BUS-M 300 1nd Edition Lecture 11Outline of Last Lecture I. The Product Life Cycle II. Product Adopters III. Creating Product Identity Outline of Current Lecture I. Advertising II. Target Audience III. Scheduling IV. Executing V. Sale Promotion VI. Consumer Promotions VII. Target PromotionsVIII. Public Relations Current LectureI. Advertising - Advertising: nonpersonal communication that is paid for by an identified sponsor using mass media to persuade or inform an audience- Communicates its message in a favorable way- Repeats the message as often as it deems necessary to have an impact on receivers- Product advertising: focus is on selling a good or service1. Pioneering—tells people what the product is, what it can do, and where it can be found 2. Competitive—promotes a specific brand’s features and benefits 3. Reminder—used to reinforce previous knowledge of a product, used in the mature phase of their product life cycle4. Institutional—primary focus is on the company, used to support the public relations plan or counter adverse publicity II. Target Audience - Target audience: the precise group of consumers to whom our advertising is directed and among whom our advertising is intended to have its greatest appeal and effect- May be demographic- Should be specific and simple- May include secondary purchase influencers III. Scheduling - Must consider three things when scheduling a product advertisement 1. Buyer turnover—how often new buyers enter the market to buy the product. 2. Purchase frequency—the more frequently the product is purchased, the less repetition is required.3. Forgetting rate—the speed with which buyers forget the brand if advertising is not seen- Continuous Schedule—maintains a steady stream of advertising throughout the year- Pulsing Schedule—varies the amount of advertising throughout the year based on when the product is likely to be in demandIV. Executing - All three techniques ask consumers to rate advertisements- Portfolio Tests: test ad is placed in a portfolio with other ads and stories. - Jury Tests: consumers are asked to rate how they liked it, how much it drew their attention, and how attractive they thought it was- Theater Tests: consumers are invited to view new television shows or movies in which test commercials are also shownV. Sale Promotion - Sales Promotions: programs designed to build interest in or encouragepurchase of a product during a specified time period- Gets buyers to buy now- Gives buyers short term incentives - Build awareness and sales quicklyVI. Consumer Promotions - Attracting consumers with price breakso Couponso Price deals o Refunds o Rebateso Special packs - Attention getting consumer promotions o Contests o Sweepstakes o Premiumso Sampling o Point of purchase promotionVII. Target Promotions- Targeted to channel partners and to the firm’s own employees- Discounts, deals, merchandise allowance, and case allowance VIII. Public Relations - Public relations: attempts to influence the way consumers, stockholders, and other publics feel about companies, brands, politicians, celebrities, or not for profit organizations- Important when company’s image is at risk due to product tampering or other