ADV3008 Test Three Notes and Examples I LOVE SAVING MONEY Advertising Sales Promotion and Public Relations all overlap and work together they do not compete Sales Promotions are like a bribe and are short term driven Advertising is long term In Advertising what you re buying does not change You are building and expanding customer base Promotions wont help a bad product Improper fading pull offers too quickly Overuse More likely so many coupons Example you never see a pizza without a special Financial risk and inconvenience are the two biggest obstacles to product trial When purchase cycle is short you are less likely to forget the sample you tried Your competitors who are trying to get your customers can use coupons Home inventory is the amount of product you currently have at home Money refunds rebates are used on high price products Redemption is a problem because you can get similar product on sale and you may forget 30 of people don t get the rebate Why would you do a rebate The retailer doesn t have to participate I GET WHAT I DON T HAVE TO PAY FOR IT Value promotion example Mountain Dew bottle cap code Premium example Makeup counters free gift Good thing about premiums is that the brand name on product reinforces brand name Methods of distribution examples In package is cereal in store is cosmetic and the package itself is a coke cup Sweepstakes example McDonalds Monopoly Sweepstakes increase sales and excitement The lottery used to be run by organized crime A raffle is an example of a lottery Push Manufacturer gives retailer more incentive to buy the product Pull Coupon Point of purchase increases impulses Oh I did not know you sold this here Example of point of purchase putting chips and salsa next to each other in a grocery display I WANT YOU TO WANT ME PR and advertising are complimentary Advertising noise is the same as clutter Recruiting example US military Special situation is short term not all the time such as fundraising Portion sold goes to and is based on sales of product Other corporate advertising problems Companies don t invest as much indirect benefit don t know how effective related to product ads SHOW ME THE MONEY Can t fix a bad product with advertising Budget is set before situation analysis Predetermined methods may lead to under spending because you chip away at residual for other costs and advertising is an afterthought Percent of sales is not effective with new products because of no sales history and there is risk involved Agency Compensation Commission bill by job Fee bill by hour Other Unique bonus escalating commission and retainer SHOP TILL YOU DROP Immediacy make room for more inventories Regular price line advertising most images oriented Sales advertising is most common Clearance advertising going out of business sale Cooperative Advertising benefits the manufacturer more than the retailer TRADE TALK B2B example Clothing sensor cash registers B2B products helps the business run smoothly Consumer Media 10 Example of news can start with Introducing FULL SERVICE Service Intangible Product You don t own anything Task or work Carwash dentist Use of a facility Movies hotel and gym membership Use of a product movies from Netflix or itunes renting rent a car Service advertising is hard to advertise Intangibles are more difficult to assess because you get an experience not an item You may need more advertising and larger budgets Service is more emotional Advertising needs to be aggressive you cannot resell movie seats later on they are gone forever Inability to Transport the Service example hotel can t import more rooms for a night Quality control each McDonalds is a production center advertising may create an image that service provider cannot meet because it doesn t exist A service can be in multiple categories of private sector services such as HR block Example of Convenience private sector service ATM Drive through Example of shopping private sector service Mechanic Hair stylist doctor Until you use the product you don t know you will like it Social Marketing example Public service announcement Problems Weak personal benefits It wont happen to me Limited personal satisfaction don t get much enjoyment because you don t have a personal emotional tie Questionable demand don t have a lot of money to do market research Psychic costs non financial costs associated with compliance emotional Insufficient budgets most important dependent on donations grants won t get prime time media THE END There are other ways to look at advertising Advertising has changed the desire from the product to the brand For example when asked what do you drive people say corolla or ford vs saying car or suv Improves product by forcing innovations Advertising brings in sales so the revenue it creates may offset the cost If product is different they can charge a premium Advertising may decrease price like in tablets Product proliferation example toothpaste cereal If you would like the last page of 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