BU121- February 2 2013
COPY SLIDES AFTER ECON MIDTERM AND PRINT NOTES! Powerpoint: “Reaching the Customer”
The 5 drivers of brand insistence (copy slides) ARAVE acronym
Accessibility- be able to buy it
Relevant Differentiation- Meets needs of customers; is it unique?
Awareness- must “stand out” in heads of customers
Value- must give customers good value
Emotional Connection- A “gut feeling” that bonds you to the brand!
Objectives of pricing
o Âpproaches (i.e. penetration, loss leader)
o Cost-based – markup (text calculation)
Competitive based- market share (your product vs theirs)
Consumer-based value: what are THEY going to see as value?
o Supports CBP (Core benefit proposition)
o Test pricing (to attract people to test drive)
o Fortune magazine- came out around Great Depression. Founded by co-founder of Time
magazine (waited till partner passed away)…Fortune was priced at $1 just b/c of cover
printing while Wall Street Journal cost 5 cents. Within hours, sold outl
Specific Strategies/Tactics (TEXT)- penetrate market, skim market (high price with intent of
bringing down- products with lots of upfront costs- Xbox), odd even pricing (2.99 or 3)or…?
The two key opportunities with AWAKE Energy Drinks are taste and price:
Awake tastes better than red bull, also priced better Promotion
Advertising (“Any form of non-personal sales presentation of a long-term nature that is paid for
by an identified sponsor”)
Sales Promotion- short term! To grasp attention from new potential customers
Publicity- not sponsored. It’s what people give you when they talk about you…can be good or
= Integrated marketing Communication (IMC)
The 4 P’s must be communicated (Price Product Place Promotion).
Create awareness, interest, desire and action
Communicate CBP to position product in consumer’s mind
Creativity must SELL and have a purpose!
Phil Collins “gorilla drummer” Cadbury ad- shows unlikely theme (gorillas) to advertise
chocolate; elicits emotion…BUT does not communicate CBP and describe the product
Twinnings gets back to you- Twinnings Tea- moderates a turbulent day- also has a message
The message must be clear- can`t be too artsy
Honda Civic Ad: irrelevant
Visuals can be simple!
Key is to SELL products Source….(message)….medium…receiver…feedback
The medium must not break
No credibility = no attention paid
Spokesperson must be credible- someone who can potentially use the product!
Using celebs is high risk (i.e. Lance Armstrong)
Pros and Cons: Buckley’s- Tastes Awful and it works
o Very credible and powerful