Advertising Exam 3 I Love Saving Money Price Incentive Sales Promotion Integrated Marketing Communication 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 Advertising o Incentive to behave in a certain way Short term behavior oriented Shorter version bribe vs Sales Production o 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 Advertising o Creates immediate action o Rational appeals o Contributes significantly to short term profitability o Adds tangible value Coordinating Promotions o 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 behavior o Ex potty training animals positive reinforcement Shaping 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 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 implementation o 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 not value Price Oriented Promotional Tools Samples o Product given to consumer free of charge o 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 short o 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 switching o Increases in home inventory o Lengthens purchase cycle eliminates opportunity for brand switching Money Refund REBATES A partial refund following a purchase o Consumer purchases product o Mail in proof of purchase o 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 Premium Objectives of Premiums o Encourage brand switching o Trade up to larger size o Increase repeat purchase o Put a long term message in front of the consumer Methods of distribution o In package o In store o Package itself o Mail o Online Sweepstakes o An extra item offered at a low price or free as an extra incentive to purchase o Ex Spend 50 on beauty products at Victoria s Secret and get free hanging jewelry bag 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 enter Promotions to Retailers More money spent than on consumer productions Objectives consumer coupons o Maintain or increase distribution o Maintain or expand shelf space o Preempt competition o Change consumer purchase patterns Types of Retail Productions o Buying allowances o Retail incentive to push manufacturer retailer vs pull product comes from 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 costs o Contests o Sweepstakes o 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 POP o Outside signs o Window displays o Counter displays o Display racks o Banners o Posters o Shelf talkers POP Objectives o 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 it Encap display tremendous short lived money coming in o Low cost production and implementation ads in easy places and cash register o Ease of evaluation Before During After ads important to stores in store product mix Good POP for retailers o Monetary incentive o Tied to other items oil using bread for increased overall sales I Want You to Want Me Public Relations PR is not free advertising because free advertising doesn t exist A Management function that formulated and executes a program of action to earn the understanding and goodwill of it publics Differences between Advertising and Public Relations Goals o Advertising Inform persuade and remind target to buy special brands of products o Public Relations Develop understanding and goodwill Favorable attitudes o Work with each other o PR is seen as more credible more subtle Credibility Cost o Major advertising costs media time and space o Major PR costs non media Control o Advertising more control over message o PR less control over message Advertising Editorial interest not very important PR Critical to success Personnel o Advertising more likely to have a business background o Public Relations More likely to have a journalism background Interest Similarities between Advertising and Public Relations Stimulate interest in a target group Research based situation analysis FACT FINDING
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