Promotion Mix

1
Promotion Mix

• Chapter 12

2
Chapter TwelveLearning Objectives

• The fundamentals of promotion
• Issues related to online promotion
• The role of online advertising and paid search
• Online sales promotions and email 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 games

4
The Fundamentals of Promotion
The Marketing Communication Process
Channel
Sender gtgt Message
Receiver
Feedback
Noise Can Occur Anywhere

• Computer crashes
• Slow downloads
• DSL goes down

• Deletions
• Multitasking
• Viewer leaves computer

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 MilkPEP.org
• 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
• CNN Website How many..?
• Paid Ads
• In-house Ads
• Sponsorships
• Personal Selling
• Sales Promotion
• Email opt-in
• Goals
• Adcouncil

CNN Website Promotion Type  
Advertisements /Paid
Advertisements/In-house
Sponsorships
Partner Ads
Email opt-in
PSA


9
Promotion Delivery Channels

• Example Vert Inc. VIDs Video
• 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

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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
  AdSubtract.com or WebWasher.com is another.
• 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
• Email clutter and spam
• The Direct Marketing Association (DMA) provides
  links to state Do Not Call telemarketing lists.
  
• It also has an email opt-out form
• Individual company opt-out form RealNetworks
  Daily Diabetic Recipe List
• The FTC publishes a free brochure, Unsolicited
  Mail, Telemarketing and Email Where to Go to
  "Just Say No," that provides information on how
  you can cut down on the number of unsolicited
  mailings, calls and emails you receive by
  learning 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
• 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
• 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 Firefox
• Webisodes Apple Webisodes Online Entertainment
  Yahoo! Webisode Directory Terminixs 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.
• Blogads this company sells adspace on over 750
  different blogs.
• Paid search
• Nielsen Net Ratings has a search engine ranking
  that identifies the top engines.

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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 growing
• 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
• Riteaid

20
Permission Marketing

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