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FSU ADV 3008 - Final Exam Study Guide

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ADV 3008 Final Exam Study GuideI Love Saving MoneyPrice Incentive Sales Promotion• Integrated Marketing Communication a management concept designed to make all aspects of marketing communication work together as a unified forceo Advertisingo Sales Promotiono Public Relationso Not all of these work entirely independently • 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 saleo Incentive to behave in a certain way (bribe)  Short term behavior oriented• Advertising vs. Sales Promotiono *Advertising appeals to the hearto *Sales promotion appeals to the walleto Creates an image over time Ex: how we think of Apple over timeo Relies on emotional appeals Advertising to the heart Sales promotion to the walleto Contributes somewhat to profitability  Long term profitabilityo Adds intangible value to the producto If you put humor in the ad, it doesn’t add value to the actual product• Sales Promotion vs. Advertising o Creates immediate actiono Rational appeals Ex: buy one, get one free Money is more rational to peopleo Contributes significantly to short term profitabilityo Adds tangible value Get additional product because of promotion • Coordinating Promotionso Awareness before promotion This is created through the advertising Comes firsto Speak with one voice Tone’s of both products should integrate • Behavioral Learningo Future Behavior id determined by reinforcement accompanying past behavior If you buy a product and like it you get positive reinforcement  want to keep buying the producto Promotional tools act as reinforces along with product performance (the primary reinforcement) to increase the profitability of repeat purchase  Product is the primary reinforcer (the trigger) Promotion is the kicker• But it cannot save a bad product  Brand loyal consumer are the ideal • Shaping  the process of learning a complex behavior by learning a series of successive approximations of the final behavioro Over time you are trying to shape consumer behavior Takes time to transform brand loyal consumerso Errors in implementation Improper fading• Ex: if you do not have a coupon, may go back to an old product Overuse• Ex: people overuse he product because of the coupon but, they only value the product at coupon price• Ex: Pizza ads always have a special because people are use to ito People see the value of pizza at the sale price• If you train a consumer to buy products with a coupon  risk is going to back to buying at retail • Price Oriented Promotional Toolso Samples Product given to consumer free of charge Opportunity to try the product before making a purchase• Eliminates two big issues when company faces product trial:o Eliminate financial risko Eliminate inconvenience  People often do not know where to buys a new product  Samples Effective When:(Ex: Coke Zero Ad commercial, product was brought in for a different product purchaser than Diet Coke, aimed towards men and used sampling for them to try product)• Brand is clearly superioro In a blind taste testing for coke zero, they compared it with regular cokeo Gave product to consumer so they can decide because coke new the product was superior• Product comes in limited varieties • Purchase cycle is shorto Sample now, buy it 10 minutes later• Attitudes or behaviors must be created or changedo Zero calorie drink for meno Coupons  certificates presented to a dealer that give the bearer a states savings on the purchase of a product Likely users are current users of the product• Person most likely to use a coupon is the consumer of the product• Why do we coupon:o Retains current userso Encourages brand switching People will switch when they see a dealo Increases in-home inventory Amount of product a consumer has at home This is valid with larger purchases to help get more inventory which lengthens the purchase cycle • Forces people to not buy another brand o Lengthens purchase cycleo Money Refunds/ Rebates Used usually for more expensive items• Ex: Cellphones A partial refund following a purchase• Consumer purchases product• Mail in proof of purchase• Refund send at a later time o Redemption problems Delay of reinforcement• Rather buy the product that saves you money immediately  Effort required • Have to follow the rules of the rebate• People have forgotten to do ito Company knows this information Fall out factorI Get What? I Don’t Have to Pay for It?Added Values Sales Promotion• Added Value Promotiono Adds value to product instead of cutting down the price Ex: codes under caps• Make you buy more of the product in order to get gains of codeo Product is sold at full priceo Consumers get more for their moneyo Doesn’t reduce price/value ratioo Premium An extra item is offered at a low price or free as an extra incentive to purchase It is a separate and different item Not cheaping value of the original product• Gets consumer in the habit of buying at a regular price• Ex: if you buy $75 worth of make up, they give you a tote bago Objectives of Premium Encourage brand switching• Steal competitor• Trade up to large size• Increase repeat purchaseo Ex: McDonalds Happy Meal toy Want to purchase often to collect toys, keeping you away from competitor • Put a long term message in front of the consumero Methods of distribution In package In store Package itself Mail• Send coupon in the mail  Online• SweepstakesA game where participants have an equal chance of winning a prize, but make no payment to entero Increases engagemento Increases awarenesso Ex: McDonalds Monopoly (1 in 4 wins) Brings people in No purchase necessary Still don’t have to give you a card without a purchase Need to send in personal letter to corporate office• Lottery:o Sweepstakes with a charge to entero Illegal in most situations But the lottery is run by the government• Donations from non-profit organizationso Get around it being illegal to chargeo Companies can’t run lotteries, only non-profits• Contest:o Winners selected based on skill Makes it okay to chargeo Charge to entero Ex: golf tournament, video game competition, etc.o Ex: Dr. Pepper competition (for college tuition)


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