Examples in
Advertising
Advertisers use the framing effect to present information in a
manner that in uences how viewers interpret that information.
Business owners and marketers often employ framing techniques,
such as casting a potentially negative fact about their product into a
positive light or by showing the negative effects of a competitor's
positive qualities. These professionals frame the aspects of an ad
and adjust the meaning of its message with tools such as colorful
images, strident music and precise language.

Loss Framing from Failure to Comply

One aspect of framing in advertising occurs when the advertiser
displays what the customer stands to lose if he or she fails to
comply with the message. An effective demonstration of "loss
framing" instills fear into the recipient and warns of dire
consequences. A major example of loss framing occurs in public
service announcements. An anti-smoking campaign shows the
dangers of cigarettes by displaying images of cancer patients who
rely on respirators to breathe and arti cial voice-boxes to speak.
Gain Framing by Following Advertiser's Message
The other side of the coin from loss framing is "gain framing". A
message with gain framing shows the recipient what they have to
gain from following the advertiser's message. Dental care product
advertisers use gain framing messages to display the bene ts of
routine dental care: sparkling white teeth, healthy gums and fresh
breath. The messages also often imply other bene ts, such as how
a better-looking smile makes the user more attractive to potential
dating partners.

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Statistical Framing to Prove or Disprove a Point

Benjamin Disraeli, the British Prime Minister during most of the
Nineteenth Centruy, was quoted as saying, "There are three kinds
of lies: lies, damned lies, and statistics." Various advertisers often
use the same statistics to prove and disprove the same point
simultaneously. For instance, one advertiser can promote a
pharmaceutical product as having an 90 percent success rate. A
competitor can use the same statistic to (correctly) claim that the
drug fails to work in 1 out of 10 cases.
Framing and Language
Advertisers are specialists at using language to frame their
messages. They understand the emotional reactions that
consumers have to speci c words.Their goal is to use words that
create a positive emotional frame for the product in the viewer's
mind. An ad for a high-end automobile uses words like "luxurious"
and "well-appointed", while avoiding words such as "expensive" and
"over-priced".
A similar ad for a lower-priced car would use words like "affordable"
and "dependable" instead of "cheap" and "sturdy."

Examples of Hyperbole in Advertising

Hyperbole is a facet of advertising in every medium, from print ads

and radio spots to TV commercials and promotional websites. Ads
that promise to bestow upon the user super strength, blinding-white
teeth and an uncanny ability to attract the opposite sex have been
around for decades. Marketers use such hyperbolic statements to
attract customers, not with the facts about their products but with
wild exaggerations not intended to re ect the truth.


Visual Hyperbole in Advertising

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Advertisers are experts at displays of visual hyperbole. Such ads

show how users can gain tremendous, super-human bene ts from
a product. The ad campaign for the Red Bull energy drink promised
to give the consumer wings to y above his lethargy. As marketing
campaigns go, this one was very costly, reports Business Insider,
with the company agreeing to pay out more than $13 million after
settling a class action lawsuit from customers who were
disappointed that Red Bull did not, in fact, give them wings.
The classic 'Guinness for Strength' ads were very similar, showing
drinkers hoisting automobiles, steel girders and blue whales over
their heads, implying that drinking the beer endows the user with
the strength of Superman.

Audio Puffery Advertising Examples

Some advertisers also turn to audio cues to tout their products. In
the vintage Calgon advertisement, a woman surrounded by noise
and stress from everyday life pleads, "Calgon, take me away!" The
ad replaces the noise and stress with soft music and a luxurious
bath. A man takes a seat in a Toyota Corolla next to a sleeping
mother badger and her pups while someone outside res a cannon.
The cannon fails to wake the badgers, but the man's ringing
cellphone wakes the angry mother.
Verbal Hyperbole
Advertisers also use verbal cues to create exaggeration in
advertising. The Joe Isuzu ads of the 1980s touted that the car
maker's sport utility vehicles had "more seats than the Astrodome"
and could "carry a 2,000-pound cheeseburger." The ads for Old
Spice deodorant, featuring actor/model Isaiah Mustafa, promise the
ladies in the audience that the spokesman is "the man your man
could smell like" if he used the product.
Negative Hyperbole
Rather than tout the merits of their own products with hyperbole,
advertisers often resort to using negative hyperbole to attack the
competition. Political campaign ads are the benchmark for negative
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hyperbole, as one side attempts to stain the reputation of the other
with outlandish claims and exaggerations of guilt by association.
Instead of using humor, these campaigns exaggerate the negative
outcome that might happen if you don't do what the ad tells you to
do.
The negative hyperbole method works particularly well when the
audience wants to avoid a speci c negative outcome because the
consequences are so serious. For example, the Centers for
Disease Control reports that 2 million smokers were inspired to quit
by the government's anti-smoking ads between 2014 and 2017.

Advertising Techniques
That In uence Buying
Advertising is both powerful and manipulative, making use of
extensive research into psychology to convince people to spend
money on particular products and services. The total amount spent
on advertising in the United States along passed $175 billion at the
start of 2011, according to website Business Insider. Online
advertising is the fastest-growing sector in the advertising industry,
though television is still where most ad money is spent.

Association
• Advertisers frequently attempt to associate a product or
service with the lifestyles, values and people featured in an
advertisement; for example, a group of young people with
perfect teeth may be used to advertise toothpaste. Association
can be made to work even if the product has little to do with
the thing with which it is being associated. For example, a
survey published in “BMC Public Health” in 2006 reported that
most of the advertising associated with sports promotes
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 unhealthy activities such as drinking alcohol, gambling and
eating fast food.

Appeal to Emotion
• Advertising that inspires basic emotional responses, such
as hope, fear and desire, offers the chance for resolution of
these feelings by buying a particular product or service. For
example, a clothing manufacturer plays on the human need to
be accepted by others; an insurance company causes people
to worry about the future; a holiday company manipulates the
desire for new experiences; and a mortgage company focuses
on the drive to provide stability for a family.
Providing a Solution
• Ideally, products are designed and invented to improve
people’s lives; advertisements are used as a medium to inform
consumers of their existence. With more products continually
being brought to market, advertisers are forced into trying to
convince audiences that their product or service provides a
solution to a problem that does not exist or needs to be solved.
Examples of such products are avocado slicers, branded
pencil sharpeners and plastic, motorized ice-cream cones.
Saturation
• Advertisers attempt to capture the attention of consumers
using every variety of media. According to an article published
on CBS Sunday Morning, the average American, who was
exposed to approximately 500 ads per day in the 1970s, now
sees more than 5,000 per day. Traditional media have included
billboards, magazines, newspapers, television and movies.
Modern advertisers increasingly make use of the Internet and
any available at surface. In New York City, advertisements
appear on postage stamps, parking stripes and even on oors.

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 Characteristics of an
Effective or Persuasive
Advertisement
Effectiveness and persuasiveness of ads are closely linked. While
you often have different goals with ads, the general intent of each is
to persuade customers to think, feel or act in a certain way toward
your brand. With this in mind, effective, persuasive ads have
several common traits.

Appealing to Emotions
• Persuasion normally requires that you connect with someone's
rational or emotional motives in a purchase situation. In many
cases, emotional appeals carry more in uence. Effective ads
typically rely on strong market research to uncover what
makes target customers tick, or what bene ts and message
content will get their intention. Emphasizing the bene ts that
most appeal to a target audience in a way that makes an
emotional impact is a key ingredient. For example, associating
a perfume with sensuality can appeal to a potential customer's
yearning to be attractive.
Using Subtlety
• The most memorable and resonating ads usually walk a
ne line between clarity and subtlety. You want customers to
"get" your message, but you also want them to have to think a
little bit so you can create some cognitive residue, or lasting
impact. This is where the role of creativity becomes important.
Companies often use metaphors to depict the bene ts of their
brand in a slightly unique or different message situation. This
forces customers to connect the dots to the point you make,
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 without completely confusing them about your brand. For
example, a gum maker's TV ad might associate a cool mint
avor with a brisk, crisp wintry day by releasing an ad showing
someone popping the gum into their mouth, then playing a
distant wintry-wind sound effect in the background.
Telling a Story
• Effective ads can tell stories to connect with customers,
often creating settings with characters that can cause the
viewer or listener to identify with a character's plight in the ad.
For instance, an ad for auto insurance might depict a driver
getting into a fender bender and experiencing the frustration of
not having adequate auto coverage. Potential customers might
relate, either because they have been in this predicament or
can imagine the stress they would feel if they were.
The Medium and the Message
• Effective and persuasive ads are delivered in the right way
through the right medium. In a TV ad, setting, lighting, sound,
character expressions and dialogue all contribute to the mood
of the message. In print ads, the design, use of color and copy
impact tone. On the radio, the blend of sound and copy set the
tone. The medium and message should work together for
clarity and impact. Commercials for cologne or perfume often
use sensual music, lighting and character gestures to convey
messages that the brand offers an attractive, alluring smell.

Is Subliminal Advertising
Ethical or Not?
Subliminal advertising conveys hidden messages of which viewers
are not consciously aware. This ad strategy poses serious ethical
issues, particularly because subliminal ads can manipulate
consumer behavior even when consumers aren't making a
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conscious choice and aren't aware of what they've seen.

Advertisers that intentionally use subliminal messages may
experience a consumer backlash and even could land in legal
trouble.

Subliminal Advertising Basics

• Advertisers often try to create an association between a
product and happiness, better health or more nancial stability.
However, true subliminal advertising attempts to create an
association that the consumer doesn't notice. For example, an
advertiser might insert a single frame into a cartoon that
contains a message or could use an image that triggers sexual
thoughts without the consumer being consciously aware of
such thoughts. It is extremely dif cult to prove that an
advertiser has used subliminal ads, because consumers aren't
consciously aware that the ad is affecting their behavior.

Ads and Choice

• The advertising industry exists to give consumers
information about competing products and to tempt them to
choose one product over another. However, subliminal
advertising removes choice from the consumer. A woman who
sees a subliminal ad for mascara, for example, might not be
buying the product because she likes the way it works or
because of the price. Instead, she might be triggered by a
subliminal message to believe that without the mascara, she
will be harmed or that the mascara somehow will improve her
life. While advertisers sometimes subtly convey these
messages, subliminal messages are presented in a way that
the consumer isn't consciously aware of them, removing the
ability to choose or critically evaluate a product.
Safety and Values

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 • Some subliminal ads cater to unethical desires or

inappropriately target a particular market. For example, a
cigarette advertiser might insert a subliminal message telling
children that smoking is cool or safe. Other advertisers might
use inappropriate sexual messages. This can undermine a
consumer's conscious values, promote unethical behavior or
increase a consumer's desire to engage in an unhealthy or
risky practice. Because consumers aren't aware of the
message, they don't know they're being manipulated into
behavior they otherwise might not exhibit. Some consumers
have alleged that musicians insert subliminal messages into
their music. For example, in 1985, two Judas Priest fans
attempted suicide, and their parents alleged that the band had
inserted the subliminal message of "do it" into their music.
Legal Issues
• There are no speci c laws banning subliminal advertising,
but several states have attempted to outlaw the practice.
Consumers can sue when they believe they are harmed by an
advertisement, even if there is no speci c law prohibiting
subliminal advertising. These lawsuits are called torts, and
they allege intentional or negligent harm. The Federal Trade
Commission requires that advertisers be truthful in their
advertisements, and marketers that violate truth-in-advertising
laws by using false subliminal messages can be ned.
Effectiveness
• There is ongoing debate among psychologists and advertising
experts about the effectiveness of subliminal advertising. The
judge in the Judas Priest trial, for example, found that there
was no evidence that subliminal messages could affect
behavior. However, even if subliminal advertising does not
work, attempts by advertisers to control consumer behavior
are widely perceived as unethical.

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What Are the Elements of

False Advertising?
Businesses and manufacturers advertise to get consumers to
purchase their products. According to the Federal Trade
Commission, advertising must be truthful, advertisers must present
evidence to support their claims and advertisements must be fair.
Laws prohibit false advertisements that deceive consumers into
making a purchase based on misleading claims. False advertising
elements include claims that are not based in fact as well as claims
that most consumers cannot verify on their own.

Deceptive Claims
• Deceptive and misleading claims are major elements of
false advertising. The FTC de nes a deceptive claim as a
statement that is likely to mislead a consumer who is acting
reasonably under the circumstances. Advertising claims can
be either "expressed" or "implied." An expressed claim is a
literal statement made in the advertisement such as "XYZ
lotion prevents dry skin." An implied claim is not literally
referred to in the ad but a consumer could make a conclusion
based on statements made in the advertisement. Advertisers
who do not have proof to back up an expressed or implied
claim are guilty of false advertising.

Unreasonable Claims
• Another element of false advertising are statements that
make a claim that is considered unreasonable. Unreasonable
claims lack "objective evidence" to support the advertisement.
Advertisers must have the evidence it says it has when making
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 a claim. For example, if an advertisement states "Nine out of

10 consumers prefer ABC product," the advertiser must, at
minimum, have evidence to prove the claim.
Misrepresentations
• False advertisements contain elements that make
misrepresentations of facts and distort information.
Advertisements misrepresent facts when claims about the
product's performance, effectiveness and/or safety are
misleading. For example, an advertisement that makes a
safety claim such as "doctor guaranteed" or "guaranteed safe
and effective" is a misrepresentation unless the advertiser has
suf cient evidence to support the claim such as expert insight
or studies that support the statement.
Unfair
• Unfair statements are another element of false advertising. For
example, a radio advertisement that makes a claim which can
only be objectively evaluated if the consumer could see the
results is unfair. According to the FTC, an advertisement could
also be considered unfair if it causes or is likely to cause the
consumer unavoidable injury; and the disadvantages of the
product far outweigh the bene ts.

What Are the Tools of

Persuasion in Advertising?
Advertising is a communication strategy designed to convince
consumers to buy a company's products. Persuasive
communication involves getting attention, generating interest,
creating a desire for change and encouraging action. Advertising is
important for driving revenue and pro t growth. Small businesses
can use persuasive advertising in one-on-one settings and through

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traditional media channels, including print, television and the

Internet.

Repetition
• The repeated use of phrases and images can help people
remember the advertising messages and even accept them as
truthful. For example, a technology company could reinforce
the message of productivity in its commercials and a retailer
could emphasize that its products provide the best value.
Catchy slogans are also useful because they can be easily
incorporated into short commercials and Internet banner ads.
Repetition-Break
• The repetition-break tool consists of two or three
repetitive sequences followed by a break or a deviating event
that is different from the other sequences. For example, a
pharmaceutical ad could show repetitive sequences of virile
men and women in different settings followed by a graphic of
the drug. The repetition creates an expectation of what is to
come and the break comes as a surprise, which captures
attention and generates interest. At the annual conference of
the Cognitive Science Society, University of Illinois at Urbana-
Champaign professor Jeffrey Loewenstein and colleagues
cited research experiments showing that television
advertisements using the repetition-break tool are persuasive
and lead to higher purchase intentions than other forms of
advertising.
Humor
• If done properly, humor is an effective persuasive tool.
Ambiguity, puns and comedic situations can make an ad
memorable. People tend to remember things that make them
smile, possibly leading to a purchase decision. For example,
people are likely to remember a soft drink ad that has sketches
of adorable polar bears drinking soft drinks while sliding down
a mountain. Humor is one part of advertising messages, which
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 usually include substantive messages, such as social

acceptance, old-age security and family relationships.
Shock
• Shock advertising aims to grab the attention of the
audience. Jarring images and shocking text may also generate
free media coverage, increasing the effectiveness of the
advertising campaign. Public awareness ads against smoking
and drugs often use shocking images to convey important
health and safety messages. However, shocks tend to lose
value through repeated exposure because viewers may start
ignoring the ads altogether.
Other Tools
• Other persuasive advertising tools include romantic
imagery, music, stereotypes and celebrity endorsements.
Product placements in favorite television programs and movies
may also have a persuasive effect.

What Are the Major

Differences Between
Informative and Persuasive
Advertising?
Informative and persuasive advertising are both powerful
mechanisms to convey product strengths and compel consumers to
buy goods and services. The major differences in these advertising
techniques relates the ways each seeks to deliver information.
Informative advertising may employ persuasive techniques, but
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relies more heavily on facts. Persuasive advertising seeks to appeal

to consumer emotion to close the sale.

Stating the Facts

• Informative advertising seeks a presentation of product facts in
a formal manner, including presenting ndings from
independent studies and safety assessments, to attract
customers and sell a product. Persuasive advertising seeks to
relay product information, as well, but does so in a way that
frames the product in a compelling, positive light. While
informative advertising may mention a product's negative side
effects, persuasive advertising ignores those elements in favor
of emphasizing information that appeals directly to consumer
need or desire.
Discounts and Beautiful People
• Persuasive advertising often uses more trickery and ash
than informative advertising. The advertising may use beautiful
or famous people in marketing campaigns to encourage
consumers to associate positive emotions with products.
Companies also might offer discounts on initial purchases to
encourage consumers to buy higher quantities of speci c
products or encourage purchases across a wider product
range. Informative advertising doesn't usually employ these
techniques, choosing to rely solely on the strength of product
features to encourage consumers to make purchases.
Charisma and Humor
• Endorsements by charismatic pitch people often can
overcome product weaknesses and persuade consumers to
buy products. This is also true when persuasive advertising
uses humor to encourage consumers to associate the positive
emotions of laughter with products. Informative advertising
does not rely on a weak argument dressed up with humor or a
cleverly worded slogan to sell products. A company that uses
informative advertising still might employ an actor who speaks
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 well and is pleasing to the eye to speak about the product
strengths, but the message itself is the star.
Government Advertising Regulations
• The federal government requires many companies across the
country, including those selling tobacco and pharmaceuticals,
to employ informative advertising as a means of relaying
product risks to consumers. For example, a pharmaceutical
company's commercial relaying a potential bene t of an
advertised prescription medication also must inform
consumers of potential side effects. This allows consumers to
make informed decisions on using products that carry a
potential risk of physical harm.

5 Most Common
Advertising Techniques
A successful advertisement creates a desire in viewers, listeners or
readers. It also provides information on how to ful ll that desire and
makes the potential customer feel good about doing so. With so
many products and service providers in the marketplace, using a
proven technique in your advertising increases the likelihood that
your ad dollars will return value. Basic techniques used in
propaganda transfer successfully to advertising and remain the
most frequently employed.

The Use of Repetition

Repetition is a simple yet effective technique used to build identity
awareness and customer memory. Even advertisements using other
successful approaches mention the product or company name
more than once, particularly in television because its combination of
sight and sound, allows the advertiser to disguise the repetition by
changing its delivery (from visual to audio). An ad rst shown during
a Super Bowl broadcast for a product called HeadOn remains the
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fi
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classic example of this advertising technique. Though the
advertisement never explained what the product does, viewers
remembered its name.
Claims Relating to a Product
Advertising that describes a product, promotes speci c features or
makes claims about what a product or service can do for the
potential customers provides successful results by informing,
educating and developing expectations in the buyer. Claims can
state facts such as "locally grown" or "new, low price". Claims can
also use a bit of hype, such as calling one brand of orange juice ”
high in vitamin C" or labeling a toy "loved by kids everywhere".
Claims like these can grab a shopper's attention and hopefully help
close a sale, but be careful to avoid exaggerations that could be
considered blatantly untrue, as these could lead to legal problems.

Association and Connection with the Customer

Associating a product or company with a famous person, catchy
jingle, desirable state of being or powerful emotion creates a strong
psychological connection in the customer. Sporting equipment
companies use successful athletes in their ads, automakers display
their cars in front of mansions, brewers show their beer consumed
by groups of friends having fun and cosmetic companies sign
celebrities to represent their products. These ads encourage an
emotional response in customers, which then is linked to the
product being advertised, making it attractive through transference.
Convincing Customers to Join the Bandwagon
The bandwagon technique sells a product or service by convincing
the customer that others are using it and they should join the crowd.
Other bandwagon advertisements suggest that the customer will be
left out if they do not buy what’s being sold. These ads often employ
“glittering generalities,” words linked to highly valued ideas or
concepts that evoke instant approval, which may or may not relate
to the subject of the advertisement. “America loves…” connects
patriotism with a product, creating an automatic positive response.

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fi

Promotions and Rewards

Coupons, sweepstakes, games with prizes and gifts with purchases
create excitement, and participation encourages customers to build
a relationship with the sponsoring product or service. The attraction
of getting something “free” or earning “rewards” makes promotions
successful. Limited-time offers and entry deadlines add urgency to
this advertising technique’s call to action.

Examples of Psychology in
Advertising
ou might not realize it, but good advertising uses psychological
techniques to entice the target audience to buy the product. If your
business advertises, you should be using these techniques, too.
Knowing how persuasion is used in advertising can help you
develop an effective promotional strategy. A good way to learn how
to put psychology into your ads is by looking at techniques that
other companies, big and small, have used and implementing these
techniques yourself.

Positive Feelings
According to the Chicago School of Professional Psychology,
consumers are more likely to purchase a product if they have a
good feeling about the manufacturer or the company that sells it.
One psychological ploy is to take a new product you're trying to sell
and put it in an ad next to other items that your audience will
already feel positively about. By seeing the items together, the
viewer might transfer his positive feelings about the other item onto
your product.

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This technique is called affective conditioning. For example, a

toothpaste company might publish an ad that shows happy people
brushing their teeth, or a company that makes soup might show an
ad with a happy football player eating its brand of soup.

Child Targets
Psychological studies have shown that children are wired to need
more intense visual stimulation. Because of this, advertisers who
market to children may make their ads bigger, more colorful or, in
the case of TV ads, even noisier and faster.

Iconic brands such as Legos make colorful products and use bright
splashes of colors in their ads to get noticed by boys and girls, as
explained by CB. Small businesses can adapt these advertisement
ideas by making sure that ads for children's products are extra
colorful and have eye-catching graphics.
Making Memories
Memories can be slightly altered. Some advertisers bank on this by
trying to make commercials that encourage viewers to think they
had positive experiences with a product. Disney ran a series of TV
ads with the theme "Remember the Magic," featuring positive
childhood experiences with the theme parks.
One study focused on viewers who didn't have any memories of
meeting a character at a theme park. After seeing the commercial,
most viewers reported that they thought they might have met a
theme park character and had a good experience in the past. Small
businesses can try this tactic by also running ads that encourage
positive memories of their product.
Buzz Words
Advertisement examples for business include the use of trendy
buzz words that affect readers and viewers emotionally, making
them more likely to want to buy a product. These words include
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phrases that imply getting a good deal (such as "10 percent off")
phrases that give a feeling of urgency (such as "limited time") and
phrases that generate excitement (such as "sizzling product" or
"stronger and faster"). Small-business owners can capitalize on this
by studying buzz words and including a few of them in social media
promotions, print ads, TV commercials or radio ads.

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