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Promotion Mix Chapter 12. Chapter Twelve Learning Objectives The fundamentals of promotion Issues related to online promotion The role of online advertising.

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Presentation on theme: "Promotion Mix Chapter 12. Chapter Twelve Learning Objectives The fundamentals of promotion Issues related to online promotion The role of online advertising."— Presentation transcript:

1 Promotion Mix Chapter 12

2 Chapter Twelve Learning Objectives The fundamentals of promotion Issues related to online promotion The role of online advertising and paid search Online sales promotions and marketing

3 Kraft Candystand Advergaming promotes products, builds brands, entertains, and provides unique total brand experience Custom-designed games for the Internet Often part of integrated marketing communication (IMC) strategy with offline elements Visit Candystand and evaluate promotion value of the gamesCandystand

4 The Fundamentals of Promotion The Marketing Communication Process Channel Feedback Noise Can Occur Anywhere Computer crashes Slow downloads DSL goes down Deletions Multitasking Viewer leaves computer Sender >> Message Receiver

5 Internet Promotions Potential for being one-to-one in real time Pull and push characteristics Offline promotions drive traffic online Online and offline used to remind Other points of contact also promote

6 Internet Promotions Goals Build awareness Brand and rebrand Position and reposition Increase traffic Sell products Remind Entertain

7 Promotion Mix Integrated Marketing Communication (IMC) Example: Campaign uses more than one promotion tool Planned Coordinated Integrated Budgeted One look, one voice, one feel Goal: synergy = sum greater than parts

8 Examples Promotion Type CNNCNN Website: How many..? Paid Ads In-house Ads Sponsorships Personal Selling Sales Promotion opt-in Goals Adcouncil CNN Website Promotion Type Advertisements /Paid Advertisements/In-house Sponsorships Partner Ads opt-in PSA

9 Promotion Delivery Channels Example: Vert Inc.; VIDs; VideoVert Inc.VIDsVideo Online: pushed to viewer Offline: using traditional promotion channels Oneline linking online and offline – Internet advertisements in elevators, taxi cabs, other forms Create buzz (positive word-of-mouth) Yahoo Buzz Index

10 Promotion Fundamentals Promotion directs behavior – Not always in manner intended – Can raise awareness significantly – Increase interest and purchase intention Promotion should be planned – By in-house marketer(s) – By consultants – Working together

11 Promotion Issues Consumers exert control – Ignore or close promotion windows – Opt-out of receiving promotions – Purge cookie file – Ad-cutting software –Installing ad-blocking software like or is Aggressive tactics can be counterproductive – Spawning pop-ups, pop-unders, pop-behinds – Streaming audio – Trapping

12 Promotion Issues (contd) Clutter Focused promotions help cut through clutter Web clutter makes driving traffic to sites more difficult clutter and spam The Direct Marketing Association (DMA) provides links to state Do Not Call telemarketing lists.Do Not Call It also has an opt-out form opt-out Individual company opt-out form: RealNetworks; Daily Diabetic Recipe ListRealNetworksDaily Diabetic Recipe List The FTC publishes a free brochure, Unsolicited Mail, Telemarketing and Where to Go to "Just Say No," that provides information on how you can cut down on the number of unsolicited mailings, calls and s you receive by learning where to go to "just say no."Unsolicited Mail, Telemarketing and Where to Go to "Just Say No,"

13 Promotion Issues (contd) Search engine promotions – How ethical are bid search engines? – Should visitors be informed about bid search placements? Metatags can increase chance of top listing Metatags Online promotions criticisms Highly visible, intrusive Blocks access to websites Slows download times; Crashes computers Targets children, other vulnerable groups Adware and malware can steal information, highjack computer

14 Advertising to Kids Yahooligans Disneys Kid Island Kelloggs Lifesavers Candyland

15 Online Advertising Applications Banner ads still most commonly used Banner ads Other forms: sponsorships, rich media, minimovies (cybermovies), yellow pages, classifieds, webcast ads Disputes over metrics continue – Standardization beginning to have an effect – Discredited: hits, eyeballs, and other poorly measured metrics

16 Online Advertising Minimovies and Webisodes Minimovies example: BMWFilms Series; FirefoxFirefox Webisodes: Apple; Webisodes Online Entertainment ; Yahoo! Webisode Directory ; Terminixs Bugs Eye View.AppleWebisodes Online EntertainmentYahoo! Webisode Directory Bugs Eye View Blogads While the vast majority of blogs dont have the readership to develop highly profitable revenue streams, others like the Drudge Report pull in an estimated US $1 million annually.Drudge Report Blogads: this company sells adspace on over 750 different blogs. Blogads Paid search Nielsen Net Ratings has a search engine ranking that identifies the top engines. Nielsen Net Ratings

17 Online Advertising and Paid Search Ad stats indicate Greater acceptance of online advertising Online Ad Revenues Up! More advertisers switching more advertising dollars online Continued heavy advertising of consumer brands More rich media ads Formats Variety of formats Banner ads, sponsorships, interstitials, minimovies and Webisodes, classifieds, sponsored links, local search, reciprocal links, etc. Rates vary Why pay for ads that dont work?

18 Movie Industry & Online Promotions Save Harry Fandango

19 Sales Promotions Sales promotions, particularly online coupons, popularity growingonline coupons Major offline coupon distributors also online Rising incidence of online coupon fraud Discount Code Fraud Large supermarket chains often offer own coupons online Online Rebates are very popular Online Rebates Riteaid

20 Permission Marketing marketing Permission is preferred Spam growing problem Permission marketing – Can be short-term – Longer term strategy is more desirable – Some states and EU moving against unsolicited (spam) Opt-in versus opt-out Marketers should adopt longer term strategy with = avoid spam Advantages of marketing U.S. Can-Spam Law, many states and EU moving against unsolicited (spam)

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