Consumer Oriented and Trade Oriented Sales Promotion

Consumer and Trade Oriented Sales Promotion
In this unit we are discussing sales promotion. This is where the company offers an incentive or value if they buy their product. There are two types of sales promotions we are going to discuss. Consume oriented which includes sampling, couponing, premium, contests,and sweepstakes, refunds and rebates, bonus packs, price-offs, frequency programs and event marketing. These promotional tools are aimed at consumers to get them to ultimately buy a product. Trade Oriented involves dealer contests and incentives, trade allowances, point of purchase displays, and other promotional tools, designed to motivate distributors, and retailers to carry a product. We were to come up with two examples of each and discuss whether they were effective or not. Also in the discussion I will briefly describe the promotional tool being used; example might be a coupon. First we are going to discuss consumer oriented sales promotion.

As I have said before consumer oriented sales promotion specifically target consumers in order to get them to buy a product, to create the sale. There are many tools that are used by companies that target consumers.

My first promotional tool is a coupon on the side of a Kellogg Special K cereal box. This coupon allows the consumer to use this coupon to save $1 on the next time they buy a box of any one package of Special K Protein Meal bars or any one package of Kellogg Special K cereal. The purpose of this coupon is to get the consumer to continue to buy set Kellogg products and save some money each time they buy. I find that a coupon like this can be very effective especial to those who buy kellogg products. There are many cereals that are made by kellogg and having a coupon can add great value and save you time and money when you go to the store. Consumers like to save money at any chance they can get. In today's economy everyone is feeling the effects of mass unemployment and money is tight for many. Cereal is the most important meal and parents know that having a good breakfast helps keep balance and keeps them alert and focused. I also found another coupon card that you can use to save 20% on anything in the store for Kohls.

Consumers can find great value in using this if they regularly go to Kohls to shop there. Again the purpose is to help the consumer save money to keep them coming back. However, this coupon is only handed out to their most valued customers. I am not sure how they determine who their most valued customers are but if I were to take a guess they probably base it on how much in a year you spend at Kohls. So I don't think that this would be effective is as the other coupon because it is only giving to a limited number of people and plus there is no way of really measuring the the responses of the consumer.

Now that we have talked about consumer oriented promotional sales. We will now go into trade-oriented promotional sales. We know that involves finding incentive for a retailer or a distributor to carry a product. I choose the wrangler advertisement where bret farve advertises for Wrangler. Purpose of the ad is to have retailers carry the Wrangler jean brand. They use Bret Farve to promote the product because he is a star quarterback in the NFL. Not sure that this would be very effective to convince a retailer to necessarily carry the brand. Wrangler is one brand of popular jeans and we can all agree that a famous celebrity or in this case of professional football player does create more of an appeal. Trade oriented promotional sales is more difficult in the sense it is trying to convince a retailer or a distributor to carry a product and prove that it will do well as far as sales and that there will be a high enough demand to offset the cost of advertising it and placement in stores. The last trade-oriented sales promotion will be a promotion by fleet farm everyday low prices on almost all their products and this example they offer 17.99, and it looks like on the sign they are advertising coil wire heater. I think Everyday Low Price depends heavily on promotions to attract consumers. This is not effective for marketers trying to build market share. When the trade companies see this sales promotion, they could think the products are not high quality.I believe that the wrangler advertisement was more effective because of mainly a NFL quarterback in the ad. Also Wrangler jeans is one of a few popular jeans and when people think of comfortable jeans they think of wrangler.
A final note we discussed both types of sales promotions; consumer oriented and trade oriented sales promotion. We found two example of both and discussed both and and how effective they were. Sales promotion is an important component of marketing and without promotion much like advertising consumers would not be aware of the product.

Corporate blogs

In this blog we are discussing corporate blogs. We have mentioned that blogs are web-based publications consisting primarily of periodic articles, normally presented in reverse chronological order. We have to find two corporate blogs and discuss them which includes the purpose of the blog and the value of these blogs bring the organization that created them. The first blog I have as an example is GE. The link to this blog is the following: http://ge.geglobalresearch.com/blog/. The purpose of this blog is to make people of aware of break through in medicine. This brings tremendous value to the organization because as he population continues to age and diseases such as cancer continue to take lives doctors are looking for such advancements in medicine to cure this disease. For people reading this they may want to share this with family members or friends. They may know someone who is suffering from some chronic illness and having some knowledge of some advancement is good news. They may want to inquiry more information about the advancement.

My second blog is on IBM. IBM is a major manufacturer of computer chips but in recent years have changed their focus on building a a smarter planet. They create solutions for every day problems is their mission. These people are called IMBers. The link to this blog is the following: http://falakah.blogspot.com. The purpose of this blog is again creating solutions to everyday problems. Problems such as counterfeit drugs making their way onto store shelves. They created smart tags so they can monitor the process from the manufacturing of the drugs to their distribution. They want to create a smarter planet and reduce waste and be more environmentally friendly. This maybe be very helpful to the company that creates this blog because of many issues such as food shortages, more demand for resources such as fuel we need to find ways to conserve our scarce resources. People may be interested in the ways companies are trying to make our lives better so they may be more inclined to read into it more and get more information. Blogs as you can see can be very helpful to companies to distribute their ideas to the general public and to specifically target demographic groups to distribute their ideas. We look to the future as blogs to be a very important medium to get ideas out to potential customers.

Direct Marketing

My direct marketing example came to my hotmail account. I have a Sony Vaio labtop and I signed up for getting updates on new products and services available. This advertisement targets computer users in specific Sony Vaio users. They want to extend your battery life for $99 on select Vaio labtops as well as save on HDTV's and more. I believe that this advertisement really caught my attention especially the save on HDTV's. Consumer are always looking for good deals and I am one of those people. Eventually products get used and break and having to pay full price to replace or get a similar product is such a hassle so consumers are going to look for good deals. For me a Sony Vaio labtop is very expensive and since I live on a limited budget while I am going to school I believe that Sony did a good job getting my attention buy luring in with some deals. Companies in every industry try to find ways to give their customers more bang for their buck in this economically troubled times while still trying to meet their quota. The use of images and texts really caught my eye so when I saw this advertisement I was thinking to myself well my computer is getting old and I will soon be looking into a new one. So I look around for good deals. I will probably directly buy from the manufacturer since I can get some deal on a new labtop. So direct marketing is an effective tool because it directly communicates with its consumers to promote its products and services. The reason why its so effective also because companies can directly relate to what customers need or want by asking questions about current products or services they are currently using. For me for example they would ask me if I am satisfied with my Sony Vaio labtop and maybe what in particular I liked about them such as long battery life or I their tech support is fast and friendly when I need technical assistance. Companies in almost every industry use direct marketing in some form to promote their products and services as I said. As you can see Direct Marketing is a great tool and can be effectively used.

Why Outdoor Media is poular

In this discussion we are going to discuss why these non-traditional support media has grown over the years while the traditional advertising has shown decline.  For example newspaper has shown decline because of costs of paper and ink. In all also the fact that many people do not read the newspaper anymore to get their news so a decline in circulation. Also with the internet many local newspapers can be viewed online. Other traditional advertising mediums are found to be very intrusive such as television because the viewer can't control the exposure of advertising. There is alot of clutter as well and many consumes find themselves lost and confused unable to determine the message in which the advertisements are trying to get across to their target market. Radio only reaches specific demographic markets and with the large number of stations the percentage of listeners tuned in are usually very small. There is limited amount of creativity which is the lack of visuals that give the ads appeal and get consumers interested like television ads. However outdoor ads such as billboards are considered less intrusive and more appealing, it provides much better exposure because everywhere you go there are signs and billboards advertising. It provides a wide coverage area of local markets foe example billboards on top of building in New York City provides the exposure to millions of New Yorker to local businesses. Many of these local businesses will benefit because of the large population these billboards would be very effective. Also the cost of using alternative support media are much lower than the traditional for example using the internet to advertise is cheaper than using print media because of the cost of paper and ink. This is why there is a decrease in cirulation of newspapers and magazines. As you can see there is many advantages of support media over the traditonal mediums.

AOPA Flight Training Magazine Analysas

Chapter 12 Printed Media Magazine Analysis

1.)    The magazine I choose for this assignment is the AOPA Flight Training magazine. For those of you who don’t know what that magazine is all about I will briefly go over it.  The AOPA Flight Training is a magazine designed to target pilots whether they are seasoned professional pilots or pilots in training. This magazine gives tips and lessons in how to develop and maintain your piloting skills.  This magazine targets business men as well to obtain their pilots license, because many business and corporate employees do business across the country and obtaining their private licensing will help ease problems with traveling and even some of the cost. This article could also be attracting many youth as well to obtain their private licensing whether for recreational use or even for sport this magazine gives tips and lessons in how to hone your skills.  I have read an issue of this magazine and many of the articles in this magazine are written I believe by experienced pilots who are willing to share their knowledge to eager consumers wanting to obtain their pilots licensing and realizing their dream to fly.  This is the magazine is the magazine for anybody who dreams to fly.  Especially for those who are going through the training find these articles helpful.

2.)    I looked through this magazine and much of this magazine is articles that give tips and lessons on honing on your skills as a pilot or helps new trainees through their training.  About 90% of this magazine is editorial which non-advertising articles.  This magazine does not have much cluttering issues as it gets straight to the point. This magazine was designed to attract new pilots as well as give tips to new pilots in training. This article is also designed and tailored towards experienced pilots to continue to hone on their skills. This article has a specific purpose to give the tools pilots need to hone their skills. It is an educational vehicle much like a text book and these articles are very easy to read I thought. I found it more enjoyable and I was able to read the articles at my own pace. I found that I could retain what the articles were about and it fueled my passion for flying. I currently seeing what it costs to obtain my licensing and I want to in the future obtain my license.  

3.)    There are a couple of types of products and services here in this magazine. One type of service that is advertised here in this magazine. The first is they offer training courses on DVD so those who are looking to train for their pilot’s license they are able to get their hands on the tools they need. They also offer special prices on flight school through different companies such as Ari-Ben Aviator Inc. which offer a price of $7,875.00 for multi-engine Instrument which includes study material, ground instructions and housing. The other type of products and services advertised is aircraft and pilot’s supplies such as GPS equipment, headsets and more. In this magazine there is website aircraftspruce.com that offers a wide variety of aircraft and pilot’s supplies.  As I have said before this article is specifically for pilots especially for those who want to get their pilots license or who are currently obtaining their license.  This brings us to the next segment we are going to talk about which is the mood this article sets and how it effects who reads this magazine.

4.)    This magazine again I will say that this magazine is designed for pilots and pilot trainees who want to hone this skill. This magazine has detailed articles that I believe are written by professional pilots and those who are skilled in the industry which may include aircraft manufacturers, the FAA and others. These articles are meant as an education tool for pilots to get to know their aircraft and learn the specifics to getting certified as a pilot. There are a few classifications that the private pilot’s license breaks down into. There is the private pilot’s license, sports, and ultra-lights. There are different regulations and standards that each classification that defines and governs each classification. Therefore the way you obtain each classification of license depends on which one you are trying to obtain. There are a certain number of solo hours and hours of flying with instructor time based whether they are getting their sports license, their ultra-light or their private license.  Well if you are into getting your pilot’s license you will pay more attention to these advertisements about getting pilot’s equipment that you need or if you are looking at finding a good price on flight training school. The advertisement much like the articles are tailored towards the pilot especially pilots in training and certified pilots. These articles are found to be helpful to them to gain knowledge in best how to hone their skills. The advertisements do pretty much the same by advertising products and services that the pilot in training needs to obtain their license.  The magazine sets the mood for those who want to get their pilots license. They ease young eager pilots in by easy to read detailed articles on different topics ranging from instrumentation to tips on better flying.  This magazine really affects readers by targeting a specific target market mainly those who desire to obtain their pilot’s license, in specific they may target middle class income individuals or families as well as business people. These groups of people are mostly likely the people this magazine will target since obtaining your pilot’s license is quite costly.

5.)   

Television Ads Big Ten Network

Television is an important aspect of advertising and it reaches to many people everyday. Whether we are watching the news or our favorite program television sends messages to its target markets. Television ads in particular advertise their products and services. There are many programs on the big ten network and many relate to big ten sports in particular college football. Programs such as the Journey takes you deep into many of the big ten's football programs to see how they recruit, train and prepare for the upcoming season. There are other shows such as the Next Level that previews stars from the past, present and future and going over rising stars. The Big Ten pulse is another program goes over Big Ten news and highlights from the week showcasing teams from the Big Ten conference including big rivalries.  The length of the commercials vary and can be anywhere 15 seconds up to a couple of minutes  because they are advertising for the Big Ten and the Big Ten Network. They are trying to get more viewers to watch their station and to get their football fix, They are particularly trying to target anyone who is a fan of Big Ten teams who want to keep tabs on how well their favorite team is doing.  Other commercials such as the Verizon wireless commercials that advertise their fast 4G Lite network where consumers are able to stream their favorite games from their phones and get tabs on how their team is doing from week to week.  These commercials are also advertising for the Universities that make up the big ten. This is huge for them to get potential students to pursue an education here at one of the Big Ten schools. There are so many programs and lot of advertising for these programs so I will not go over all of these programs. Music and visual appeal play a huge role to these commercials because these aspects often is what helps viewers pay attention to what they are trying to say.  You can see that advertising plays a critical role in running these types of programs. 

Advertisements

In this blog we are going to discuss two advertisements and determine what the specific objectives the advertisements were trying to convey. Then we are going to determine when communication objectives are more appropriate  and when sales objectives are more appropriate for certain advertisements.

For my first advertisement for this assignment I did an advertisement on the University of Wisconsin Madison. The motto "Forward Thinking" is synonymous with the world as it refers to world class higher education that is the University of Wisconsin. Wisconsin is ranked among the top universities in the country for research and their top departments are medicine, psychology, law, economics, and statistics. The objectives that this advertisement is trying to convey is that the University of Wisconsin is a world class leader in creating top notch professionals that will be world class leaders pushing ahead changing the world. Another objective is that its trying to communicate to potential students to come to this university to pursue their dreams by pursing a higher education. The University of Wisconsin also offers a unique atmosphere, a different culture for students where they are able to excel in every aspect of their life by the many activities on and off the campus. Going back to the top ranked departments it offers a range of opportunities for students to pursue giving them a range of potential of job opportunities after graduation and the rewarding feeling just doesn't stop after they graduate. Being part of the Alumni association is always rewarding because not only can you look back on the great things you did at the university but the great things that you did after graduation.

http://www.uc.wisc.edu/video/ (video is the sixth one down) 

The last advertisement is about Sony Televisions and the next generation of Sony entertainments. Sony is a huge electronics company. They sell a range of electronics from Televisions going all the way down to cameras. One objective may be that our Sony is trying to sell their high definition TV's especially their high definition flat screen next generation televisions. Another objective may have been that Sony's products are better than those of their competition.  Sony has come along ways and have developed many innovative products over the years and they continue to set the bar for the electronics market.

Younger Generation playing video games

Best Buy 2011: Perfect Match TV Promise (Samsung)

Beatles

1940's Cookbook

iPhone4 Ad - If you don't have an iPhone - App Store

Five Environmental Influences that Affect Consumer behavior

In this post I will be discussing the five environmental  influences that affect consumer behavior and how they affect their behavior.  I decided to for this blog to do best buy which we know is a one of the largest electronics retail centers.  They sell everything from cds to brand name TV's and appliances.   Now since were are talking about the environmental  influences we can ask one very important question. How does these environmental  influences affect how a consumer behaves and ultimately make a purchasing decision when it comes to buying electronics. The first influence that affects consumers behavior is culture.  Culture is defined as the complexity of learned meanings, values, norms,  and customs shared by members of a society.  We can take for example the different generations of Americans. There is the Greatest Generation which  was anyone who was born prior to 1946. There is the baby boomers who were born between 1946 and 1964 and many of the younger generation's parents are baby boomers.  Generation X were born between 1965 and 1976 while generation Y was 1977-1994 also known as the Millennials. Then there is the Generation Z who were born after 1994.  These are different cultures with different values, beliefs, attitudes and motives that affect how they behave when they buy.  For example Generation Y is more likely to purchase more of the high end electronics, we can argue they are more connected due to technology such as cell phones, computers, video games and other electronics.  These products would be more appealing so a marketer will see this and tailor their products to target certain products towards that group.  Compare that to the Greatest Generation as you recall are those who were born prior to 1946 they prefer printed cook books and shop at smaller stores. They are not into the digital era where technology is everywhere so marketers will know not to push  to sell a plasma TV or the latest in cell phones.  Subculture may also affect how a consumer buys. Subculture according to the book maybe focused how age, geographic location, religious, racial and or ethical differences. Take example the many age groups in our country, thy have different taste of music. Much of the younger generation listens to hip hop and rap music compared to the the older generation such as the baby boomers who grew up with the oldies such as the Beatles and the Beach Boys. So Marketers must understand this diversity in order to tailor what types of music they must try to market.  Subculture is definitely important because of such diversity  marketers can't be one dimensional meaning they can't just market their product for one group because people have different tastes of music in this case.  Social class can definitely be a defining factor for consumer behavior.  I have mentioned their is three defined social classes in the U.S and each social classes behave differently when making purchasing decisions. For example take a middle class family where their median income is $50k or more. They go into Best Buy to purchase a brand new TV, they look at several flat panel models. Now there is several brands such as Sony as well as a couple of others.  They are also looking at getting at least a 52" for their basement to enhance their home movie experience. Compare that to a lower class family where the median income is less than $30K a year, of course this family can only afford maybe a 32" or less because a 52" costs at least $1000 or more. As you can see social class can't be overlooked by marketers because this factor is a important to help marketers make decisions on how to best market their products.  Reference groups is the last factor that affects consumer behavior.  It is a group whose presumed perspective or values are being used by an individual as the basis for his or her judgments, opinions and actions. For example the current generations are increasingly staying up to date on the latest technology. They are constantly being pressured to have the latest technology to be cool. Take example having the latest smart phone with hundreds of applications in order to stay connected with family and friends. The perceived  beliefs that you must have the latest smart phone or you will fall behind but that you aren't cool because you don't have the latest smart phone.  Many cell phone companies are definitely guilty of this but it is an effective way to gain consumers attention especially the group who are technology savvy.  These influences affect much of the behavior of a consumer and to a larger extend drive what we call the marketing world. Without these diverse behaviors marketing would become stagnant and would not show the tremendous growth that has been seen over the last decade.

Citation:

1.) http:\\www.bestbuy.com 

Neil Chamberlin

Hello Everyone,
My name is Neil Chamberlin and I am 25 years old. I am currently a college student here at Mid-State Technical College and I am pursuing a degree in Marketing and I am will also be pursuing a degree in Business Management. I like to be outdoors and do activities such as camping, hiking, swimming, kayaking, and many other activities. I am a big football fan and I love college football so my favorite team is the Wisconsin Badgers and I also love the Packers.  I am planning to pursue a bachelors degree in both Marketing and Business Management and then start looking for my dream career.