According to Marketing An Introduction Ed. 9 book, the definition of advertising and public relations are as following:
Advertising is “any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.”
Public relations is “building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.”
Cover girl is a brand of women cosmetics consisting mascara, lipstick, facial powder, etc. I want to talk about this cosmetic brand because its advertising and public relations have been successful in promoting its products and broadcasting good company image.
Cover girl does not only advertise its products through television commercial, but it also sponsor through American Next Top Model (ANTM) show. This is one way to advertise to a specific target market and to use public relations in the media.
By sponsoring ANTM show, consumers can see the transformation of models before and after using Cover Girl products. The advertising message speaks for itself through the transformation. This helps Cover Girl gain attention and communicates its message to the viewers. In addition, Cover Girl use product publicize through one of the challenges in ANTM show by having the top three models use their products and act in a commercial. A Youtube video below showed the Cover Girl commercial
challenge in one of ANTM cycle.
Since the models in ANTM show are normal everyday women, Cover Girl’s sponsorship has created awareness of its products to consumers, persuading them that they can be as beautiful as these women in the show by using the products. The ANTM’s winner also gets to be a main Cover Girl commercial. By helping a normal everyday woman achieve her dream, Cover Girl gain favorable publicity and build good company image.
In my opinion, I think Cover Girl did a good job in communicating its advertising message and publicizing its brand name.
Jessica Chayavichitsilp, section G
http://www.youtube.com/watch?v=2Be5GIPLA9w&NR=1
Tuesday, March 2, 2010
Monday, March 1, 2010
Advertising appeals with PR and social marketing
Advertisements can be seen everywhere via TV, billboard, and many other places. According to the textbook, advertising strategy consists of two major elements: creating advertising messages and selecting advertising media (Kotler, page 361). Creating advertising messages includes breaking through the clutter, creating a good message strategy and message execution. To create an effective advertising message, it is important to have the creative concept---the compelling “big idea” that will bring the advertising message strategy to life in a distinctive and memorable way---as a guide to appeal consumers.
In this example which I found from Youtube, Starbucks used a mix of these concepts plus societal marketing to express their care and support towards the voting, as well as connecting and maintaining public relations, social welfare and social responsibility to the public.
Ai (Beanca) Ho, Section G
In this example which I found from Youtube, Starbucks used a mix of these concepts plus societal marketing to express their care and support towards the voting, as well as connecting and maintaining public relations, social welfare and social responsibility to the public.
Ai (Beanca) Ho, Section G
Cause- Related Marketing
Cause- Related Marketing is a strategy designed to help a company build a better brand image by associating themselves with a worthwhile cause. the goal is to help the company promote and sell its product or service and at the same time bring attention and support to the worthwhile cause.
http://www.youtube.com/watch?v=00Sy8Rf1dpM
In this example Disney is trying to encourage people to volunteer at local organizations that help their communities. They are doing this by offering free admission to their theme-parks for those that complete a day of community service. Disney's hope is that the one day ticket they are willing to give you will inspire you to help your community and also that you will want to spend additional days at their parks beyond the one free day, and that while you are there you will spend money on other things in their parks, or maybe stay at one of their hotels.
Cause- Related Marketing is not without its issues. Some people thing that large companies that engage in this practice are exploiting these causes to sell product and don't care if their efforts actually help. While determining the reasoning behind a company's motives for engaging in cause- related marketing would be impossible, one would hope that it would be for the shared benefit of both parties not exploitation.
Matt Brown
MKTG 301 Sec. G.
Notes: (Video Embedding disabled by Disney)
Sources: (Armstrong, Kotler; Marketing, an Introduction)
http://www.youtube.com/watch?v=00Sy8Rf1dpM
In this example Disney is trying to encourage people to volunteer at local organizations that help their communities. They are doing this by offering free admission to their theme-parks for those that complete a day of community service. Disney's hope is that the one day ticket they are willing to give you will inspire you to help your community and also that you will want to spend additional days at their parks beyond the one free day, and that while you are there you will spend money on other things in their parks, or maybe stay at one of their hotels.
Cause- Related Marketing is not without its issues. Some people thing that large companies that engage in this practice are exploiting these causes to sell product and don't care if their efforts actually help. While determining the reasoning behind a company's motives for engaging in cause- related marketing would be impossible, one would hope that it would be for the shared benefit of both parties not exploitation.
Matt Brown
MKTG 301 Sec. G.
Notes: (Video Embedding disabled by Disney)
Sources: (Armstrong, Kotler; Marketing, an Introduction)
Exclusive Distribution
Do you ever see something that you wish you could have, but much to your dismay can’t seem to locate that product for the life of you? Chances are that product was exclusively distributed.
Exclusive distribution is when a limited number of dealers have the exclusive right to distribute the company’s products in their territories (Kotler 307). This practice is very common among extremely rare items as well as those items reserved for the upper echelon of society. These goods can range from limited edition collectibles to multimillion-dollar automobiles.
Having been a so-called “sneaker head” I have experience my fair share of exclusive distribution. Urban dictionary defines a sneaker head as “a person who collects limited, rare, OG, or flat out exclusive kicks [shoes]. Usually the collection consists of Jordans or Dunks.” During my tenure as a sneaker head I had to keep up on the release dates of these rare and collectible sneakers. Now, these rare and collectible sneakers wouldn’t just be sold at any store, they would be sold to incredibly specific retailers meant to sell those types of goods. Nike has collaborated with a small number of specific stores in which they release their line of SB (Skateboarding) shoes, one of those stores being Goods, located in downtown Seattle. Stores like Goods experience exclusive distribution since they receive a limited number of these rare products; once they sell out, that’s usually it, since Nike rarely reproduces these collectibles. Often times, during release dates of highly hyped shoes there will be an extremely long line day, even weeks, before the store actually launches the shoe. The demand is so high that retailers usually sell out before catering to all customers in queue. Exclusive distribution is a crucial part of the “shoe game” because it provides sneaker heads with another reason to be involved. Some shoe gurus join the sneaker scene for style, some join to resell, and some join to be different. Whatever the reason is exclusive distribution has allowed for these people to express themselves.
Exclusive distribution is not just evident in the shoe world it can be seen wherever there are limited releases or high-end goods like supercars. Just like Nike collaborates with these specific stores, Bentley, Rolls Royce, Bugatti, and other top-notch car manufacturers only sell their cars at very specific dealers. Once again, this is an example of exclusive distribution.
Exclusive distribution is all around us; sometimes we just don’t notice it because often times we aren’t the targeted market for these goods.
The video below shows a group of sneaker heads awaiting the release of Nike Air Yeezy's at Goods in Seattle 3 days before the launch date. Goods is an exclusive distributor of rare and limited Nike sneakers.
-Jon Honari, Section E
Exclusive distribution is when a limited number of dealers have the exclusive right to distribute the company’s products in their territories (Kotler 307). This practice is very common among extremely rare items as well as those items reserved for the upper echelon of society. These goods can range from limited edition collectibles to multimillion-dollar automobiles.
Having been a so-called “sneaker head” I have experience my fair share of exclusive distribution. Urban dictionary defines a sneaker head as “a person who collects limited, rare, OG, or flat out exclusive kicks [shoes]. Usually the collection consists of Jordans or Dunks.” During my tenure as a sneaker head I had to keep up on the release dates of these rare and collectible sneakers. Now, these rare and collectible sneakers wouldn’t just be sold at any store, they would be sold to incredibly specific retailers meant to sell those types of goods. Nike has collaborated with a small number of specific stores in which they release their line of SB (Skateboarding) shoes, one of those stores being Goods, located in downtown Seattle. Stores like Goods experience exclusive distribution since they receive a limited number of these rare products; once they sell out, that’s usually it, since Nike rarely reproduces these collectibles. Often times, during release dates of highly hyped shoes there will be an extremely long line day, even weeks, before the store actually launches the shoe. The demand is so high that retailers usually sell out before catering to all customers in queue. Exclusive distribution is a crucial part of the “shoe game” because it provides sneaker heads with another reason to be involved. Some shoe gurus join the sneaker scene for style, some join to resell, and some join to be different. Whatever the reason is exclusive distribution has allowed for these people to express themselves.
Exclusive distribution is not just evident in the shoe world it can be seen wherever there are limited releases or high-end goods like supercars. Just like Nike collaborates with these specific stores, Bentley, Rolls Royce, Bugatti, and other top-notch car manufacturers only sell their cars at very specific dealers. Once again, this is an example of exclusive distribution.
Exclusive distribution is all around us; sometimes we just don’t notice it because often times we aren’t the targeted market for these goods.
The video below shows a group of sneaker heads awaiting the release of Nike Air Yeezy's at Goods in Seattle 3 days before the launch date. Goods is an exclusive distributor of rare and limited Nike sneakers.
-Jon Honari, Section E
Optional-Product Pricing
Optional-product pricing is defined in the textbook as “the pricing of optional or accessory products along with a main product” (272). This pricing method allows companies to present a low base price that is capable of attracting customers while maintaining the possibility of generating high customer revenues by selling costly add-ons later.
Optional-product pricing is a technique that it becoming increasingly popular in the airline industry. In the past, most airlines have charged higher ticket prices that they do now, but these ticket prices provided the customer with more than just a small seat and transportation from one airport to another. Among other things, airlines have historically allowed their flyers to check a limited number of bags free of charge and provided customers with free in-flight snacks. Increasingly, however, airlines have changed their strategy. Now tickets are generally priced fairly low most airlines charge customers separately for virtually anything beyond the ticket. Most airlines now charge for snacks, the use of headphones, checking kennels for pets, reserving a window or isle seat, checking bags, and many other things. These fees are not trivial either. Airlines generally charge around $25 to $35 to check each bag and, in 2008, the major airlines made about $1.1 billion on baggage fees alone (http://www.cbsnews.com/stories/2009/06/08/travel/main5071069.shtml).
This strategy may have been successful at generating revenue for the airline industry, but it has also resulted in a considerable backlash among consumers. As the following video demonstrates, many consumers see the use of an excessive number of fees as a way to squeeze additional cash from them and are actively fighting to avoid fees when possible.
Scott Hardy, Section E
Optional-product pricing is a technique that it becoming increasingly popular in the airline industry. In the past, most airlines have charged higher ticket prices that they do now, but these ticket prices provided the customer with more than just a small seat and transportation from one airport to another. Among other things, airlines have historically allowed their flyers to check a limited number of bags free of charge and provided customers with free in-flight snacks. Increasingly, however, airlines have changed their strategy. Now tickets are generally priced fairly low most airlines charge customers separately for virtually anything beyond the ticket. Most airlines now charge for snacks, the use of headphones, checking kennels for pets, reserving a window or isle seat, checking bags, and many other things. These fees are not trivial either. Airlines generally charge around $25 to $35 to check each bag and, in 2008, the major airlines made about $1.1 billion on baggage fees alone (http://www.cbsnews.com/stories/2009/06/08/travel/main5071069.shtml).
This strategy may have been successful at generating revenue for the airline industry, but it has also resulted in a considerable backlash among consumers. As the following video demonstrates, many consumers see the use of an excessive number of fees as a way to squeeze additional cash from them and are actively fighting to avoid fees when possible.
Scott Hardy, Section E
Branded entertainment, product placement
Branded entertainment (or bran integrations) involves making the brand an inseparable part of some other form of entertainment. The most common form of branded entertainment is product placements - embedding brands and props within other programming (Kotler 365). Product placement advertising is widely used in the age of numerous challenges to getting the message to the consumer. Since people are being empowered by such devices as TiVo and internet, they are now able to avoid boring advertisements. In the modern age marketers try to implement better ways to call attention to their products.
Product placement in popular TV shows tends to solve the problem of viewers fast forwarding through the advertised messages. Here is an example of placement of two cereal brands: Frosted Flakes and Cocoa Puffs. Extremely popular TV show "Friends" feature these products in one of their episodes. One of the characters is eating the cereal and even quoting parts of the famous lines "Grrrreat" and "Coo coo". The viewer cannot dodge this cereal promotion unless they skip a chunk of the episode.
Although these promotional tactics prove to be very effective, overuse and blunt product placement can avert customers from these shows altogether. It can create negative feelings such as resentment if the marketers will "throw" messages in front of consumers eyes. Product placement must seem natural and non coercive, so the consumer can still enjoy their show without being disturbed by the promotional tricks of the advertisers.
Ekaterina Ogay
Section G
Product placement in popular TV shows tends to solve the problem of viewers fast forwarding through the advertised messages. Here is an example of placement of two cereal brands: Frosted Flakes and Cocoa Puffs. Extremely popular TV show "Friends" feature these products in one of their episodes. One of the characters is eating the cereal and even quoting parts of the famous lines "Grrrreat" and "Coo coo". The viewer cannot dodge this cereal promotion unless they skip a chunk of the episode.
Although these promotional tactics prove to be very effective, overuse and blunt product placement can avert customers from these shows altogether. It can create negative feelings such as resentment if the marketers will "throw" messages in front of consumers eyes. Product placement must seem natural and non coercive, so the consumer can still enjoy their show without being disturbed by the promotional tricks of the advertisers.
Ekaterina Ogay
Section G
Pricing
Price is the amount of money charged for a product or service, or the sum of all the values that customers give up in order to gain the benefits of having or using a product or a service (Kotler)
Pricing is an important to a business; it must set prices so that it can profitable. Flawed pricing can lead to loss of customers, profits and market share. We will discuss the pricing strategy of Apple, Inc., a company that produces a wide-array of technology products.
Value-based pricing
Apple adopts value-based pricing, (setting prices that are based on buyers' perceptions of value rather than on seller's cost), more specifically value-added pricing. Apple products usually cost higher than other market offerings from other brands, however it has features that justifies the higher premiums. For example, the iPhone has touch screen functionality and has the ability to run several applications available at the App Store. This enables the iPhone to be a mobile phone,a mp3 player, a gps, a hand-held gaming system and much more. Macbook Pro's are highly-priced compared to market offerings by Hp, Dell, and other laptop manufacturers. The base model of the current Macbook Pro retails for $1,199. However, Macbook Pro's have the ability to dual-boot and run OS X and a Windows operating system. They also offer a plethora of other features that increases its value such as LED-lit screens, an aluminum body, prolonged battery life and much more.
New-Product Pricing Strategy
For the iPad, Apple used a market-penetrating pricing strategy, along with other pricing strategies such as product line pricing strategy. Market-penetrating pricing is defined as setting a low price for a new product in order to attract a large number of buyers and large market share. The iPad is priced competitively against its competitors (Amazon kindle, Sony e-readers, Netbooks). By doing this, Apple hopes to increase its market share and quickly attract a number of buyers.
Product Mix Pricing Strategy
Apple adopts a product line pricing strategy for most of its products. Product line pricing is defined as setting the price steps between products in a product line based on cost differences and customer perceptions of the value. For example, Apple sells its iPods at various price points. The iPod touch is priced at $199 for the 8gb model, $299 for 32gb, and $399 for the 64gb model. The price savvy consumer might gravitate towards the lower 8gb model but a heavy-user with little regard for price will purchase the models with higher memory capacities. The other iPods such as Nano, Classic, and shuffle also follow a similar pricing scheme.
Apple also uses optional-product pricing . Optional-product pricing is defined as the pricing of optional or accessory products along with a main product. A variety applications that are usable on the iPhone and iPod touch can be only purchased directly from Apple's App Store. If a user wants to legally download certain mp3 songs, albums and video files, they can download those files from Apple's iTunes Store. Users can also customize the hardware of their Macbooks and Macbook Pro's; they pay extra for upgrades in hard-drive space, Random Access Memory (RAM), processors and much more.
Apple occasionally uses product bundle pricing as well. Product bundle pricing is defined as the combination of several products and offering the bundle at a reduced price. For example, during the summer of 2009, Apple bundled certain iPods and printers with Macbooks and Macbook Pro's for the retail price of the Macbook or Macbook Pro.
Price-Adjustment Strategies
New-Product Pricing Strategy
For the iPad, Apple used a market-penetrating pricing strategy, along with other pricing strategies such as product line pricing strategy. Market-penetrating pricing is defined as setting a low price for a new product in order to attract a large number of buyers and large market share. The iPad is priced competitively against its competitors (Amazon kindle, Sony e-readers, Netbooks). By doing this, Apple hopes to increase its market share and quickly attract a number of buyers.
Product Mix Pricing Strategy
Apple adopts a product line pricing strategy for most of its products. Product line pricing is defined as setting the price steps between products in a product line based on cost differences and customer perceptions of the value. For example, Apple sells its iPods at various price points. The iPod touch is priced at $199 for the 8gb model, $299 for 32gb, and $399 for the 64gb model. The price savvy consumer might gravitate towards the lower 8gb model but a heavy-user with little regard for price will purchase the models with higher memory capacities. The other iPods such as Nano, Classic, and shuffle also follow a similar pricing scheme.
Apple also uses optional-product pricing . Optional-product pricing is defined as the pricing of optional or accessory products along with a main product. A variety applications that are usable on the iPhone and iPod touch can be only purchased directly from Apple's App Store. If a user wants to legally download certain mp3 songs, albums and video files, they can download those files from Apple's iTunes Store. Users can also customize the hardware of their Macbooks and Macbook Pro's; they pay extra for upgrades in hard-drive space, Random Access Memory (RAM), processors and much more.
Apple occasionally uses product bundle pricing as well. Product bundle pricing is defined as the combination of several products and offering the bundle at a reduced price. For example, during the summer of 2009, Apple bundled certain iPods and printers with Macbooks and Macbook Pro's for the retail price of the Macbook or Macbook Pro.
Price-Adjustment Strategies
Apple also applies psychological pricing. Psychological pricing is defined as a pricing approach that consider the psychology of prices and not simply the economics, the price is used to s ay something about the product. The higher prices of Apple's products compared to its competitors triggers signals to consumers; exclusivity, high-quality, uniqueness, coolness factor, etc. They also incorporate psychological pricing in a different way. As stated previously, the different variations of the iPod Touch retail at different price points. While applying product-line pricing, I also believe this strategy also urges its consumers to step up to the next model and pay more for a higher model. For example, the $399 iPod touch yields the best value because the price per GB is $6.23 ($399/64) while the $199 yields a price per GB of $24.88 ($199/8). These cues could lead to a purchasing decision that a customer did not anticipate (i.e wanting to purchase the 16gb initially, but ended up purchasing the 32gb or 64gb model).
Note: All the definitions were obtained from the textbook.
Jose Jacinto
Section E
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