Marketing_L9(2013-2014)

6. Collec,ng Feedback

•  Whether they remember the message?

•  How many &mes they saw it?

•  What points they recall?

•  How they felt about the message?

Measure behavior resul,ng from the message— how many people bought the product, talked to others about it, or visited the store.

SeUng the Total Promo&on

Budget and Mix

SeLng the promo'on budget is one of the hardest decisions facing the company. Disney spends hundreds of millions annually on adver,sing, but is that “half enough

or twice too much”?

Sebng the Total Promo,on Budget

•  A ordable method

SeOng the promo&on budget at the level management thinks the company can a ord.

•  Percentage-of-sales method

SeOng the promo&on budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.

•  Compe&&ve-parity method

SeOng the promo&on budget to match compe&tors’ outlays.

•  Objec&ve-and-task method

Developing the promo&on budget by (1) defining specific promo&on objec&ves, (2) determining the tasks needed to achieve these objec&ves, and (3) es&ma&ng the costs of performing these tasks. The sum of these costs is the proposed promo&on budget.

Shaping the Overall Promo,on Mix

•  The Nature of Each Promo&on Tool

Each promo&on tool has unique characteris&cs and costs.

Homework!

Promo,on Mix Strategies

•  Push strategy

A promo&on strategy that calls for using the sales force and trade promo&on to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers.

•  Pull strategy

A promo&on strategy that calls for spending a lot on consumer adver&sing and promo&on to induce final consumers to buy the product, crea&ng a demand vacuum that “pulls” the product through the channel.

Socially Responsible Marke&ng

Communica&on

Marketers should go beyond what’s “legal” and communicate openly and responsibly with customers.

Good customer rela,onships are built on honesty and trust.

Promo'ng socially responsible ac'ons:

Frito-Lay ran ads promo,ng the compostable packaging for its SunChips brand. It also promoted a

program challenging consumers to create their own videos encouraging posi,ve change in the world, which it ran on na,onal TV.

Thanks for your aYen&on!