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PROMOTION Lars Perner, Inst Promotion Elements of the Promotion Mix ● Advertising Strategies ● Other Methods of Promotion

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

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

BUAD 307 PROMOTION Lars Perner, Instructor 1

PromotionElements of the Promotion Mix ● Advertising Strategies ●

Other Methods of Promotion

Page 2: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

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

Page 3: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

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

Page 4: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

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

Page 5: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

BUAD 307 PROMOTION Lars Perner, Instructor 5

Reaching the Customer: Encoding, “Noise,” and “Decoding”

ENCODINGENCODINGTHE THE

MESSAGEMESSAGE

MESSAGEMESSAGECHANNELCHANNEL

DECODINGDECODINGTHETHE

MESSAGEMESSAGERECEIVERRECEIVER

CHANNEL CHANNEL FEEDBACKFEEDBACK

NOISENOISE

SENDERSENDER

Text, p. 211..

Mktg mgrMktg mgrAdvertising mgrAdvertising mgrAdvertising Advertising agency agency

AdvertisementAdvertisementCouponCouponSales presentationSales presentationPress releasePress releaseStore displayStore display

Media, SalespersonMedia, SalespersonRetail storeRetail storeNews programNews program

ReceiverReceiver interpretation of interpretation of the messagethe message

CustomersCustomersMedia audienceMedia audienceNews mediaNews mediaClientsClients

Other adsOther adsNews articlesNews articlesOther store displays Other store displays

Page 6: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

BUAD 307 PROMOTION Lars Perner, Instructor 6

Advertising Intensity and Return --A Typical RelationshipAdvertising Intensity and Return --A Typical Relationship

0

0.2

0.4

0.6

0.8

1

Res

pons

e (e

.g.,

sal

es,

reca

ll)

0 5 10 15 20 25 Amount of Advertising Spending

The “S”-Shaped Curve

Saturation Point

Relatively

high effecti

veness

Too little to domuch good

Page 7: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

BUAD 307 PROMOTION Lars Perner, Instructor 7

Measuring Advertising EffectMeasuring 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

Page 8: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

BUAD 307 PROMOTION Lars Perner, Instructor 8

Scanner Data Research

TELEVISIONTELEVISIONEXPOSUREEXPOSURE

DEMOGRAPHICDEMOGRAPHICINFORMATIONINFORMATION

ANALYSISANALYSIS

RECORDEDRECORDEDPURCHASESPURCHASES

HOUSEHOLDHOUSEHOLDFILEFILE

Purchase on occasion: Yes, noPurchase on occasion: Yes, noTime since previous purchaseTime since previous purchasePrevious purchasesPrevious purchasesCurrent priceCurrent pricePrevious pricePrevious priceCurrent promotional statusCurrent promotional statusPrevious promotional statusPrevious promotional statusCurrent display statusCurrent display statusPrevious display statusPrevious display statusDisplay status of competing Display status of competing brandsbrandsPromotional status of Promotional status of competing brandscompeting brandsCoupon used: Yes, noCoupon used: Yes, noCoupon available: Yes, noCoupon available: Yes, noCoupon available for other Coupon available for other brands? Yes, nobrands? Yes, noAmount of couponAmount of couponFamily sizeFamily size

OccupationOccupationFamily sizeFamily sizeIncomeIncomeHome ownershipHome ownership

No. of ads seen by No. of ads seen by shoppershopperAds seen for competing Ads seen for competing brandsbrands““Split cable”Split cable”

Page 9: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

BUAD 307 PROMOTION Lars Perner, Instructor 9

Japanese Advertising—Use of animation and cartoon characters

Page 10: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

BUAD 307 PROMOTION Lars Perner, Instructor 10

Breaking Through the Clutter

Page 11: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

BUAD 307 PROMOTION Lars Perner, Instructor 11

Taiwan

Page 12: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

BUAD 307 PROMOTION Lars Perner, Instructor 12

Billboards…

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BUAD 307 PROMOTION Lars Perner, Instructor 15

Brazil: Brand Promotion

Page 16: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

BUAD 307 PROMOTION Lars Perner, Instructor 16

Animated Advertisement (Korea)

Page 17: BUAD 307 PROMOTION Lars Perner, Instructor 1 Promotion Elements of the Promotion Mix Advertising Strategies Other Methods of Promotion

BUAD 307 PROMOTION Lars Perner, Instructor 17

Ambiguous Ethnicity

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China