SID Day 14 Advertising A paid form of non personal communication that is transmitted to a target audience through mass media WILL BE APPLICATION NOT DEFINITION Exposures presentation of an advertisement to the consumer attempt to estimate the number of exposures necessary to achieve their objective The goal of advertising is targeted audience exposure Reinforcement 1 of 3 types of competitive adv assures current users they have made the right choice Pulsing a combination runs steadily but with bursts at certain times Flighting runs in spurts heavy none good for seasonal products Pioneer advertising Focuses on a product category EX Got Milk Beef Advocacy Conveys a firm s position on a public issue EX sign that says we ID at all stores Comparative 1 of 3 types of competitive adv points out brands advantages compares to comp Compares two or more brands on one or more characteristics Recognition unaided recall respondents shown a portion of an ad or sometimes a memorable image and asked Do you recognize this ad recognition measure Please type in the sponsor of this ad unaided recall measure Please choose the sponsor of this ad from the following list aided recall Day 16 Setting Prices sections 2 3 Reference pricing psychological pricing displaying a moderately priced product next to an expensive one similar to framing private label shelving The price stored in memory that helps to evaluate the actual price o Serves as an anchor o Frames the purchase price Internal Reference Price External Reference Price o Develops in buyer s mind through experience with product o A comparison price provided by others Penetration pricing for new products set a relatively low price to drive market share value perceptions Designed for high market share hence penetration Volume over margin Discourages competition Good for elastic products EX call now for Demand curve various levels of consumer demand for a product at different prices high prices demand is generally low Moves L R the demand curve drops down cus lower prices result in demand for a larger quantity of the product The point at which the demand curve crosses the supply curve represents the equilibrium price Substitute products appears to be different but can satisfy the same need as another product Break even point where the costs of producing a product equal the revenue made from selling the product fixed costs per unit contribution to fixed costs price minus variable costs Non price competition emphasizing factors other than price to distinguish a product from competing brands Odd even pricing psychological pricing ending prices in odd or non round numbers 2 99 Lots of theories about why this is so common 95 indicates normal selling price 50 indicates sale price seems lower cus the more specific the price the more consumers believe it s the lowest price poss Selling price The market value price at which something is offered for sale Captive pricing basic product is priced low but ancillaries are priced high printers ink cell phones service contract xbox games razor cartridges Price bundling offering several products for sale in one package EX cable phone high speed internet microsoft office no difference in individual price bundle but people are bad at retail math increases sales Price Loss leader selling products at or below cost Purpose is to stimulate sales of other profitable products Stimulates store traffic promotes habitual buying Low priced every day products milk eggs soda Price elasticity when consumers buying habits are sensitive to price changes will buy no matter what the price will fluctuate with it when the price elasticity of demand is greater than one EX durables washer dryer a change in price causes an opposite change in quantity demanded if a business raises price and doesn t see a decrease in sales it indicates that demand is inelastic and customers will be willing to pay an even higher price if a slight price increase in prices causes sales to decline demand is highly elastic Price framing anchoring price for consumers frame you into believing you re getting a better deal EX manufacturer selling retail price when buying a car Competitor s Price You save Markup KNOW HOW TO CALC vs Margin 2 different ways of analyzing the cost and profit of a service Markup diff b w cost selling price gas stations mark up a lot Markup selling price cost cost x 100 When you are deciding how much you want to make on the item and determining the price in which the goods should be sold you would use markup Profit Margin selling price cost selling price x100 When you are looking at the success of your business afterwards and know how much money you took in you would calculate the profit margin this is gross profit margin DUANE E marketing Types of e marketing Search engine Optimization establishing an online presence for websites Social Media Marketing taking over growing rapidly garner attention and website traffic Pay Per Click Advertising PPC business only pays for the advertisement when a potential customer clicks on it display adds based on keywords highly targeted Public relations Getting news releases to be picked up by internet publications tons of traffic toward company pages E mail Marketing way to enhance the relationship that customers share with a company Networking collaboration of business owners that wish to gather leads and referrals from one another in order to produce more activity within their marketplace Paid advertising creating a recognizable name for businesses on websites that people use every day in order to get wider exposure and break into the minds of people that have never heard your name before Iceberg Effect in many cases only a very small amount of information is available or visible about a situation or phenomenon whereas the real information or bulk of data is either unavailable or hidden AKA with social media you only see a little bit of sourcing but the more pages you like and people like of you and etc the bigger the network actually is Social Media Influencers what are they how do you find them WHO highly interactive regular people on social media interactive key others responding to the influencers content usually limited to certain topics of interest expertise HOW TO FIND emerging metrics attempting to quantify influence EX Klout score that represents a persons overall social media influence algorithm 400 media variables high score is 50 and up Search engine marketing and optimization First links have
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