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Integrated Marketing Communications and Promotion
Elements of promotion Advertising strategies Other methods of promotion
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Elements of the Promotion Mix
Advertising Sales Promotion Sales Coupons Rebates Premiums Personal selling Public relations Direct marketing
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The Product Life Cycle and Promotional Objectives
Introduction Awareness Trial Growth stage Persuasion to buy product Brand preference Solid distribution Maturity Maintenance of Sales Distribution channels Shelf space
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Promotion by Decision Stage
Pre-Purchase Influence decision, preference Samples to induce trial Purchase Sales promotion Point-of-purchase (POP) displays Post-purchase Increase repurchase propensity
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Channel strategies “Push” “Pull”
Make product readily available to buyers “Hard” sell to Distributors Consumers Heavy sales promotions “Pull” Create demand for products “When you care to send the very best” “Snapple—made from the best stuff on earth”
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Promotional Objectives and the Hierarchy of Effects
Awareness Interest Evaluation Trial Adoption Repurchase
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Bases for Advertising Budgets
Percentage of sales Percentage of profits Competitive parity Affordability Objective and task
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Developing the Advertising Program
Identifying the target audience Specifying advertising objectives Setting the advertising budget Designing the advertisements Informational/persuasive Fear appeals Sex appeals Humor appeal
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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
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Executing The Advertising Program
Pre-testing Portfolio test Jury tests Need to test a very large number of tests Possible redesign Carrying out advertisement Full service agencies Limited service agencies In-house
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Advertising Intensity and Return --A Typical Relationship
The “S”-Shaped Curve 1 0.8 high effectiveness Relatively 0.6 Saturation Point Response (e.g., sales, recall) 0.4 0.2 Too little to do much good 5 10 15 20 25 Amount of Advertising Spending
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Measuring Advertising Effect
Several possible criteria: Increase in sales (but it may be impossible to separate effects of different simultaneous ads) Lab studies: Recall Attitude toward product Preference
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One-sided vs. two sided appeals
One-sided: only saying what favors your side Two-sided: stating your case but also admitting points favoring the other side Why is this effective?
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Elaboration and Likely Effectiveness of Celebrity Endorsements
Is endorser congruent with product endorsed? Product important or expensive? Yes No Yes high elaboration low elaboration low elaboration No This model shows the application of peripheral and central routes to persuasion to the effectiveness of celebrity endorsement. Bill Cosby may be quite effective in endorsing Coca Cola and Jell-O because these are relatively unimportant products, and thus his motives and credibility may not be questioned. On the other hand, although athletic shoes are an important and often expensive (!) product, Michael Jordan may be effective in endorsing these since he would likely be evaluated as knowledgeable about the product. Note that the the actress with the puppies (name?) who endorses Ford automobiles would be predicted by this model as ineffective, since an automobile is an expensive and important purchase, while the endorser is not seen as congruent. Topic for class discussion: Do you agree with this prediction? Why or why not? If yes, why is Ford using this endorser? More likely to be effective Unlikely to be effective Celebrity endorsements more likely to be effective 8 7
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Symbolism Green: Health in U.S.; in Latin America, jungle (associated with danger) Marlboro man: freedom in U.S.; dusty, unappealing life in Hong Kong Perfume against raindrop: Cool, refreshing feeling to Europeans; symbol of fertility to some Asians Symbols vary tremendously between cultures. Consider, for example, numbers. In the U.S., we generally do not take numbers which have superstitious properties assigned to them all that seriously, but former President Ronald Reagan had his house renumbered to avoid the number of the beast Also, many buildings do not have a thirteenth floor. In other countries, other numbers can be viewed as significant. Colors also vary in significance. Note that colors may have political overtones.
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Cultural Dimensions in Advertising
Directness vs. indirectness Comparative advertising Humor appeal Gender roles Explicitness Sophistication Popular vs. traditional culture Information content vs. fluff In certain cultures, it is regarded as preferable to be subtle in appeals, hinting at a point rather than stating it directly. In the U.S., it is often considered appropriate to tackle a problem “head on,” while in other cultures, one may need to “hint” at it. Note that gender roles may be somewhat complicated. In some countries, roles are very traditional; in others, the roles are more progressive. Note that there is often some lag between what is portrayed in advertising and social reality. In some foreign cultures, a great deal more explicitness is allowed than in the U.S. Note, however, that a distinction may be made between explicitness which is exploitative and that which is merely explicit.
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Advertising Standardization: Advantages
Economies of scale Consistent image Appeal to global consumer segments Conservation/maximum utilization of creative talent Cross-fertilization--moving knowledge across markets Essentially parallel to product/ positioning standardization
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Disadvantages Cultural differences
Advertising and promotional regulations Market lifecycle stage (maturity) Local commitment to campaign (“Not-invented-here) Again, parallel to product/ positioning standardization
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Humor Humor appears to be a universal phenomenon However, there are great differences in form across the World “A can a week is all we ask” worked in U.S. but was seen as silly in Canada Humor often translates poorly. Note that one problem is that humor relies on puns, and to some extent, expectations. Opportunities for puns often vary between languages, since they are largely accidental. Cultures tend to feature different expectations. Thus, what will be seen as a contrast based somewhat in reality varies.
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Values Americans tend to emphasize individuals; in other cultures, standing out from the group may not be desirable Popular vs. traditional culture Perception of comparative advertising Eastern Europeans want more facts in advertising Values are often not explicitly stated, and must often be uncovered by a study of the culture. An important value dimension is the extent to which equality is sought. While in the United States individualism tends to be highly valued, the group is valued more in some Asian countries. Among some African tribes, extreme measures are taken to assure equality. Hunters, for example, will belittle their accomplishments, and their meat will be “insulted.”
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Legal Issues in Promotion
Media allowed for advertising Comparative advertising Price promotions coupons premiums Certain forms of promotion are illegal in various countries. Many countries, for example, ban comparative advertising, even if the claims in question are true. “Puffery” may also be illegal. Price promotions are also effectively illegal in certain countries, particularly in Europe.
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Contrasting Advertising Perspectives (Aithison 2002)
Western “Atomistic”—broken down to smallest component parts “Unique selling propositions” “How to” Positioning May be “dull and boring” “Copy focused” Asian Holistic “Everything relates to everything else” How things “fit together” and “relate” Visual and oral Jim Aitchison, How Asia Advertises, New York: Wiley, 2002.
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Promotion Options Coupons Deals Premiums Contests Sweepstakes Samples
In ads In store Electronic Deals Premiums Contests Sweepstakes Samples Continuity programs Point-of-purchase displays Rebates Product placements
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Trade Promotions Allowances and discounts Premiums
Reimbursement for costs Slotting fees Quantity discounts Premiums Fixtures Cooperative advertising Training
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Public Relations and Publicity
Advantages of media coverage over advertising: cost credibility attention Issues “Two-way street”--must provide something of interest to media
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Making a News Release--Issues
Properties of a good news release timing--for event and journalist’s schedule brevity--if you can’t say it in two pages, how do you expect the journalist to? Interest to readers content quotes facts
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Personal selling Traditional vs. consultative selling
Commission vs. salary
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