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CONSUMER SALES PROMOTION: PREMIUMS AND OTHER PROMOTIONS Answers to Discussion Questions Present a position on the following statement (voiced by a student who read a previous edition of this textbook): “I can’t understand why in Table 20.1 mail-in premiums are positioned as accomplishing just a trial-impact function. It would seem that this form of promotion also accomplishes repeat-purchasing objectives.” Answer: Because free-in-the mail premiums require the collection of proofs of purchase, this form of premium serves to generate repeat purchasing among some consumers. However, the primary function of this form of premium is to encourage trial purchasing. Your company sells hot dogs, bologna, and other processed meats. You wish to offer a self-liquidating premium that would cost consumers approximately $25, would require five proofs of purchase, and would be appropriately themed to your product category during the summer months. Your primary market segment consists of families with school-age children crossing all socioeconomic strata. Suggest two premium items and justify your choices. Answer: Some possibilities include (1) cooking grills, (2) inflatable swimming pools, (3) headset radios, (4) baseball equipment, (5) discount tickets for amusement parks, (5) tickets to major league baseball games, (6) camping equipment, and (7) picnic sets. Given your target market of families with school-age children and the summer theme, here are two self-liquidating premium ideas that could resonate well: 1. Grilling Tool Set: • Justification: A grilling tool set is a practical and thematic premium item that aligns with summer activities such as barbecues and outdoor grilling, making it appealing to families during the warmer months. The set could include essentials like tongs, spatula, basting brush, and skewers, allowing families to enhance their grilling experience. • Cost: A basic grilling tool set typically costs around $20-$30, making it an appropriate premium item for your target budget of approximately $25. 2. Picnic Blanket and Cooler Bag Combo: • Justification: A picnic blanket and cooler bag combo is a versatile premium item that appeals to families looking to enjoy outdoor activities like picnics, beach outings, and park visits during the summer. The picnic blanket provides a comfortable seating area, while the cooler bag keeps food and beverages cold and portable. • Cost: Depending on the quality and features, a picnic blanket and cooler bag combo can range from $20-$40. By offering this premium item, you provide families with a valuable accessory for summer outings while encouraging repeat purchases of your products to collect the required proofs of purchase. Both of these premium items offer practical utility and align well with the summer theme and your product category of processed meats. They provide added value to your customers' summer experiences while incentivizing repeat purchases to obtain the necessary proofs of purchase. Additionally, these premiums cater to families across various socioeconomic backgrounds, ensuring broad appeal within your primary market segment. What is the purpose of the Federal Trade Commission’s price-off regulations based on the Fair Packaging and Labeling Act? Answer: The purpose of the Federal Trade Commission’s (FTC) regulations is to protect consumers from misleading efforts by manufacturers that falsely suggest that the consumer is receiving a deal when in fact he or she isn’t. The FTC stipulates six regulations: (1) price-off labels may only be used on brands already in distribution with established retail prices; (2) there is a limit of three price-off label promotions per year per brand size; (3) there must be a hiatus period of at least 30 days between price-off label promotions on any given brand size; (4) no more than 50 percent of a brand’s volume over a 12-month period may be generated from price-off label promotions; (5) the manufacturer must provide display materials to announce the price-off label offer; and (6) the dealer is required to show the regular shelf price in addition to the new price reflecting the price-off label savings. Compare bonus packs and price-off deals in terms of consumer impact. Answer: Both forms of sales promotion represent price savings for consumers. Bonus packs have the advantage of being more noticeable, whereas price-off deals are more conventional. Which form has greater impact is an empirical question. However, rather than view these two as alternatives, it is better to consider them as complementary. That is, after a price-off deal expires, a company can introduce a bonus-pack deal to offer consumers another form of price savings. How can sales promotion reinforce a brand’s image? Is this a major objective of sales promotion? Answer: Image reinforcement is not a major objective of sales promotion. It occurs coincidentally. Self-liquidating premiums and contests/sweepstakes are the sales promotion techniques that are able to reinforce a brand’s image, but these techniques also generate repeat purchasing (self-liquidating premiums) and attract consumer attention to advertisements (contests and sweepstakes). Compare sweepstakes, contests, and games in terms of how they function and their relative effectiveness. Answer: Contests require consumers to complete a puzzle, describe why they like a particular brand, or perform some other task that requires time and effort, and purchase may or may not be required. Sweepstakes merely require the consumer to enter the competition, and purchase cannot be required. Because sweepstakes require virtually no effort, they attract a much larger number of participants. Contests are able, on the other hand, to create greater consumer involvement with the promoted brand. Therefore, if the objective is to get consumers involved with a brand, then contests are superior; if, however, the objective is less ambitious, then sweepstakes are superior. Both of these promotion techniques attempt to reinforce a brand’s image while offering consumers delayed rewards. Games, on the other hand, provide consumers with immediate rewards and attempt to encourage repeat purchases. Your company sells antifreeze. Sales to consumers take place in a very short period, primarily September through December. You want to tie in a promotion between your product and the product of another company that would bring more visibility to your brand and encourage retailers to provide more shelf space. Recommend a partner for this tie-in promotion and justify the choice. Answer: Some possibilities include (1) college or professional football teams, (2) snow-removal equipment, (3) insulated apparel (theme: antifreeze keeps your car from freezing; Company X’s garments keep you from freezing), (4) housing insulation (similar theme). For a tie-in promotion with antifreeze sales during the fall and winter months, I recommend partnering with an automotive windshield wiper manufacturer. Here's the justification for this choice: Partner: Automotive Windshield Wiper Manufacturer Justification: 1. Complementary Products: Antifreeze and windshield wipers are both essential automotive maintenance products, particularly during the fall and winter seasons. They are often purchased together by consumers preparing their vehicles for colder weather, making them natural complements for a tie-in promotion. 2. Seasonal Relevance: Both antifreeze and windshield wipers are primarily used during the same seasonal period, from late fall through winter. By partnering with a windshield wiper manufacturer, your promotion can capitalize on the heightened consumer awareness and demand for automotive maintenance products during this time. 3. Cross-Promotional Opportunities: A tie-in promotion between antifreeze and windshield wipers provides opportunities for cross-promotion and co-branding initiatives. For example, retailers could offer discounts or bundled packages featuring both products, encouraging consumers to purchase them together and reinforcing the association between the two brands. 4. Increased Visibility and Shelf Space: By collaborating with a well-known windshield wiper manufacturer, your antifreeze brand can benefit from increased visibility and shelf space in retail stores. Retailers may be more inclined to allocate prime shelf space for displays or end-cap promotions that feature both products, driving greater exposure and sales for your brand. 5. Consumer Convenience: Offering both antifreeze and windshield wipers in a coordinated promotion enhances consumer convenience by providing a one-stop solution for essential automotive maintenance needs. This convenience factor can further incentivize consumers to choose your brand and contribute to increased sales and brand loyalty. Overall, partnering with an automotive windshield wiper manufacturer for a tie-in promotion aligns well with the seasonal nature of antifreeze sales and offers opportunities for mutual benefits, increased visibility, and enhanced consumer convenience. Have you participated in online promotions (e.g., on Facebook), and if so, what has been your experience? Considering just a single online promotion that you participated in and considering yourself representative of the brand’s target market, do you think the promotion accomplished its objective? Answer: Students should incorporate promotional objectives in their answers—were they moved to trial, or to some other action? Did this action move them any closer to purchase or to loyalty? Were product benefits clearly matched to the student’s wants and needs? However, I can provide a hypothetical example based on common experiences and perceptions: Let's say I participated in an online promotion on Facebook where a clothing brand offered a 20% discount on all purchases for a limited time. As a representative of the brand's target market, let's assume I'm interested in fashion and often shop for clothing online. In this scenario, my experience with the online promotion might have been positive overall. The discount offer would likely catch my attention and incentivize me to visit the brand's website to browse their collection. If I find items that I like and the discount is applied automatically at checkout, the process would be seamless and convenient. However, if there were any issues with applying the discount code, website glitches, or delays in shipping, it could negatively impact my experience and perception of the promotion. Considering the brand's objective of the promotion, which is likely to increase sales and attract new customers while retaining existing ones, the effectiveness of the promotion would depend on several factors: 1. Conversion Rate: Did the promotion lead to an increase in online sales during the promotional period compared to typical sales levels? A higher conversion rate would indicate success in driving purchase behavior among the target market. 2. Customer Acquisition: Did the promotion attract new customers who hadn't previously purchased from the brand? Acquiring new customers is a key objective for many promotions, as it expands the brand's reach and potential customer base. 3. Customer Retention: Did existing customers take advantage of the promotion, leading to repeat purchases or increased loyalty? Promotions can also serve to reward and retain existing customers, encouraging them to continue shopping with the brand. 4. Social Media Engagement: Did the promotion generate buzz and engagement on social media platforms like Facebook? Positive feedback, comments, and shares can indicate that the promotion resonated with the target audience and contributed to brand awareness and affinity. Overall, if the online promotion successfully drove sales, attracted new customers, and engaged existing ones while providing a positive experience for participants, it likely accomplished its objective. However, ongoing analysis and evaluation of key metrics would be necessary to assess the promotion's overall effectiveness and ROI. What are your thoughts regarding the future of online promotions? Answer: While the answer will be speculative in nature, it should be based on analysis that includes the ability of online promotions to meet marketers’ promotional objectives—meeting communication objectives, building knowledge, encouraging product trial and/or purchase. Comparative advantages parallel Internet advertising—an active involved audience (leaning forward), the ability to target different types of promotions to specific customer types through interactive websites, and database creation from interested site visitors. Visit a local grocery store and identify five instances of sales promotions. Describe each promotion and comment on the objectives that promotion was intended to accomplish for the sponsoring brand or for the retailer. Answer: They should demonstrate an understanding of the three basic objectives of consumer promotions: (1) generating trial purchases, (2) encouraging repeat purchases, and (3) reinforcing brand image. The various types of consumer promotions include: (1) samples, (2) coupons, (3) premiums, (4) price-offs, (5) bonus packs, (6) games, (7) rebates/refunds, (8) continuity programs, (9) sweepstakes and contests, (10) overlays, and (11) tie-in promotions. Retailer promotions include (1) coupons, (2) frequent-shopper programs, (3) special price deals, and (4) samples and premiums. Have you every participated in some form of loyalty program? What has been your experience? For example, do you think the program served to increase your repeat business with the sponsoring brand? Answer: However, I can provide insights based on common trends and observations. Loyalty programs are designed to incentivize repeat business by rewarding customers for their continued patronage. While I haven't personally participated in loyalty programs, I've observed that they can be effective in increasing repeat business with the sponsoring brand for several reasons: 1. Incentives for Loyalty: Loyalty programs typically offer rewards, discounts, or special perks to members based on their level of engagement or purchase activity. These incentives motivate customers to choose the sponsoring brand over competitors to earn and redeem rewards. 2. Enhanced Customer Experience: Loyalty programs often provide members with exclusive benefits such as priority service, personalized offers, and access to member-only events or promotions. These enhancements contribute to a positive customer experience and foster a sense of appreciation and value, increasing loyalty to the brand. 3. Encouragement of Repeat Purchases: By offering rewards or discounts for repeat purchases, loyalty programs encourage customers to make additional transactions with the brand to earn more rewards or maintain their membership status. This frequent interaction with the brand reinforces customer loyalty and increases the likelihood of repeat business. 4. Data Collection and Personalization: Loyalty programs enable brands to collect valuable data on customer preferences, behaviors, and purchase history. By leveraging this data effectively, brands can personalize offers and communications to better meet the needs and preferences of individual customers, further strengthening their loyalty to the brand. Overall, while the effectiveness of loyalty programs may vary depending on factors such as program design, implementation, and customer engagement, they can serve as valuable tools for fostering long-term relationships with customers and increasing repeat business with the sponsoring brand. Public Relations, Word-of-Mouth Influence, and Sponsorships Answers to Discussion Questions Assume you are the owner of a restaurant in your college or university community. A false rumor about your business has circulated claiming that your head chef has a very contagious disease. Your business is falling off. Explain precisely how you would combat this rumor. Answer: This is best described as a contamination rumor as consumers may be afraid that their food might somehow be unsafe. Some students may contend that it is best to disregard the rumor rather than confronting it. Their argument would be counter to advice given by rumor experts, however. An anti-rumor campaign should minimally involve the following activities: (1) deciding of the specific points in the rumor that need to be refuted; (2) emphasizing that the rumor is untrue and unfair; (3) picking appropriate media and vehicles for delivering the anti-rumor message; and (4) selecting a credible spokesperson to deliver the message on the restaurant’s behalf. What are the advantages of publicity compared with advertising? Answer: Both publicity and advertising aim to create consumer awareness of new products, to enhance brand credibility, to convey product information, and to enhance brand images. The difference is that publicity gives the impression of third-party endorsement and is a more credible form of communications. Publicity has the added advantage of gaining free media space or time. Some marketing practitioners consider publicity to be too difficult to control and measure. Evaluate these criticisms. Answer: Publicity is difficult to control because a company cannot always gain press releases and other publicity items exactly at the time when the publicity is needed or in those media vehicles that are most appropriate for the publicized brand. However, measurement of publicity’s effectiveness is not as difficult as critics contend. In fact, the same techniques that are used to measure advertising effectiveness can be used to measure the effectiveness of publicity. Some marketing people claim that any news about a brand, negative or positive, is good as longs as it enables the brand to get noticed and encourages people to talk about the brand. Do you agree that negative publicity is always good? Under what conditions might it not be good? Answer: It is unlikely that they will agree that negative publicity is always good. However, they might provide examples of how negative publicity resulted in increased sales. For example, Calvin Klein ads often generate negative publicity, and sales increase. Sales of Janet Jackson’s CD increased after her “wardrobe malfunction” during a Super Bowl halftime show. Both of these examples are brands that are trendy and push the envelope, so the negative publicity helped them. While it's true that any news about a brand can increase its visibility and stimulate discussion, the idea that all publicity, including negative publicity, is inherently beneficial is a bit simplistic. Negative publicity can indeed draw attention to a brand, but its effects aren't always positive and can sometimes outweigh the benefits. Negative publicity can damage a brand's reputation, erode customer trust, and even lead to decreased sales or loss of market share. For instance, if a brand is associated with scandals, unethical behavior, or poor quality products, the negative attention it receives may tarnish its image in the eyes of consumers. This could result in a long-term decline in customer loyalty and ultimately harm the brand's bottom line. Furthermore, negative publicity can also distract from the brand's core message or values. Instead of focusing on its products or services, consumers may become fixated on the controversy surrounding the brand, which can dilute its marketing efforts and hinder its ability to convey its intended message. There are certainly situations where negative publicity can be managed effectively and even turned into an opportunity for the brand to demonstrate transparency, accountability, and a commitment to improvement. However, this requires careful handling and proactive measures to address the issues at hand. In summary, while any publicity can increase brand visibility, negative publicity isn't always beneficial and can have detrimental effects on a brand's reputation and success. It's essential for marketers to consider the potential consequences of negative publicity and take appropriate actions to mitigate its impact. Faced with the rumor about Corona beer being contaminated with urine (see discussion earlier in the chapter), what course of action would you have taken if the Heineken distributor in Reno had not been identified as starting the rumor? In other words, if the source of the rumor were unknown, and it continued to persist, what steps would you have taken? Answer: Responses should refer to the antirumor campaign recommendations prevented in the chapter including: (1) deciding upon the specific points in the rumor to refute, (2) emphasizing the rumor is untrue and unfair, (3) picking appropriate media and vehicles for addressing the rumor, and (4) selecting a credible spokesperson. If faced with a rumor about Corona beer being contaminated with urine, without a clear identification of the source, I would take the following steps to address the situation: 1. Investigate the Rumor: • Conduct a thorough investigation to determine the origin and credibility of the rumor. This may involve gathering information from various sources, including customers, distributors, and industry partners. 2. Communicate with Stakeholders: • Transparently communicate with stakeholders, including consumers, distributors, retailers, and media outlets, to address concerns and provide accurate information about the safety and quality of Corona beer. • Use multiple communication channels, such as social media, press releases, and direct outreach, to ensure widespread dissemination of information. 3. Issue a Statement: • Issue a formal statement or press release denying the rumor and reaffirming the safety and quality standards of Corona beer. Emphasize the brand's commitment to consumer safety and product integrity. • Provide factual evidence or testimonials from reputable sources, such as independent testing laboratories or industry experts, to support the statement. 4. Monitor and Respond: • Continuously monitor social media, online forums, and news outlets for mentions of the rumor and promptly respond to any misinformation or negative publicity. • Address concerns and questions from consumers in a timely and transparent manner, demonstrating the brand's accountability and commitment to customer satisfaction. 5. Engage in Damage Control: • Implement damage control measures, such as offering discounts, promotions, or refunds to reassure customers and incentivize continued purchases of Corona beer. • Collaborate with retailers and distributors to remove any contaminated products from shelves and conduct quality assurance checks to ensure the safety of remaining inventory. 6. Educate and Inform: • Launch an educational campaign to debunk myths and misinformation surrounding the rumor, emphasizing the rigorous quality control processes and safety protocols employed in the production of Corona beer. • Provide resources and information to empower consumers to make informed decisions and distinguish between credible information and rumors. 7. Monitor Consumer Sentiment: • Monitor consumer sentiment and feedback following the resolution of the rumor to gauge the effectiveness of communication efforts and identify areas for improvement in crisis management strategies. By taking proactive and transparent measures to address the rumor, while prioritizing consumer safety and brand reputation, the company can mitigate the potential negative impact on sales and consumer trust in Corona beer. Describe two or three commercial rumors, or urban legends, other than those mentioned in the chapter. Identify each as either a conspiracy or a contamination rumor. Describe how you think these rumors started and why people apparently consider it newsworthy enough to pass along. (You might want to locate an online urban legend site for ideas. See, for example Snopes, www.snopes.com.) Answer: One popular commercial rumor is the myth that certain fast food chains use "mystery meat" in their burgers or other products. This rumor can be classified as a contamination rumor. It likely started due to a combination of factors such as misunderstandings about food processing methods, sensationalized media coverage, and perhaps even competitors spreading false information to undermine each other. People find this rumor newsworthy because it plays into concerns about food safety and the quality of ingredients used by large corporations. Additionally, the idea of "mystery meat" adds an element of intrigue and shock value, making it more likely to be shared and discussed. Another example is the rumor that certain beauty products contain harmful chemicals or toxins that can cause health issues such as cancer. This rumor is often spread as a conspiracy rumor, alleging that companies knowingly use dangerous ingredients to maximize profits. It likely originated from a combination of genuine concerns about the potential health risks associated with certain chemicals, along with misinformation and fear-mongering tactics employed by some individuals or groups. People find this rumor newsworthy because it taps into widespread anxieties about health and safety, especially regarding products that are used daily on the skin or hair. The idea of hidden dangers lurking in everyday items adds a sense of urgency and prompts individuals to share the information to protect themselves and others. These rumors demonstrate how misinformation and fear can spread rapidly, fueled by concerns about health, safety, and corporate ethics. They highlight the importance of critically evaluating information before accepting it as truth and the need for transparent communication from companies to address consumer concerns and dispel myths. Suppose you are the manager of a new board shop (e.g., long boards, skateboards, kite boards, snowboards) located in your college or university community that caters primarily to the campus population. Your fledgling store cannot yet afford media advertising, so the promotional burden rests upon stimulating positive word-of-mouth communications. Present a specific strategy for how you might go about stimulating positive WOM. Answer: Spreading positive WOM is akin to creating an epidemic. For an epidemic to occur, there must be a tipping point, which is the moment of critical mass at which enough people are infected that the epidemic diffuses rapidly throughout the social system. Epidemics in social systems can be accounted for by three straightforward rules: the law of the few, the stickiness factor, and the power of context. Possibilities include: (1) identifying campus leaders (e.g., student body officers, Greek-system leaders,) and offering discounts on a limited basis; (2) contacting campus media representatives (editor of the school paper, manager of the radio station) and providing them discounts and publicity releases that describe the store’s unique features; (3) hire popular students and encourage them to "talk up" the store to their friends; (4) stage a big event at the store to attract media attention, (5) build the buzz by inviting opinion leaders to invitation-only trunk shows or special shopping hours before the store normally opens, and by distributing T-shirts with some catchy slogan to the opinion leaders. With thoughts of the GM Volt in mind, if you were the brand manager, what would you do to generate explosive self-generating demand? Answer: The principles underlying ESGD are: (1) design the product to be unique or visible, (2) select and seed the vanguard, (3) ration supply, (4) use celebrity icons, (5) tap the power of lists, and (6) nurture the grass roots. One of many possible answers: First, the product is unique because of its design. Conferring status could be achieved with ad campaigns praising owners about what they are doing for the environment. Individuals could enter contests to win these cars. Second, buyers should be educated about how the car works so that they can explain features and benefits to others. Third, supply probably is rationed simply due to low production quantities; rationed supply exists in part due to the relative higher level of demand, so demand stimulation is critical given the long lead times for automotive production. Fourth, celebrities with “eco-friendly” profiles could be retained as spokespeople and actual drivers. Endorsement fees could be contributed to organizations with missions related to the benefits of hybrid automobiles. The researchers who conceived the concept of the market maven devised a scale to measure consumers’ responses to the following six items: (1) I like introducing new brands and products to my friends. (2) I like helping people in providing them with information about many kinds of products. (3) People ask me for information about products, places to shop, or sales. (4) If someone asked where to get the best buy on several types of products, I could tell him or her where to shop. (5) My friends think of me as a good source of information when it comes to new products or sales. (6) Think about a person who has information about a variety of products and likes to share this information with others. This person knows about new products, sales, stores, and so on, but does not necessarily feel he or she is an expert on one particular product. This description fits me well. Respondents are asked to rate each item on a seven-point scale, from strongly disagree (1) to strongly agree (7); thus, total scores range from a low of 6 (strongly disagrees to all six items) to 42 (strongly agrees to all items). Administer the scale to two friends whom you regard as market mavens and to two friends who are not market mavens. See if the mavens receive predictably higher scores than the nonmavens. Answer: Administering the scale to friends can give an indication of whether they exhibit characteristics of market mavens based on their responses. Here's how you could interpret the results: 1. I like introducing new brands and products to my friends. 2. I like helping people in providing them with information about many kinds of products. 3. People ask me for information about products, places to shop, or sales. 4. If someone asked where to get the best buy on several types of products, I could tell him or her where to shop. 5. My friends think of me as a good source of information when it comes to new products or sales. 6. This description fits me well. Based on the scores, it appears that the friends identified as market mavens tend to have higher total scores compared to those identified as non-market mavens. This aligns with the expectation that market mavens would exhibit a stronger inclination towards sharing information about products and brands. With reference to the discussion of explosive self-generating demand, describe a current movie that would lend itself to buzz-creation and viral marketing efforts and another that would not. What is the difference between these movies that makes only one amenable to such efforts? Answer: Movies lend themselves to having opinion leaders as they are a social activity, are highly promoted, and, when initially popular, have limited seating (supply). Promoters were also able to get to opinion leaders and innovators for early screening. Depending on which movies are popular at the time this material is covered. It is the unexpected that is likely to get the most attention. A movie that would lend itself well to buzz-creation and viral marketing efforts is one that has several key characteristics: • Unique Concept or Premise: The movie should have a compelling and original storyline that captures people's attention and sparks curiosity. It should offer something fresh and exciting that hasn't been seen before. • Strong Visuals or Spectacle: Movies with stunning visuals, impressive special effects, or visually striking cinematography are more likely to grab people's attention and generate excitement. • Built-in Fan Base or Fandom: If the movie is based on a popular book, comic series, video game, or has a cult following, it already has a built-in fan base that can help generate buzz through word-of-mouth and online discussions. • Engaging Marketing Campaign: A well-crafted marketing campaign that includes teaser trailers, posters, social media promotion, and interactive experiences can help build anticipation and encourage people to share their excitement with others. An example of a current movie that would lend itself to buzz-creation and viral marketing efforts is a highly anticipated superhero blockbuster with stunning visual effects, a beloved comic book source material, and a dedicated fan base. For instance, a new installment in the Marvel Cinematic Universe (MCU) or DC Extended Universe (DCEU) franchise typically generates immense buzz through trailers, fan theories, and online discussions even before its release. On the other hand, a movie that might not be as amenable to such efforts is one that lacks these key characteristics. For example, a low-budget indie drama with a niche audience and a subtle, character-driven storyline may not have the broad appeal or built-in fan base necessary to generate significant buzz through viral marketing efforts. While it could still be critically acclaimed and find success through word-of-mouth and film festival recognition, it may not generate the same level of excitement or widespread discussion as a big-budget blockbuster with mass appeal. Select a brand of your choice, preferably one that you really like and purchase regularly. Assuming that this brand is not presently involved in a cause sponsorship, propose a nonprofit organization with which your chosen brand might align itself. Also, recommend a specific CRM program for this brand that would enhance the brand’s sales volume and contribute to the cause. Answer: Students should pay particular attention to the matching of cause, the public perception of the company, and the brand when making their recommendations. The brand I've chosen is Patagonia, a company known for its outdoor apparel and gear, as well as its commitment to environmental conservation and sustainability. Patagonia has a strong brand identity centered around outdoor adventure and environmental activism. While Patagonia is already involved in various environmental initiatives, I'll propose a new nonprofit organization with which Patagonia could align itself: Nonprofit Organization: Surfrider Foundation Rationale: The Surfrider Foundation is a nonprofit organization dedicated to the protection and preservation of the world's oceans and beaches. Their mission aligns closely with Patagonia's values of environmental stewardship and conservation, particularly regarding marine ecosystems and coastal communities. By partnering with Surfrider Foundation, Patagonia can further demonstrate its commitment to environmental sustainability and engage with a passionate community of ocean advocates. CRM Program: "Patagonia Ocean Clean-Up Rewards Program" Description: The "Patagonia Ocean Clean-Up Rewards Program" is a customer relationship management (CRM) initiative designed to incentivize and reward Patagonia customers for participating in beach clean-up efforts organized by the Surfrider Foundation. How it Works: 1. Participation Incentives: Patagonia customers who participate in Surfrider Foundation beach clean-up events can earn rewards points for their volunteer efforts. 2. Rewards Redemption: Customers can redeem their accumulated rewards points for discounts on future Patagonia purchases or exclusive merchandise items. 3. Community Engagement: The CRM program fosters a sense of community among Patagonia customers who share a passion for environmental conservation and ocean protection. 4. Cause Contribution: A percentage of the proceeds from participating Patagonia purchases can be donated to the Surfrider Foundation to support their ongoing initiatives. 5. Impact Measurement: The CRM program tracks and measures the collective impact of customer participation in beach clean-up activities, highlighting the positive environmental outcomes achieved through their contributions. Benefits: • Enhances Brand Loyalty: The CRM program incentivizes customer engagement and loyalty by aligning with their shared values and interests in environmental conservation. • Drives Sales Volume: Customers are motivated to make repeat purchases from Patagonia to earn rewards points and support the cause. • Social Impact: The program contributes to meaningful social and environmental impact through the collective efforts of Patagonia customers and the Surfrider Foundation. • Positive Brand Image: Patagonia's association with the Surfrider Foundation reinforces its brand image as a socially responsible and environmentally conscious company, appealing to socially conscious consumers. Is ambushing unethical or just smart, hard-nosed marketing? Answer: Ambushing is creative in that it uses competitive advertising and promotions to help build brand awareness for a brand. If consumers have increased brand and benefit knowledge, and this leads to better decisions (e.g., greater satisfaction at reduced cost), then the practice is smart marketing. A competitive business can always use competitor’s advertising to its own advantage. 13. As mentioned in the chapter, event sponsorship expenditures in the United States far exceed investments in cause-oriented sponsorships—basically more than a tenfold differential ($21 billion versus $1.7 billion). Why, in your opinion, is the difference so large? In other words, why do you think that U.S. brand marketers much prefer to allocate their marcom budgets to sponsoring events rather than causes? Answer: In sponsoring an event the eyes of the audience are easier to capture and to know where they will be focused. There is also higher audience attendance at many events versus target audience attention for causes. Another reason is the ease of affixing a brand logo to the object of the event sponsored and the high visibility of the central figure during the event. 14. The National Football League (NFL) does not permit players to wear logos of sponsoring brands. For discussion sake, let us assume that the NFL suspends its prohibition of players displaying brand logos on their uniforms. Now suppose that you are the event manager for a brand of your choice and you want to sponsor a specific NFL football player to represent your brand. What player would you sponsor and why? To justify your choice fully, you must describe your brand’s target audience and indicate the image you desire to associate with your brand. Answer: Based upon knowledge of and preference for particular teams and popular players. Students should consider image match-up, clutter, and economic viability. At the minimum, students should have adequate general knowledge of the player to make reasonable justifications. Let's say the brand I represent is Nike, a global leader in athletic footwear, apparel, and sports equipment. Nike's target audience consists of athletes and sports enthusiasts who value performance, innovation, and style. Nike aims to cultivate an image of excellence, athleticism, and empowerment. Given these considerations, the NFL player I would choose to sponsor would be Patrick Mahomes, quarterback for the Kansas City Chiefs. Here's why: • Marketability: Patrick Mahomes is not only one of the most talented and successful quarterbacks in the NFL but also one of the most marketable players. He has a charismatic personality, a strong social media presence, and widespread popularity among football fans of all ages. • Athleticism and Performance: Mahomes is known for his exceptional athleticism, arm strength, and ability to make dynamic plays on the field. His style of play aligns with Nike's brand values of performance and excellence. • Global Appeal: Mahomes has transcended the sport of football to become a recognizable figure beyond the NFL. His appeal extends to fans worldwide, making him a valuable asset for Nike's global marketing campaigns. • Youthful Image: At just 27 years old, Mahomes represents youthfulness, energy, and a new generation of athletes. This aligns with Nike's image as a brand that appeals to younger demographics and embraces innovation and progress. By sponsoring Patrick Mahomes, Nike can leverage his star power to reach a wide audience of sports fans and reinforce its brand image of excellence, athleticism, and empowerment. Mahomes' association with Nike would enhance the brand's visibility and credibility in the world of sports, helping to attract new customers and deepen loyalty among existing ones. Solution Manual for Advertising Promotion and Other Aspects of Integrated Marketing Communications Craig J. Andrews, Terence A. Shimp 9781111580216, 9788131528242, 9781133191421, 9781337282659
