Chapter 95 Question 085

Why do manufacturers sometimes print words that refer to TV advertisements on print advertisements and the outer packaging of some products? (Joan Inriat) Manufacturers who advertise their products on television sometimes seem eager to make this fact known to potential buyers.Therefore, they often print such slogans in newspapers, magazines and product packaging: See TV commercials.Why would a customer need to know if the product was advertised on television? Television commercials are expensive, with a thirty-second commercial selling for as much as $2.5 million at certain times.Of course, not all TV commercials are expensive.But even late-night ads on cable channels are more expensive than most radio and print ads.So, the real question should be, why would a manufacturer want people to know that they're paying big bucks to advertise to potential buyers?

The key to answering this question is to notice that spending the same amount of advertising money on a good product will bring more returns than spending on a bad product.At best, an ad can entice potential buyers to try the product.If they try it and really like it, they are likely to buy the product repeatedly and recommend it to their friends, only then can the ad really be profitable.If a buyer tries a product and is disappointed, they will not buy it again and are less likely to recommend it to a friend.In the latter case, most of the money spent on advertising is wasted. Since manufacturers generally conduct a large number of focused user group tests before the product is officially launched, they know which product consumers will like the most.So, if a producer decides to spend a lot of money advertising a product, potential buyers can reasonably judge that the producer has good reason to want consumers to like it.Otherwise, manufacturers would not spend so much money to promote it.In this light, it is not surprising that many producers want our attention to advertise their products on television, the most expensive medium.