07 problems with promotions and advertising claims and crticisms

07 problems with promotions and advertising claims and crticisms

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Problems with promotions and advertising claims/criticisms Sales promotion - different from media promotion - anything that isn’t major promotion: tv, newspaper, news, etc. - stands within supermarkets, etc. - prompts impulse purchases, gets consumers excited - expensive - shift to sales promotion spending vs. advertising spending (going down) o advertising going down: bad news for brands, brands advertising (media advertising is a brand builder) o sales promotion is the opposite, reduces price, doesn’t promote brand loyalty o why the shift? Coupons: huge investment: 279 B distributed 2006, 1% redeemed (small percent), but 1% of 279B is still huge; average face value of coupon 1.13; 279B x 1.18 = 3.3 B total redeemed savings Coupons are most often used by the most educated consumer, counterintuitive Reasons for shift to promotion More parity products Sales force pressure: big advertisement doesn’t do much for retailer, but if a manufacturer says that they’ll build a stand in the store to bring in customers
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This note was uploaded on 02/19/2008 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Fall '07 term at Cornell University (Engineering School).

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07 problems with promotions and advertising claims and crticisms

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