ADV3008 FINAL EXAM STUDY GUIDE I Love Saving Money PRICE INCENTIVE SALES PROMOTION Integrated Marketing Communication (IMC) – A management concept designed to make all aspects of marketing communication work together as a unified force - Advertising - Sales promotion - Public relations Sales Promotion – A direct inducement which offers an extra value or incentive for the product to the sales force, distributors, or the final consumer with the primary objective of creating an immediate sale - Incentive to behave in a certain way – short term behavior oriented Advertising vs. Sales Promotion - Creates an image over time - Relies on emotional appeals o Advertising to the heart o Sales promotion to the wallet - Contributes somewhat to profitability - Adds intangible value Sales Promotion vs. Advertising - Creates immediate action - Rational appeals - Contributes significantly to short term profitability - Adds tangible value Coordinating Promotions - Awareness before promotion - Speak with one voice – if ad focuses on college student, promotion should focus on college students Behavioral Learning - Future behavior is determined by reinforcement accompanying past behavior - Promotional tools act as reinforces along with product performance (the primary reinforcement) to increase the probability of repeat purchase o Get coupon for Dannon yogurt so buy it instead of Chobani o Sales promos can’t save a failing product Shaping – the process of learning a complex behavior by learning a series of successive approimations of the final behivor - Errors in implementations: improper fading + overuse o Overuse = danergouse because then consumer is always expecting coupons and won’t pay full price (i.e. Bed Bath & Beyond) Price Oriented Promotional Tools Samples – products given to consumers free of charge; opportunity to try the product before making a purchase - Eliminate financial risk + inconvienence Samples effective when:ADV3008 FINAL EXAM STUDY GUIDE - Brand is clearly superior - Product comes in limited varieties - Purchase cycle is short (i.e. soft drinks) - Attitudes or behaivors must be created or changed o i.e. diet drinks are for women, but Coke Zero is for men Coupons – certificates presented to a dealer that give the bearer a stated savings on the purchase of a product; likely users are current users of the product - retains current users - encourages brand switching - increases in-home inventory (amount of product your currently have at home; i.e. shampoo, PB) - lengthens purchase cycle Money Refunds/Rebates – a partial refund following a purchase - consumer purchases product then mails in proof of purchase then the refund will be sent at a later time - redemption problems: o delay of reinforcement o effort required I Get What? I Don’t Have to Pay for It? ADDED VALUE SALES PROMOTION Added Value Promotions - Product is sold at full price - Consumers get more for their money - Doesn’t reduce price/value ratio Premium – an extra item offered at a low price or free as an extra incentive to purchase Objectives of Premiums - Encourage brand switching - Trade up to larger size - Increase repeat purchase - Put a long term message in front of the consumer Methods of distribution - In package - In store - Package itself - Mail - Online Sweepstakes – A game where participants have an equal chance of winning a prize, but make no payment to enter - Increase awareness and engagement Lottery – sweepstakes with a charge to enter; illegal in most situations; donations from non-profit organizations.ADV3008 FINAL EXAM STUDY GUIDE Contest – winners selected based on skill; charge to enter Promotions to Retailers More money spent than on consumer promotions Objectives: - Retail incentive to push vs. pull product - Maintain or increase distribution - Maintain or expand shelf space - Preempt competition - Change consumer purchase patterns Types of Retail Promotions - Buying allowances o temporary price reductions o from manufacturer to retailer - Advertising allowances (co-operative advertising) o Payments by the manufacturer to the retailer o Funding of the retailer’s advertising of the product - Contests - Sweepstakes - Point of purchase (P.O.P.) – promotional materials placed at the point of purchase o Types of P.O.P. Outside signs Window displays Counter displays Display racks Banners + posters Shelf talkers o P.O.P. Objectives Increase consumer learning Increase purchase behavior Low cost production and implementation Ease of evalution o Good P.O.P. for Retailers Monetary incentive Tied to other items Easy to set up I Want You To Want Me PUBLIC RELATIONS Public relations – a management function that formulates and executes a program of action to earn the understanding and goodwill of its publics; NOT FREE advertising *if it’s free, it’s not advertising since you have no controlADV3008 FINAL EXAM STUDY GUIDE Differences between Advertising and Public Relations Goals: - Advertising – inform, persuade, and remind target to buy specific brands of products - PR – develop understanding and goodwill; favorable attitudes (not as sales oriented) Credibility: - PR – seen as more credible o Not as filtered/staged; not creating a billion dollar commercial Cost: - Major advertising costs = media time + space - Major PR costs = non-media Control: - Advertising = more control over message (since you’re paying big $ for it) - PR = less control over message Interest - Advertising = editorial interest not very important o Buying time or space so doesn’t matter if they’re not interested - PR = critical to success o If the editor of newspaper is not interested in your story, won’t be covered - Personal: o Advertising = more likely to have a business background o PR = more likely to have a journalism background Similarities between Advertising and Public Relations - Stimulate interest in a target group o Specific group of people (i.e. legislators) - Research based situation analysis o i.e. gathering facts to get started - Specific objectives o What is it that we’re trying to achieve? - Detailed knowledge of media Reasons to Use Public Relations - Relatively inexpensive compared to advertising o Not cheap, but compared to ads, relatively inexpensive - Cuts through advertising noise o So many
View Full Document
Unlocking...