MarketingCommunicating Customer Value
The Promotion Mix
Shaping the Overall Promotion Mix
Nature of Each Promotion Tool
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Video Discussion: CP+B
In what ways has Crispin differentiated itself from other advertising agencies?
Alex Bogusky once said, “Anything and everything is an ad.” How do you explain this?
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Budget allocation
Advertising Decisions
Example of Objective and task.
Establish the market-share goal
The company estimates 50 million potential users and sets a target of attracting 8% of the market- that is ________ users.
Determine the percentage of the market that should be reached by advertising
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Cont
Determine the number of advertising impressions per 1 percent trial rate
The advertiser estimates that 40% advertising impressions for every 1% of the population will bring about 25% trial rate
5. Determine the number of gross rating points that would have to be purchased
A gross rating point is one exposure to 1% of the target population. Because the company wants to achieve 40 exposures to 80% of the population, it will want to buy 3,200 gross rating points.
6. Determine the necessary budget on the bases of the average cost of buying a gross rating point
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Nature of Each Promotional Tool
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Shaping the Overall Promotion Mix
Nature of Each Promotion Tool
Advertising
Shaping the Overall Promotion Mix
Nature of Each Promotion Tool
Personal Selling
Sales promotions
Includes a wide assortment of tools: coupons, contests, cents-off deals, premiums, and others
Advertising – Give reasons to buy
Sales promotion-Give incentives to buy
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Shaping the Overall Promotion Mix
Nature of Each Promotion Tool
Sales Promotions
Shaping the Overall Promotion Mix
Nature of Each Promotion Tool
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Push vs. Pull Strategy
Push strategy:
a promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers.
Pull strategy
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Chapter 15 Advertising and Public Relations
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Advertising Objectives
Informative advertising
Persuasive advertising
Reminder advertising
Informative Advertising
Suggesting new uses for a product
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Persuasive Advertising
Persuasive
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Reminder Advertising
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Advertising Decisions
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Long-term advertiser commitments
Commercial clutter
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Short lead time
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Background distractions
Commercial clutter
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Short lead time
Not all consumers have access to Internet
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SCHEDULING
Pulsing schedule
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Forgetting Function
Public Relations
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Papa john’s Camaro Search
During a road trip to find his long-lost Camaro, John Schnatter set a record for the world’s highest pizza delivery.
Traditional media coverage
A website dedicated to the trip drew 660,000 unique visitors
The reunion generated more than 1,000 tweets
People posted pictures on FB
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Managing Unfavorable Publicity
Crisis Management
A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event.
Tylenol’s crisis in 1982
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Halted Tylenol production and advertising
Issued a nationwide recall of Tylenol products (with retail value of over $100 Mil)
When it was determined that only capsules were tampered with, they offered to exchange all Tylenol capsules already purchased by the public with solid tablets
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