Lec 8-promotion

advertising (high control)

-mass

-paid form of promotion, paid for space/time

pros:

• Efficient for large, diverse audience

• Brand building or quick sales

cons:

• high costs

• Hard to get feedback

ex. tv, magazine, newspaper, social media

direct marketing (high ish control)

-customized

-cost of communcaition, direct connections w/ carefully targeted consumers

pros:

• Short lead times

• Personalized

• Call-to-action “buy now” “sign up now”

cons:

• declining response (too much calls)

• Expensive database management

ex. flyers, telephone marketing, email

sales promotion (middle control)

-mass

-wide range of fees , short term incentives to encourage purchase

pros:

• encourage ppl to buy stuff short-term quickly

• Flexible

• Draws attention

cons:

• Easily duplicated by compeitiors (ex. bogo)

• lead to promotion wars

ex. discounts, coupons, instore display + demonstrations

personal selling (less control)

-customizied, paid to sales ppl

-personal presentation by sales force and build customer relationship

pros:

• Immediate feedback

• Persuasive

• Relationship-building

cons:

• expensive per exposure ( cant get one person selling one product to them for too long)

• Messages may differ

ex. medication

Public relations (lowest in control)

-mass, indirectly paid marketing (company doesn't buy ad space)

pros:

• Highly credible

• Effective with other promotions

cons:

• hard to get media cooperation

ex. journalist writes a news article about your company→ create buzz

Strategic decision

identify target audience → determine communication objective

ex. everyone know abt coke but not alot of ppl drink

Push

-Promote to intermediaries (e.g., wholesalers, retailers

-get the product on shelf

-low brand loyalty, decision made in store, impulse buy,

ex. discounts for retailers, paid self space

pull

-promote directly to consumers

-create demand so retailers want to stock it

-high brand loyalty, brand is chosen before store visit

ex advertising+ sampling, promotional coupons, in store demo

informative advertising

-build brand awareness

-new product launches

-provide explanation to educate

ex. prelanch ads “somethings coming” curiosity gap

persuasive

-build brand preference

-important as competition inc

ex. comparative adv (mac vs pc)

reminder advertising

keep brand top of mind

-maintain customer relationship

-repeat purchase

ex. oreo

reinforcement

-convince purchases they made the right choice

ex. showing satisified consumers enjoying car

execution

set budget, choose media, design a message

affordable method

-left over after expenses, what mangers think they can afford

cons:

• ignores how promotions affect sales

• Promo = last priority → risk of underspending

• Budget changes every year → not reliable

percentage sales method

-set promo budget as a % of current or forecasted sales

pro:

• simple, amount of $ spend on ads depend on how much $ made from sales

cons:

• assume sales happen first, then promotion follows, instead of seeing promotion as something that helps create sales

• based on avaiblity of funds rather than long term

competitive-parity method

• Set your budget based on what competitors are spending

• cons:

  • No proof competitors are doing it right

  • Their goals and budgets might be totally different

  • Doesn’t prevent overspending or “ad wars” between companies

objective-and-task method (SIE)

• Steps to set budget:

  1. Set clear objectives (e.g., increase awareness by 20%)

  2. Identify tasks to reach the goal (e.g., social media ads)

  3. Estimate costs for each task

  pros:

  • Focused on achieving goals

  • Requires detailed planning on spending and outcomes

  cons:

  • diffcult

events and experiences

-high relevant

-customers often personally invested and engaged

ex. pop up shop

online + social media

-Quick updates and changes

-Easily prepared and spread

-Info or entertainment rich

ex. brand running viral insta challenge

mobile

-Time and location-sensitive

-Reaches consumers during purchase decisions

ex, limited flash sale promoted via app notifi

uber eats sees ur in the area or it's dinner time

hollister

tv ad

Pros

• High reach

• some target

• Low cost per exposure

• Strong visuals and audio

• Repetition possible

cons:

• High total cost

• Short exposure time

• Easy to avoid (clutter)

• Some distrust

• Limited targeting

ex. superbowl

magazine ad

pros:

• Good targeting

• High info content

• Longevity (magazines last)

• Pass-along readership

cons:

• Long lead times (take time to prepare)

• Limited control of placement

• Visual only

• Visual clutter

outdoor ads

pros:

• Low cost

• Location-specific

• High visibility

• Low message competition

cons:

• Low targeting

• Short exposure time

• Limited content

• Poor image quality

• Local restrictions

ex. Billboards promoting a new movie release in high-traffic areas

direct mail

pros:

• Good targeting

• Personalizable

• Fast, Flexible

• High information content

• No ad competition

cons:

• High cost per contact

• Clutter

• May not read

buzz/ influencer marketing

pros:

• Credible endorsers

• Works well for high-interest product categories (tech, status)

cons:

• Risk of backlash

• Hard to measure reach

• Subversive or deceptive

social media pros

• Fast and responsive

• Direct consumer interaction (e.g., replies, feedback)

• Builds brand community

• Encourages consumer engagement (likes, shares, comments)

• Allows user-generated content (repost)

• Can reach a wide audience

• Potentially low-cost (e.g., Burger King), but not alway

social media cons

• Limited control (e.g., negative posts like #McDStories)

• Crowded space with lots of competition

• Time-consuming to manage and monitoe

STEPPS -what makes things go viral>

Social Currency: makes people feel smart, cool, or in-the-know when they share it

ex. sharing a cool life hack

Triggers: Top-of-mind or cued by other things

ex. hearing "peanut butter" makes you think of "jelly

Emotion: elicits emotion, high arousal emotion

ex. exiecment , anxiety, surprise, anger

Public: more visible something is, the more people copy it

ex. wearing AirPods signals something trendy or desirable

Practical value: content useful

Stories: part of a story

Consumer insight

key truth about your target audience are you addressing?, have multiple ideas but one just sticks out
ex: share a coke with friend

Single minded though

The one main idea you want the audience to take away.

rational appeal

• Focus on audience’s self-interest

• Highlight benefits like quality, value, performance

• Show how the product solves a problem or meets a need

ex. detergent that removes stain in one wash

moral appeal

taps into whats right or ethical

ex. donate to help children

emotional appeal

connects through feelings (joy, feat , nostalgia)

attract attention, create strong consumer bonds

ex. make memories with disney

comparative advertising (rational appeal)

-brand mentions or compares itself to a competitor—directly or indirectly—to highlight its advantages

pros:
• Grabs attention
• Viewers remember the message (higher recall)
• Helps clarify positioning

cons:
• accidentally promote the competitor
• trigger arguments or backlash from competitors or consumers
• aggressive

ex. mcd doing the” four dumbs is dumb”, our espresso is cheaper than starbucks

media scheduling

frequency- often

timing- seasonal? Special timing?

pattern: continuity, pulsing (burst, irregular)

reach

% of target market exposed to an adv ( # of ppl reached / size of target market)

GRP (gross rating points)

( reach % x frequency)

impact of ad

cpm

(cost/ frequency/1000))

cost per thousand impressions

rating

% of household in market that are tuned in/ watching at that time; particular tv show /radio

return on objectives (ROO) (RRPBS)

-measures if objectives were met (RRPBS)

Recognition: Brand awareness
Recall: What people remember from the ad
Preferences: Increase in brand liking
Behavioral Measures: Purchases, clicks, shares, usage frequency
Sales & Market Share: Changes in sales and market position