BUS M 300 1nd Edition Lecture 11 Outline 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 Promotions VIII Public Relations Current Lecture I 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 service 1 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 cycle 4 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 demand IV 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 shown V Sale Promotion Sales Promotions programs designed to build interest in or encourage purchase of a product during a specified time period Gets buyers to buy now Gives buyers short term incentives Build awareness and sales quickly VI Consumer Promotions Attracting consumers with price breaks o Coupons o Price deals o Refunds o Rebates o Special packs Attention getting consumer promotions o Contests o Sweepstakes o Premiums o Sampling o Point of purchase promotion VII 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 mishap