case analysis
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Overall “media weight” is not really very useful. GRPs do not measure actual reach.
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Awareness plateau – an ad no longer gains additional awareness with additional media exposure ROI A commercial is considered to be experiencing wear-out when it ceases to produce significant attitudinal or behavioral impact with additional media exposure.
https://www.aaaa.org/wp-content/uploads/2017/08/Communicus-Wearout.pdf
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S-shaped response curve
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CPM = $70
SB 2016 Ad cost: $5 million (record breaking)
Estimated 114.4 million viewers. CPM: 43.71 Actual viewers declined to 111.3. CPM: 44.92
Super Bowl LVI (2022) averages audience of 112.3 million viewers, is most-watched show in five years
CPM 62.5
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Continuity!
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From interview of Thales Teixeira, Harvard Professor, by McKinsey partner Dave Edelman
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Push marketing is geared to helping the retailer to sell (via merchandising, promotions, display, equipment, pricing)
Pull marketing is geared toward driving the consumer.
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Company has a desire to achieve certain sales goals within a specific time frame.
Company’s collaborators (e.g., distribution channel) has power and wants.
Typically companies use customer incentives to achieve three primary goals: manage the timing of customers’ purchases, selectively reach specific segments; and respond to competitive promotions.
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Sahni, Chintagunta and Zou 2017 We find that the offers cause the average expenditure to increase significantly, by $3.03 (a 37.2% increase) during the promotion window. However, the redemption rate of these offers is low. Importantly, ninety percent of these gains are not through redemption of the offers. The individuals who spent more on the platform in the past are more responsive to the offers; and the effect of the offers is significantly higher among individuals who did not transact on the platform in the year before the offer was given. Interestingly, the promotion causes carryover to the week after the promotion expires; we find that spending increases by $1.55 in the week after the offer expires. Additionally, we find evidence for cross category spillovers to non-promoted products - offers not applicable to a ticket genre cause an increase in spending in that genre. We conclude that emailed offers can serve as a form of “advertising” for the firm's products rather than tools of price discrimination.
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Want to gain distribution, encourage stock at certain levels (for example, prior to running a consumer promotion), encouraging the channel to promote.
Push Marketing
Shelf Space Higher levels of inventory to limit stockouts Effort Coop advertising offset the impact of competitive promos
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General Motors ran a price promotion “You pay what we (employees) pay” in the summer of 2005 that was imitated after five weeks by it two major U.S. competitors. Increased sales, but at a loss of $5000 per vehicle. Overall negative impact. Cadillac sponsored a Super Bowl post-game show to promote the ability of its V- Series cars to hit 60 mph in less than five seconds. Created a special Web site promoting a “Five Second Film Competition”- shoot and upload a five-second film on any topic. More than 2.5 million consumers visited the site, 2600 submited films, in the four months following the promotion, Cadillac V-series sales jumped by 25%.
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One interesting idea is to spend more time attempting to design promotions that are easy for consumers to adopt and difficult for competitors to imitate.
Home Depot – employing Olympic athletes. Flexible work week and benefits. Created stronger links to the Olympics than many other Olympic sponsors. Plus lots of publicity.
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