Core Concepts of Marketing by John Burnett - HTML preview

CHAPTER 8

COMMUNICATING TO M ASS M ARKETS

2. Assume that top management for General Equipment, Inc. hired you to determine if

promo-

tional opportunity exists for a fabricated part that has been developed for heavy-duty equipment.

What criteria would you use as a basis of investigation?

3. Define the phrase "sales promotion." Cite some examples of how sales promotion can supplement or complement the other components of the IMC mix.

4. What steps might a public relations person

to prevent the firm from acquiring a negative

public image?

5. Assume that you are the public relations director for a bank. Suppose that two people were robbed while withdrawing

from an automatic 24-hour teller machine. Develop a program in

response to this incident.

6. How is the consumer's definition of advertising different from that of a businessperson's?

7. Give some examples of situations in which primary demand product advertising might be fruit-

ful. When would selective demand product advertising be useful?

8. Assume that you have been charged with organizing an in-house advertising department for a

growing consumer products company. The first task is to hire an advertising manager who will

have ultimate responsibility. What responsibilities should be mentioned in the job description for this position?

9. Explain the difference between creative strategy and creative tactics.

List and describe the various types of appeals. Develop an appeal, as well as tactics to opera-

tionalize this appeal, for Old Spice Shave Cream.

PROJECT

Can you cite some examples of how either advertising or another form of marketing communication

led you to purchase a product that did not satisfy a need? Could any form of MC (marketing com-

munications) or gimmick lead you to repurchase it? Has MC enabled you

find a product which

satisfies a personal need? How might future

keep you loyal to a product? Write a two- to three-

page response.

CASE APPLICATION

THE MICRORECORDER

One of the

growing industries in the Uniled States in ihe past ten years has been the direct

marketing of a wide variety of consumer goods and services. Today it is not unusual for most of us to shop by mail (or use some other form of direct marketing) for almost anything imaginable. Among the most well-known and successful direct

is

Marcus, a retail department store

thai also discovered the addi tional profits of selling such unusual gifts as elephants, airplanes. and $1,000 boxes of chocolate candy- all by mail.

But Neiman Marcus is certainly not alone. There are literally thousands of companies selling

via direct marketing. One of these companies is American

Corporation. American Import was

started in 1969

Tom and

3truven. They started their business by importing a line of Japan-

ese-made sports watches and selling them for $29.95 with advertisements in The Wall Street Jour-The Rotarian, Elks Magazine, and the Legionnoire. At thal time, comparable watches were retailing for $49.95 to $79.95. The

were successful, and in the next few years they continued to expand

their product lines, compiled their own customer list, and eventually issued a shopping catalog. Nthough the catalog was successful, they discovered the most successful way to introduce a new item was to advertise it separately.

REFERENCES

225

In early 1980, Tom and Sally StJUven made arrangements to purchase 50,000 microrecorders

from a Korean manufacturer. These recorders measured I x

x

inches and were supplied with

a built-in microphone, a vinyl carrying case, a wrist strap, and a 3D-minute microcassette. The

microrecorder is operated by 4 AA batteries or an optional AC adapter.

This type of recorder became very popular in the past few years, particularly among busi-

nesspeople. A traveling executive or salesperson could dictate letters on the microrecorder and then have a secretary transcribe them onto letterhead. The microrecorder is also ideal as an audio notepad, substituting for paper-and pencil-notetaking.

The first microrecorder was brought to the mass market in 1975 and retailed for $400. Since

then, several companies entered the market, and today there are approximately twelve major brands available through traditional retail locations. The prices of microrecorders vary by the sophistication of the individual piece of equipment; however, the retail price range is $90 to $250.

American Import Corporation decided to offer its microrecorder for $39.95. Although Amer-

ican Import's product was a technically simply product, it did a very capable and reliable job of performing the basic task of recording and playing back the human voice.

With several years of direct marketing experience behind them, the Struvens decided to intro-

duce the microrecorder via direct marketing. They were planning an advertising campaign in Barron's, the Wall Street Journal, the New York Times, the Chicago Tribune, the Los Angeles Tim es, and a spot television campaign in selected markets.

The StJUvens were very excited about the sales prospects of their new microrecorder, and while

the media portion of their advertising campaign was rather obvious, they could not decide on the best creative approach for the product.

Several possible themes came to mind. For example, should the product be sold on the basis

of its comparatively low price? Its simplicity of operation? Its flexibility of use? Its size/convenience?

Perhaps they should use a competitive-comparison strategy? How about their no-risk, 3D-day

The products had anived from Korea. The media schedule had been set. Shipping procedures

were established. Contractual arrangements with service organizations had been made. The only obstacle between American Impo11 Corporation and a new source of profits seemed to be the selection of the most promising creative strategy for this new minirecorder.

1. What creative strategy would you recommend to the StJUvens')

2. Suggest three alternative creative executions of the recommended strategy for a print

advertisement.

REFERENCES

1. Don E. Schultz, Stanley 1. Tannenbaum and Robert F. Lauterborn , Inte-

5. Ann M. Mack, "Banner Daze," Adweek, May 22, 2000, p.86.

grated Marketing Communications, 1993, Chicago: NTC Business

6. "Shaping the Future of Sales Promotion ," Council of Sales Promo-

Books.

tion Agencies, 1990, pp. 3.

2. Tom Duncan , "A Macro Model of Ingetraged Marketing Communi -

7. "Careers in Public Relations," Public Relations Society of America,

cations:' American Academ)' ofAdvertising Annual Conference, 1995,

Summer 1989, pp.18-30.

Norfolk, VA.

8. Regis McKenna, "Relationship Marketing," 1991 , Reading, MA,

3. Melanie Wells. "Many Clients Prize Agency Efficiency over Cre-

Addison-Wesley Publishing Co.

ativity," Advertising Age, May 16, 1994, p.28.

9. Don E. Schultz, "Make Communications Worth the Profits," The Mar-

4. Terrance A. Shimp, Advertising Promotion, Fifth ed., 2000, The

keting News, January 15 , 2001, p. 13.

Dryden Press, p. 561.