Promotion Strategy, Part I

BAMA 550: Marketing Professor Kirstin Appelt Agenda

1. Crafting promotion campaigns 2. Promotional mix • Advertising • Public relations • Sales promotion • Direct marketing • Personal selling

2 Promotion: two-way communication of the right message through the right channel

3 4 Promotional Mix

Public Advertising: Relations (PR): Paid communication Publicity to build via third party community/reputat ion

Direct marketing: Sales Promotion: Individualized Excitement-building targeting to solicit a programs response

Personal selling: Two-way communication between buyer and seller Offline Online 5 IMC: Integrated Marketing Communications Promotional strategy coordinated across elements and channels to deliver a clear, unified message

Primary Selective demand demand 6 The Communication Process Selected Communication Channel Noise

Encode & Receive & Source Message Receiver transmit decode

Noise

Feedback Loop Feedback Receive & Encode & Response Feedback decode transmit

7 AIDA model: promotion should move consumers toward action

think

feel

8 Promotional Objectives and the Product Life Cycle

9 Strategies: Push vs. Pull

Communication to Communication to intermediary to push end consumer to pull product into store product into store

10 Hey retailers! Our Hey consumers! widgets are great! Our widgets are You should sell great! You should them. buy them.

Hey consumers! Hey retailers! Producer’s Producer’s widgets are widgets are great! You should great! You should buy them. sell them to us.

11 Push or Pull? SunRype places an ad in a trade magazine targeted at grocery stores

Sauder hosts an open house for prospective students

Beta 5 has a contest for consumers to design a new truffle flavour

12 Promotion Ethics

“To be fair to whoever refashioned Accidental Love from the abandoned scraps of Nailed, there’s little reason to believe that the ideal, untroubled version of the material would have been a comedic masterstroke.”

A. A. Dowd13 Puffery vs. Deceptive Advertising

14 ______-

______

more __

15 Blankwashing

16 Fighting Blankwashing

• Understand your value • Use information to inform proposition (not to mislead) • Do not take advantage of • Do something about it people (don’t just talk about it) • Create value in a • Join a professional sustainable way association and follow their code of ethics Dr. David Silver, 2012

17 Promotional Mix

Public Advertising: Relations (PR): Paid communication Publicity to build via third party community/reputat ion

Direct marketing: Sales Promotion: Individualized Excitement-building targeting to solicit a programs response

Personal selling: Two-way communication between buyer and seller Offline Online 18 Broadcast: TV, radio Print: newspaper, magazine, direct mail Online: pop-ups, native, paid social media Point-of-purchase (POP) Product placement Outdoor (OOH)

Advertising 19 Product placement

20 Creative Advertising: Consumer Reactions?

Public Relations (PR) • Publicity (media • Corporate relations): e.g., press communications: e.g., releases, interviews, annual reports, corporate newsletters websites, IR, lobbying • Sponsorship: often • “Owned” social media combines PR with other (a.k.a. community-building promotional tools tools) • Special events, open houses, public meetings

23 23 Creative PR: Consumer Reactions?

24 Agenda for Last Class

• Course evaluation • Final exam details • Promotion, Part II • Course wrap-up re-cap

• Good campaigns use integrated marketing communications (IMC) to send a single, unified message across elements. – Elements in the promotional mix: Advertising (paid 3rd party communications), PR (reputation-building activities), sales promotions (excitement-building programs), direct marketing (individualized targeting to solicit a response), and personal selling (two-way communication between buyer and seller). – Push strategies reach directly to consumers, whereas pull strategies communicate via intermediaries.

Image credits: SoftIcons.com reminders

• Please bring devices to last class to complete course evaluations! • Marketing Strategy Analysis is due by 11:59pm on Sat., Oct. 7 via Connect dropbox. • Team Evaluations are due by 11:59pm on Sun., Oct. 8 via iPeer. • Review and complete class preparation. • Questions? Come to office hours or email me!

Image credits:addons.mozilla.org today’s links

Promotional campaigns don’t have to be big budget to have a big impact: • Blendtec “Will It Blend? iPhone 5 vs. Galaxy S3”: http://willitblend.com/videos/iphone-5-vs-galaxy-s3 Political campaigns often nail IMC principles: • Barack Obama “Obama for America”: https://www.youtube.com/watch?v=3n2P5LGPWRo • Rock the Vote “#TURNOUTFORWHAT”: https://www.youtube.com/watch?v=rijpU5yD55I • Liberal Party of Canada “Ready”: https://www.youtube.com/watch?v=1gFyv2M84nI • Conservative Party of Canada “Justin Trudeau: He’s in way over his head”: https://www.youtube.com/watch?v=yhOM_RTpDmA • Barack Obama “2012 Presidential Election: Volunteer for Barack Obama’s Campaign”: http://www.youtube.com/watch?v=-MwyErsB6Oo&feature=relmfu

Image credits: www.businessmarketingblog.org today’s links

Blankwashing or blank marketing? • Jeep “Beautiful Lands”: https://www.youtube.com/watch?v=8_oC2UlRfhc • Coca-Cola “Happy Cycle”: https://www.youtube.com/watch?v=N3P73agzjBg OOH gets interactive: • Zoom Media “Telus Interactive Urinal Game”: http://vimeo.com/105974834 Product placement goes meta: • Rolex “Rolex and Cinema”: https://www.youtube.com/watch?v=hDcAhtd8IXg PR is getting crafty: • Ben & Jerry’s “Free Cone Day”: http://www.benandjerrys.ca/scoop-shops/free- cone-day • WestJet “Kargo Kids”: https://www.youtube.com/watch?v=M4SkoJy3D0M • Zappos “#PayWithACupcake”: https://www.youtube.com/watch?v=RhLTcylw8rs

Image credits: www.businessmarketingblog.org want to know more?

The ethics of promotion and the promotion of ethics • Lee, B. (2015, September 9). How my negative review of Legend was spun into movie marketing gold. The Guardian. Retrieved from http://www.theguardian.com/film/filmblog/2015/sep/09/legend- review-movie-marketing-false-advertising • Dowd, A. A. (2015, July 27). No, I didn’t call your shitty movie a “comedic masterstroke”. A. V. Club. Retrieved from http://www.avclub.com/article/no-i-didnt-call-your-shitty-movie- comedic-masterst-221227

What are the ethical codes of marketing? • Explore the Canadian Marketing Association’s Code of Ethics & Standards of Practice. • Explore the American Marketing Association’s Statement of Ethics.

Image credits: 1stveritas.com want to know more?

Monitoring blankwashing: • Greenwashing Index: http://www.greenwashingindex.com/ • Leanwashing Index: http://www.leanwashingindex.com/ Blankwashing in the news: • Chambers, B. (2015, March 4). “Leanwashing” marketing tactic used to drive junk-food sales. CBC News. Retrieved from http://www.cbc.ca/news/business/leanwashing- marketing-tactic-used-to-drive-junk-food-sales-1.2980052 • The Daily Show “Pink Fracking”: http://www.cc.com/video-clips/yosyx6/the-daily-show- with-jon-stewart-pink-fracking • Jaggar, K. (2014, October 5). The NFL's breast cancer scam sells bunk science to profit off pink clothes. The Guardian. Retrieved from http://www.theguardian.com/commentisfree/2014/oct/05/nfl-breast-cancer-pink- women

The cost of bad ads: • Goldstein, D. G. (2015, January 2). Those annoying animated ads may cost more than they are worth to websites. Decision Science News. Retrieved from http://www.decisionsciencenews.com/2015/01/02/annoying-animated-ads-may-cost- worth- websites/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+De cisionScienceNews+%28Decision+Science+News%29 Image credits: 1stveritas.com