Integrated Marketing CommunicationSales PromotionBehavioral LearningShapingPrice Oriented Promotional ToolsCouponsMoney Refund/ (REBATES)Added Value Sales PromotionSweepstakesLotteryContestPromotions to RetailersPublic RelationsDifferences between Advertising and Public RelationsInterestSimilarities between Advertising and Public RelationsReasons to Use Public RelationsCorporate Image AdvertisingCorporate Advertising ProblemsPredetermined MethodsObjective and TaskBudgeting for New ProductsAgency CompensationRetailingRetail Advertising TasksDifferences between Retail and Product AdvertisingTypes of Retail AdvertisingRetail Media SelectionCooperative Advertising (Co-op)Message StrategyBudget ConsiderationsLarger Budget NeededBusiness Market DiversityB2B… Business to BusinessDifferences between Business and Consumer MarketsGoals of B2B AdvertisingMarket IssuesProduct IssuesBuying IssuesPricing and Distribution IssuesMedia SelectionMessage StrategySales PromotionServiceElements of a ServiceService Advertising CharacteristicsPrivate Sector ServicesSocial MarketingEffects on SocietyEconomic IssuesConsumer Decision MakingCareers in AdvertisingAdvertising Exam #3I Love Saving Money: Price Incentive Sales PromotionIntegrated Marketing Communication- A management concept designed to make all aspects of marketing communication work together as a unified force.- Advertising- Sales Promotion- Public relationsSales 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.o Incentive to behave in a certain way. Short term behavior oriented. Shorter version bribe.- Advertising vs. Sales Productiono Creates an image over time.o Relies on emotional appeals Advertising to the heart Sales promotion to the wallet.o Contributes somewhat to profitability.o Adds intangible value- Sales Promotion vs. Advertisingo Creates immediate actiono Rational appealso Contributes significantly to short term profitability o Adds tangible value- Coordinating Promotionso Awareness before promotion o Speak with one voice: humorous in ad? Humorous in promo!!Behavioral Learning - Future behavior is determined by reinforcement (product satisfaction) accompanying past behavioro Ex. potty training animals…positive reinforcement.- Promotional tools act as reinforcers along with product performance (the primary reinforcement) to increase the probability of repeat purchase. o Don’t rely on promotions for a bad product, they won’t do the job. Shaping- The process of learning a complex behavior by learning a series of successive approximations of the final behavior.o Clay mold behavior of consumer over time.- Errors in implementationo Improper fading (pull offers too fast)o Overuse Dog food coupons- weeks and weeks of coupons for brand you don’t use, you use only because they give coupons, over time switch to the brand, you have been shaped to buy coupons. However, if you buy food because of coupons, notvalue. Price Oriented Promotional Tools - Sampleso Product given to consumer free of chargeo Opportunity to try the product before making a purchase Eliminate financial risk Eliminate inconvenience (not knowing where it is/ what it looks like)- Samples Effective When:o Brand is clearly superior o Product comes in limited varieties o Purchase cycle is shorto Attitudes or behaviors must be created or changed Coke Zero instead of Diet Coke for guys? Make a Nascar Car for it, man it up. 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 (no new consumers)o Retains current users o Encourages brand switchingo Increases in-home inventory o Lengthens purchase cycle eliminates opportunity for brand switching.Money Refund/ (REBATES)- A partial refund following a purchaseo Consumer purchases producto Mail in proof of purchaseo Refund sent at a later time Redemption Problems - Delay of reinforcement - Effort required I Get What? I Don’t Have to Pay for It?Added Value Sales Promotion - Product is sold at full price- Consumers get more for their money- Doesn’t reduce price/value ratio- Ex. Mtn. Dew Call of Duty code under cap- Premiumo An extra item offered at a low price or free as an extra incentive to purchaseo Ex. Spend $50 on beauty products at Victoria’s Secret and get free hanging jewelry bag- Objectives of Premiumso Encourage brand switchingo Trade up to larger sizeo Increase repeat purchaseo Put a long term message in front of the consumer- Methods of distributiono In packageo In storeo Package itselfo Mailo OnlineSweepstakes - A game where participants have an equal chance of winning a prize, but make no payment to enter.- Increases engagement o Ex. McDonalds Monopoly, you get Park Place so you think you’ll get Boardwalk. Only one boardwalk out there.- Odds of winning are low- Increases awareness. Lottery- Sweepstakes with a charge to enter o Trip to Hawaii- Illegal in most situations- Donations from non-profit organizations (make it legal)Contest- Winners selected based on skill - No longer same chance of winning- Charge to enterPromotions to Retailers- More money spent than on consumer productions- Objectiveso Retail incentive to push (manufacturer retailer) vs. pull product (comes from consumer (coupons) )o Maintain or increase distributiono Maintain or expand shelf spaceo Preempt competition o Change consumer purchase patterns- Types of Retail Productionso Buying allowances Largest cash incentive given to retailers Temporary price reductions (so we buy more) From manufacturer to retailer o Advertising allowances (co-operative advertising) Payments by the manufacturer to the retailer (for ads of the product) Funding of the retailer’s advertising of the product (incentives!!) Allowances stimulate smaller costso Contestso Sweepstakeso Point of Purchase (P.O.P) Promotional materials placed at the point of purchase are more receptive to buy at point of purchase. Self-evident- Types of POPo Outside signso Window displayso Counter displayso Display rackso Bannerso Posterso Shelf talkers- POP Objectiveso Increase consumer learning: This is what product looks liked, marked down, “Oh, I didn’t know you had it!”o Increase purchase behavior: table tests, “Didn’t know you carried
View Full Document
Unlocking...