A big hunk of a product’s costs are in marketing with the other big hunk in advertising. Advertising is designed to get you to spend money. Lots of it. To convince you that you need the newest, the greatest, the most advanced, the most special whistles, baubles, bangles, and doodads that you were not even aware that you needed. While you might not be aware you “need” a particular product by the time you’ve seen enough ads about it, you convince yourself that you need it. In fact, buying a particular product will make you the smartest, the coolest, the hippest, the most beautifulest person on this planet.
Think I’m exaggerating? Notice the long lines forming every time a new iPhone is announced.
When my sister and I take a trip that requires flying to our destination and we are only going to be gone for a week, we usually park at an off-airport parking facility. Such facilities provide a shuttle to the airport. On one trip after we had parked, a young woman driving a golf cart drove up and gave us a ticket that listed a description of the car, its license plate and where it was parked. As she handed me the slip of paper, she said, “You can take a picture of that with your phone and show it to the driver when you come back.”
When I told her that I don’t take with my phone because I have a flip phone, she looked at me with a puzzled expression. I explained that I only use my phone to make telephone calls. And the phone only cost 50 bucks. With a deep sigh she said, “My phone cost $1,000.” I just shook my head and thanked her for her help. A woman driving a golf cart in a parking garage was paying $1,000 for a phone. What is wrong with this picture?
The advertising industry has mastered the art of using words to motivate you and me to spend money to an elevated level. Its objective is to sell products, services needed and unneeded. The industry targets your needs, wants, and desires.
Consider this, you need food to live. You do not need chocolate in a gold box tied up with a red ribbon. Although you may want chocolate and even may find it is desirable. The red ribbon is used as a visual seducer to attract you.
You need shelter. We all do. You do not need a million-dollar condo. Although you may desire it.
You need clothing. Human beings need covering to protect our bodies. You do not need a pair of jeans with a celebrity’s name on your butt. Although, you may think it makes you look cool.
Advertising uses pictures and words to trigger your emotions to buy services or products. There are other tricks of course.
Advertising campaigns are successful based on how many people recognize the product from the advertisement. Really good ones have memorable slogans and even theme songs. You hear them and the product immediately comes to mind.
Things you think you know may have been created by advertisements.
Got a Fitbit? Take 10,000 steps a day for good health started as an advertising slogan in the 1960s. A Japanese company used it to sell pedometers. Walking is good for you. But there’s no magic number of steps to take.
People say that my home state of Colorado has 300 days of sunshine a year. The state’s website includes it. That’s a marketing slogan that goes back to the 1870s. This one was thought up by a publicist for one of the railroads in Colorado to convince people to move to the territory. No one back then was counting sunny days. But the line sounded good, and people moved. The reality? The National Weather Service reported that the climate center's study found that Denver can typically count on having about 115 clear days, 130 partly cloudy days and 120 cloudy days each year.
Your Money Tip:
What you are told with advertising may have a significant fudge factor—something the product’s marketing tag didn’t include.
Patricia Lane Williams CPA is the author of Your Money: How to Get Hold of Your Money Before Debt Gets Hold of You. As a trusted resource for the accounting profession for over 30 years providing content for their continuing education. Her website is PatWilliamsAuthor.com and she can be reached at PatWilliams.Author@gmail.com.