Exam 3 Study Guide ADV 3008 0001 Unit 16 23 page 79 114 16 I Love Saving Money Price Incentive Sales Promotion o Advertising o Sales Promotion o Public Relations Sales Promotion Integrated Marketing Communication IMC Management concept designed to make all aspects of marketing communication work together as a united force 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 action o Incentive to behave in a certain way Short term behavior oriented Advertising vs Sales Promotion 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 tangible value Sales Promotion vs Advertising o Creates immediate action o Rational appeals o Contributes significantly to short term profitability o Ads tangible value Coordinating Promotions o Awareness before promotion o Speak with one voice Behavioral Learning Future behavior is determined by reinforcement accompanying past behavior Promotional tools act as reinforcers along with product performance the primary reinforcement to increase the probability of repeat purchase Shaping The process of learning a complex behavior by learning a series of successive approximations of the final behavior Errors in implementation o Improper fading pulling product too quickly o Overuse of promotional incentives Price Oriented Promotional Tools Samples o Product given to customer free of charge o Opportunity to try the product before making a purchase Eliminate financial risk Eliminate inconvenience Ex Coke Zero zero calories but not a diet drink targeted towards men Samples effective when o Brand is clearly superior o Product comes in limited varieties o Purchase cycle is short The shorter the cycle the more likely people will purchase o Attitudes or behaviors must be created or changed Coupons Certificates presented to a dealer retailer that gives bearer a stated savings on the purchase of a product o Person most likely to use coupon if already using product Likely users are currently using product o Retains current users o Encourages brand switching o Increases in home inventory Increases what you already have large size quantity Lengthens purchase cycle reduces brand switching o Cheapens value to consumer No longer willing to pay full price Money Refund Rebate Partial refund following a purchase mid to high priced products Consumer purchases product Mail in proof of purchase Refund sent at a later time o Redemption problems Delay of reinforcement Effort required so often don t end up getting the physical rebate 17 I Get What I Don t Have to Pay for It Added Value Sales Promotion Cheapen value to consumer but added value promotion adds value to consumer Added Value Sales Promotion Product is sold at full price Consumers get more for their money Doesn t reduce price value ratio Premium o An extra item offered at a low price or free as an extra incentive to purchase Ex Michelins purchase and receive 60 visa card Objectives of premiums o Encourage brand switching o Trade up to larger size o Increase repeat purchase frequency o Put a long term message in front of the consumer Ex Calvin Klein eternity bag with purchase of perfume consumer will always have the eternity logo Methods of distribution o In package o In store o Package itself Margaretville glass o Mail Coke rewards through points o Online download redemptions Sweepstakes a game where participants have an equal chance of winning a prize but make no payment to enter no purchase necessary Increase sales Increase engagement Increase awareness Lottery Contest Sweepstakes with a charge to enter Raffles for non profit organizations are generally exempt Illegal in most situations to charge Winners selected based on skill Charge to enter Ex Dr Pepper Scholarship throwing football into can requires skill Promotions to Retailers Objectives More money spent than on consumer promotions o Retail incentive to push vs pull product Push top down manufacturer to retailer Pull bottom up consumer from retailer o Maintain or increase distribution o Maintain of expand shelf space Ex Lucky Charms at ankle level for children o Preempt competition Ex when moving location in store taking place of competitors on shelf o Change consumer purchase patters Ex mini fridge at check out convenience Types of retail promotions o Buying allowances win win for everyone Temporary price incentives From manufacturer to retailer incentives in stores o Contests associate that sells most of one product o Sweepstakes o Point of purchase P O P Promotional materials places at point of purchase Types of P O P 1 Outside signs 2 Window displays 3 Counter displays 4 Display racks 5 Banners 6 Posters 7 Shelf talkers P O P objectives Increase consumer learning Increase purchase behavior Low cost production and implementation Ease of elevation Good P O P for retailers Monetary incentive o Buying allowance o Advertising allowance Tied to other items Easy to set up o More cooperation o Increase category sales of complimentary products 18 I Want You to Want Me Public Relations Public Relations PR is not free advertising A management function that formulates and executes a program of action to earn the understanding and goodwill of its publics Differences Between Advertising and Public Relations Inform persuade and remind target to buy specific brands of Goals o Advertising products o Public relations Develop understanding and goodwill Favorable attitudes Credibility Cost Control o PR is seen as more credible o Messages appear in non paid media o Major advertising cost media time and space o Major PR cost non media o Advertising more control over message o PR less control over message o Advertising editorial interest not very important o PR editorial interest critical to success Interest Personnel o Advertising more likely to have a business background o PR more likely to have a journalism background Similarities Between Advertising and Public Relations Stimulate interest in a target group o Advertising target market o PR target public Research based situations analysis Specific objectives Detailed knowledge of media o Advertising media planning o PR media relations Reasons to Use Public Relations Relatively inexpensive o Compared to advertising cuts through advertising clutter highly credible develop new sales leads
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