Promotion 1 Flashcards
Definition: Push and Pull Strategies
Pull strategies: Communication to pull end customers toward product/company
Push strategies: Communication to push intermediary toward end customers to increase demand
Promotional Objectives and PLC:
Promotional Objectives:
Inform, Persuade, Remind
PLC:
- Introductory: Most inform + Persuade
- Growth: Persuade + Some inform
- Maturity: Persuade + Some remind
- Decline: Most remind + Persuade
Major Types of Advertising Appeals (Pull Strategies)
Rational Appeals:
- Straight Sell
- Demonstration of Product Benefits
- Comparative Advertising¤
- Testimonial
Emotional Appeals:
- Sex Appeal
- Fear Appeal
- Humor Appeal
Many ads contain more than one type of appeal.
Comparative Advertising (Persuade): Examples
Ex. BMW on Audi
Ex. Samsung on Apple
Ex. Pepsi on Coke
Ex. AT&T on Verizon
Testimonial (Inform): Examples
Ex. Dove (customer testimonial)
Ex. Proactiv (celebrity testimonial)
Straight Sell: Pros & Cons
Pros:
- Low Budget: Costs of concept development is low
- Effective for messages that emphasize low prices (e.g., retailers selling having a sales promotion)
Cons:
1. Does not build up high quality image
Demonstration of Product Benefits: Pros & Cons
Pros:
1. Great for building awareness & knowledge of new products
Cons:
1. Can be boring & watchers may lose attention easily
Comparative Advertising: Pros & Cons
Pros:
1. Communicates to customers why they should choose (or switch to) your product over that of the closest competitor
Cons:
- You may be building awareness for your competitor
- Association with the competitor, which the company may not want.
- May lead to retaliation & advertising war with competitor
Testimonial: Pros & Cons
Pros:
1. Real people (customers/Experts/celebrities) — effective for product/service benefits that are hard to verify
Cons:
2. Credibility issue if people in the ad are paid & not representative
Sex Appeal: Pros & Cons
Pros:
- Grabs attention, consumers may believe that products will make them more attractive
- Can be effective for personal or aspirational products (ex. fashion, perfume)
Cons:
- May be offensive to some people if ad is too explicit.
- Must choose advertising media carefully.
- Must be compatible with the product/company image.
- Criticism of objectifying people.
Fear Appeal: Pros & Cons
Pros:
1. Motivate Customers to act due to fear of loss –more powerful motivator than “gains”
Cons:
1. Must find the appropriate level of fear factor. If it’s too mild, the effect is lost. If it’s too strong, people may “block out” and avoid message
Humor Appeal: Pros & Cons
Pros:
- Generates positive feelings in consumers – easier to remember ad, share with others
- Good way to broach “sensitive” topics (e.g., insurance, very personal products )
Cons:
- Humor may be offensive to some
- Be careful not to be too focused on the humorous concept and lose focus of the product/service