Coke and Pepsi and Airwalk Notes

Ex a random student out of the directory stratified

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Ex. A random student out of the directory Stratified Sample o Divide into stratified sample, then SRS from within each strata. Make sure nobody is excluded Ex. Random student out of sophomore class Cluster Sample o Divide into heterogeneous subgroups then SRS of each subgroup SRS No grouping Stratified Sample Each one Cluster Sample Pick random of each Non-probability Sample (Pepsi) o Convenience (ex. In class survey, good for researchers) o Judgment (ex. Medical science, hand-picked people) o Quota (ex. 50 men & 50 women, hand-picked somewhat representative) Sometimes, quota, non-probability are more representative than S.R.S. New Product Introduction - April 23, 1985 – introduced “New Coke” to the market - Publicity o Unpaid communication that gets media’s attention o Awareness and buzz (word of mouth) o Usually for high involvement, less frequently purchased goods Coke has a press conference instead of ads. - Used publicity (within 24hrs, 95% of population knew) - BACKFIRED! It created problems for Coke because the media tried to “spice up” the story using negative slants. This excited and angered the public. Caused a public uproar!
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Publicity pros and cons: Pros: Cons: - Efficient - Less controllable - Cheap - Reporters don’t usually report good news - Crediable - news tries to emphasize rational arguments & info processing - sign value = emotional o How could this be? o Herd instinct – follow the idea/cause if it is consistent with underlying values of culture and believing others will follow. o July 11,1985 – they brought back the old Coke o What went wrong? o marketing research 1 method & product –oriented (all sweeter, didn’t consider emotions) o Product symbolism Sign value – they didn’t understand it Experience when purchasing & using o 100 year tradition (stability) Entrenched in societal values, culture (damaged culture when changed o Old Coke was gone Shelving & split sales – saved $ o Underestimated Media Power Press conference swayed public to think bad Publicized protests & rebellious idealism o Was it bad? o Awareness (Buzz) created for product & brand Recognition, recall, remembered o 1985 Sales were up 10% Profits were up 9% o 1988 Coke – 5/10 best sellers 40% market share Pepsi 31% market share Advertising Effectiveness o How do you measure it? Market share or profit? Difficult to link to promotions Alternative explanations ruled out?
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2/24/09 Announcements - Bring the Cool Hunt article on Thursday How does advertising influence brand imagery & sign value? - Sign value o create associations to influence sign value o if 2 things appear together often, we think they represent the same thing - Coke’s Sign Value o Historical associations o Clever commercials Classical Conditioning (aka Respondent conditioning) - Unconditioned stimulus (varies by demographic, needs lots of mkt research) o Evokes emotional response (sex appeal) - Unconditioned stimulus o Emotion elicited by UCS (lust) - Neutral Stimulus o Brand (colors, pkg, logo, product…) (Dt. Coke) - Pairing o Things we associate (sexiness) - Conditioned Stimulus o NS is now a symbol of something else (Dt Coke = sexiness) - Conditioned response o Emotion evoked by CS (sexy/lusty) o
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  • Spring '08
  • billthompson
  • Marketing, sign value, L’eggs

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