Mar 3023 Lecture 5: Lecture 5 (ch. 8:10)
• Kim Kardashian → morning sickness drug → FDA said that her Instagram post promoting
was false because she didn’t say the side effects
• Abilify → depression drug → talks about side effects and contacting your doctor
• Promotion Mix
o Promotion is an element in the marketing mix
• Integrated Advertising → letting the consumers have a voice {ex: American idol} → judges
going on talk shows that are on the same network
• Informative Advertising → Honda showing all the different products they make →
motorcycles, cars, airplanes, robots, etc.
• Persuasive Advertising → DHL → put labels on boxes for different companies (UPS, FedEX)
to deliver in public saying “DHL is faster”
• Reminder Advertising → Land Rover “esc” button on keyboard
• New Advertising Approach
o Don’t tell me, show me → Glass igloo in Scandinavia showing the northern lights
• Why videos go viral – Kevin Alocca
o Double Rainbow video viewed 23 million times b/c of Jimmy Kimmel
o Rebecca Black Friday
o Sweet Brown – Ain’t nobody got time for dat
o Tastemakers [people that have larger audience], Community of Participation [ppl
texting to their friends], Unexpectedness
• Product Placement
• Domino’s Pizza Campaign – DVD player making a pizza
Chapter Ten
• Airlines – 747 and Concord and de-regulation changed pricing and airline classification,
first class is going away
• If you raise the price of a product, will the consumer buy more? Or less? Or the same?
Buy more – prestige product; buy less – price sensitive; buy the same – not price
sensitive
• Orlando Magic – Demand Based Pricing
o Disney, Uber Surge Pricing, Ski Resorts, Zoos, Toll Roads
• Price Psychology & Online Marketing: #2 The Comma Effect – putting a comma in
number makes people think that its bigger; #3 The Relative Size Effect – making the new
sale price smaller than the “was” price; #4 Consolidated Surcharges – lumping tax and
surcharges; #5 Order of Pricing listing in descendent order makes ppl choose the more
expensive beer;
Chapter Nine
Starbucks Supply Chain
UPS → WorldPort – sorts 1 million packages a day; sticker w information and then tracking,
local ups center, shipping 550 acres worldport 11pm-4AM ; 100 planes 500 big rigs ; pod
weighs 2,000 pounds, 17,000 conveyer belts
UPS ORION: on road integrated optimization and navigation; 85 million less miles driven
