SUBJECT : ADVERTISING AND SALES MANAGEMENT
Write short notes on:
(a) Economic implications (at least 7 implications with elaboration ) and legal implications (at least 7 implications with elaboration ) of puffery in advertising ?
(b) Steiner model of communication ( in 150 words )
Advertising puffery refers to promotional material that makes broadly exaggerated or boastful statements about a product or service that are subjective, rather than objective, and that which no reasonable person would presume to be literally true.
Economic implications
It highlights the strength of one attribute of a seller’s product thus boosting sales.
It highlights the weakness of a competitor’s product.
It provides consumers with information on products and services.
It helps to increase their choice of goods and services.
It helps stimulate the economic growth of a country.
Legal implications
Puffery is allowed to a degree and is not prohibited by most advertising laws. Generally, a business or seller cannot be held liable for misrepresentation if they issue a statement that amounts to mere puffery.
A company can be sued for puffery if there justifiable reason that it is false advertising.
b) Steiner model of communication
It was developed by Lavidge and Steiner. The marketing communication model, suggests there are six steps from viewing a product advertisement to a product purchase. The job of the advertiser is to encourage the customer to go through the six steps and purchase the product. It involves six steps which include; awareness, knowledge, liking, preference, conviction, and purchase respectively. Steiner's model argued that the six steps can be downsized into three major stages of consumer behavior. Firstly, it is cognitive which involves the consumer becoming aware and gathers product knowledge. Secondly, the consumer likes the product brand and has conviction in it through affection. Lastly, the consumer changes his/her behavior and buys the product brand.
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