IntroductionPromotionThe propose of promotionis to make consumersaware of a newproduct, to stimulatenonusers to samples,an existing product, or toincrease overallconsumer demand.1 Advertising2 Direct marketing3 Personal selling4 Public relationship
Promotion– underlyingconcepts Teutner (2002): ‚instruments to stimulate sales of products and brands‛ 3 Basic objectives (Kurtz, 2010): Information Change behaviour to increase Demand(short term) Differentiate from
Features Action-orientated marketing events (Rossiter andBellman, 2005) Tool: stimuli to cause sudden behavioural change; may also appeal to Product, Place & Price (Van Waterschoot &
Types - ThePromotional Mix (1) Advertising(presentation byidentified sponsor: e.g.Print, TV, direct mail,web) Personal Selling(person-2-persontransaction) Sales Promotion(paid consumer
Types - The PromotionalMix (2) Public Relations & Publicity (evaluating &influencing the publicperception) Direct Marketing(communication withprospect i.e. generateresponse in form ofrequest or order)
Standardisation vsAdaptation Adaptation: A strategy regarding change of the marketing program (e.g. Product, Price, Place, Distribution.) according to local preferences Standardization: Usage of a generic marketing program for different international target markets.
Promotional Type ‚Advertising‛– Application at Starbucks Jonoshka (2004): ‘external communication of an organization with actual and potential customers.’ Types of advertising media include: Print media : newspapers, magazine, posters,... Broadcast media : TV, radio...Direct marketing: direct mail,website, online advertising... (Kotler,1994).
Starbucks costs on advertising* Store operating expenses, other Prepaid operating expenses and expenses and other current general and capitalised administrative advertising costs expensive () 2007 $ 103.5 $ 19.2 million miilion 2008 $129.0 $8.8 million million 2009 $126.3 $7.2 million million* Numbers provided are based on world wide costs starbucks.com
Word of mouth- ‚third1) place‛ The average Starbucks customer visits the store six times per month while the heaviest 20% of customers go to Starbucks at least 16 times per month. (Starbucks commercial, 2010)
Social media2) Starbucks is mainly adult-focused and aims to connect with their customers, communities, and children through various advertising tactics (Professor Marty Lawlor, 2007)- E-marketingTwitter, Facebook, Youtube, My starbucks idea,Starbucks V2V (Jon Swartz, 2009)http://www.youtube.com/watch?v=K9nJa_8L nSI- Iphone applications(Annual report, 2009)
Starbucks card* Starbucks Card is the simple, easy way to pay when you are in store. Extra rewards for Starbucks card holders* Starbuck.com
TV commercials Starbucks is worlds one of the best brands but it rarely advertised on television (Burt, 2009). In 2007 the company felt slowdown in customer traffic even in holiday season. For the first time Starbucks introduced the national TV advertisement in U.S (Janet, 2007) The TV Commercial titled Starbucks Holiday 2010 was done by BBDO NEW YORK advertising agency Starbucks Coffee company (for Starbucks) in USA. released in November 2010.
Market segment Young, affluent customers College educated Higher income levels People combining work and coffee break People who have requirements for the Life-styles
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