EXAM 4 MKT 440 LAST FINAL BABY
hedonic benefits
(1) accomplishing a sense of being a wise shopper when taking advantage of sales promotions; (2) achieving a need for stimulation and variety when, say, trying a brand one otherwise might not purchase if it were not for an attractive promotion; (3) obtaining entertainment value when, for example, the consumer competes in a promotional contest or participates in a sweepstakes; (4) being viewed as "tech-savvy," for example, with a smartphone coupon; and (5) socializing with others on a deal with a group coupon.
Price-offs
(also called cents-off or price packs) entail a reduction (typically ranging from 10 to 25 percent) in a brand's regular price. objectives: - reward present brand users - get consumers to purchase larger quantities of a brand - establish a repeat-purchase pattern after an initial trial ensure that promotional dollars reach consumers - obtain off-shelf display space when such allowances are offered to retailers - provide the sales force with an incentive to obtain retailer support Price-offs are not capable of: - Reversing a brand's downard sales - Produce significant number of users - Or attract as many trial users a samples, coupons, or premium packs **Note: Retailers dislike using price-offs (more often than not) because they create inventory and pricing problems. This is typical when a store has a brand in inventory at both the price-off and regular retail price. Despite this, price-offs still strongly appeal to consumers.
Free with purchase premiums
(also called free-gift-with-purchase premiums) are premiums that are representative of a delayed reward to consumers that are primarily designed to generate trial purchases. Generating these trail purchases, or even retrial, is the main goal of this type of premium. delayed premium more likely to respond to future marketing communications, they represent a lower percentage of consumers that will provide lifetime value or become regular customers. Research has also proven that the perceived value of a premium item, or gift, depends on the value of the brand that is offering the gift.
Functions of packaging
- Drawing attention to a brand - Breaking through competitive clutter at the point of purchase - Justifying the price and value to the consumer - Signifying the brand features and benefits - Conveying emotionality - Ultimately motivating consumer's brand choices 1. contain and protect 2. promote 3. facilitate storage, use, and convenience 4. facilitate recycling
Anti-rumor campaign elements
- decide on the specific points in the rumor that need to be refuted, emphasize that the rumor is untrue and unfair, - pick appropriate media and vehicles for delivering the anti-rumor message, and - select a credible spokesperson (e.g., scientist, government official). combatting social media rumors (1) stay alert (e.g., noting the location, target, message, and who is making the allegation), (2) evaluate its effects (e.g., on sales, morale, unfair damage to image), and (3) launch a media campaign to combat it
Three widely used forms of publicity
1. Product release: a publicity tool that announce new products, provide relevant information about product features and benefits, and inform interested listeners and readers how to obtain additional information. 2. Executive statement releases: news releases quoting CEOs, CMOs, and other corporate executives. They are published in the news section of a publication, which carries a significant degree of credibility. 3. Feature articles: detailed descriptions of a product or other newsworthy programs that a PR firm writes for immediate publication or airing by print or broadcast media or distribution via appropriate social media or other online sites.
Sponsorship agreements
1. The sponsor should try to obtain some exclusivity so that the competitor does not share in the same benefits. 2. The benefits to the sponsor should be identified. 3. The sponsor needs to control the licensing of their trademarks associated with the events. 4. Options to renew, escape clauses, insurance, and accommodations for changes in events, payment terms, and publicity should all be considered as well.
Couponing
A coupon is a promotional device that rewards consumers for purchasing the coupon-offering brand by providing cents-off savings or dollars-off savings. which typically range from a low of 30¢ to $2 or much more, depend- ing on the price of the coupon item. Coupons are delivered through a variety of modes—newspapers, magazines, free standing inserts, direct mail, in or on packages, online, and at point of purchase by package, shelf, and electronic delivery devices.
Customized events
A customized vent provides a brand total control over the event. This eliminates externally imposed timing demand or other constraints. It also removed the problem of clutter from too many other sponsors. There is a good chance that an especially designed event is more effective but less costly than a pre-existing event. highly valued means that the event's stature may transfer at least in some small part to the sponsoring brand. Being able to achieve this is no small feat and requires a strong, durable, and positive link be established between the sponsoring brand and the vent. It is too commonly, individual brands are swamped by larger and better-known sponsoring brands and no solid or durable link is formed.
The VIEW model in evaluating packaging
A number of individual features have been discussed with regard to what a package communicates to buyers, but what actually constitutes a good package?
Intra-company tie-in
A tie-in involves two or more brands from the same company (an tie-in; see Figure 20.7 for Bush's different brands of beans)
Functions of on-premise business signs
A. Attract new customers B. Brand the retail site in consumers' minds; C. Create impulse purchases. the specific functions performed and the importance of having eye-catching and attractive signs depend on the nature of the busi- ness, whether it is a small retailer with a relatively fixed clientele—in which case, signage is relatively less critical—or a business that must constantly attract new customers. In this latter situation, signage performs a critical func- tion because for retailers to stay in business and potentially thrive they must capture travelers, who are onetime or occasional customers. Attracting new customers requires first and foremost that a store sign capture the consumer's attention. This is no small feat when considering that the retail landscape often is dense with competing signs that are attempt- ing to achieve the same outcome: to capture attention and make a positive impression.
Consumer rewards from SP
All promotion techniques provide consumers with rewards (benefits, incentives, or inducements) that encourage certain forms of behavior brand managers desire. These rewards, or benefits, are both utilitarian and hedonic.
door to door sampling by distribution crews
Allows for considerable targeting and possesses various advantages such as lower cost and short lead times. between when a brand manager requests sampling and when the sampling company ultimately delivers the sam- ples. Companies that specialize in door-to-door sampling target household selection to fit the client's needs.
Sampling (e.g. Direct mail, Newspapers and magazines, Door to door sampling etc.)
Any method used to deliver actual- or trial-size products to consumers.
Mobile phone coupons
Approximately 46 percent of coupons utilized mobily to aid in grocery shopping. Some apps can be used to find items and suggest coupon promotions. Other apps allow users to scan groceries and redeem coupons.
Point of purchase couponing
Approximately 76 percent of purchase decisions are made while shoppers are in the store. Therefore, it makes sense to deliver coupons at the point where decisions are made.
Viral marketing
Brand marketers have found it important to help influence what is said about their brands proactively rather than merely hoping that positive WOM is occurring. often used to accomplish this and refers to the techniques that use social networks to increase brand awareness or other marketing objectives through a self-replicating, viral process, similar to the spread of a virus. Marketing practitioners refer to this effort as "creating a buzz" can be compared to an epidemic because it spreads quickly and onto others until eventually thousands or even millions of people have the malady. For an epidemic to occur, there has to be a tipping point, meaning that the moment of critical mass at which enough people are infected so that the epidemic diffuses rapidly throughout the social system.
POP communications
Brand names and packages confront head-on at the point of purchase with the ultimate arbiter of their effectiveness being the consumer. The point-of-purchase (POP), or store environment provides brand marketers a final opportunity to affect consumer behavior. The point of purchase is an ideal time to communicate with consumers because this is the time at which many product and brand-choice decisions are made. This is where all the elements of sale (consumer, money, and product) come together. this is the time at which many product and brand-choice decisions are made.
Complement other marcom elements
Does the event complement existing sponsorships and fit with other marcom programs for the brand? speak with a single voice
Using creative distribution methods
Companies are applying numerous creative ways to get sample merchandise into the hands of targeted consumers. To sample Cetaphil skin-care products, "pop-up shops" (temporary store like facilities) were set up in three major cities: Atlanta, Chicago, and New York. Visitors to the "stores" received free hand massages with Cetaphil and also were invited to spin a wheel of fortune to take their chance at winning Cetaphil products such as skin cleanser and moisturizing lotion and cream. Over 250,000 samples of Cetaphil products were sampled during this promotional event, and to encourage subsequent purchasing visitors received a coupon worth $1 off any Cetaphil product.
Emotional appeal
Concerned with the ability of a package to evoke a desired feeling or mood. Heinz eventually designed an emotionally appealing, fun-oriented package with bright coloring and a multi- hued, striped design. Children love the different ketchup colors (red, green, and purple) and the similarly colored packages. pleasing color combos and backgrounds
Information
Deals with various forms of product information such as product usage instructions, claimed benefits, slogans, and supplementary information research also has determined that low-fat labels on food products have the perverse effect of increasing food intake by up to 50 percent compared to foods not labeled as low fat
Shelf-Delivered Coupons
Devices are attached to the shelf-alongside coupon-sponsoring brands. Sometimes delivered form a shelf-box dispenser in the form of a shelf-pad or tear-pad next to the item on the shelf.
Target audience fit
Does the event offer a strong likelihood of reaching the desired target audience?
Economic viability
Events must be supported with adequate advertising, point-of-purchase, and publicity. One professional in the sponsorship arena uses the rule of thumb that two to three times the cost of a sponsorship must be spent in properly supporting it
FSIs and other media delivered coupons
FSIs have many advantages including cost, ability to act as a reminder, and the ability to perform an advertising function. Coupons are also distributed in magazines and as part of the regular newspaper pages. Redemption rates for coupons distributed in magazines and newspapers average less than 1 percent.52 A second problem with magazine- and newspaper- delivered coupons is that they do not generate much trade interest. Also, coupons delivered via magazines and newspapers are particularly susceptible to misre- demption. The latter issue is so significant to all parties involved in couponing that it deserves a separate discus- sion later. Finally, some coupons are known as bounce-back cou- pons in that they are requested by consumers via toll-free numbers or online. These coupons are then sent directly to consumers in the mail (i.e., they "bounce-back" to con- sumers). Their redemption rate has been estimated to be about 3.6 percent (see Table 19.4).
Relationship between brand management objectives and major consumer-oriented sales promotions (see table 19.1 in particular)
GENERATING TRIAL AND RETRIAL PURCHASES immediate: Samples (19*) Instant coupons (19) Shelf-delivered coupons (19) Mobile phone coupons and apps (19) delayed: Scanner-delivered coupons (19) Media- and mail-delivered coupons (19) Online coupons (19) Social (group) coupons (19) Mail-in and online premiums (20) Bounce-back coupons (19) Free-with-purchase premiums(20) ENCOURAGING REPEAT PURCHASES immediate: Price-offs (20) Bonus packs (20) In-,on-,and near-pack premiums (20) Games (20) delayed: In- and on-pack coupons (19) • Rebates and refunds (20)• Continuity programs (20) REINFORCING BRAND IMAGE immediate: nothing delayed: Self-liquidating premiums (20) Sweepstakes and contests (20)
Major sampling practices
In the past, sampling efforts were unsophisticated and wasteful. new techniques: - Targeting rather than mass distribution samples - Using innovative distribution methods where appropriate - Undertaking efforts to measure samplings return on investment
Image matchup
Is the event consistent with the brand image, and will it benefit the image? Unionbay, a jeans and sportswear brand, along with soft-drink brand Mountain Dew and snowboard maker Burton, sponsored the U.S. Open Snowboard- ing Championships. It would seem that this event matches perfectly the images of all three brands.
Sponsor misidentification
Is this event one that the competition has previously sponsored, and is there a risk in sponsoring the event of being perceived as "me-too-istic" and confusing the target audience about the sponsor's identity? After sponsoring the NFL for several years, a general survey (not about Coca-Cola per se) asked football fans to name brands that sponsor the NFL. Thirty-five percent of the respondents named Coke as an NFL sponsor. Unfortunately (for Coca-Cola), another 34 percent falsely identified Pepsi-Cola as a sponsor!
Clutter
Like every marcom communications medium, an event sponsor typically competes for signage and attention from every other company that sponsors the event. It obviously makes little sense to sponsor an event unless live participants and tele- vision viewers are likely to notice your brand and associate it with the event that it is paying to spon- sor. NASCAR, for example, attracts a large number of sponsors due to the extraordinary growth rate in fan interest. (The movie Talladega Nights provided a spoof of the cluttered nature of sponsorships for this sport.) However, recognizing the problem with sponsorship clutter, one observer noted that unless a brand is a prime NASCAR sponsor, it easily "can get lost on the bumper."
Mail and media delivered coupons
Mail-delivered coupons represent approximately 1.0 percent of all manufacturer-distributed coupons. Mass-media modes, such as newspapers and magazines are clearly dominant, calculating for nearly 90 percent of all coupons. The majority of which is from FSI coupons in the Sunday paper.
Online and social group coupons
Online couponing is growing in popularity as is group coupons like those offered by Groupon and Living Social. Allowing consumers to print their own coupons creates considerable potential for fraud because it leaves open the possibility that consumers will manipulate the face value and print multiple copies. Finally, the largest messaging app in China—WeChat—began offering "shared coupons," whereby friends can share coupons via the app with other friends and are notified when one is used.57
POP's influence on consumer behavior (i.e. Informing, Reminding, Encouraging, Aiding merchandizing)
POP materials influence consumers in four ways.
Continuity promotions
Promotions sometimes reward consumers' repeat purchasing of a particular brand by awarding points leading to reduced prices or free merchandise. Thus, it follows from this description, why continuity promotions are also referred to as reward, loyalty, or point programs. reward consumers for purchasing a particular brand repeatedly or shopping regularly at a particular store. Continuity programs do not need to be based on point accumulation and can instead simply require a certain number of purchases in order to be eligible for prizes. Consumers already loyal to a brand offering a point program or another continuity program are rewarded for what they would have done anyway. In this case, a point program does not encourage repeat purchasing, it cements an already strong relationship with the customer. However, point programs can encourage consumers whose loyalty is divided among several brands to purchase more frequently from the brand that awards promotion points or rewards for repeat purchases.
Workability
Refers to how a package functions rather than how it communicates. (1) does the package protect the product contents, (2) does it facilitate easy storage on the part of both retail- ers and consumers, (3) does it simplify the consumer's task in accessing and using the product, (4) does it protect retailers against unintentional breakage from consumer handling and from pilferage, and (5) is the package envi- ronmentally friendly? These include pourable-spout con- tainers for motor oil, oatmeal, and sugar; easy-to-open and use containers (such as for Heinz ketchup); micro- waveable containers for many food items; zip-lock pack- aging for cheese and other food items; single-serving bags and boxes; food in tubes (e.g., yogurt, applesauce, and pudding); ETC
Targeting sample recipients
Sampling services that specialize in precision distribution (targeting) have emerged in recent years. For example, one sampling specialist aims for children under the age of 8 by distributing samples at zoos, museums, and other locations that appeal to young children and their parents.
Visibility
Signifies the ability of a package to attract attention at the point of purchase. The package should stand out on the shelf yet not be so garish that it detracts from a brand's image. if all other pizza boxes are bright orange in a frozen food chest, your similarly colored pizza box may not stand out.
Generating purchase trial and retrial
Some sales promotions (such as samples and coupons) are used primarily with the objective of influencing consumers to try or retry a brand A brand manager employs these promotional tools to prompt nonusers to try a brand for the first time or to encourage retrial from prior users who have not purchased the brand for perhaps extended periods. immediate: Samples (19*) Instant coupons (19) Shelf-delivered coupons (19) Mobile phone coupons and apps (19) delayed: Scanner-delivered coupons (19) Media- and mail-delivered coupons (19) Online coupons (19) Social (group) coupons (19) Mail-in and online premiums (20) Bounce-back coupons (19) Free-with-purchasepremiums(20)
On-premise business signs
The most cost-effective and efficient form of communication that is available to retail businesses are on-premise signs. Located on or near stores, these signs give customers a first impression of the company. freestanding and building-mounted. Types of freestanding signs include monument signs, A-frame or sandwich board signs, pole signs, inflatable signs, portable signs, and others that stand alone, unattached to the store itself. Types of building-mounted signs include wall signs, projecting signs, roof signs, murals, banners, and awning or canopy signs.
Coupon distribution methods (e.g., Freestanding Inserts (FSIs), In stores, Direct Mail, etc.)
The most preferred method of coupon distribution is freestanding inserts (FSI). These are found in newspapers and account for 89.1 percent of coupons distributed in the United States. Other media for coupon distribution include electronic and paper, magazine popups, direct mail, electronic checkout, instant redeemable, handouts, in-ad coupons, on-page magazines, the internet, and many others Another major form are the establishments of cooperative coupon programs. These programs utilize services to distribute coupons for a single company's multiple brands or brands from other companies.
Brand management objectives of SP
The top objective that consumes all sub-objectives of customer-oriented promotion is to promote increased sales (sales promotion = promoting sales). Secondary to this overarching objective is that consumer promotions are capable of achieving various sales-influencing objectives for the brand.
Scanner delivered coupons
There are several electronic systems for delivering coupons. The best known of these systems is provided by Nielsen Catalina Solutions. The Checkout Coupon program delivers coupons based on the products and brands a shopper has purchased. Once the optical scanner records that the shopper has purchased a competitor's brand, a coupon from the participating manufacturer is dispensed. By targeting competitors' customers, Nielsen Catalina's Checkout Coupon program ensures that the participating manufacturer will reach people who buy the product category, but are not currently purchasing the manufacturer's brand. The redemption rate is approximately 4 percent.38 Yet, recently, 12 Digit Marketing is offering a competing system to Nielsen Catalina in which manufacturer can compete for the right to provide the coupon based on a scanned purchase rather than giving exclusive rights to one participating competitor
Instantly Redeemable Coupons
These are peelable from the package and designed to be removed by the consumer in order to be redeemed at check-out.
Brand lift index
This index indicates how in-store POP materials affect the likelihood that customers will buy a product that they had not specifically planned to buy. For example, an index of 47.67 for a product indicates that shoppers are nearly 48 times more likely to make in-store purchase decisions for these products when advertised with displays than if there were no displays.
a. Mail delivered coupons
Typically used to introduce new or improved products. Mailings can be directed at a broad cross section or targeted to specific geodemographic segments. There also is empirical evidence to suggest that direct-mail coupons increase the amount of product purchases, particularly when coupons with higher face values are used by households that own their homes, have larger families, and are more educated. The major disadvantage of direct-mailed coupons is that they are relatively expensive compared with other coupon-distribution methods. Another disadvantage is that direct mailing is especially inefficient and expensive for brands enjoying a high market share. This is because a large proportion of the coupon recipients may already be regular users of the coupon brand, thereby defeating the primary purpose of generating trial purchasing.
Geographic flexibility
advertising can be strategically positioned to supplement other advertising efforts (e.g., TV, radio, and newspaper ads) in select geographic areas where advertising support is most needed.
Overlay promotions
are the combination of promotional tools, such as the use of a coupon offer with a promotional device. Utilization of these programs increases the likelihood that consumers will respond to a promotional message and process the promotional offer. Overlay programs can also equip sales forces with the tools needed to provide the trade with attractive incentive to purchase larger quantities and increase the display activities. O'Frost's Family Movie Experience Sweepstakes with a $1.00 off coupon) - 2 promotional efforts in one
delayed rewards
are those that follow the behavior by a period of days, weeks, or even longer. For example, you may have to wait 6 or 8 weeks before a mail-in pre- mium item can be enjoyed, if it arrives at all (e.g., a NCAA Final Four T-shirt for several soda barcodes submitted online).
contamination rumors
deal with undesirable or harmful product or store features. For example, a rumor started in Reno, Nevada, that the Mexican imported beer Corona was contaminated with urine.
Event sponsorship
defined as a form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social, or other type of high-interest activity. Event marketing is distinct from advertising, promotion, point-of-purchase merchandising, or public relations, but generally incorporates elements from all these communication tools.
in-store sampling
demonstrators provide product samples in grocery stores and other retail outlets for trail while consumers are shopping. This is the most frequent form of sampling.
Broad reach and high frequency levels
effective in reaching virtually all segments of the population with a high number of exposures. especially high when signs are strategically located in heavy traffic areas. Automobile advertisers are heavy users of outdoor media because they can reach huge numbers of potential purchasers with high frequency. The same can be said for telecommunications companies (such as AT&T, Verizon, and Sprint) and fast-food restaurants
Factors to consider in choosing events
events to develop relationships with consumers, enhance brand equity, and strengthen ties with the trade. Successful event sponsorships require a meaningful fit among the brand, the event, and the target market.
Bonus packs
extra quantities of a product that a company makes available to consumers at the regular price. In table 20.1, we can see these classified under immediate reward. For manufacturers, this fits under the repeat purchase objective (cell 3). This means that present brand users are the consumers most likely to avail themselves of a bonus offer, thus receiving bonus quantity at no additional cost as a reward. Sometimes, bonus packs are used as alternatives to price-off deals when the latter are either overused or resisted by the trade. The reward being offered to the consumer is immediate and adds value right away making it effective in loading current users, removing them from the market.
Inter-company tie-in
from different companies (an tie-in; see Figure 20.8 for Campbell's and Disney/Pixar Studios).
Utilitarian
functional, benefits: (1) obtaining monetary savings (e.g., when using coupons); (2) reducing search and decision costs (e.g., by simply availing themselves of a promotional offer and not having to think about other alternatives); and (3) obtaining improved product quality made possible by a price reduction that allows consumers to buy superior brands they might not otherwise purchase.
c. Environmental concerns
governments have placed limitations on outdoor advertising. Changeable message signs (i.e., billboards that vary the message on a schedule of every 4 to 10 seconds) have also been cited as potentially hazardous. Although some would argue that attractive billboards can enliven and even beautify neighborhoods and highways with attractive messages, others consider this advertising medium to be ugly and intrusive.
Tie-in promotions (Intra-company vs. Inter-company)
has grown recently to generate increased sales, stimulate trade and consumer interest, and to gain optimal use of their promotional budgets. A tie-in involves two or more brands from the same company. They can be capable of accomplishing useful objectives, though not without potential problems. Tie-in relationships between complementary brands from different companies are being used with increasing regularity recently. is the simultaneous use of two or more sales promotion techniques. Tie-in is the promotion of multiple complementary brands from the same or different companies. Overlay and tie-in often are used together. Promotion lead time (i.e., the amount of time required to plan and execute a promotion) is lengthened because two or more entities have to coordinate their separate promotional schedules. Creative conflicts and convoluted messages may result from each partner trying to receive primary attention for its product/service.
Reminding
is served by POP displays is based on the encoding specificity principle, which states that information recall is enhanced when the context in which people attempt to retrieve information is the same or similar to the context in which they originally encoded it. pop should maybe be nostalgic to recall past memories with good associations
In and on pack coupons
included either inside a product's package or as a part of a package's exterior. These coupons cannot be removed until it is in the shopper's home to be redeemed on a subsequent purchase occasion. The advantages of in- and on-pack coupons are: - virtually no distribution costs - much higher redemption rates because coupons target brand users Limitations include: - delayed value to consumers - nonusers of the carrying brand are not reached
Encouraging
influence product and brand choices at the point of purchase and can encourage impulse buying.
Informing
informing consumers is POP's most basic communications function. provide potentially useful info
conspiracy rumors
involves the supposed company policies or practices that are threatening or ideologically undesirable to consumers. For example, a conspiracy rumor circulated in New Orleans claiming that the founder of the Popeyes restaurant chain, Al Copeland, supported a reprehensible politician known to have Ku Klux Klan and Nazi connections.
Opinion leaders
is a person within a social network of family, friends, and acquaintances who has particular influence on other individuals' attitudes and behavior. Opinion leaders perform the functions of: - informing others about new products, - providing advice and reducing the follower's perceived risk in purchasing a new product, and offering positive feedback to support or confirm decisions that followers have already made. The term market maven is used to characterize people who are experts in marketplace matters.
Proactive MPR
is a tool for communicating a brand's merits and typically is used in conjunction with other marcom tools such as advertising and sales promotions. Proactive MPR is often dictated by a company's marketing objectives and is viewed offensively rather than defensively-oriented and opportunity seeking rather than problem solving. the area of product introductions or product revisions. It is integrated with other IMC tools to give a product additional exposure, newsworthiness, and credibility. Publicity is the major tool of proactive MPR. Like advertising, the fundamental purposes of marketing-oriented publicity are to enhance brand's equity in two ways: 1. Facilitating brand awareness by increasing recognition and recall of publicity releases 2. Augmenting brand image by forging in customers; minds strong and variable associations with the brand.
Premiums
is an article of merchandise or service manufacturers offer as a form of gift to induce action on the part of the consumers and possibly also retailers and the sales force. - are able to generate trial purchases, encourage repeat purchasing, and reinforce brand images. Brand managers' major rea- sons for providing premiums are to increase consumer brand loyalty and to motivate new purchases
Word of Mouth influence
is defined as informal communication among consumers about products and services. Through research, it has been found that WOM influence is both complex and difficult to control. Nevertheless, brand managers should still attempt to coordinate WOM in the best interests of their brands. Research indicated that American consumer participants are estimated to hold 120 WOM conversations focusing on a product in the span of one week. It's important to note that sometimes the WIM is negative, though on other occasions it can be beneficial to a brand as the goal is to facilitate as much positive information as possible and to build favorable "buzz" about a brand.
Reactive MPR
is the marketing undertaken as a result of external pressures and challenges brought by competitive actions, changes in consumer attitudes or other external influences. In comparison to proactive MPR, reactive MPR describes the conduct of PR in response to outside influences. It's goal is to repair a company;s reputation, prevent markets, and regain lost sales. Unanticipated marketplace developments can place an organization in a vulnerable position that demands reactive MPR. In general, the most dramatic factors underlying the need for reactive MPR are product defects and failures.
Low cost per thousand
it's the least expensive advertising medium on a CPM basis. The cost- per-thousand metric (abbreviated as CPM, where M is the Roman numeral for 1,000) is literally the cost, on average, of exposing 1,000 people to an advertisement. Outdoor advertising is the least expensive advertising medium on a CPM basis. can be misleading. Because the various media perform different functions, it is inappropriate to use CPM as the sole basis of evaluation.
Encouraging repeat purchases
managers use promotions to hold onto their current customer base by rewarding them for continuing to purchase the promoted brand or loading them with a stockpile of the manufacturer's brand so they do not switch to another brand in the short run.
Short exposure time
messages that have to be read are less effective than predominantly visual ones. "Now you see it, now you don't" appropriately characterizes the fash- ion in which outdoor advertising engages the consumer's attention. For this reason, outdoor messages that have to be read are less effective than predominantly visual ones. Bright colors, vivid images, and visual messages are essen- tial in effective billboard advertising.
sampling at unique venues
unique locations are sometimes chosen for sampling products that are especially appropriate for people at a certain stage of life. An example would be sampling college students at the beginning of a school year.
Rebates
offer a delayed value, rather than immediate, since the consumer must wait to receive the reimbursement. By using rebate programs, manufacturers are able to achieve customer-holding objectives by encouraging consumers to make multiple purchases or by rewarding previous users with cash discounts for, again, purchasing the manufacturer's brand. A manufacturer can also influence switchers from competitive brands who are attracted to the discount offers.
In- and on-pack premiums
offer a free item inside or attached to the package, or they make the package itself the premium item. This type of premium offers consumers immediate value represented in Table 20.1 (cell 3).
Immediate rewards
one that delivers monetary savings or some other form of benefit as soon as the consumer performs a marketer-specified behavior. For example, you potentially obtain immediate pleasure when you try a free food item or beverage that has been sampled in a supermarket or a club store such as Costco or Sam's Club.
Strong and weak ties
people are connected in social networks of interpersonal relationships. Family members and friends commonly interact on a regular basis and people intermingle with work associates daily. This is not to mention the countless interactions taking place through social media. All people are in networks of personal relationships, which range along a continuum from very strong ties to weak ties. strength of ties defined by embeddedness and story behind a person's connection w/ another person; ties are who you know; weak ties more important in expanding social capital
Mail in and online offers
premiums in which consumers receive a free item from the sponsoring manufacturer in the mail or online in return for submitting a required number of proofs of purchase or taking some action related to the brand. This is also represented in table 20.1 (cell 2). This type of premium represents a delayed reward and is also used to generate trial purchases and retrials. For example, Kellogg's brand of Smart Start cereal urged consumers to mail in for a free cholesterol and well- ness kit, and its Frosted Flakes brand offered a children's book by mail with the purchase of two Kellogg's cereals (see Figure 20.1).
d. Near-pack premiums
provide the retail trade with specially displayed premium pieces that retailers then give to their consumers who purchase the promoted product. This type of pack-premium is less expensive because additional packaging is not required. They can also build sales volume in stores that have put up displays and are participating to the fullest extent.
Unplanned purchases
purchases for which the consumer had no prior purchase intent; 76% of supermarket purchases were of this type. The in-store decision rate is the summation of generally planned, substitute, and unplanned purchases, and this study found that approximately 76% of purchase decisions are influenced by in-store factors.
Refunds
refers to the practice in which manufacturers give cash discounts or reimbursements to consumers who submit proofs of purchase. refers to a cash reimbursement for purchasing a durable good. They provide an alternative to the use of coupons and stimulate increased consumer purchasing. help broaden the accessibility of key events that are tied to a brand. Durable goods companies, especially manufacturers of electronic items, are increasing their use of rebates.
Conspicuity of business signs
refers to the signage characteristics that help pedestrians, drivers, and passengers identify a sign and distinguish it from its surroundings. This means the involves those signage characteristics that enable walkers or drivers and their passengers to distinguish a sign from its surrounding environment. It requires a sign to contain clear, readable information that stands apart from competing signage and be of large enough size to be seen.
e. Self-liquidating offers
reflect that the consumer mails in a stipulated number of proofs of purchase along with sufficient money to cover the manufacturers' purchasing, handling, and mailing costs of a premium item. This means that the consumers are paying the actual cost of the premium product, not the retail price. In the eyes of the manufacturer, this item is "cost-free" (self-liquidating in other words). Here, we can see that the premium product is associating the brand with a positively valued premium item and encouraging repeat purchasing by requiring multiple proofs of purchase to be eligible for the premium offer. SLOs are commonly used by brand managers to complement sweepstakes offers. The combination of the two promotions enhances consumer interest and interaction with the brand. It should be noted that consumers seldom send for a premium. Companies only expect about 0.1 percent of self-liquidators to be redeemed. Gerber employed an SLO promotion when offering the Gerber Keepsake Millennium Cup.With 12 Gerber baby food proofs of purchase and $8.95, consumers received a cup engraved with their child's name and birth date. This item at retail likely would have sold for around $25. Gerber projected that many parents would purchase Gerber products exclusively until they acquired the requisite number of proofs of purchase.
MPR
registers very high in its purposes of increasing brand awareness, providing credibility, reaching purchase influences, and educating consumers. It can be further delineated as involving both proactive and reactive initiatives.
Estimating return on investment
return on investment (ROI) is a tool that can be used to assess whether an investment in a sampling program is cost justified. step1. determine total cost- cost of sample good and the distribution step 2. calculate the profit per unit- finding the largest number of profit uses of the product and multiplying this by the per unit profit step 3. calculate the number of converters- needed for the sampling to break even step4. determine the effectiveness of the sampling- conversion rate must exceed the break even rate with gains in the 10 to 16 percent
direct mail
samples are mailed directly to households targeted by demographic characteristics or in terms of geodemographics.
newspapers and magazines
samples are often included in magazines and newspapers, which are representative of cost-efficient forms of sampling for reaching mass audiences. For example, perfume samples that are included in magazines.
Substantial brand identification
the ability to use large representations offers marketers excellent opportunities for brand and package identification. because billboard ads are literally bigger than life
Reinforcing brand image
the careful selection of the right premium object or appropriate sweepstakes prize can serve to bolster a brand's image.
Aiding merchandizing
the efficient use of retail space.
Contests
the participant must act according to the rules of the contest and may or may not be required to submit proof of purchase. Unlike sweepstakes, there is usually some "skill" or effort required on the part of the participants. Consumer response to contests is typically lower than even the very low response to sweepstake offers. By participating in the contest, these individuals will have interacted with the brand more than advertising messages, and thus, will have an opportunity to bolster their attitude toward the brand. Illustrative of many con- tests is one conducted for Hershey's Syrup. Managers of this brand, in conjunction with its promotion agency, created a contest that appealed to soccer moms and their children. The contest required submission of an action photo of a 6- to 17-year-old child or teen playing soccer along with an original store receipt with the purchase price of a 24-ounce bottle of Hershey's Syrup circled. This promotion associated Hershey's Syrup with soccer, which is enjoyed by mil- lions of families, and also encouraged brand purchasing so as to allow the consumer to participate in the contest and thus become eligible to win any of numerous prizes. A contest such as this fits with the brand's wholesome image and matches the interests of many consumers in its target market.
Buzz creation
the systematic and organized effort to encourage people to talk favorably about a particular brand -either directly or indirectly or online- and to recommend its usage to others who are part of their social network.
Excellent last reminder before purchasing
this explains why restaurants and products such as beer are among the heaviest billboard users. (U.S. tobacco advertisers also were heavy outdoor advertisers; in 1999, as part of a legal settlement with the state attorneys general, tobacco brands stopped advertising in outdoor media.)
online sampling
use online sites to distribute sampling
on or in pack sampling
uses the package of another product to serve as the sample carrier.
high traffic locations and events
utilizes shopping centers, movie theaters, airports, and special events offer valuable forums for sample distribution.
Ambushing
when companies that are not official sponsors of an event undertake marketing efforts to convey the impression that they are. One may question the ethics of this, but the counterargument is that it is a financially prudent way of offsetting a competitor's effort to obtain an advantage over your company or brand. For example, research following a past summer Olympics determined that 72 percent of respondents to a survey identified Visa as an official sponsor of the Olympic Games and that 54 percent named American Express as a sponsor. As a matter of fact, Visa paid $40 million to sponsor the Olympics, whereas American Express simply advertised heavily during the telecast of the Olympics.
a. Demographic non-selectivity
while it can be geared to general groups of consumers in a geographic area, it cannot pinpoint specific market segments (e.g., professional African American men between the ages of 25 and 39). Advertisers must turn to other advertising media (such as magazines and radio) to bet- ter pinpoint audience selection. However, with technology that is under development, billboard advertising is in the process of improving its ability to target customers.
Commercial rumors
widely circulated but unverified propositions about a product, brand, company, store, or other commercial target. They are likely one of the most difficult problems PR personnel face. urban legend Red Bull and Monster energy drinks contain bull semen.
Sweepstakes
winners are determined purely on the basis of chance. Thus, proof of purchase cannot be required as a condition for entry. Sweepstakes represent a popular promotional tool. Compared with many other sales promotion techniques, sweepstakes are relatively inexpensive, simple to execute, and are able to accomplish a variety of marketing objectives. They appeal to consumers and further the interest of brands by creating awareness, building consumer interaction with the brand, and enabling the expansion of a brand's opt-in email database. A sweep from Pottery Barn (see Figure 20.3) encouraged consumers to visit their Hawaii sweepstakes website, text "Hawaii" to a number, or scan their Quick Response (QR) code with a mobile phone to win a six-day trip for four to the island of O'ahu.
