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MM1: Advertising
Chapter 5
Consumer Oriented Advertising and Sales Promotion
Learning Outcomes:
At the end of this lecture, you are expected to: ✓ Define consumer-oriented advertising and explain how it is used; ✓ Describe how sponsorships can be used to make a connection with consumers; ✓ Explain the purpose of consumer-oriented sales promotions;
Introduction and Core Values Integration
Companies need to make money to remain viable and feasible. That’s why so many businesses nowadays tend to focus more on earnings and get more profits so as to conquer the largest market share. However, one important thing which they should not forget during this attempt is the customer. The customer is the one who can help the business to achieve its goals and objectives. Although it may seem contradictory or counter-intuitive, sometimes a consumer-oriented strategy results in higher profits than a sales- oriented strategy. Company owners have two basic choices when marketing and promoting their products or services. First, they can create promote a newly created products and then find ways to generate demand among consumers. For example, a company might promote a new product for which there is no existing need by creating consumer demand with a series of compelling advertisements. The second option is to identify customer needs and then create a promotional effort or advertisement of new products that meet those needs. The latter approach is called the “market-pull” model of marketing, because it relies on consumer
demand to “pull” the product to the marketplace, rather than having to push the product on consumers, according to the book “Marketing Strategy,” by Steven P. Schnaars. Focusing on satisfying and meeting a consumer’s needs rather than just making the sale can gradually increase your profits. When your consumers are satisfied, they’ll keep buying from you. Repeat purchases from customers mean more profits, as well as a decreased need to spend money on creating advertisement that chasing new customers. And satisfied consumers will recommend you (by “word of mouth”) to the people they known personally. In other words, focusing on customer satisfaction can be a smart financial decision. Compassion is one of the core values of Wesleyan University-Philippines. Compassion. In essence, compassion is “having the peripheral vision to see others and help them along the journey of awareness, courage, confidence and joy.” There is much talk these days of businesses having empathy for their customers. “Empathy is a desire to know the other person. Compassion is to act on that knowledge with positive intent.” CONSUMER ORIENTED ADVERTISING Advertising that Speaks to Consumers Businesses that focus on consumer needs are rewarded with higher sales and profits. The best way to gain a consumer's business is to show interest in their needs and wants, design products based upon those needs and wants, and develop promotional campaigns and advertisement that are relevant to them. Consumer-oriented advertising is created from the customer's perspective to make the message more appropriate and significant for customers. When advertisements are designed with specific consumer needs in mind, consumers feel connected with the brand purchase more of the product. For example, the top priorities for parents are very different from the priorities of their children and teenagers. Consumer- oriented advertising makes the necessary adjustments to meet the needs and wants of its target consumer. Consumer-Oriented Advertising Approaches Consumer-oriented advertising uses many approaches to deliver a message, as described below. Oftentimes, these approaches include emotional or rational appeals because they are effective at making a connection with customers.
The Common Consumer
Consumers are slowly becoming disillusioned with the perfect consumer who is the perfect size and has the perfect face as well as the perfect family living in the perfect house. Consumer-oriented ads are now featuring the "common" consumer, or someone who is easier to identify with and more believable. Dove launched the successful "Campaign for Real Beauty," which featured real women, not models, promoting Dove's beauty products. By challenging the stereotypical view of beauty, Dove's ads made a big impact on consumers. The common consumer is also frequently featured in ads for household products, such as laundry detergents washing their clothes.
Social Media
Today, harnessing the interactive nature of the Internet allows advertisers to create advertising that motivates the consumer to take some kind of action. Using social media sites allows the advertiser to involve the consumer in the marketing process. Doing so often leads to a sale. For example, Frito-Lay used its website to advertise its chips made with all-natural ingredients. To entice website visitors, Frito-Lay asked them to vote in the "Ruffles Next Flavor Fever" promotion to choose from among 16 new flavors. Those consumers who voted are consumers more likely to try the new flavor.
High-involvement Purchases
When consumers make purchases involving large amounts of money, they do not take the decision lightly They have a higher level of involvement in the purchase, meaning they spend more time and effort before making a buying decision. When buying a television, car, or vacation, consumers actively seek out and search for reliable information, talk with friends, and find out all they can about the prospective purchase. Advertising is a relatively weak influence for high-involvement purchases. Word-of-mouth advertising, consumers' previous experience, and expert recommendations have a bigger influence. Although advertising in and of itself is not the deciding factor in a high-involvement purchase, it helps consumers decide upon the product characteristics they will consider when comparing competing products. For example, there are hundreds of makes and models of cars, but we consider only those that make our short list. Advertising helps determine which cars make the consumer's short list. To ensure they are on this short list, businesses must know which product features are most important to their target markets and promote those in their advertising. Consumer-oriented advertising that emphasizes relevant benefits will be more meaningful and make a bigger impression on consumers.
CHALLENGES FOR CONSUMER-ORIENTED ADVERTISING
Constantly changing consumer values and attitudes present a major challenge for consumer-oriented advertising. Economic, political, and social factors affect consumer attitudes and their buying behaviors. Uncertain economic conditions make many consumers evaluate the necessity of a purchase. Advertisers may promote a smartphone good performance with a low price of below 20,000 pesos because these attributes were identified as being important to the target market. However, these attributes are not attractive when consumers are concerned about losing their job during a recession. The country’s political situation can make consumers more doubtful about purchasing and spending. Increased taxes and different economic laws leave consumers with less income and less buying power to spend on products. Social causes that are important to consumers can also influence their purchasing and spending habit. A business affiliations or memberships with certain organizations or support for certain causes may encourage or attract a consumer to buy (or not buy) from that business. Even when advertisers carefully analyze market needs to develop relevant advertising and promotional campaign, they cannot always control factors such as these. Stereotyping is another challenge to consumer-oriented advertising. (According to Collinsdictionary.com ) A stereotype is a fixed general image or set of characteristics that a lot of people believe represent a particular type of person or thing. Stereotyping could occur when advertisers try to categorize the target market. Not all low-class consumers are part of a family of six, and not all wealthy consumers have college degree. To categorize a group of people solely based on their level of income, nationality, age, wealth, gender, geographic location, education attainment or some other characteristic is a challenging and risky strategy. Consumers living in the same geographic location have different values and attitudes. Consumer-oriented advertising does not have a one-size-fits-all strategy for target markets.
SPONSORSHIPS
According to study.com , sponsorships is a type of advertising where a company pays to be associated with a specific event. In fact, sponsorship advertising is very prevalent with charitable events. Besides from charitable events, companies may sponsor local sporting teams, sports tournaments, fairs, and other community events. The idea is to get your name out and be viewed positively as a participating member of your community. Well-planned sponsorships can demonstrate brand values, increase exposure, and increase company goodwill. On the other hand, poorly thought-out sponsorships can turn-off consumers, so companies must approach sponsorships cautiously. There are many factors that a company should consider before becoming a sponsor. Different forms of sponsorship say different things about an organization. Companies must determine if they want their
Consumer-Oriented Sales Promotion Objectives As we discussed in previous chapters, sales promotion is designed to be used as a short-term tactic to boost sales. However, sales promotions can also be used to achieve other objectives such as creating brand awareness or building brand loyalty. There are many methods of sales promotion (From Chapter 3), including: ✓ Money off coupons – customers receive coupons, or cut coupons out of newspapers or a products packaging that enables them to buy the product next time at a reduced price. ✓ Competitions – buying the product will allow the customer to take part in a chance to win a prize. ✓ Discount vouchers – a voucher (like a money off coupon) ✓ Free gifts – a free product when buy another product ✓ Loyalty cards – e.g. SM advantage card; where customers earn points for buying certain goods or shopping at certain retailers – that can later be exchanged for goods or other offers. Purchase-Building Sales Promotions Sales promotions such as coupons, rebates, price discounts, and premiums create an immediate demand for a product or service. Purchase-building sales promotions are designed to create short-term increases in sales. These types of promotions have three common characteristics. ✓ They require minimal effort on the part of consumers. ✓ They generally involve price. ✓ They are offered for a limited time only. Purchase-building sales promotions are used to persuade, influence and speed up the consumer's buying decision. Customers may decide to purchase based solely on a sales promotion offer. For example, a consumer who is thinking about purchasing a smartwatch sometime in the future may speed up the purchase because of a discount or rebate being offered. Another consumer may decide to purchase one manufacturer's smartwatch instead of another's because of a special promotion. Brand-Building Sales Promotions In order to survive a highly competitive marketplace, marketers must create a brand positioning and preference among consumers that can build long-lasting relationships. Brand-building sales promotions help build long-term brand loyalty and brand value among consumers. These types of promotions help strengthen the bond between the brand and the consumer. Common characteristics of brand-building sales promotions include the following: ✓ They are less frequently related to price. ✓ They offer promotional rewards for repeat purchases. ✓ They are valid for an extended period of time.
Companies use brand-building sales promotions to gain new customers and retain current ones. Sampling and free trial offers help attract new customers who may eventually become repeat customers. Loyalty marketing programs help retain customers by rewarding those who make repeat purchases of certain products. For example, a barbershop that offers a free half-body massage with the purchase of a haircut is reinforcing the barbershop’s image of self-indulgence. The Pillsbury Bake-Off contest requires contestants to create a new recipe using Pillsbury ingredients for a chance to win $20,000 to $1 million. This contest, which has been sponsored by Pillsbury for over 60 years, has created strong brand awareness and loyalty. Tie-ln Promotions A growing number of companies are developing tie-in promotions. A tie-in promotion is a joint promotion of two or more products or services. The intention of this type of promotion is to increase brand awareness and sales of both products. The tie-in may involve brands from the same company or from different companies. Tie-in promotions are more effective when there is a logical connection between the brands. For example, in a tie-in promotion offered by Gillete and Mobile Legends-Bang Bang, for every purchase of Gillete MACH 3, Vector 3, or Blue 3 Simple 4s Pack Razors, the customer can redeem up to +50 mobile legends diamonds (in-game currency) that can be used to purchase in-game merchandise such as hero skin. Tie- in promotions are cost-effective because the cost is shared among multiple brands. They also give companies a broader market presence, enabling them to reach out to new customers.
