- [Instructor] Welcome to Part Two of the video lecture
on promotion for CDAE 168.
All of these fit into an integrated promotion plan.
So these are sort of the tools,
what we were just talking about,
tools that you can use at your disposal
to incorporate into a plan to work through the funnel
and to achieve your goals.
And so I'm going to talk a bit about each one.
The first step,
and we've done a lot of work in this already
is who's your target?
To whom are you directing the promotion?
Who are you targeting?
Is it first customers?
Is it opinion leaders?
Is it one of your key segments?
Who's the audience?
Who are you trying to reach here?
Next you want to make an objective.
So knowing where you want to end up is really important.
An objective is a clear statement
of this is where we want to be,
this is what we want to achieve,
and it might be any of these three A's
or maybe more than one, or all three,
but something about awareness, attitudes, and action.
And we're going to talk in the next slide
about SMART objectives.
And SMART is an acronym,
Specific, measurable, achievable, realistic.
I also like the term relevant and time-bound,
and I'll walk through each one.
So again, SMART objectives are these things.
It's specific, it tells exactly what you want to achieve.
It's a measurable.
There's like a numerical or a very clear way to measure
did I meet the this or not?
It's a specific, measurable achievement
that you want to measure.
Is it achievable?
Is it something that you can do
with the resources that you have?
Can you reasonably attain this?
And often the other A is attainable.
R it says here, realistic. again, can you do it?
I also like the R for relevant,
which is, will it help you achieve
the broader objective and the broader mission
of your organization?
And finally time bound.
When do you want this to be done?
So here's an example of a not SMART objective
and a SMART objective.
So if I really want to boost enrollment,
I want students to enroll in my class,
but if I would say 50% of CDAE sophomores will apply
for enrollment in CDAE 168 in a specific semester.
That would be SMART because it's specific
to what I want them to do, enroll or apply for enrollment.
It's measurable, 50% of all sophomores.
It is achievable because, you know,
hopefully people will do it.
It's realistic or relevant, because I want people to enroll
because I want to teach, because I love to teach,
and that's my job.
And it's time bound that when the semester starts,
that's when we look and see if I've achieved my goal.
And we'll do some practice in class
of writing SMART objectives,
and be assured you're going to see SMART objectives again.
Next is a budget.
How much do you want to spend?
And basically there's four main options.
Again, these may not be mutually exclusive,
but it's four sort of things you can think about.
First, sometimes it's simply a percent of sales.
For every dollar I get in sales,
I'm going to spend 5 cents or 10 cents on promotion.
It's a fairly straightforward, and the number,
but it may not pay for itself.
Next is competitive parity.
And we see this like Coke and Pepsi,
that if you see a big boost by Coke,
you can almost be assured Pepsi is going to respond.
So doing what your competitors are doing.
Third is, all you can afford.
So once the bills are paid and you know, you made payroll,
you've paid your vendors, you paid your taxes.
Hopefully you've paid yourself.
You can think well what's left
and let's put that towards marketing.
But maybe the best way is to think about
the objective and the task.
So come up with a really good one or more SMART objectives.
And then what does it take to accomplish this?
How much money will it take
to actually achieve this SMART goal and do it like that?
The next consideration is what is the theme
and the message of your promotion?
So the theme should be closely tied to your position.
So each bit of promotion that you should do
should be boosting that position
to be tied very closely,
clearly articulating this is where we are
in the marketplace,
and I'm going to tell you about it.
So if you're interested in a product or service
that is in this position, we're the ones for you.
And finally the message is, you know,
it's really going to differ by target
and what kind of media that you use.
Three very common appeals,
and you'll see these a lot in advertising,
is sex, fear and humor.
And we'll think about examples of each of those
when we discuss it in class.
And I invite you to watch this and see
which if any of those three that you see here,
of fear, sex and humor,
are any of them in play here?
So copy and paste this and watch the video.
Next you want to circle back
and see did I meet the objective?
So you think about since it's measurable and time bound,
you go to that time and you see, did we make it?
Here's a whole bunch of ways that you can think about
whether we met our objective or not.
The actual measure can be rather tricky.
So we want to think about ROI or returns on investment.
So marketing expenditure is an investment,
and we, if possible,
want to think about a cost benefit ratio
for some measurable benefits.
So thinking back, you know, for sales or for new customers,
or for folks who've stopped by our store
or whatever the objective is,
what was the cost per sort of successful event
and calculating that ratio can be helpful.
And again, we can think of terms of know, like, and trust.
What does it cost to achieve each of these steps
down the funnel?
So here are some clear metrics of success.
Sales revenue, new orders, new customers,
some kind of action taken, entering the store,
clicking on an ad, liking your Facebook page,
joining an email, purchasing, download a coupon,
or it could be so those are all like clearly measurable
outcomes with clear numbers that you can measure,
but you also may want measure brand awareness,
which is a little bit more nebulous.
So here's some tools that you can use
to measure brand awareness.
You can do an online survey or interview
and ask about, did they see an ad?
When you say name a business or an organization
that does this, do you come to mind?
You can try to measure favorability.
Do they sort of remember your tagline or know your logo?
And you can ask them whether or not they intend to purchase.
So here are ideas that you can use.
So you can use different promotion codes.
So I know like sometimes I like to listen
to sports talk radio, and they may doing an ad for,
and I'm just thinking out loud here, 1-800-FLOWERS,
which is an online, like send flowers to your wife,
your mother, you know, et cetera, or whomever.
And it's like mentioned, put the words, Mike and Mike
for the ESPN radio show
has a promo code and you'll get some percentage off.
So that lets them know that whoever entered that code
heard about this on the Mike and Mike radio show.
In the same way you can offer different URLs.
You can use the hurdle model of mention this ad
and you'll get a thing off.
And then you know that they saw that ad,
or different coupons.
So you might send one style to one geographic area
and another to another,
put one in one newspaper, one in another,
when they redeem them, then you know where they came from
and what newspaper or what medium they used.
It's really important, especially if you have a storefront,
especially if you're new or people coming to you,
how did you learn about us?
It's really important.
It's a really simple question,
but it can be really important.
And we'll think about other ideas as we go.
So again, here are SMART objectives.
Make sure your objectives are smart,
and we will do an exercise in class
where you come up with one or more
because I want you to be able to.
So this is what we did and we will discuss it in class.
Here is your homework.
That is the end of part two.
That is the end of this video lecture.
So make sure that you do the assessment before class.
Thank you.