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Promotional Techniques

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Ricky Chhoy

on 2 November 2013

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Transcript of Promotional Techniques

Marketing communication can be defined as utilizing promotional tools that communicate information about an organization and it’s product and services favorably to it’s target market (Odunlami & Ibojo Bolani 2011).
What is promotion?
Promotions - Advertising - Communication
Jerman and Damjana (2012) states that “Marketing communications can contribute to brand equity as well as drive sales and profits and even affect shareholder value. Market performance as a type of organizational performance is typically related to market communication effectiveness expenditures for such variables as market share and sales”.
Why promote?
Direct marketing
Sales Promotions
Public relations
Personal Selling
How to promote?
1. Celebrity endorsements
2. Sponsorships
3. Public relations
4. Product placement
Techniques on focus
“Any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement” (McCracken 1989 cited in Bergstrom & Rijkard 2004)
What is celebrity endorsement?
Meaning transfer model
SOURCE: McCracken, 1989 cited in Bergstrom & Rijkard 2004
Why use Celebrities?
"Celebrities provide a verity of characteristics and a special life-style that anonymous models cannot offer. Celebrities “possess” their meanings because they have created them on the public stage by impression of intense and frequent performance." (Bergstrom & Rijkard 2004)
Endorser selection based on TEARS Model
Pepsi Endorsers
Immoral rap-thug
Sexual predator
Pepsi Endorsers
Culture has positive perception

of celebrity
Celebrity has positive and strong association
Culture correlates product to positive celebrity associations
Market consumes product for culturally desired association
Celebrity satisfies TEARS model
Celebrity Endorsers Summary
Firms pay to place a branded product, for example their brand name or logo, in the content of mass media programming such as TV and film (Zimmerman 2013).
What is product placement?
Why use product placement?
It is a way to promote their product and create brand awareness and can be highly successful. For example, Reese’s Pieces sales rose 65% after its placement in E.T (Zimmerman 2013).

Product placement can directly or indirectly influence us (Homer 2009)
Pepsi wants to show the younger demographic in Japan that Pepsi NEX is still seen as a ‘hip’ choice for young people as it clearly is the ‘super-heroes choice’ of drink.
Advertising in Japan through use of anime =

Prominent cues to capture audience attention of a new product =
Pepsi NEX is a zero calorie Pepsi available in Japan
Prominent placement cue which is repeated
Pepsi trying to grab audience’s attention directly
Pepsiman was given his own video game on the original Playstation in 1999 (Carrigan 2013).
This placement strategy is focused at children primarily, and Pepsi wanted to create the idea that by drinking Pepsi it allows you to become ‘adventurous superheroes’ (Carrigan 2013)
Technique has the possibility of a ‘backlash’ effect of the audience as it is distracting, in your face and above all, clearly self-serving to Pepsi (Homer 2009).
Brand attitudes decrease when product placements are obvious, especially when they are repeated (Homer 2009).
Advertising in Japan through a video game = ✔
Blatant and self-serving product placement = ✖
Product placement that does not create brand relationship = ✖
Why do you think Pepsi chose to use American Idol as a media channel to place its product in the US market?
American Idol is one of the most popular reality TV programs in America, with around 23 million people watching nation wide
Gives Pepsi high exposure to not only its target audience but also to the mass market through the use of indirect product placement cues, the product is more readily viewed as a prop rather than a marketing technique (Homer 2009).
Subtle placement cues = +1
Commonly known as one of the most blatant product placements in film
Subtle cues can often be more effective than prominent cues as they are seen as less suspicious (Homer 2009)
Brand attitudes would have decreased slightly as the placement does appear to be self-serving to Pepsi.
Less is more - no need for such obvious cues! =
This film was a popular film in Lebanon and appeals to a young demographic, as well as families, which focuses on Pepsi’s target audience
Association with pop stars, music, fun, festivals and inspirational/respectable celebrities
Using product placement through films subtly =
Pepsi sponsored the film "Bahr Al Nojoum" but decided to use the technique of product placement within the film to emphasis their sponsorship
An excerpt from a short film in China, Bringing Happiness Back. It shows a young man emotionally holding the Pepsi bottle then having a flashback to when he was younger with his dad, drinking it
The film targets the audience’s emotions and past associations with the product.
Shows that positive memories are associated with Pepsi
The film was made for the Chinese New Year - timing was perfect as many people are with their families at this time, feeling more vulnerable to emotional marketing appeals
Placing product in an emotional setting through use of film in China =
Innovative media placement channel - works well in technologically advancing countries such as China =
American Idol - USA - Reality TV
Bahr Al Nojoum - Middle East - Feature Film
Bringing happiness back - China - Short film
Back to the future - USA / International - Feature film
Tiger and Bunny - Japan - Anime
Pepsiman - Japan - Videogame
What is sponsorship?
Sponsorship is a form of advertising where a firm provides funds for events/programs such as a television program or sports event in return for exposure to a target audience (Business & Management Dictionary 2011)
Why use sponsorship?
How do different brand promotion methods work (or don’t work) across borders and cultures.
It is important for business’ as it is used to create and enhance a favourable image to the company (Fletcher & Crawford 2011)•
Although sporting events attract the most sponsorship overall, it is important to adapt to each International Marketing culture to achieve the best results•
Pepsi utilises this by choosing to sponsor popular, well-known sporting events in countries around the world
IPL – Indian Premier League is a very sacramental and respected sporting event in India
It gives Pepsi high exposure to the mass market through the sponsorship of such a popular and broadcasted event
This enables the brand to create a favourable image for itself and deliver its message to larger audiences
The strategy video game where individuals compete against each other is very popular with teenagers and young adults, therefore this sponsorship appealing to Pepsi’s younger target market
Very popular in South Korea and is streamed on television
Adapts to the gaming culture of the Asian population
Global StarCraft 2 League in Korea is a major international marketing sponsorship Pepsi has undertaken to increase brand image and awareness throughout Korea
NFL – National Football League is one of the most popular sporting events in the United States•
Through Pepsi sponsoring the NFL Super Bowl it gives the brand the image of prestige•
American culture of drinking soda at sporting events goes well with the sponsorship of Pepsi (Dwyer 2013)•
American Football is a greatly respected sporting event throughout the USA and gains a lot of media coverage, resulting in more air time and product placement of the Pepsi brand•
Fans have a very high psychological commitment to the sport (Dwyer 2013)
Backto Gossip 2007, Here to stay – Christina Aguilera Pepsi commercial, 19 March, online video, viewed 22 April 2013, < http: //www.youtube.com/watch?v=Rhnclq6pz34>
Chhoy, R 2013, Pepsi celebrity endorsers, 22 April, online video, viewed 22 April 2013, <http ://www.youtube.com/watch?v=-FtgVHDnel0>
Chhoy, R 2013, Pepsi product placement, 22 April, online video, viewed 22 April 2013, <http ://www.youtube.com/watch?v=3wdfAPs0P1M>
Chhoy, R 2013, Product placement video, 22 April, online video, viewed 22 April 2013, <http ://www.youtube.com/watch?v=-TmFETS-FME>
Ricky Chhoy
Public relations is defined as the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance (Belch & Belch 2009)
What is Public Relation?
Why use public relations?
- Public relation is one of the most effective forms of communication for persuading and changing public opinions through using multiple media outlets. It utilizes publicity and a variety of other tools including special publications, participation in community activities, fund raising, sponsorship of special events, and various public affairs activities to enhance an organizations image (Belch & Belch 2009).
- They are considered dependable sources for companies and consumers as consumers are constantly looking for trustworthy sources (Turner 2009).
- The role of a PR is to publicize all traits and attributes to the public to lead to a target market or organization.
- Effective PR efforts will gain companies the ability to have high positive reputation that thus leads to attracting investors, hiring staff and exerting influence in government (Pride & Ferrell 2012).
- Pepsi launched a dynamic global campaign called ‘Pepsi Refresh Project’ that focused to create deeper relationships with their customers in the attempt to gain ‘ Goodwill’ for the community by turning ideas into reality and moving communities forward
- This project encouraged individuals and organizations to submit their ideas that would make a positive impact in their community
- Pepsi funded grants in projects that will make a difference in six categories: Arts & Culture, Health, Food & Shelter, The Planet, Neighborhoods and Education. The Refresh Project grants ranged from $5000- $250,000
- The Pepsi Refresh Project was developed with a belief that great ideas can come from anyone, anywhere and anytime.
- Through the use of social media, PepsiCo has taken their efforts to launch a social vending machine in the UK via Facebook, where it allows users to buy or gift a drink buy simply entering recipients name, mobile number and adding a personalized text or video message at the end
- This project derives from PepsiCo Equipment Innovation Group that aims to make use of technology to promote company brands. (Marketing Week)
Pepsi Social Vending Machine
- Public Relations is one of the most effective forms of communication
- Plays a major role in changing public opinion and shaping views through the use of multiple media channels in foreign markets
- Build company’s reputation and goodwill in foreign market
- Public relations should identify and benefit the foreign markets needs
- Should consider international market trends before making decisions
- Enhance favorable image of a company in foreign markets
- PR can also be used to correct misleading impressions or unfavorable images in foreign markets
Public Relations Summary
Culture has negative perception of celebrity
Celebrity has negative associations
Culture correlates product to negative celebrity association
Market avoids product due to culturally undesired association
Celebrity does not satisfy TEARS model
Discussion based on Chitty et al (2012)
J. Hawkins
One Direction
B. Spears
T. Henry
R. Carlos
A. Arshavin
D. Beckham
H. Wehbe
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2.Backto Gossip 2007, Here to stay – Christina Aguilera Pepsi commercial, 19 March, online video, viewed 22 April 2013, < http ://www.youtube.com/watch?v=Rhnclq6pz34>

3.Belch, G., Belch, M 2009, Advertising and Promotions: an integrated Marketing and Communications perspective, 8th edn, McGraw-Hill, New York.

4.Bloomsbury Business Library, 2007, ‘Business & Management Dictionary’, Business Source Complete Database, p6981-6981

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7.Chhoy, R 2013, Pepsi celebrity endorsers, 22 April, online video, viewed 22 April 2013, <http ://www.youtube.com/watch?v=-FtgVHDnel0>

9.Chhoy, R 2013, Pepsi product placement, 22 April, online video, viewed 22 April 2013, <http ://www.youtube.com/watch?v=3wdfAPs0P1M>

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23.PepsiCo 2011, PepsiCo Introduces Social Vending System, the Next Generation Interactive Vend Technology, PepsiCo, New York, viewed 2 May 2013. 24.< http://www.pepsico.com/pressrelease/pepsico-introduces-social-vending-system-the-next-generation-in-interactive-vend04272011.html>

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