* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download slides
Product placement wikipedia , lookup
Target audience wikipedia , lookup
Visual merchandising wikipedia , lookup
Marketing strategy wikipedia , lookup
Youth marketing wikipedia , lookup
Bayesian inference in marketing wikipedia , lookup
Global marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Marketing communications wikipedia , lookup
Audience measurement wikipedia , lookup
Product planning wikipedia , lookup
Brand awareness wikipedia , lookup
Aerial advertising wikipedia , lookup
Market penetration wikipedia , lookup
Ad blocking wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Ambush marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Customer engagement wikipedia , lookup
Direct marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Sensory branding wikipedia , lookup
Television advertisement wikipedia , lookup
Online advertising wikipedia , lookup
Advertising campaign wikipedia , lookup
Advertising management wikipedia , lookup
Traditional Advertising to Purchase A Direct Model of Audience Response There is a simple model of business which says: if you build it they will come Potential Customers Ted Mitchell Customers Purchasing From Competitors If They don’t Come! The business model needs Promotion and Advertising Potential Customers Your Business Machine The business model needs Promotion and Advertising An Advertising Machine Potential Customers Customers Purchasing From Competitors Customers Purchasing from you Customers Purchasing From Competitors Customers Purchasing from you Early Days of Advertising Marketing Converting Advertising into Customer Demand • 1) Promote product features • 2) Promote a special event such as a short term price cut, end of season, fire-sale, new inventory (aka Sales Promotions) • 3) Reminder Advertising Printed Ads, Flyers Radio • The three classic roles of advertising Promotion Specials Marketing Converting Advertising into Demand Coupons Quantity of Goods Sold Customers Purchasing from you 1 In the early days of advertising the relationship between the advertising budget and the volume of goods sold was considered to be a direct relationship Classic approach to advertising was direct: You advertise more and you sell more stuff Q= Quantity Sold Advertising Machine x x x x x x x x x x x x Customers Making Purchases Q= Quantity Sold A= Advertising Expense Q= Quantity Sold A= Advertising Expense Early Days of Advertising • All about the size of the potential audience • Your advertising is so good it can convert 20% of any audience to purchase your product. • Purchasers = 20% x audience size • 14 purchasers = 0.2 x 70 households • 20 purchasers = 0.2 x 100 households Increase ad budget and you increase quantity sold $1,400 A= Advertising Expense $2,800 Today Advertising is Part of a Indirect Communication strategy • Change from a Direct Relationship between advertising and demand (sales volume) • To an Indirect Relationship between Advertising to Awareness to Demand • How to get more households to see your ad? 2 In the early days the relationship between the advertising budget and the volume of goods sold can considered to be a Change This direct relationship Advertising Machine Awareness level among customers The Basic Awareness To Purchase Model Cognition to Behavior Model (CB) Unaware Potential Customers Advertising Machine Produces Aware Customers Customer Demand Behavior, Purchases Purchases Awareness Cognition Potential Customers Need to be made Aware of Your Product Advertising indirectly creates sales by creating awareness The three roles of modern mass advertising Shift to Advertising Building Awareness • 1) Promote Awareness of new product features and whole new products • 2) Promote Awareness of a special event such as a short term price cut, end of season, fire-sale, new inventory (aka Sales Promotions) • 3) Promote Renewed Awareness Reminder Advertising A= Advertising Expense Q= Quantity Sold In a mature market where the primary type of message is Reminder Advertising Awareness Building Is Cumulative over Time W = Total Number Aware of Business Potential market 100% New Market Mature Market aWareness Level Weeks since launch 3 With the Promotion of New Products • The awareness level builds on its self through buzz, word of mouth, etc. • Different types of people become aware at different points of time Amounts of advertising can speed up the rate of awareness building W = Total Number Aware of Business Potential market 100% Lots of promotion Very Expensive Very little promotion Very Cheap Weeks since launch Move From a Single Shot Promotion every Week • To a Cumulative Effect of an Introductory Campaign • Track the Cumulative Promotional Effort and the Awareness Finding the Optimal amount of promotion to spend to reach a target awareness level with the less cost W = Total Number Aware of Business Lots of promotion Very Expensive Potential market 100% Target 80% Awareness Level Zero promotion Very Cheap Weeks since launch 4 Dashboard Items for Tracking Awareness building Keep the rest of the mix constant Monthly Trial #1 Monthly Trial #2 Monthly Trial #3 Monthly Trial #4 Monthly Trial #4 Use a Monthly Time Frame for Groundhog Replays Keep the rest of the mix constant Total Radio Spots Total Radio Spots Total Print Insertions Total Print Insertions Type of Print Promotion Type of Print Promotion Cumulative Promotion Budget Cumulative Promotion Budget Awareness level Awareness level Monthly Revenue Monthly Revenue Monthly Income Monthly Income Monthly Monthly Trial #1 Trial #2 Monthly Trial #3 Monthly Trial #4 Monthly Trial #4 Any Questions on • The shift from a direct sales relationship with advertising to an indirect relationship • Adverting to Sales • Advertising to Awareness to Sales • Awareness building is a cumulative process • Rate of Awareness Building is Impacted by the amount of advertising • Three Main Roles of Modern Advertising 5