How Marketing Affects our Spending
April 25th, 2008 by Karla Looking towards Heaven
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This week and last, Jennifer, our Frugal Diva, wrote a very thorough list of ways that marketers appeal to our emotions at the grocery store. From placement (eye-level or not), to the ways we relate to numbers (Buy two get two free!), we are bombarded by sly tactics and methods that years of research has taught retailers.
All of these things work to take money from our wallets and place them into theirs. It wreaks havoc on our bank accounts, if we are not careful.
The four main ways that we are sold to are:
Personal Selling - we’ve all heard of demographics. Research tells marketers what appeals to certain groups. And as information is collected from us, databases are created to help pinpoint more information about those demographics. Marketers carefully review that information to be able to target very specific groups for their items.
Financing - Commercial after commercial tells us that we can take it home today with no payments until ________ or 90 days same-as-cash, but what this really means is "We are gonna make a lot of extra money off of you". Some businesses make more money off of the financing than they do from the item they are selling you.
TV, radio and internet - The number of daily marketing impressions the average person is exposed to has increased from 500 in 1971 to over 4,000 today. We are constantly bombarded with ads and savvy marketing. How many annoying product jingles go through your head on a daily basis? That’s good marketing!
Product Positioning - Brand recognition, shelf position, color and packaging. I admit that this is one that I fall for frequently. I love all of the pretty colors and packaging and sometimes find myself arguing with myself over a purchase based simply on the package. Ridiculous, I know. That’s savvy marketing. Think too, of all of those little items placed right by the register: sodas, trial size items and candy become impulsive buys if we aren’t careful.
What are we to do? We can become experts of Buyer Beware. Next week: We’ll discuss What to Do to become a more savvy shopper.
For now, head over to the forums and let’s discuss marketing ploys we’ve fallen for.
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