Distribution Adapted from J. Scott Armstrong Updated Sept 2014 Distribution-19.

Distribution

Adapted from J. Scott ArmstrongUpdated Sept 2014

Distribution-19

Learning Diary

The lectures follow an experiential learning experience. To make this work properly:1. Obtain a learning diary (paper).2. Take the learning diary with you to all of the class

sessions.3. For self-learners, use the diary to track your learning

progress. Keep it up to date.

2Adprin.com

Objective of this session

To understand and apply these principles and techniques (not to convince you). Ask for clarification as needed.

Set a goal for yourself on how many principles and techniques you plan to use by the end of this session. Even a goal of one will help you.

Note: We will discuss only some of the slides. When you go through the lecture on your own, view it in “Slide Show” and follow the experiential procedures.

3Adprin.com

Include information on when, where, and how to buy a product (1.5.1.)

“Traveler. Going from here to the twelfth tower, there Sarinius keeps a tavern.”

- Ad on a tablet in Pompeii (prior to 79 A.D.)

Common sense & typical practice

So why do some ads forget this?

Can any of your company’s ads be improved?

4Adprin.com

The Beach Beer problemImagine you are lying on the beach on a hot day, and all you have to drink is water. For the last hour you have been thinking about how much you would enjoy a nice cold bottle of your favorite brand of beer. A friend gets up to go make a phone call and offers to bring back a beer from the only nearby place where beer is sold – stated for half of the subjects as a fancy resort hotel and for the other half as a small, run-down grocery store. He says that the beer might be expensive and asks how much you are willing to pay for the beer. He will only buy the beer if it costs as much or less than the price you state. You trust your friend, and there is no possibility of bargaining with the bartender or the storeowner.

A. What price would you tell him if the beer was from the fancy resort? ___

B. What price would you tell him if it were from the run-down grocery store? _____

Divide A by B. What % more would people pay for A – and why.

Subjects were willing to pay 73% more at the fancy resort because it seems “fair” to the seller.

5Adprin.com

Feature a sales channel when it is impressive (1.5.2)

In 2004, Cartier advertised its watches by using a photograph of its store located on “Fifth Avenue at 52nd Street” in New York City.

Clark’s, a U.K. shoe manufacturer, hired a renowned photographer, Helmut Newton, and took his ad proofs to fancy shops (e.g., Woodhouse, Jones, Harrods) in London.

When Sears merged with Kmart in 2005, Nike pulled its products from Sears.

Can you apply this to an ad for your organization? 6Adprin.com

Advertise distribution as part of the experience

Advertise the shopping experience.

Examples:

Apple Stores

Ikea (playrooms for kids)

7Adprin.com

Use the package to enhance the product (1.5.3.)

“If you can’t sell the product, sell the package.” - Old adage

8Adprin.com

Absolut: What does this bottle say?

Do people like Absolut Vodka for its taste or because it comes in this bottle?_____

What does the bottle imply?

Medical-strength alcohol. Get high on high-proof alcohol in a socially acceptable way.

9Adprin.com

1.5.3 Use the package to

enhance the product – Absolut

Perfection – Complies

Absolut used the image of its bottle to convey the idea, and gradually made the “picture puzzles” more challenging.

Adprin.com

Assume that customers are concerned about receiving their product quickly after they have ordered it. Should you give them a delivery date (e.g., by September 10) or a time interval (e.g., in one month)?

If a product is desirable, specify delivery dates rather than waiting times (1.5.4)

When given waiting times, customers perceived delays as being twice as painful as when given dates.

Evidence: Four experiments by Read et al. 2005

Could you apply this to any of your organization’s ads?

11Adprin.com

Coupons and frequent-flyer miles

Here are two ways to frame an offer for frequent-flyer miles

a) Valid for two yearsb) No expiration datec) Which one is best for the seller? ________

d) Which one is best for the buyer? ________

“b” is best in both cases

Tell customers that they can achieve benefits over a long time period if you want to reduce the use of an offer – and vice versa (1.5.5)

12Adprin.com

Evidence on the effects of a deadline

Students were offered $5.00 for answering and returning a questionnaire. One group was given 5 days, a second was given 3 weeks, and the third had no deadline. Of those given no deadline, 25% completed the questionnaire. Predict the response rate for those given

3 weeks: 5 days:

(Tversky & Shafir 1992).

13

42% 60%

Adprin.com

Distribution Checklist

___1.5.1. Include information on when, where, and how to buy the product.

___1.5.2. Feature a sales channel when it is impressive.

___1.5.3. Use the package to enhance the product.

___1.5.4. If a product is desirable, specify delivery dates rather than waiting times.

___1.5.5. Tell customers they can achieve benefits over a long time period if you want to reduce the use of an offer—and vice versa.

14Adprin.com

Applications

Possible to apply any principles to an ad by your organization?

Time out for applications: Gallery writing

15Adprin.com

Techniques Used in this Lecture

Gallery writing

16Adprin.com

Advice on learning

One study found that fewer than 10% of students were successful in applying new knowledge.• This went to 20% if they actively applied what they

were taught during a class session.• It went to 90% when they worked with a learning

partner and coached each other.

17Adprin.com

Follow-up: Complete prior to next session

1. ___ Go through this lecture on your own (It is on the Educational Materials page)

2.___Study Persuasive Advertising pages 58-62 and record your reading time in your learning diary. Highlight techniques that you want to apply in yellow.

3.___ Complete the End of Chapter Questions for “Evaluating Advertisements” and check your answers against PA.

Adprin.com