Kelley Fall 2004 Principles of Marketing

1

AIDA Concept Attention-Interest-Desire-Action

Think Feel Do

Kelley Fall 2004 Principles of Marketing

2

Promotion Strategies for Primary and Secondary Markets

Primary market – Demand for a product category Pioneering Advertising Got Milk Social issue marketing

“Kick the Can” Drug Free America “Talk to your kids

about drugs”

Kelley Fall 2004 Principles of Marketing

3

Promotion Strategies for Primary and Secondary Markets Secondary market – Demand for a

brand Challenge milk Crystal milk Sunnyside Select milk Energy Star Label Get Straight Drug Program

Entire Promotional Mix

Kelley Fall 2004 Principles of Marketing

4

Event Marketing Effective Promotions for Events

Make media your partner Premium item giveaways Promote a sponsor/product Entertainment Cause-related promotions Affinity-based promotions Kids and pets never fail

Kelley Fall 2004 Principles of Marketing

5

Advertising

Types of Advertising Institutional Advertising

Advocacy advertising Comparative Advertising

Never use comparative advertising if you are the market leader

Cooperative Advertising (vertical) Competitive Advertising

Kelley Fall 2004 Principles of Marketing

6

Advertising

Advertising objectives Awareness Reminder to use Change attitudes about use of the

product Change perceptions of importance of

brand attributes

Kelley Fall 2004 Principles of Marketing

7

Advertising Advertising objectives

Attitude reinforcement Product-line or corporate image

building Obtain a direct response

Process Account sale representative Account manager Creative

Kelley Fall 2004 Principles of Marketing

8

Advertising

Process Traffic Media planning

Evaluation CPM = cost of ad x 1000/circulation Rating = program audience/total

audience

Kelley Fall 2004 Principles of Marketing

9

Advertising

Evaluation Reach - percentage of the target

audience that will be exposed to the message

Frequency - average number of times a member of the target audience is exposed to the message

Gross Rating points - reach percentage x number of exposures

Kelley Fall 2004 Principles of Marketing

10

Advertising

Evaluation Recognition tests Recall tests Theater tests

Kelley Fall 2004 Principles of Marketing

11

Sales Promotion

About 25% of each promotional dollar is spent on sales promotion

Short-term results Objectives

Inquiries - free gifts, mail-in coupon for information, catalog offers, exhibits

Trial - coupons, free samples, contests, premiums, demonstrations

Kelley Fall 2004 Principles of Marketing

12

Sales Promotion

Objectives Repurchase - on-pack coupons, mail-

in rebates Traffic building - special sales, weekly

specials, entertainment events, retailer coupons

Increase rate of purchase - multipacks, special price on twos

Kelley Fall 2004 Principles of Marketing

13

Sales Promotion

Objectives Inventory building - return

allowances, slotting allowances Promotional support - reusable

display cases, sales contests, merchandise allowances

Kelley Fall 2004 Principles of Marketing

14

Sales Promotion

Evaluation Redemption rates Acquisition rates Displacement rates Conversion rates Stock-up rates Product-line effects

Kelley Fall 2004 Principles of Marketing

15

Personal Selling

About 50% of each promotional dollar is spent on personal selling activities

Recruitment Compensation Evaluation

Kelley Fall 2004 Principles of Marketing

16

Public Relations Less than 1% of each promotional dollar

is spent on public relations Difficult to control and evaluate Process

Set objectives Identify target audience Design message Reach media that serves target audience Write Press Release Evaluate results