1. Using Effective Promotions
Chapter 16
Using Effective Promotions
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. LEARNING GOALS
Chapter
Sixteen
Identify the new and traditional tools that make up the promotion mix.
Contrast the advantages and disadvantages of various advertising media, including the Internet and social media.
Illustrate the steps of the B2B and B2C selling processes.
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3. LEARNING GOALS
Chapter
Sixteen
Describe the role of the public relations department, and show how publicity fits in that role.
Assess the effectiveness of various forms of sales promotion, including sampling.
Show how word of mouth, marketing, viral marketing, blogging, podcasting, and mobile marketing work.
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4. ANDREW MASON Groupon
Profile
Groupon grew faster than any e-company in history, from $740 million in 2010 to $4 billion in 2011.
Google offered $6 billion in December 2010, but Mason rejected the offer.
GrouponNow offers a variety of discounts via smartphone.
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5. NAME that COMPANY
Chapter
Sixteen
This beverage company has 8.5 million Facebook fans. It posts two daily messages and then monitors how many times each message is reviewed, how many times it is shared, and what the fan response to the messages are. It also uses Facebook to test potential ads before airing them on traditional media like TV.
Name that company!
Company: Dr. Pepper
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6. PROMOTION in an ORGANIZATION
Promotion and the Promotion Mix
PROMOTION in an ORGANIZATION
LG1
Promotion Mix -- The combination of promotional tools an organization uses. The traditional mix includes:
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix.
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7. INTEGRATED MARKETING COMMUNICATION (IMC)
Promotion and the Promotion Mix
INTEGRATED MARKETING COMMUNICATION (IMC)
LG1
Integrated Marketing Communication (IMC) -- Combines the promotional tools into one comprehensive strategy. IMC is used to:
Create a positive brand image.
Meet the needs of consumers.
Meet the strategic marketing and promotional goals of the firm.
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix.
Emphasis today is on integrating traditional media with social media.
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8. FRESH-BAKED PROMOTION Spotlight on Small Business
Amy Scherber of Amy’s Bread can’t afford to outsource her promotions, so she needs to get creative.
She sends newspaper editors stories about her company and has an assortment of company shirts.
She builds strong word-of-mouth by keeping in touch with her community members.
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix.
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9. STEPS in a PROMOTIONAL CAMPAIGN
Promotion and the Promotion Mix
STEPS in a PROMOTIONAL CAMPAIGN
LG1
Identify a target market
Define objectives
Determine a promotional budget
Develop a unifying message
Implement the plan
Evaluate effectiveness
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix.
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10. CLASSIC CAMPAIGNS Brilliant Marketing Ideas
Promotion and the Promotion Mix
CLASSIC CAMPAIGNS Brilliant Marketing Ideas
LG1
Campaign
Company
Why it’s Cool
A Diamond is Forever
De Beers
Since 1939, it’s been tapping into our emotions.
Marlboro Man
Marlboro
He’s the most successful trade character ever.
Does she… or doesn’t she?
Clairol
The birth of the “shock ad” in 1957.
1984
Apple
The uncommercial didn’t explain the product.
Change We Can Believe In
Barack Obama’s 2008 Campaign
Obama was 2008 Marketer of the Year with his grassroots social media campaign.
I’m With Coco
Conan O’Brien Fan Support
A fan-created image erupted into a huge online presence making O’Brien a folk hero.
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix.
Classic Campaigns
This slide shows the evolution of marketing campaigns from pulling onto heartstrings to shocking viewers to engaging customers.
Ask students: Do you expect social media to continue to play a big part in marketing? How are campaigns like Dove’s “Real Beauty” and Burger King’s “Subservient Chicken” gaining a new customer base?
Source: Entrepreneur, February 2010 and Entrepreneur, February 2011.
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11. ADVERTISING in the FIRM
Advertising: Informing, Persuading and Reminding
LG2
Advertising -- Paid, non- personal communication through various media by organizations and individuals who are in some way indentified in the message.
Major goals of advertising:
Inform
Persuade
Remind
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Advertising is different from public relations, since advertising is paid and public relations is free.
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12. IMPACT of ADVERTISING
Advertising: Informing, Persuading and Reminding
LG2
Total advertising expenditures exceed $241 billion yearly.
Consumers benefit because production costs of TV programs, radio programs, newspapers and magazines are paid for by advertisers.
Marketers choose ad media that will reach the target market.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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13. SOCIAL ADVERTISING
Advertising: Informing, Persuading and Reminding
LG2
Social media advertising is growing so fast, marketers can’t keep up.
Starbucks has over 12 million followers on Twitter.
McDonald’s has over 7 million fans on Facebook.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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14. MAJOR CATEGORIES of ADVERTISING
Advertising: Informing, Persuading and Reminding
MAJOR CATEGORIES of ADVERTISING c
LG2
Category
What it is
Retail
From retail stores to consumers
Trade
From manufacturers to wholesalers and retailers
B2B
From manufacturers to other manufacturers
Institutional
Creates a desirable image for an organization
Product
Creates a desirable image for a product or service
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
This information presented on this and the following slides are from Figure 16.3 on p. 438.
If time permits, ask students to bring magazines and newspapers with examples of the above advertising categories.
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15. MAJOR CATEGORIES of ADVERTISING (Continued)
Advertising: Informing, Persuading and Reminding
MAJOR CATEGORIES of ADVERTISING (Continued)
LG2
Category
What it is
Advocacy
Supports a particular view of an issue
Comparative
Compares competing products
Interactive
Customer-oriented ads that allows customers to choose information to receive
Online
Computer ads featured on different sites
Mobile
Ads that reach consumers on cell phones
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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16. ADVERTISING EXPENDITURE by MEDIA in $ MILLIONS
Advertising: Informing, Persuading and Reminding
ADVERTISING EXPENDITURE by MEDIA in $ MILLIONS
LG2
Rank
Media
Projected 2010 Spending 1
Direct Mail
$52.3 2
Broadcast TV
36.8 3
Newspaper
23.4 4
Cable TV 27 5
Radio
15.9 6
Yellow Pages
11.9 7
Consumer Magazine
9.1 8
Internet
25.3
Other
39.7
Total
241.4
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Before showing this slide ask students to guess the top five forms of advertising.
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17. DEAR MR. POSTMAN… Steps in Launching a Direct-Mail Campaign
Promotion and the Promotion Mix
DEAR MR. POSTMAN… Steps in Launching a Direct-Mail Campaign
LG1
Plan: What should your mailing accomplish?
Get the Right List: The better the list, the better your chance of success.
Stand Out: Make your ad like no other.
Get Help: Contact a marketing firm with direct mail experience.
Follow Up: One mailing is not enough.
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix.
Dear Mr. Postman…
This slide highlights the steps in launching a direct-mail campaign
Direct-mail is the number one form of advertising, accounting for 21.6% of all ad dollars spent
Ask students: Why is direct-mail so popular as a form of advertising? (Answers may vary but students should understand that the cost of direct-mail and the ability to target specific demographic groups make direct-mail a popular choice.)
Once students have discussed the benefits of direct-mail ask them about the drawbacks of this form of advertising. (The main drawback to this form of advertising is that people will look at each mailer as just more junk and throw it in the trash can.)
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18. MATCH GAME Match the Company with the Slogan
Advertising: Informing, Persuading and Reminding
MATCH GAME Match the Company with the Slogan
LG2
“Everybody doesn’t like something, but nobody doesn’t like ___________.”
“We bring good things to life.”
“It takes a licking and keeps on ticking.”
“With a name like _________, it has to be good.”
“Good to the last drop.”
“Betcha can’t eat just one!”
“Because you’re worth it.”
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Match Game
This slide represents a few of the most recognized taglines in the U.S. It will be interesting to see how many students recognizes the taglines.
Ask students: Do you know what products these taglines represent? Taglines are very important to a company’s advertising message. Companies want people to respond to their message, therefore these taglines must tell an individual how the product benefits them.
Sara Lee GE
Timex
Smuckers
Maxwell House
Lays
L'Oreal
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19. IT’S a DOG’S LIFE Famous and Not-so-Famous Dogs in Advertising
Advertising: Informing, Persuading and Reminding
IT’S a DOG’S LIFE Famous and Not-so-Famous Dogs in Advertising
LG2
Pooch
Company
Nipper
RCA
Tige
Buster Brown Shoes
Chihuahua
Taco Bell
Spuds McKenzie
Bud Light
McGruff
The Crime Dog
Duke
Bush’s Beans
Bullseye
Target
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
It’s a Dog’s Life
Dogs have been used in advertising for years.
This slide highlights some of the famous and not-so-famous dogs used in advertising.
Ask students: Why are dogs so popular in advertising?
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20. POPULAR ADVERTISING MEDIA
Television Advertising
LG2
TV advertising is still the dominant media.
Digital Video Recorders (DVRs) challenge TV advertising because viewers can skip ads.
Product Placement -- Advertisers pay to put their products into TV shows and movies where the audience will see them.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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21. LET’S GO to the MOVIES Memorable Product Placements of 2011
Television Advertising
LG2
Movie
Product(s)
The Fighter
Everlast and Budweiser
The Kids are Alright
Home Depot, Volvo, Bell Helmets
127 Hours
Sunkist and Perrier
The Kings Speech
Rolls-Royce
The Social Network
Sony Vaio and Mountain Dew
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Let’s Go to the Movies
This slide shows examples of memorable product placement in 2011 Oscar nominated films.
Ask students: Do you find product placements distracting? Do you not notice them at all? Do you think product placements help you choose products?
Source: Fortune, February 28, 2011.
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22. INFOMERCIALS and ONLINE ADVERTISING
LG2
Infomercial -- A full length TV program devoted exclusively to promote a particular product.
Online ads are attempts to get potential customers to a web site to learn about a product.
Interactive Promotion -- Allows marketers to open a dialogue between buyers and sellers and let them work together to create a beneficial exchange.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Infomercials are expected to rise to over $170 billion in 2014.
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23. INFOMERCIAL HALL of FAME The Biggest Hits Over the Past 40 Years
Infomercials and Online Advertising
LG2
Veg-O-Matic
Ginsu Knives
The Clapper
Thigh Master
George Foreman Grill
Bowflex
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Infomercial Hall of Fame
This slide presents the biggest infomercial hits over the past 40 years.
Ask students: Why are infomercials on the air? (Simple, they work. It is estimated that infomercials make up 25 percent of all television commercials and that 66 percent of adults have watched them.)
The following link is from YouTube and features the top ten worst infomercials of all time. Students love to watch this video and laugh at some of the products featured. (
Source: Fortune, accessed July 2011.
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24. ONLINE EXPERIENCE How to Avoid Losing Customers Over a Bad Web Site
Infomercials and Online Advertising
LG2
Brand messaging is key.
Site must be easy to navigate.
Make sure calls to action are effective.
Users want fast, readable sites.
Users with disabilities should be able to navigate.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Online Experience
Failing to deliver an online experience to customers may result in losing them.
This slide shows ways to avoid a bad customer experience.
Ask students: What are examples of company or product web sites you like? Navigate through sites mentioned and ask other students to chime in on why they think it’s a good customer experience.
Source: Entrepreneur, October 2010.
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25. SOCIAL MEDIA COMPLEMENTS OTHER PROMOTION (Social Media in Business)
National Trust for Historic Preservation believes that investing in social media helps the Trust reach certain goals, such as building awareness for preservation.
Kassie Rempel of SimplySoles sends out hand written thank-you notes and increases social media accessibility. Both can help marketers relate to customers on a personal level.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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26. SOCIAL SCAMMERS How to Protect Yourself From Schemers
Be wary of requests for money transfers -- even from friends’ accounts.
Be wary when you use applications. Don’t give unnecessary information.
Use URL expanders to see the full address of links on friends’ pages.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Social Scammers
Although businesses want you to spread the word about their products through social media, some groups are using this trend to scam others.
Ask students: Have they experienced strange requests or application problems? How else could you protect yourself and your friends from online scammers?
Photo Courtesy of: Paul Klintworth
Source: Kiplinger’s Personal Finance, December 2010.
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27. MONITORING AD EFFECTIVENESS
Using Social Media to Monitor Ad Effectiveness
LG2
Dr. Pepper posts messages on Facebook and monitors the results from their over 8.5 million fans.
Richard Branson and Tony Hsieh all tweet their customer base to maintain two-way communication.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Photo Courtesy of: Brent Moore
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28. SOCIALLY SUPERIOR Lessons From the Wisdom of the Old Spice Man
Using Social Media to Monitor Ad Effectiveness
LG2
Create a strong persona.
Have customers play along through Twitter and Facebook.
Engage bloggers.
Personalize the experience.
Keep your videos short and sweet!
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Socially Superior
This slide shows 5 essentials to a successful online campaign.
Ask Students: Have you seen the YouTube videos featuring Isaiah Mustafa and Old Spice products? Did you forward these videos to friends or have videos forwarded to you? (Here is a link to one of the commercials:
Companies are implementing social media into their promotional plans and are creating web-exclusive content to engage customers.
Photo Courtesy of: Dirk Houbrechts
Source: Entrepreneur, September 2010.
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29. ELECTRONIC ETHICS (Making Ethical Decisions)
You have received personal info on your phone about fellow workers, including your boss. You know that the info could lead to firing of those workers and managers. You also know that other workers have received the same info.
Should you pass it along to your immediate supervisor or not?
What are the ethical issues involved?
What would you do?
What do you expect to be the consequences of your actions?
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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30. GLOBAL ADVERTISING
Global Advertising
LG2
Requires marketers to develop a single product and promotional strategy to implement worldwide.
Problems can arise in global markets with using one advertising campaign in all countries - especially bad translations.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Culturally sensitive advertising is key to successful international marketing.
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31. PROMOTION in RURAL INDIA (Reaching Beyond Our Borders)
India's 700 million rural consumers are spending more than ever.
International brands are sending salesmen to reach these customers by giving free Castrol oil changes for tractors, passing out bowls of Nestlé noodles, and selling Unilever soaps.
These salesmen must be aware of social customs to be successful.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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32. PERSONAL SELLING
Personal Selling: Providing Personal Attention
LG3
Personal Selling -- The face-to-face presentation and promotion of a product, including the salesperson’s search for new prospects and follow- up service.
Salespeople need to listen to customer needs, help reach a solution and do everything possible to make the transaction as simple as possible.
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes.
Selling is about more than trying to convince someone to buy a product; it is about listening to the needs of the customer.
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33. STEPS in the SELLING PROCESS
LG3
Prospect and qualify
Pre-approach
Approach
Make a presentation
Answer objections
Close the sale
Trial Close -- A statement or question that moves the process toward the purchase.
Follow up
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes.
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34. PROSPECTING and QUALIFYING in SELLING
Steps in the Selling Process
PROSPECTING and QUALIFYING in SELLING
LG3
Prospecting -- Researching potential buyers and choosing those most likely to buy.
Qualifying -- Making sure customers have a need for a product, the authority to buy and the willingness to listen to a sales message.
Prospect -- A customer who meets the qualifying criteria.
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes.
A key to B2B selling is qualifying customers, so that time is not wasted on customers who do not have a need.
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35. BUY THIS! Successful Selling Strategies
Steps in the Selling Process
BUY THIS! Successful Selling Strategies
LG3
Know your competition
Understand your customer’s business
Differentiate your product or service
Sell to the people most likely to buy
Build relationships
Put the right people in the right selling spots
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes.
Buy This!
There are several strategies for selling that have been proven to work. Some of those are listed on this slide.
Ask students to get into small groups or turn to a neighbor and discuss why they think these strategies work.
Have students think about which of these strategies they think are the most successful (rank order) and support their answers. Ask students: Was it easy to rank order these? Do you think some are more effective than others? Why?
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36. WHOOPS! Sales Slip-Ups Not feeling the customer’s pain
Steps in the Selling Process
WHOOPS! Sales Slip-Ups
LG3
Not feeling the customer’s pain
Making money is the only goal
Seeing sales as just a job
Getting upset during the presentation
Failing to properly prepare or over-preparing
Not being yourself
Neglecting the relationship
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes.
Whoops!
There are several mistakes people make when trying to make the sale. Those are listed on this slide.
Ask students: Have you ever decided not to purchase something because of a sales person? What made you not want to buy from that particular person?
Source: Fortune Magazine.
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37. STEPS in the B2C SELLING PROCESS
The Business-to-Consumer Sales Process
STEPS in the B2C SELLING PROCESS
LG3
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes.
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38. PROGRESS ASSESSMENT
Progress Assessment
What are the four traditional elements of the promotion mix?
What are the three most important advertising media in order of dollars spent?
What are the seven steps in the B2B selling process?
The four traditional elements of the promotion mix include: advertising, personal selling, public relations, and sales promotion.
The the three most important advertising media in order of dollar spent are: direct mail, broadcast television, and cable TV networks. (Internet advertising is climbing quickly and may move to the upper ranks soon.)
The seven steps in the B2B selling process are: (1) prospecting and qualifying, (2) pre-approach, (3) approach, (4) make presentation, (5) answer objections, (6) close sale, and (7) follow-up.
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39. USING PUBLIC RELATIONS in PROMOTION
Public Relations: Building Relationships
LG4
Public Relations (PR) -- Evaluates public attitudes, changes policies and procedures in response to the public, and executes a program of action and information to earn public understanding and acceptance.
3 steps of a good PR program:
Listen to the public
Change policies and procedures
Inform people you’re responsive to their needs
See Learning Goal 4: Describe the role of the public relations department, and show how publicity fits in that role.
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40. PUBLICITY
Publicity: The Talking Arm of PR
LG4
Publicity -- Any information about an individual, product or organization that’s distributed to the public through the media and is not paid for or controlled by the seller.
Advantages of Publicity:
Free
Reaches people who would not look at an advertisement
More believable than advertising
See Learning Goal 4: Describe the role of the public relations department, and show how publicity fits in that role.
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41. DISADVANTAGES of PUBLICITY
Publicity: The Talking Arm of PR
LG4
No control over whether the media will use a story or when they may release it.
It can be good or bad.
Once a story has been run, it isn’t likely to run again.
See Learning Goal 4: Describe the role of the public relations department, and show how publicity fits in that role.
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42. SALES PROMOTIONS
Sales Promotion: Giving Buyers Incentives
LG5
Sales Promotion -- The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
Categories of Sales Promotions:
B2B Sales Promotions
Consumer Sales Promotions
See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling.
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43. SOME KEY CONSUMER PROMOTIONS
Sales Promotion: Giving Buyers Incentives
LG5
Coupons
Demonstrations
Sampling
Sweepstakes
In-store Displays
Contests
See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling.
Information in this slide is based on Figure 16.8 on p. 452.
Other forms of promotion listed in the figure are: cents-off promotions, premiums, bonuses, catalogs, special events and lotteries.
Promotion needs to tie into the overall marketing strategy of the product being sold.
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44. CLIP THESE Most Visited U.S. Coupon Clearing Sites
Sales Promotion: Giving Buyers Incentives
LG5
Coupons, Inc
EverSave
RetailMeNot
CouponCabin
See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling.
Clip These
Coupons are no longer only in the Sunday newspaper, now we have web sites dedicated to coupon clipping.
First coupon was distributed in 1894 for Coca-Cola.
Ask students: Have you clipped and used coupons? Where did you get the coupons used? Was clipping the coupon the motivation for trying the product? What was your experience? Would you have tried the product without the coupons?
4. Ask students: Would using coupons be a push or pull strategy? (Pull strategy)
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45. PROGRESS ASSESSMENT
Progress Assessment
What are the three steps in setting up a public relations program?
What are the sales promotion techniques used to reach consumers?
What sales promotion techniques are used to reach businesses?
The three steps in a public relations program include: (1) listen to the public, (2) develop policies and procedures in the public interest, and (3) tell people you’re being responsive to their needs.
External sales promotions to consumers rely on samples, coupons, cents- off deals, displays, store demonstrators, premiums, and other incentives.
Internal sales promotion activities include sales training, sales aids, audiovisual displays, and trade shows.
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46. USING WORD-of-MOUTH PROMOTION
Word of Mouth and Other Promotional Tools
USING WORD-of-MOUTH PROMOTION
LG6
Word-of-Mouth Promotion -- People tell others about products they have purchased.
Word-of-Mouth is important for products like:
Restaurants
Daycare and Eldercare
Car Repair Shops
Hair Stylists
Hotels
See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling.
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47. EMERGING PROMOTIONAL TOOLS
Viral Marketing
LG6
Viral Marketing -- Paying customers to say positive things on the Internet or setting up multiple selling schemes whereby consumers get commissions.
People who promote through viral marketing often receive SWAG which can include free tickets, shirts, and other merchandise.
See Learning Goal 6: Show how word of mouth, marketing, viral marketing, blogging, podcasting, and mobile marketing work.
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48. BLOGS, PODCASTS, and E-MAILS
Blogging, Podcasting and Promotions
BLOGS, PODCASTS, and S
LG6
Blog -- Short for web log; an online diary that looks like a webpage, but is easier to create and update by posting text, photos, videos, or links.
Podcasting -- A way to distribute audio and video programs via the Internet.
promotions increase brand awareness among commercial suppliers.
See Learning Goal 6: Show how word of mouth, marketing, viral marketing, blogging, podcasting, and mobile marketing work.
Tweeting, blogging, and podcasting are rapidly changing how products are promoted.
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49. MOBILE MEDIA
Mobile Media
LG6
Marketers make use of cell phones to text customers about product offers and other company information.
See Learning Goal 6: Show how word of mouth, marketing, viral marketing, blogging, podcasting, and mobile marketing work.
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50. PUSH, PULL, AND PICK PROMOTIONAL STRATEGIES
LG6
Push Strategy -- Producers use advertising, personal selling, sales promotion, and other tools to get their products stocked on shelves.
Pull Strategy -- Directs heavy advertising and sales promotions efforts towards consumers and gets the public to request their products from retailers.
Pick Economy -- Refers to consumers who pick out their products from online outlets.
See Learning Goal 6: Show how word of mouth, marketing, viral marketing, blogging, podcasting, and mobile marketing work.
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51. PROGRESS ASSESSMENT What’s viral marketing?
What are blogging and podcasting?
Describe a push strategy, a pull strategy and the pick economy.
Viral marketing is a broad term that describes everything from paying customers to say positive things on the internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific Web sites.
A blog (web log) is an online diary that allows the user to create and update with text, photos, or links to other sties. Podcasting is a means of distributing audio and video programs via the internet.
In a push strategy, the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise. A pull strategy directs all advertising and sales promotion toward the consumer. The pick economy refers to those consumers who pick their products out from online outlets.
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