Advertising Notes Ch. 17b
Advertising Notes Ch. 17b Mc 3367
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This 2 page Class Notes was uploaded by Graciela Sills on Monday April 4, 2016. The Class Notes belongs to Mc 3367 at Texas State University taught by Thomas Grimes in Summer 2015. Since its upload, it has received 14 views. For similar materials see Advertising in Journalism and Mass Communications at Texas State University.
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Date Created: 04/04/16
Ch. 17b Sales Promotion in Integrated Marketing Communications Sales promotion ≠ advertising, but a marketing technique ● “Wizard of Apple,” Steve Jobs, was shining example of convergence b/w sales promotion and branding ● Sales promo induces nonpatrons to begin patronizing product ● Too much advertising + not enough sales promo = insufficient volume buying Sales promotions can enhance brand, but only under certain circumstances Examples of sales promotions that backfired: ● Ford company’s rebates led to brand name taking a hit when revenue no longer exceeded cost of sales promo ● A similar problem has occurred with Nordstrom’s and Macy’s, in which customers are no longer willing to spend money unless there’s a sale ● JCPenney apology video: ○ CEO Ron Johnson thought people didn’t like having to manually cut and collect coupons and bring them to the store; consequently, JCP did away with coupons and decided to have “everyday low prices” instead ○ Drew negative customer response b/c people actually found satisfaction in cutting coupons, feeling that they were getting oneofakind bargains ○ In response to complaints, store reverted to old ways, fired Johnson, and ran TV commercial asking customers to come back to JCP The point: sales promotions are necessary to move products and change consumer behavior, but too much of a sales promo can be harmful PR and Its Role in Practice of Integrated Marketing Communications IMC = concept of giving incentives to consumers rather than aggressive advertising, thereby creating goodwill ● Lowe’s = positive example; store’s return policy guarantees refunds, earning trust from consumers (and more overall money) PR = management function which focuses on creating relationships through public and private communication with other groups (“publics”) for purpose of creating mutual goodwill Companies need goodwill with... ● Employees ● Competitors ● Customers ● Suppliers ● Bankers ...As well as these two publics, which require PR reps with special knowledge to deal with: ● Stockholders (financial PR reps convince execs to invest in company) ● Legislators (lobbyists work to write laws) In short, company can’t exist in vacuum Example of situation handled by PR reps: ● Until the age of 92, Sumner Redstone was executive chairman of both CBS & Viacom ○ Made bankers nervous due to high risk of death by old age ○ In February 2016, daughter Shari convinced him to retire; Les Moonves took over as CBS chairman, while CEO and president Philippe Dauman assumed Redstone’s position at Viacom
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