OUR MENU TONIGHT

Reminders & Announcements

Please return my sample project reports soon

Lecture Review : Chapter 16 Class Discussion & Short Video Lecture : Chapter 17

10

M W

3/12 3/14

Chapter 17 Chapter 18

Pricing Objectives and Policies Price Setting in the Business World Final Exam Review and Course Summary Final Exam

11

M
W

3/19
3/21

Writing Assignment Details

oObjectives oDetails

available on Blackboard

1. Download the article by Jayne ODonnell from Blackboard (4 pages in total pages 114 to 117) entitled In Lean Times, Retailers shop for Survival Strategies. 2. Read and understand her article thoroughly and write on the following: a) Conduct a comparative analysis of the 4 retailers discussed in the case on their dimensions of inventory, staffing, store openings and promotion. Comment on your analysis. b) In your opinion, is it more challenging for retailers to maintain customer loyalty during tough economic times. Justify your answer. c) What to you envision will be the major problems and challenges retailers will face in the next decade? 3. You can either work on this assignment on your own OR choose to work with another member of the class.

4. You must submit a printed copy of your assignment by Wed, 7 March. Late submission, if accepted, will be subjected to substantial penalty.
5. This assignment will account for 10 percent (or 100 points) of your final overall grade. Email submissions are strictly not allowed.

Final day of class

Mon, 3/19 Final Exam Review Chapters 9,10,11,13,14,15,16,17,18

Final Exam

Wed, 3/21, 8pm

Chapters covered: 9,10,11,13,14,15,16,17,18

Lecture Review
Chapter 16

Lecture Review: Chapter 16

Focus on Advertising and Sales Promotion Advertising objectives should be specific as advertising is
expensive to develop and implement. Types of Advertising either Institutional or Product-related Product Advertising Pioneering, Competitive, Reminder Advertising Various medium of advertising TV & cable, newspaper, radio, direct mail, outdoor, magazine, internet, etc. Using AIDA and targeting to communicate ad message, the copy thrust. Nature of Sales Promotion

Objectives Determine the Kinds of Advertising

(Exhibit 16-5)

Types of Advertising
Institutional Advertising Pioneering Advertising Product Advertising Competitive Advertising Reminder Advertising

Direct

Indirect

Comparative

Comparing Advertising Media

Media 2004 spend. (billions) $67.8 2-year % growth 25.3% Advantages Demonstrates well, good attention, wide reach Selected audience, flexible, can personalize Flexible, timely, local market Wide reach, low cost segmented audience Disadvantages Expensive in total, clutter, and less selective audience Relatively costly per contact, junk mail, hard to retain attention May be expensive, short life, no pass along Weak attention, many different rates, short exposure

Television & cable

Direct mail Newspaper Radio

$52.2

16.8

$46.6

5.9

$19.6

9.5

Comparing Advertising Media

Media 2004 spend. (billions) $14.0 2-year % growth 1.4% Advantages

(Exhibit 16-6)

Disadvantages Many competitors listed in same place, hard to differentiate Inflexible, long lead times

Yellow pages
Magazine

Reaches local customers seeking purchase info. Very targeted, good detail, good pass along

$12.3

11.8

Internet

$6.9

40.8

Ads link to more detailed site, some pay for results, easy to track results
Flexible, repeat exposure, inexpensive

Hard to compare costs with other media

Outdoor

$5.8

11.5

Mass market, very short exposure

CLASS DISCUSSION
In our current economic climate and with promotion costs escalating, will marketers continue to deploy traditional advertising (e.g. 30-sec commercials) or other costly mass selling methods to promote their products and services?

Short Video
What's Up-to-Date in Advertising? New ways to grab consumers' attention!

New developments in Promotion Mix

More online web advertisements (Examples of

online advertising include contextual ads on search engine results, banner ads, on-line classified advertising , rich media / video ads, email marketing, including e-mail spam.

see story Mobile (cell phone) advertising Use of social blogs for promotion (social media marketing) through Twitter, Facebook, Myspace, etc. see
story

YouTube on-line video ads

Practice Quiz
Chapter 16

Lecture
Chapter 17