Respone to Cristy

Cristy's Blog: Subway Celebrates: "Yesterday, Subway offered a buy one get one free deal in the name of customer appreciation. The offer was promoted on the Subway Facebook pa..."

I think this promotion worked well for Subway, because of brand recognition, Americans can hardly walk down a street without seeing the bright yellow and green signage of Subway. Their promotions are nearly as famous as the name itself (example: $5 footlong) It seems only natural that when offering a buy one get one free deal with Subway that it would encounter success. While this promotion probably did not attract too many new customers, their image will continue to shine in the eyes of their customers, by offering free subs, with the purchase of one and a soda.

Battle of the Webs' Daily Deals

Groupon, was the first company of its kind to be started, and with this they challenged the business model of the retail industry.  However, now that the world has been exposed to the concept of daily deals on the internet has been, many are trying to follow, and even step up Groupon's business model. 

Several new start-up companies have entered the previously untapped (with the exception of Groupon that is) industry.  New competitors, such as Scvngr are not charging new businesses for their first deal.  In strong efforts for customer loyalty, Level Up will only make a profit, from a returning customer, after the first deal a 25% cut will be dealt to Level Up.  Other businesses are profiting from publishers involved with the company. Currently, Groupon still leads the cyber deal market, by finding an intriguing deal every day.  

It is still uncertain, if this business segment will succeed in the long run, or is it just a novelty marketing trend?

In Response to Kayle's Post

In response to Kayle's post regarding product placement:

Do you think that product placement is a good way to market your item?  Do you become annoyed when seeing brand names etc. in movies? 

I think that product placement is a positive and effective way to market items and brands, within reason of course.  If there are continuous billboards and signage throughout an entire movie or TV episode for one or multiple products, then it becomes obnoxious and takes away from the actual movie or TV show.  However, if done subtly and in a classy manner then it can definitely be effective.  The financial benefits are also a positive aspect of product placement in the entertainment world, due to the recession and not entirely financially stable time we live in, the added money from companies using product placement, can significantly increase the budget and ultimately result in a better movie or TV show.

AT&T Launches New Text Message Advertising

AT&T released a new marketing service this week in select cities.  Beginning in Chicago, New York, Los Angeles, and San Franciso, and to go national this summer; a new marketing service allows brands to send customized coupon or sales notices to opt-ed customers.  This new technique will involve the use of "Geo-fencing" which will allow participating companies to limit their advertising based on the geographical location of customers. 

Jet Blue's first geo-fencing campaign collaboration with AT&T is reminding customers to check in to places where they can earn JetBlue Points.  While K-Mart is electing to use this service to promote current deals and offers in surrounding stores.  Other companies will elect to use the service for promotions at concerts and sporting events.  

In efforts to make this service as successful as possible, AT&T asks that customers choosing to use this tool provide them with their name, ZIP code, age range, gender and e-mail address.  Due to anticipated skeptically from some customers of giving out this personal information, Vice President of Ad Product Innovation says "AT&T will not share this information with marketers or use it for other corporate marketing."; this information will allow this service to be as effective as possible and target the proper market.  No more than four text messages will be received each week by participating customers. 

Would you be willing to try this new marketing service?  

In Response to Kristen Begin's Post

In response to Kristen Begin's post regarding TV ads: 

Should companies continue to spend billions of dollars on advertising, when surveys are showing that the effectiveness of television ads are decreasing?  Or should they rely more heavily on finding some other way of communicating to potential customers?

I agree with most new research in that TV commercials and advertisements are becoming less effective and will eventually become a thing of the past. Majority of cable packages today include a better deal with DVR, therefore the ability to fast forward through commercials becomes more enticing to the viewer especially in the busy and fast paced society America has come to be known for.  While there was definitely a time where TV commercials were a great and effective marketing resource, the way technology and social media is exponentially growing  is showing limited room for growth and success in this area of advertising.  It is highly advisable that companies begin to focus and explore marketing opportunities away from the TV circuit and more social media and mobile advancements.  The cost of alternative advertising is probably much less than that of the billion dollar TV business, which is undoubtedly a plus for companies, and can be used much more effectively to research and put forth new techniques. 

New, "Skinnier", Diet Pepsi

As New York Fashion Week 2011 began this past Thursday, Pepsi, one of their top sponsors of the event revealed a new taller and more slender Diet Pepsi can. The reason for the change? According to the company the new version of a classic is a "celebration of beautiful, confident women." Promotional collaborations with designers Betsey Johnson and Charlotte Ronson are set to take place during Fashion Week to showcase the redesigned can.  Pepsi Co. elected for the launch during Fashion Week to coincide with the goal of the week and the product of innovative designs.

The aim of the new shape is to provide a more polished and stylish look. The updated Diet Pepsi will be available in March to consumers nationwide. Although, nothing about the actual product has changed, the company is facing backlash for their sales pitch insinuating that skinnier is better.

The National Eating Disorders Association finds Pepsi Co. new promotion of its redesigned product to be offensive and thoughtless.  The organization believes this new product to send the message that the more tall and slender you are, the more attractive others will find you.

Do you think the taller and skinnier can is contributing to a negative portrayal of body image?

Social Media and the Super Bowl

The Super Bowl draws in an audience estimating over 90 million each year, making it a prime opportunity for companies to advertise new and exciting products, ideas, and services to one of the largest TV audiences each year.  The average 30-second commercial that airs during the 2011 game is roughly $3 million.  A new outlet of Super Bowl advertising will open this year, with the help of social network powers including Twitter and Facebook.  The use of social media for serious business tactics, especially trying to expand markets as well as publicity, has increased in popularity and respectability greatly within the last year.  This year, many advertising companies will be closely watching to see the effectiveness of online and social network advertising results during the Super Bowl.  

 Some companies’ strategy involves beginning a campaign through a Super Bowl commercial and continuing via social network advertising.  Other companies are using the reverse approach, and using their social networks accounts to promote their Super Bowl commercials.  These techniques are hoping to gain much more success for the high price of advertising during the game.  To expand online involvement, companies will be encouraging viewer participation in some form of an online promotion or feedback. 

Even, luxury car maker, Mercedez Benz is getting in on social media marketing.  Not only is this the first year ever for the company to be advertising during the Super Bowl, but they are also using twitter to expand their advertising efforts via promotion announced during their commercial.  Bud Light is one of the most well known Super Bowl advertisers, so naturally they are stepping up their game this year as well, with the link between social media and traditional TV commercials.  Their strategy involves viewers and fans to guess the storyline of the commercial based upon pictures posted on Bud Light's Facebook page. The Super Bowl itself even has its own Facebook page, which has information, contests, and celebrity sitings updates. 

What do you think about the involvement of social media for advertising use?