direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale
consumer oriented sales promotion
generally used as a part of the push strategy and includes samples, coupons, premiums, contests, refunds, bonus packs etc.
trade oriented sales promotion
part of a pull strategy and include contests, incentives, point of purchase displays, trade shows, training programs
sales promotion increase: growing power of retailers
manufacturers used to have most of the power, now retailers through technology, consolidation and private labeling have more
sales promotion increase: declining brand loyalty
consumers are purchasing more on the basis of price and value
sales promotion increase: increased sensitivity
consumers want to save more money and respond well to promotions that provide them the opportunity to do so
sales promotion increase: brand proliferation
many new brands offer little differentiation
sales promotion increase: fragmentation of consumer markets
traditional mass media advertising has become less effective and promotions are a want to reach market segments
slaes promotion increase: short term focus
sales promotion is seen as a way of getting an immediate increase in sales
sales promotion increase: increased accoutability
managers are under pressure to produce sales results
sales promotion increase: competition
promotions are seen as a way to gain a competative advantage
sales promotion increase: clutter
promotional offers can break through the clutter and attract attention
sales promotion increase
promotion industry has become more sophisticated and plays a more strategic role in the IMC program of many companies
sampling works best when (3)
products are of relatively low value
the product can be broken into a small piece or size the reflects the full features
the purchase cycle is fairly short
sampling is commonly used when?
to introduce a new product or brand to the market
sampling involves what?
giving consumer some quantity of the product at no charge to induce trial
types of sampling methods
door to door, direct mail, in store, on package, event, newspaper insert, internet sites
choice of sampling has two important considerations. what are they?
cost of distribution and method of control over who receives the sample
door to door
delivered directly to customer, expensive
sampling through mail
small lightweight products, control, postal restrictions
in store sampling
food products, expensive and requires a lot of planning
fastest growing, most popular, total sense of brand
internet communications objectives
create awareness, generate interest, disseminate information, create an image, create a strong brand, stimulate trial, create buzz, gain consideration
snapple website uses which way of communication objectives?
must generate and hold interest
provides info about companys products or services (weather.com)
complicated process and has high costs
the direct selling of goods and services
who only hase commerce?
who does e commerce and brick and morter
most common, creates awareness, side panels or verticles, low click rate but high viewing rate
what are the two types of sponsorship ads?
regular and content sponsorship
when a company pays a sponsor a section for a site (cosmo sponsoring iVillage.com)
sponsor provides dollars in return for name association but participates in providing the content itself
what is rich media?
broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video audio and animation
what are blogs?
web based publications consisting of primary periodic articles
public relations defined:
a management function which evaluates public attitudes and identifies the policies and procedures of an organization with the public interest and executes a program of action (and communication) to earn public understanding and acceptance
three steps to PR management process
determination and evaluation of publice attitudes, identification of policies and procedures, development and execution of the program
marketing and public relations
PR and marketing are different BUT they work closely together, blending their talents to provide the best overall image of the firm and its products
integration of PR and marketing
marketing and pr are completely separately, pr and marketing are seperate but equal, pr and marketing preform the same roles
what is MPR?
PR activites designed to support marketing objectives
what can MPR do to improve companies?
build marketplace excitement, improve ROI, create advertising news where there is no product news, providing a value-added customer service, building brand to customer service, building bonds, influencing influentials by providing info to opinion leaders, defending product at risk
what are the benefits of mpr?
cost effective, highly targeted, endorsements by independent third parties, achievement of credibility, breaks through clutter, circumvents resistence to sales efforts
disadvantages of mrp?
lack of control, difficult to tie in slogans, media time and space are not guaranteed, no standards for effective measurement. one major disadvantage: may lead to pr becoming subservient to marketing
what is publicity?
the generation of news about a person, product, or service that appears in the media
public relations vs. publicity
pr: long term, positive information, controlled by firm publicity: short term, not always positive, originates from outside source
coorporate advertising is an extension of what function?
is corporate advertisng specific or non specific?
no specific product just the company
corporate advertisements promote organizations and achieve the following:
image enhancement, assuming a position on an issue or cause, seeks involvement
4 disadvantages of corporate advertising
1. consumers are not interested 2.ads might indicate the firm is in trouble 3.costly for of self indulgence 4.waste of money