Promotions by wulinqing



Dr. Mary Wolfinbarger
    Marketing 300
 Marketing   activities used to communicate
  positive, persuasive info about an org’n, its
  prods and its activities to a target audience
 Purpose: to directly or indirectly create
  sales, influence consumers.
    To whom does promotion
 Consumers/potential   consumers
 Interest groups/regulatory agencies
 Current/potential investors
 Society in general
 Company employees
          Integrated Marketing
A  planning concept recognizing the added
  value in integrating promo mix elements
 Purpose: to provide clarity, consistency
  and maximum communications impact.
     Explosion of communication choices made
      this more necessary
     Technology made it more possible
 What   is Van’s positioning strategy?
     What are their competitive advantages?
 How  do they communicate those
  competitive advantages to their consumers?
 What does Steve Van Doren mean when he
  says he sees events as “planting seeds?”
 What are “grass roots” events?
 How does Van’s market to different target
             Promotion Mix
 Advertising
 Personal Selling
 Sales Promotion
 Public Relations
A paid form of nonpersonal
 communication about an orgn and/or its
 products to a target audience through a
 mass medium.
 TV
 Newspapers
 Radio
 Magazines
 Internet
 Billboards
 Etc….
 Can reach large mass audiences/ small
 Usually cost efficient per person reached
 Repetition of messages
 Absolute  dollar outlay may be high
 Response to ads (except retail ads) are
 Advertising less persuasive than personal
          Direct Marketing
 Often included in advertising
 Advantage: communicate directly with
 Can tailor messages for prospects
 Messages can be longer/more complex
 Can target best prospects
            Direct Marketing
 Biggest Disadvantage:
Cost per person reached expensive (except
 for Internet email!)
          Direct Marketing
 Generate   inquiries about prod.
 Generate purchase
 Gain trial
 Increase usage
 Enhance prod image w/ well-defined target
           Direct Marketing
 Gather information
 Build ongoing relationships with customers
 The Internet as An Advertising/
     Direct Selling Medium
 Pointof sale ability (look and buy)
 Potential for “mass customization” of ad
 Advertising messages can be interactive
  and/or updated continuously
      Advantages of Internet as
          Selling Medium
 Primaryform of online advertising (as of
 2005): search (Google, Yahoo!, MSN)
     Easy to measure effectiveness of search
 Banner  Ads are now called Display Ads
 The use of “rich media” in ads is
      Advantages of Internet as
          Selling Medium
 Other   forms:
     sponsorship
     ads in podcasts
     ads embedded in online games (Massive Inc.)
     viral games and videos
     YouTube (sponsored and unsponsored)
     Ad portals?
     Widgets
 Mobile   Advertising, Mobile search
  Advantages of Internet as an
      Advertising Medium
 Buyers   often visit search engines and
  other web sites when in “purchase
 Can change creative approach quickly
 Click-through rates, page views,
  conversion rates easily tracked
  (“clickstream” data also)
 Blogs/Social Networks/Discussion
 Robert    Scoble’s book: Naked Conversations
     Marketing junk is resisted (read “Flogs”)
     Authenticity is expected
       • (well, with the exception of satirical blogs such as
 Pretendingto be someone you’re not may
 bring negative attention
     Still, there is some “seeding” of discussions and
      some underground activity
 Blogs/Social Networks/Discussion
         buzz is not independent of other
 Internet
 marketing mix variables
     Advertising and other promotions increase buzz

 Read   “Five Rules of Underground Marketing”
 What are the 5 rules?
         Personal Selling
 Face to face communication w/ buyers to
 inform and persuade them to buy
          Personal Selling
 Onaverage, companies spend more
 money/yr on personal selling than other
 elements of promo mix
           Personal Selling
Major Advantage:
 More persuasive
 Major Disadvantage
 Costly per individual reached
       Personal Selling
 Finding Prospects

 Converting   Prospects to Customers

 Maintaining   Customer Satisfaction
              Personal Selling
 Personal selling most likely for new,
  complex, and/or expensive products
 The web now does some personal selling
     For example, Apple has a 20 minute sales
      presentation for the iPhone on its site
     Cadillac has a site called
      where celebrities and others post cadillac-
      related videos (soft sell, but it’s selling)
          Sales Promotion
A direct inducement, offering added value
 or incentive for the product, to resellers,
 salespersons, or consumers.
             Sales Promo
 25  yrs ago, % of spending on advertising
  was 70%
 In recent years, about 25%
 Shift largely been to trade promo
 (But, the advertising pie has grown as
                Sales Promo
Why the shift?
     Ad clutter
     VCRs (zipping)
     Channel surfing (zapping)
     Various recessions
                Sales Promo
Why the shift?
     Marketplace factors
     similarity between goods
     short term focus of managers
     consumer expectations
     private label competition
  Common Objectives of Sales
 Short   term sales stimulation
     Induce trial
     Retain current customers/increase usage
     Reinforce advertising efforts
     Build trade support for campaign
     Motivate sales force
   Comments on Sales Promo
“We’re in a very interesting phase in [sales]
  promotion. On one hand, we have had the
  meteoric advances of promotion
  understanding and consumer intelligence
  brought about by scanners and database
  management. Then on the other hand, we
  see the …. Success of Batman glasses at
  Taco Bell --
   Comments on Sales Promo
--over 4 million given away-- and we realize
  that it’s the same type of promotion
  America used to court movie goers on
  Saturday afternoons in the 1930s. It
  surely shows how human nature doesn’t
--William Robinson, Promotional Marketing
              Two types:
 Consumer-oriented  (pull)
 Trade-oriented (push)
      Consumer Promotions
 Samples
 Coupons
 Premiums
 Contests and Sweepstakes
 Price Discounts
          Trade Promotions
 Trade  allowances
 Dealer contest
 Co-operative advertising
 Trade shows
 Collateral materials
 Price Discounts
   Main Issue in Sales Promo
 What is the long term impact on brand
 equity? (especially with price discounting)
   Main Issue in Sales Promo
Short term bribe point of view:
 Buyers purchases on special deals often
  become less brand loyal
   Main Issue in Sales Promo
Long term sales building view:
 Helps achieve shelf placement/ in-store
  display,thus increasing visibility
 Consumers have little time to notice ad
  messages; sales promo get attention.
Main Issue in Sales Promotions
 Sales promo results in short term sales w/
  long term equity building.
 Both objectives needed in a competitive
 More Comments on Sales
“For years, sales promotion meant MDF funds
  (Market Development Funds, an innocuous
  word for slush money to pay off retailers for
  promoting your product), giant displays and
  tacky potholders. But now the industry has
  grown up…Marketers are looking to
  promotions to build their brand’s sales to
  insure a future for their brand’s tomorrow.”
--William Robinson, Promotional Marketing
 Nonpersonal    communication in news story
  form, regarding an organization and/or its
  products, transmitted through a mass
  medium at no charge.
 The story is free; PR people are not
           Public Relations
 Brings  advantage vs. advertising --
  more credibility
 Little control over message content or
 PR takes great coordination/effort
          Types of Publicity
 News   Release
 Feature Article
 Press Conference
 Letters to the Editor
 Editorial
 Special Events
      Integrated Marketing
     Communications and PR
 Complements   event sponsorship & trade
 New products with special angles can be
  supported by PR
 Marketing campaigns with a special “hook”
  are newsworthy
              PR Objectives
 Informing buyers how to select, buy or
  use your product
 Dispelling negative info about brand
 Build store traffic
 Support event sponsorships, trade
  shows, other promo activities
 Persuade target audience to purchase
Goals and Tasks of Promotion

          Informative Promotion
      Increase awareness

      Explain how product works

      Suggest new uses

      Build company image
  Goals and Tasks of Promotion
              Persuasive Promotion

       Encourage brand switching

       Change customers’ perceptions of
        product attributes

       Influence immediate buying decision

       Persuade customers to call
Goals and Tasks of Promotion
             Reminder Promotion

     Remind customers that product
      may be needed

     Remind customers where
      to buy product

     Maintain customer awareness
            The AIDA Concept

                      Desire               Conative (doing)

           Interest                Affective (feeling)

 Attention                Cognitive (thinking)

Different promotional methods are better at different parts of
AIDA – also we can evaluate an entire marketing
communication effort by evaluating the success we are
having with consumers at each step of the model.
   Persuasion Group Exercise
 Briefly summarize each of Cialdini’s
 Assume you are a marketing intern for the
  Dirtbags. Use each of the principles to
  come up with an idea for selling Dirtbag
  tickets to faculty.
 Which 1 or 2 ideas do you think will be
  most effective and why?

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