Diminishing Role of Conventional Media * Clear Mission: * Visibility: * Experiential Involvement:
Communication Model: the process whereby meaning is transferred from a source to a receiver
Five Myths Related to Buzz I. Only outrageous products generate buzz, in order to be a good candidate for buzz a product must be unique and highly visible II. Buzz just happens, buzz has to be carefully orchestrated 1. seed the vanguard( i.e. public opinion shapers)(Abercrombie having popular college kids wearing their clothing) 2. ration supply (VW) 3. tap lists (US News and World Reports) 4. nurture grass rooters (early adopters who draw others) III. The best buzz starters are your earliest customers IV. To profit from buzz you must act quick and fast V. Media and advertising create buzz
Evaluating the Effectiveness of the Communication Model: * Unaided Recall: remembering an ad without prompting (what amazing ads have you seen lately) * Aided recall: help towards a specific product category (what ads for [wine] have you recently seen) * Recognition: show ad and inquire if people have seen it
Consumer Sales Promotion: * Price-Based Consumer Sales Promotion: these emphasize short-term price reductions or rebates that encourage people to choose their brand * Coupons: certificates redeemable for money off of a product * Price Deals, Refunds, and Rebates: temporary price reductions or specials that allow you to send in for some money back on your purchase * Frequency Programs: also called loyalty programs offer discounts for multiple purchases * Specialty/Bonus Packs: involves giving the shopper more product instead of lowering the price * Attention-Getting Consumer Sales Promotions: stimulate interest in a company’s products * Contests & Sweepstakes: games of skill and chance that allow the customer to win a prize * Premiums: items that one receives for free when they buy a product * Sampling: the distribution of free trial-size versions of a product to consumers
Trade Sales Promotion: promotions that focus on members of the “trade,” which include distribution channel members, such as retail salespeople or wholesale distributors, that a firm must work with in order to sell its products * Discount Promotions: deals to reduce the cost of the product to the distributor or retailer or help defray its advertising expenses, designed to encourage stores to stock the item and be sure it gets a lot of attention * Allowances: a (usually) short term price break * Merchandising Allowance: reimburses the retailer for in-store support of the product * Case Allowance: a discount to the retailer or wholesaler based on the volume ordered * Co-op Advertising: a sales promotion where the manufacturer and the retailer share the cost * Sales Designed to Increase Industry Visibility: serve to enhance the visibility of a manufacturers products to intermediaries with in the industry * Trade Shows: events at which many companies set up elaborate exhibits to show their products, give away samples, distribute literature, and troll for new business contacts * Promotional Products: goodies such as coffee mugs, t-shirts, magnets given