1. BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

2. BUAD 307 PROMOTION Lars Perner, Instructor 2 Learning Objectives Understanding the obstacles that advertising messages face Understanding the choices facing marketing managers regarding –Promotional objectives –Promotional message –Media choice –Advertising and promotion spending

3. BUAD 307 PROMOTION Lars Perner, Instructor 3 Elements of the Promotion Mix Advertising Sales Promotion –Sales –Coupons –Rebates –Premiums Personal selling Public relations Direct marketing

4. BUAD 307 PROMOTION Lars Perner, Instructor 4 Some Media Alternatives Television –Conventional advertisements –Infomercials –Sponsorship programming –Placements In programming Superimposed Radio Magazines Newspapers Outdoor Internet Point-of-purchase Other –Movie theaters –On other products

5. BUAD 307 PROMOTION Lars Perner, Instructor 5 Reaching the Customer: Encoding, Noise, and Decoding ENCODINGTHEMESSAGEMESSAGECHANNELDECODINGTHEMESSAGERECEIVER CHANNEL FEEDBACK NOISE SENDER. Text, p. 211. Mktg mgr Advertising mgr Advertising agency agencyAdvertisementCoupon Sales presentation Press release Store display Media, Salesperson Retail store News program Receiver interpretation of interpretation of the message the messageCustomers Media audience News media Clients Other ads News articles Other store displays

6. BUAD 307 PROMOTION Lars Perner, Instructor 6 Advertising Intensity and Return --A Typical Relationship 0 0.2 0.4 0.6 0.8 1 Response (e.g., sales, recall) 0510152025 Amount of Advertising Spending The S-Shaped Curve Saturation Point Relatively high effectiveness Too little to do much good

7. BUAD 307 PROMOTION Lars Perner, Instructor 7 Measuring Advertising Effect Several possible criteria: – Scanner data Individual TV exposure can be matched against actual purchases Available only for grocery products – Increase in sales (but it may be impossible to separate effects of different simultaneous ads and other factors)NOT GENERALLY RELIABLE! – Lab studies: Recall Attitude toward product Preference

8. BUAD 307 PROMOTION Lars Perner, Instructor 8 Scanner Data Research TELEVISIONEXPOSURE DEMOGRAPHICINFORMATION ANALYSIS RECORDEDPURCHASES HOUSEHOLDFILE Purchase on occasion: Yes, no Time since previous purchase Previous purchases Current price Previous price Current promotional status Previous promotional status Current display status Previous display status Display status of competing brands Promotional status of competing brands Coupon used: Yes, no Coupon available: Yes, no Coupon available for other brands? Yes, no Amount of coupon Family size Occupation Income Home ownership No. of ads seen by shopper Ads seen for competing brands Split cable

9. BUAD 307 PROMOTION Lars Perner, Instructor 9 Japanese AdvertisingUse of animation and cartoon characters

10. BUAD 307 PROMOTION Lars Perner, Instructor 10 Breaking Through the Clutter

11. BUAD 307 PROMOTION Lars Perner, Instructor 11 Taiwan

12. BUAD 307 PROMOTION Lars Perner, Instructor 12 Billboards…

13. BUAD 307 PROMOTION Lars Perner, Instructor 13

14. BUAD 307 PROMOTION Lars Perner, Instructor 14

15. BUAD 307 PROMOTION Lars Perner, Instructor 15 Brazil: Brand Promotion

16. BUAD 307 PROMOTION Lars Perner, Instructor 16 Animated Advertisement (Korea)

17. BUAD 307 PROMOTION Lars Perner, Instructor 17 Ambiguous Ethnicity

18. BUAD 307 PROMOTION Lars Perner, Instructor 18

19. BUAD 307 PROMOTION Lars Perner, Instructor 19

20. BUAD 307 PROMOTION Lars Perner, Instructor 20 China