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41 Cards in this Set
- Front
- Back
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Price incentive sales promotion overall goals
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Primary goal is immediate sales
overall goal is a behavioral change |
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Diff between advertising and price incentive sales promotion
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-price incentive promotion creates immediate action, not over time
-Rational appeal (MONEY, TANGIBLE), not emotional(Perception/attitude) -Contributes to short term profitability ADV and sales incentive promotion shouldn't compete, should COMPLIMENT |
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Behavioral learning in price incentive sales promotion
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-Promotional tools act as POSITIVE REINFORCER'S along with product performance itself to INCREASE CHANCE of REPEAT PURCHASES
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Improper use of price incentives sales promotion
Price to value ratio |
-Overuse of promotions is most common
ratio-perceived value of products relative to price payed |
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Samples benefits and delivery methods
price incentive sales promotion |
-Eliminate financial risk and inconvenience
-Mail offers lifestyle segmentation -door to door offers geographic segmentation |
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Benefits of using samples
price incentive sales promotion |
-brand is definatly better
-Doesn't come in wide variety -short purchase cycle - |
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Reasons to use coupons
price incentive sales promotion |
-Defensive, retains current customers
-encourage brand switching (not everyones brand loyal, usually based on price) -Use "family size" to increase in-home inventory -lengthens purchase cycle |
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Rebate redemption problems
price incentive sales promotion |
-Not used for small products
-wait time -effort required to redeem so high dropout rate |
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Added value sales promotions basics
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-Sold at full price but consumers get more for money
-doesn't reduce price/value ratio |
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Premium objectives
added value sales promotion |
Premium is an extra item offered discounted/free as en incentive to purchase
-ex crackerjack box, souvenir glass, UPC box tops, McDs Monopoly -trade up to larger size, ex supersize to get game pieces -repeat purchases "complete the set" |
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Sweepstakes vs lottery vs contes
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-sweepstakes no purchase to enter and random chance to win
-lottery are charged to enter and is usually illegal -contests have skill involved and charge to enter |
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Buying allowances in retail promotions
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-temporary price reductions FOR RETAILER FROM MANUFACTURER
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Advertising allowances in retail promotions
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Manufacturer FUNDS for the RETAILER to ADVERTISE the product
P.O.P |
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Point of Purchase in retail promotions
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-AKA P.O.P
-End caps, display rack, posters, banners -EASY EVALUATION, category sales remain flat, brand sales go up -GOOD FOR RETAILERS b/s ties to to other items ex. chips and dip |
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Public Relations Overall
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-NOT FREE ADVERTISING, NO CONTROL
-seen as more CREDIBLE -much CHEAPER than ADV |
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Reasons to use Public relations
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-Inexpensive
-Cuts through CLUTTER -NEW SALES LEADS b/c ADV can't reach everyone |
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Corporate image advertising
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-Benefits COMPANY IMAGE, not specific product
-image is LESS TANGIBLE than product attributes |
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Types of Advertising messages
General image Financial -Advocacy Recruiting Special Situation |
Financial-favorable image in financial community
Advocacy-Company asks you to do something (controversial? Recruitment-For prospective employees(Army is largest) Special situation-Corporate giving, Charity |
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Corporate advertising problems
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-Lacks specific purpose
-NO MEASURE of SUCCESS |
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Budget Strategies Overall
PREDETERMINED METHODS |
-designed to ensure FINANCIAL STABILITY
-NO SITUATION ANALYSIS INVOLVED -ALLOCATION always DETERMINED in ADVANCE of anything |
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AFFORDABLE budget strategie
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Non-advertising expenses and desired profit are deducted from projected revenue
-REMAINDER is budget -SMALL businesses -May cause UNDER SPENDING |
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PERCENT OF SALES budget strategies
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Budget is a percent of past or projected sales
-Difficult to use with new products -popular with RETAILERS |
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COMPETITIVE PARITY budget strategies
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-BUDGET RELATIVE TO SIZE
-SHARE of INDUSTRY BUDGET should equal its MARKET SHARE |
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OBJECTIVE and TASK budgeting
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-ESTIMATE COSTS to implement strategies that achieve objectives
-May be difficult to estimate b/c of EXTERNAL MACRO TRENDS |
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NEW PRODUCT budgeting
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-DOUBLE THE BUDGET
-generate AWARENESS then run TRIAL |
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AGENCY COMPENSATION in budgeting
Commission Fee Combination Bonus and Retainer |
-Commission is biased b/c comes from the media vehicle invested in
-Flat Fee -Combination of fee and commission Bonus for meeting performance goal Retainer is a fixed monthly fee no matter how much work is done -Moderates balance sheet so good for companies with SEASONAL SPENDING |
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Differences between Retail and Product Advertising
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-IMMEDIACY, generate sales to reduce inventory (ex Sunday sale)
-Retail advertising stresses location)brand doesn't care where you buy) -Product line depth is much higher in retail, potentially EVERYTHING IN STORE |
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REGULAR PRICE LINE
Retail advertising |
-Long term
POSITIONING advertising "always low prices" |
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Sales and Clearance Advertising
Retail Advertising |
SALES MOST COMMON
-Reduced prices for limited time, CREATES URGENCY -Clearance, even more IMMEDIATE -LEAST IMAGE ORIENTED |
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Print Media
Retail Advertising |
Largest budget allotment b/c
-LOCALIZED -SHORT TERM -Newspaper is largest source -Magazines build AWARENESS and best for REGULAR PRICE LINE advertising |
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Retail Advertising Media Selection
TV RADIO OUTDOOR YELLOW PAGES |
-TV best for BOTH TYPES sale and regular price line
-Radio is best with narrow target markets -Mail is good for targeting with minimal wasted coverage Outdoor is not popular b/c usually long term Yellow Pages is best for companies relying on telephone communications |
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COOPERATIVE retail advertising
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Manufacturer funds all or part of retailers advertising of the product
-offers leverage with media and ADS are supplied -Weak because may have CONTRASTING GOALS |
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Message Strategy in retail advertising
INFORMATION vs IMAGE |
-High involvement focuses on INFO
-Low involvement focuses on IMAGE -NATIONAL advertisers should focus on IMAGE, retail can focus on information |
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OVERALL Message Strategy in retail advertising
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CONSISTENT Message
FOCUS on LONG and SHORT TERM Need RAPID IMPACT to GRAB QUICKLY |
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Business to Business Advertising
3 Types |
1. Normal CONSUMER GOODS
2.Other BUSINESS and INDUSTRIAL G/S 3FACILITATES OPERATION of business ex. security tag |
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Key Differences in B2B advertising
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-May need SALES REPS, CONSULTANTS, or PERSONAL BUYERS
-Increase awareness of product but also COMPANY and CAPABILITY -MINIMAL SECONDARY DATA available compared to consumer markets so must use PRIMARY RESEARCH so more EXPENSIVE |
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B2B advertising
PRICING DISTRIBUTION MEDIA SELECTION |
Pricing is a NEGOTIATION/BID based on delivery, reputation etc..
DISTRIBUTION CHANNEL is SHORT MEDIA: -Trade publications -Catalogs-from INDEPENDENT DISTRIBUTOR, reps your company but not employees -only use CONSUMER MEDIA with COMMON PRODUCTS like FedEx |
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B2B Message Strategy
RATIONAL APPEAL TESTIMONIALS CASE HISTORY GENERIC |
-PRICE not as important
-More Rational appeal than emotional in consumer advertising -Testimonials of EXPERTS and PEERS, not celebrities -Case history is citing an example, 3rd person testimonial -Generic POSITIONS the COMPANY as an EXPERT in the FIELD |
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Service Advertising Basics
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May need MORE MONEY b/c DIFFICULT to PORTRAY
MULTIPLE PRODUCTION CENTERS mean inconsistent quality, expectations may not be met -PRICE is the PRIMARY RESPONSE to DEMAND |
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Social Marketing in service advertising
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-CHARITABLE GROUPS for certain ISSUES and IDEAS
-NON PROFIT Organization (churches, associations) or GOVT PSYCHIC COSTS-Not wanting to use condom -WEAK BENEFITS, may be a difficult change like quiting smoking |
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Economic issues in advertising
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-ADV does not result in higher prices unless product has no competition
-ADV reduces price if competition is intense, Product category is growing |
