Adv_Promo_Web - Communication Strategy Advertising and Promotion CORNELL Purpose of Promotion Increase demand Increase elasticity(loyalty CORNELL

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C ORNELL Communication Strategy Advertising and Promotion
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C ORNELL Purpose of Promotion • Increase demand • Increase elasticity (loyalty)
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C ORNELL Promotional Mix
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C ORNELL
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C ORNELL “Advertising” is only a portion…
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C ORNELL Promotional Mix
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C ORNELL How today’s consumers watch ads…
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C ORNELL
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C ORNELL
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C ORNELL Economist 9/29/07
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C ORNELL
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C ORNELL Based on online ad sales, Facebook will likely soon top $100 million in annual revenue
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C ORNELL Digital Use Gaining
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C ORNELL Wsj 9/21/05
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C ORNELL Types of Ads • Product ads – Informational, persuasive, reminder • Institutional ads—build goodwill/image of organization – Above, plus advocacy • Use of celebrity spokesperson
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C ORNELL Shift to Sales Promotion 20 30 40 50 60 70 80 1985 1987 1989 1993 19 9 7 20 0 4 Advertising Promotion
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C ORNELL Wsj 9/21/05
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C ORNELL Coupons: huge investment 279 B distributed in 2006 1% redeemed 2.79 B x $1.18 = $3.3 B
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C ORNELL Reasons for Shift to Promotion • More parity products • Sales force pressure
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This note was uploaded on 02/10/2008 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Fall '07 term at Cornell University (Engineering School).

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Adv_Promo_Web - Communication Strategy Advertising and Promotion CORNELL Purpose of Promotion Increase demand Increase elasticity(loyalty CORNELL

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