1. Kelley Fall 2004 Principles of Marketing1 AIDA Concept Attention-Interest-Desire-Action Think Feel Do

2. Kelley Fall 2004 Principles of Marketing2 Promotion Strategies for Primary and Secondary Markets Primary market – Demand for a product category Pioneering Advertising Got Milk Social issue marketing “Kick the Can” Drug Free America “Talk to your kids about drugs”

3. Kelley Fall 2004 Principles of Marketing3 Promotion Strategies for Primary and Secondary Markets Secondary market – Demand for a brand Challenge milk Crystal milk Sunnyside Select milk Energy Star Label Get Straight Drug Program Entire Promotional Mix

4. Kelley Fall 2004 Principles of Marketing4 Event Marketing Effective Promotions for Events Make media your partner Premium item giveaways Promote a sponsor/product Entertainment Cause-related promotions Affinity-based promotions Kids and pets never fail

5. Kelley Fall 2004 Principles of Marketing5 Advertising Types of Advertising Institutional Advertising Advocacy advertising Comparative Advertising Never use comparative advertising if you are the market leader Cooperative Advertising (vertical) Competitive Advertising

6. Kelley Fall 2004 Principles of Marketing6 Advertising Advertising objectives Awareness Reminder to use Change attitudes about use of the product Change perceptions of importance of brand attributes

7. Kelley Fall 2004 Principles of Marketing7 Advertising Advertising objectives Attitude reinforcement Product-line or corporate image building Obtain a direct response Process Account sale representative Account manager Creative

8. Kelley Fall 2004 Principles of Marketing8 Advertising Process Traffic Media planning Evaluation CPM = cost of ad x 1000/circulation Rating = program audience/total audience

9. Kelley Fall 2004 Principles of Marketing9 Advertising Evaluation Reach - percentage of the target audience that will be exposed to the message Frequency - average number of times a member of the target audience is exposed to the message Gross Rating points - reach percentage x number of exposures

10. Kelley Fall 2004 Principles of Marketing10 Advertising Evaluation Recognition tests Recall tests Theater tests

11. Kelley Fall 2004 Principles of Marketing11 Sales Promotion About 25% of each promotional dollar is spent on sales promotion Short-term results Objectives Inquiries - free gifts, mail-in coupon for information, catalog offers, exhibits Trial - coupons, free samples, contests, premiums, demonstrations

12. Kelley Fall 2004 Principles of Marketing12 Sales Promotion Objectives Repurchase - on-pack coupons, mail-in rebates Traffic building - special sales, weekly specials, entertainment events, retailer coupons Increase rate of purchase - multipacks, special price on twos

13. Kelley Fall 2004 Principles of Marketing13 Sales Promotion Objectives Inventory building - return allowances, slotting allowances Promotional support - reusable display cases, sales contests, merchandise allowances

14. Kelley Fall 2004 Principles of Marketing14 Sales Promotion Evaluation Redemption rates Acquisition rates Displacement rates Conversion rates Stock-up rates Product-line effects

15. Kelley Fall 2004 Principles of Marketing15 Personal Selling About 50% of each promotional dollar is spent on personal selling activities Recruitment Compensation Evaluation

16. Kelley Fall 2004 Principles of Marketing16 Public Relations Less than 1% of each promotional dollar is spent on public relations Difficult to control and evaluate Process Set objectives Identify target audience Design message Reach media that serves target audience Write Press Release Evaluate results