Advertising campaign

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Launch of the advertising campaign for visitors to the2014 FIFA World Cup

Anadvertising campaignis a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). An IMC is a platform in which a group of people can group their ideas, beliefs, and concepts into one large media base. Advertising campaigns utilize diverse media channels over a particular time frame and target identified audiences.

The campaign theme is the central message that will be received in the promotional activities and is the prime focus of advertising campaign as it sets the motif for the series of. individual advertisements and other marketing communications that will be used. The campaign themes are usually produced with the objective of being used for a significant period but many of them are temporal due to factors like being not effective or market conditions, competition and marketing mix. The campaign themes are usually produced with the objective of being used for a significant period but many of them are temporal due to factors like being not effective or market conditions, competition andmarketing mix.[1]

Advertising campaigns are built to accomplish a particular objective or a set of objectives. Such objectives usually include establishing a brand, raising brand awareness, aggrandizing the rate of conversions/sales. The rate of success or failure in accomplishing these goals is reckoned via effectiveness measures. There are 5 key points at which an advertising campaign must consider to ensure an effective campaign. These points are, integrated marketing communications, media channels, positioning, the communications process diagram andtouch points.

Integrated marketing communication (IMC) is a conceptual approach used by the majority of organizations to develop a strategic plan on how they are going to broadcast their marketing and advertising campaigns. Recently there has been a shift in the way marketers and advertisers interact with their consumers and now see it as a conversation between Advertising/ Marketing teams and consumers. IMC has emerged as a key strategy for organizations to manage customer experiences in the digital age.[2]The more traditional advertising practices such as newspapers, billboards, and magazines are still used but fail to have the same effect now as they did in previous years.

The importance of the IMC is to make the marketing process seamless for both the brand and the consumer. IMC attempts to meld all aspects of marketing into one cohesive piece. This includes sales promotion, advertising, public relations, direct marketing, and social media. The entire point of IMC is to have all of these aspects of marketing work together as a unified force. This can be done through methods, channels, and activities all while using a media platform. The end goal of IMC is to get the brands message across to consumers in the convenient way possible.[3]

Advantages of using IMC are that it has the ability to communicate the same message through several channels to create brand awareness. IMC is the most cost-effective solution when compared to mass media advertising to interact with target consumers on a personal level.[4]IMC also benefits small businesses, as they are able to submerge their consumers with communication of various kinds in a way that pushes them through the research and buying stages creating a relationship and dialogue with their new customer. Popular and obvious examples of IMC put into action are the likes of direct marketing to the consumer that the organisation already has a knowledge that the person is interested in the brand by gathering personal information about them from when they previously shopped there and then sending mail, emails, texts and other direct communication with the person.[1]In-store sales promotions are tactics such as 30% off sales or offering loyalty cards to consumers to build a relationship. Television and radio advertisement are also a form of advertising strategy derived from IMC.[1]All of the components of IMC play an important role and a company may or may not choose to implement any of the integration strategies[5]

Media channels, also known as, marketing communications channels, are used to create a connection with the target consumer.[6]Traditional methods of communication with the consumer include newspapers, magazines, Radio, television, billboards, telephone, post and door to door sales. These are just a few of the historically traditional methods.

Along with traditional media channels, comes new and upcoming media channels. Social media has begun to play a very large role in the way media and marketing intermingle to reach a consumer base. Social media has the power to reach a wider audience. Depending on the age group and demographic, social media can influence a companys overall image. Using social media as a marketing tool has become a widely popular method for branding. A brand has the chance to create an entire social media presence based around their own specific targeted community.[7]

With advancements in digital communications channels, marketing communications allow for the possibility of two-way communications where an immediate consumer response can be elicited. Digital communications tools include: websites, blogs, social media, email, mobile, and search engines as a few examples. It is important for an advertising campaign to carefully select channels based on where their target consumer spends time to ensure market and advertising efforts are maximized.

In the rapidly changing marketing and advertising environment, exposure to certain consumer groups and target audiences through traditional media channels has blurred. These traditional media channels are defined as print, broadcast, out-of-home and direct mail.[8]The introduction of various new modern-day media channels has altered their traditional advantages and disadvantages. It is imperative to the effectiveness of the Integrated Marketing Communication (IMC) strategy that exposure to certain demographics, consumer groups and target audiences is anticipated to provide clarity, consistency, and maximum communications impact.[9]

Print media is mainly defined as newspapers and magazines. With the transition in last decade [2006 2016] to digital information on phones, computers and tablets, the demographic that still are exposed to traditional print media is going to be older. It is also estimated that there will be a reduction of print material in coming years. This has to be taken into account by the advertisers and in some cases, they could use this to their advantage. Newspapers advantages would be that it is low cost, timely, reader controls exposure and has moderate coverage to the older generations in western society. Disadvantages would obviously be the aging demographic, short life, clutter and low attention-getting capabilities. Magazines are similar in some cases but have defined differences as they are a niche product increasing segmentation potential; they also have high informational content and longevity. Disadvantages are they are visual only, lack of flexibility and a long lead time for advertisement placement.[1]

Traditional broadcast medias primary platforms are television and radio. These are still relatively prominent in modern-day society, but with the emergence of online content such as YouTube, Instagram and Vine it would difficult to anticipate where the market is headed in the next decade. Televisions advantages are that it has mass coverage, high reach, quality reputation, low post per exposure and impacts human senses. Disadvantages would be that it has low selectivity, short message life and high production costs. Alternatively, radio offers flexibility, high frequency and low advertising & production costs. Disadvantages to radio are that its audio only, low attention-getting and short message.

Out-of-home (OOH) media a broad marketing concept that is no longer relegated to large, static billboards on the side of motorways. More current and innovative approaches to OOH media range from street furniture to aerial blimps. Due to the constant and contemporary nature of the outdoors there will always be new ways in which a campaign can revitalize this media channel. Advantages would be the accessibility and reach, geographic flexibility and relatively low cost. Disadvantages to OOH media are that it has a short life, difficult to measure / control and it can convey poor brand image.[8]

Direct mail is classified as messages sent directly to consumers through the mail delivery service. One of the more dated media channels and in the modern day has very little advantages, other than it is highly selective and has high information content. Disadvantages are that it promotes a poor brand image junk mail and that it has a high cost to contact ratio.[1]

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When an organisation begins to construct their advertising campaign they need to research each and every aspect of their target market and target consumer. The target consumer is the person or group of people who is most likely to buy from an organisation, he is also called potential customer. A target consumer can be categorized by several key characteristics; Gender, age, occupation, marital status, geographical location, behavioral,[10]level of income and education to name the main factors.[11]This process is called segmenting customers on the basis of demographics.

Gender is simply whether a person is male or female. Age is usually broken up into bracketed intervals of ten or so years, for example, a persons age between 1525 years old. By understanding which age bracket the target market falls into the advertisers can position their efforts accordingly. Occupation is also known as a profession and refers to what a person does for a living; this could be a particular job, student, unemployed etc. A persons marital status defines whether they are married or unmarried. Geographical location is a broad term specifying a particular area or place within a given country, state/ city, suburb or street as some examples. Income refers to how much money a person is earning annually which can help identify how much money they have left over after expenses to potential spend on a brand. The final factor to explain is education, whether a person went to school or not, what school they attended, what standard of education they have, diplomas, certificates, graduate, degrees, masters, Ph.D. or other forms of defining educational factors. Knowing this information can help an advertiser understand their target markets level of thinking to help adapt the advertising campaign to be understood by the given target consumer/s.[citation needed]

For a business to successfully find the appropriate Target Market for their products or services, it is important that they segment the market to better decide which customers to target. This is best done when the market is segmented into the four following areas: geographic, demographic, psychographic and behavioural.[citation needed]

Geographic segmentation involves the market being divided into different nations, regions, states, counties, cities, or neighbourhoods. Segmenting the Target market geographically is effective as different areas have different needs, which can be affected by weather, fashion, etc.

Demographic segmentation separates the market into groups according to age, gender, family size, income, occupation, education, religion, nationality, and race. It is important to note that this is the easiest and least expensive way to segment the market, as the research has already been done.

Psychographic segmentation is the process of markets being divided into groups based on social class, personality characteristics, and values.

Behavioural segmentation divides a market into groups based on consumer knowledge, attitude, use, or response to a product (Krause, T. 2007). This is believed to be the best starting point, when a business is building a market segment. The behavioural segment is important because it focuses on why consumers consume products. For example, during Fathers day and Mothers day, flowers were promoted due to the heavy demand of flowers during these holidays.[12]

Defining the target market helps businesses and individuals design a marketing campaign. This in turns helps businesses/ individuals avoid waste and get their advertisements to likely customers. While attempting to find the correct target market it is important to focus on specific groups of individuals that will benefit from your product. By marketing to specific groups of individuals that specifically relate to the product, businesses and individuals will more quickly and efficiently find those who will purchase the product. Businesses and individuals that monitor their existing data (customer and sales data) will find it easier to define their target market, and surveying existing customers will assist in finding more customers. Avoiding inefficiencies when finding a target market is equally as important. Wasting time and money advertising to a large group of potential customers is inefficient if only a handful become customers. A focused plan that reaches a tiny audience can work out well if theyre already interested in what youre selling. Over time target markets can change. People interested today might not be interested tomorrow, and those not interested in the present time, might become interested over time. Analysing sales data and customer information helps businesses and individuals understand when their target market is increasing or decreasing.[13]

There are many advantages that are associated with finding your Target Market. One advantage is the ability to offer the right product (Suttle. R. 2016) through knowing the age and needs of the customer willing to purchase the item. Another advantage of Target Marketing assists businesses in understanding what price the customer will pay for the products or service. Businesses are also more efficient and effective at advertising their product, because they reach the right consumers with messages that are more applicable (Suttle. R. 2016).[14]

However, there are several disadvantages that can be associated with Target Marketing. Firstly, finding your Target Market is expensive. Often businesses conduct primary research to find whom their Target Market is, which usually involves hiring a research agency, which can cost tens of thousands of dollars (Suttle, R. 2016). Finding ones Target Market is also time-consuming, as it often requires a considerable amount of time to identify a target audience (Suttle, R. 2016). Also focusing on finding your Target Market can make you overlook other customers that are interested in your product. Businesses/ Individuals may find that their average customer might not include those that fall just outside of the average customers demographics (Suttle, R. 2016), which will limit the sale of their products. The last disadvantage to note is the ethical ramifications that are associated with Target Marketing. An example of this would be a beer company that may target less educated, poorer people with larger-sized bottles (Suttle, R. 2016).[15]

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In advertising various brands compete to overtake the perceptual mapping in a consumers mind. Everyday consumers view advertising and rank particular brands compared to their competitors. Individuals rank these specific brands in an order of what is most important to them. For example, a person may compare brands of cars based on how sporty they think they look, affordability, practicality and classiness. How one person perceives a brand is different to another but is largely left to the advertising campaign to manipulate and create the perception that they want you to envision as the consumer.[citation needed]

Positioning is an important marketing concept that businesses implement to market their products or services. The positioning concept focuses on creating an image that will best attract the intended audience. Businesses that implement the positioning concept focus on promotion, price, placement and product. When the positioning concept is effective and productive it elevates the marketing efforts made by a business, and assists the buyer in purchasing the product.[16]

The positioning process is imperative in marketing because of the specific level of consumer-based recognition is involved. A company must create a trademark brand for themselves in order to be recognizable by a broad range of consumers. For example, a fast food restaurant positions itself as fast, cheap, and delicious. They are playing upon their strengths and most visible characteristics. On the other hand a luxury car brand will position its brand as a stylish and expensive platform because they want to target a specific brand very different than the fast food brand.[17]

For the positioning concept to be effective one must focus on the concepts of promotion, price, place and product.

There are three basic objectives of promotion, which include: presenting product information to targeted business customers and consumers, increase demand among the target market, and differentiating a product and creating a brand identity. Tools that can be used to achieve these objectives are advertising, public relations, personal selling, direct marketing, and sales promotion.

Price of an object is crucial in the concept of positioning. Adjusting or decreasing the product price has a profound impact on the sales of the product, and should complement the other parts of the positioning concept. The price needs to ensure survival, increase profit, generate survival, gain market shares, and establish an appropriate image.

Positioning a product is essential in the positioning concept. It is the process marketers use to communicate their products attributes to the intended target market. In order for products to be successful businesses must focus on the customer needs, competitive pressures, available communication channels and carefully crafted key messages.[18]

Product Positioning presents several advantages in the advertising campaign, and to the businesses/ individuals that implement it. Positioning connects with superior aspects of a product and matches them with consumers more effectively than competitors (Jaideep, S. 2016). Positioning can also help businesses or individuals realise the consumers expectations of the product/s they are willing to purchase from them. Positioning a product reinforces the companies name, product and brand. It also makes the brand popular and strengthens customer loyalty. Product benefits to customers are better advertised through positioning the product, which results in more interest and attention of consumers. This also attracts different types of consumers as products posses different benefits that attract different groups of consumers, for example: a shoe that is advertised for playing sports, going for walks, hiking and casual wear will attract different groups of consumers. Another advantage of positioning is the competitive strength it gives to businesses/ individuals and their products, introducing new products successfully to the market and communicating new and varied features that are added to a product later on.[19]

The Communication of processes diagram refers to the order of operation an advertising campaign pieces together the flow of communication between a given organisation and the consumer. The diagram usually flows left to right (unless shown in a circular array) starting with the source. An advertising campaign uses the communication process diagram to ensure all the appropriate steps of communication are being taken in order.

Thesourceis the person or organisation that has a message they want to share with potential consumers.[20]An example of this is Vodafone wanting to tell their consumers and new consumers of a new monthly plan.

The diagram then moves on toencodingwhich consists of the organisation putting messages, thoughts and ideas into a symbolic form that be interpreted by the target consumer using symbols or words.[20]

The third stage in the diagram ischannel message. This occurs when the information or meaning the source wants to convoy, is put into a form to easily be transmitted to the targeted audience.[20]This also includes the method that communication gets from the source to the receiver. Examples of this is Vodafone advertising on TV, bus stops and university campuses as students may be the intended consumer for the new plan.

Decodingis the processes that the viewer interprets the message that the source sent.[20]Obviously it is up to the source to ensure that the message encoded well enough so that it is received as intended.

Thereceiveris also known as the viewer or potential consumer.[20]This is the person who interprets the source message through channeling whether they are the intended target audience or not. Every day we interpret different advertisements even if we are not the target audience for that advertisement.

In between these steps there are external factors acting as distractions, these factors are callednoise. Noise distorts the way the message gets to the intended target audience.[20]These distractions are from all other forms of advertising and communication from every other person or organisation. Examples of noise are State of mind, unfamiliar language, unclear message, Values, Attitudes, Perceptions, Culture and Knowledge of similar products or services to name a few forms of noise.[20]

Finally there is theresponse or feedback. This is thereceiversreaction to the communication of message[20]and the way they understood it.Feedbackrelates to the way sales react as well as the interest or questions that arise in relation to the message put out.[20]

When considering touch points in an advertising campaign a brand looks Multisensory touch points. These touch points help the brand to develop a point of contact between themselves and the consumer. Modern day advancements in various forms of technology have made it easier for consumers to engage with brands in numerous ways. The most successful touch points are those that create value in the consumer and brands relationship.[21]Common examples of touch points include social media links, QR codes, person handing out flyers about a particular brand, billboards, web sites and various other methods that connect the brand and consumer.

Multi sensory touch points are subconscious yet helps use to recognise brands through characteristic identified through human sensors.[22]These characteristics could be shape, colour, textures, sounds, smell or tastes associated with a given brand.[22]It is important for an advertising campaign to consider sensory cues into their campaign as market places continue to become increasingly competitive and crowded. Anyone of the given sensory characteristics may remind a person of the brand they best associate with. A prime example of this is Red Bull who use the colour, shapes and size of their cans to best relate their product to success and winning.[22]A taller can looks like the 1st place podium when placed next to competitors, the design looks like the finish flag in racing representing winning.[22]The opportunity for an advertising campaign to succeed is significantly increased with the use of multi sensory touch points used as a point of difference between brands.[22]

Guerrilla marketing is an advertising strategy which increases brand exposure through the use of unconventional campaigns which initiate social discussion and buzz. This can often be achieved with lower budgets than conventional advertising methods, allowing small and medium-sized businesses the chance to compete against larger competitors. Through unconventional methods, inventiveness and creativity, guerrilla marketing leaves the receiver with a long lasting impression of the brand as most guerrilla marketing campaigns target the receivers at a personal level, taking them by surprise and may incorporate an element of shock. Guerrilla marketing is typically executed exclusively in public places, including streets, parks, shopping centres etc., to ensure maximum audience resulting in further discussion on social media.[23]

Guerrilla marketing is the term used for several types of marketing categories including street marketing, ambient marketing, presence marketing, alternative marketing, experimental marketing, grassroots marketing, wild posting, guerrilla projection advertising, undercover marketing andastroturfing.[citation needed]

Jay Conrad Levinson coined the termGuerrilla Marketingwith his 1984 book of the same name.[24]Through the enhancement of technology and common use of internet and mobile phones, marketing communication has become more affordable and guerrilla marketing is on the rise, allowing the spread of newsworthy guerrilla campaigns.[25]

When establishing a guerrilla marketing strategy, there are seven elements to a clear and logical approach.[26]Firstly, write a statement that identifies the purpose of the strategy. Secondly define how the purpose will be achieved concentrating on the key advantages. Next Levinson (1989) suggests writing a descriptive summary on the target market or consumers. The fourth element is to establish a statement that itemizes the marketing tools and methods planning to be used in the strategy (for example, radio advertising during 6.30am 9am on weekday mornings or window displays that are regularly updated). The fifth step is to create a statement which positions the brand/product/company in the market. Define the brands characteristics and give it an identity is the sixth element. Lastly, clearly identify a budget which will be put solely towards marketing going forward.[26]

For a successful overall guerrilla marketing campaign, combine the above steps with seven winning actions.[27]These seven principles are commitment stick to the marketing plan without changing it; investment appreciate that marketing is an investment, consistency ensure the marketing message and strategy remains consistent across all forms of, confidence show confidence in the commitment to the guerrilla marketing strategy, patience time and dedication to the strategy, assortment incorporate different methods of advertising and marketing for optimum results, and subsequent build customer loyalty and retention though follow up marketing post-sale.[26]

Levinson suggests guerrilla marketing tactics were initiated to enable small businesses with limited financial resources to gain an upper hand on the corporate giants who had unlimited budgets and resources at their disposal. Large companies cottoned on to the success of guerrilla marketing and have had hundreds of effective attention grabbing campaigns using the strategies originally designed for smaller businesses with minimal marketing budgets.[28]

Non-traditional, unconventional and shocking campaigns are highly successful in obtaining media coverage and therefore brand awareness, albeit good or bad media attention. However, like most marketing strategies a bad campaign can backfire and damage profits and sales.[29]Undercover marketing and astroturfing are two type of guerrilla marketing that are deemed as risky and can be detrimental to the company.[29]

Advertising can be dated back to 4000 BC where Egyptians used papyrus to make sales messages and wall posters. Traditional advertising and marketing slowly developed over the centuries but never bloomed until early 1900s (What Is Guerrilla Marketing?, 2010). Guerrilla marketing are relatively simple, use tactics to advertise on a very small budget. It is to make a campaign that is shocking, funny, un

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Improving Cultural Competencies: We developed several ongoing CME activities that teach competencies in the treatment of patients from diverse cultures, including a regular monthly series on caring for vulnerable populations, a recurring course addressing care in the Asian population, a recurring course on developmental disabilities for clinicians and families, and a biennial Transgender Health Summit. After participating in these CME activities, clinicians reported increased abilities to deliver care in a culturally-aware manner, with humility, empathy, and sensitivity. One clinician stated, This was a refreshingly human look at medicine, really important to remind ourselves of the humanity of both our patients and ourselves and I think the course did a really great job of that, while addressing the specific needs of this population. At a 90-day follow-up, learners at one of the courses reported that they had implemented at least one policy change in their care of Asian patients; improved their diagnosis and treatment of thyroid cancers; reduced the excessive use of antibiotics; and increased Hepatitis B screening for Asians.Learn more.

Monitoring the Healthcare Landscape: We use surveys of our members and our advocacy council to monitor the national healthcare landscape and identify factors outside of our control that impact patient outcomes, such as reimbursement and insurance issues, obstacles with ineffective electronic health records systems, organizational culture and systems-based issues at healthcare institutions, and a general lack of resources. In one instance, member feedback identified issues with billing and reimbursement for allergen extracts. The Practice Management Committee viewed this as a perfect opportunity for using education as a strategy for improving practice around this issue. We responded by developing webinars and toolkits to improve understanding among clinicians and their teams. As a result, patients access to allergen extract treatments increased through better billing and reimbursement practices.Learn more.

Training Faculty as Mentors and Coaches: Research has shown that most doctors avoid having advance care planning conversations, largely because they dont feel confident in leading them. In response, we used mentoring to improve internal medicine residents skills in advance care planning conversations to elicit seriously ill patients values and goals, and to guide their patients towards treatments that will match those preferences. We trained hospitalist and ambulatory faculty mentors to observe and coach the residents through practicing these conversations with their patients. Mentors were chosen based on their demonstrated commitment to resident education and interest in improving their own communication skills. We trained the mentors in a full-day CME activity, first training them in the Serious Illness Conversation Guide, a structured interview tool to help clinicians have high-quality advance care planning conversations with their patients, using simulated patients, and then training them in mentoring, using simulated learners. The mentors were taught to provide feedback to their learners powered by VitalTalk bedside coaching methodology. After this training, faculty were likely to change their clinical and teaching practices, frequently use the communication and teaching skills, and regularly encourage other faculty to use these skills. They greatly value the individualized feedback they received as clinicians and educators. As a result of participating in this activity, internal medicine residents gained significant skills in serious illness conversations, which were maintained through the 6-month duration of the program.Learn more.

Preventing Medical Errors: We identified a lack of skills in interprofessional teamwork and communication as a contributing factor to medical errors. To address this barrier, we present CME that incorporates strategies for improving communications, such as root cause analysis, cross-referencing written directions, verifying verbal directions in writing, enhancing rapport, and validating written prescriptions that may be misread, incorrect, or inappropriate. One focus of this activity is to teach participants how to implement a series of steps to mitigate potential errors by sharing facts, inviting dialogue, and developing a mutual plan among HCPs and with patients. This is done by reviewing multiple real case examples then developing strategies to respond to such problems and prevent them in the future. Strategies include implementing surgical safety and pharmacy checklists, and disclosing a medical error by expressing concern and empathy, but not blaming, and presenting a plan. Participants reported that as a result of the activity, they intended to make changes in their practice, including the following: communicate with other clinicians involved in the patients care, contact the patients pharmacy to reconcile the medication list, communicate clearly with patients, improve documentation and checklists, and have patients bring all medication bottles to each clinical visit.Learn more.

Director, EXCEL Continuing Education

How We Make Accreditation Decisions

Examples of Compliance and Noncompliance

Standards for Commercial Support Resources

How We Make Accreditation Decisions

Examples of Compliance and Noncompliance

Standards for Commercial Support Resources

What are examples of key operating activies in company?

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What are examples of key operating activities in a company?

Key operating activities for a company include manufacturing, sales, and advertising and marketing activities.Operating activitiesare the daily activities of a company involved in producing and selling its product, and generating revenues, as well as general administrative and maintenance activities. The operating income shown on a companys financial statements is the operating profit remaining after deducting operating expenses from operating revenues. There is typically an operating activities section of a companys statement of cash flows that shows inflows and outflows of cash resulting from a companys key operating activities.

The key operating activities that produce revenues for a company are manufacturing and selling its products or services. Sales activities can include selling the companys own in-house manufactured products or products supplied by other companies, as in the case of retailers. Companies that primarily sell services may or may not also sell products. For example, a spa business, in addition to providing services such as massages, may also seek additional revenue income from the sale of health and beauty products. Interest and dividend income, while part of overall operational cash flow, are not considered to be key operating activities since they are not part of a companys core business activities.

Expenses of key operating activities include manufacturing costs and the expenses of advertising and marketing the companys products or services. Manufacturing costs include all the direct production costs included incost of goods sold (COGS). Operating costs related to advertising and marketing include the expenses of advertising the company and its products or services through various media outlets. In addition, marketing costs include such things as appearing at trade shows and contributing to, or participating in, public events such as charity fundraisers.

What are some examples of cash flow from operating activities?

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What is the difference between Operating Cash Flow and Net Operating Income (NOI)?

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Is operating profit the same as net income?

Understand the difference between operating profit and net income, including how each type relates to the other and how both …Read Answer

What is the difference between an operational expense and an administrative expense?

An operating expense covers the production and marketing of products and services, whereas an administrative expense covers …Read Answer

Learn how to analyze operating margins and how to put this aspect of equity analysis to work.

Learn the key components of the cash flow statement, how to analyze and interpret changes in cash, and what improved free cash flow means to shareholders.

Learn about the operating cash flow to sales ratio, free cash flow to operating cash flow ratio and free cash flow coverage ratio.

The Cash Flow Statement measures whether a company generates enough cash to meet its operating expenses.

Cash flow statement: Analyzing cash flow from financing activities

The financing activity in the cash flow statement measures the flow of cash between a firm and its owners and creditors.

Cash flow statement: Analyzing cash flow from investing activities

Here, youll find an overview of cash flow from investing activities one of three primary categories in the statement of cash flows.

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Cash Flow From Operating Activities (CFO)

Cash Flow From Operating Activities (CFO) is an accounting item …

Operating income is the amount of money a company generates from …

Operating margin is a measure of a companys profitability, and …

One of the quarterly financial reports any publicly traded company …

An operating expense is an expenditure that a business incurs …

A ratio that shows the efficiency of a companys management by …

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The quick ratio measures a companys ability to meet its short-term obligations with its most liquid assets.

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Enterprise Value (EV) is a measure of a companys total value, often used as a more comprehensive alternative to equity market …

Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent …

A dividend is a distribution of a portion of a companys earnings, decided by the board of directors, to a class of its shareholders.

Tools of Promotion – Advertising Sales Promoonublic Rela

Tools of Promotion – Advertising, Sales Promotion, Public Relation Direct Marketing

Tools of Promotion – Advertising, Sales Promotion, Public Relation Direct Marketing

The 4 Ps of marketing are product, price, place and promotion. All four of these elements combine to make a successful marketing strategy. Promotion looks to communicate the companys message across to the consumer. Thefour main tools of promotion are advertising, sales promotion, public relation and direct marketing.

Advertising is defined as any form of paid communication or promotion for product, service and idea. Advertisement is not only used by companies but in many cases by museum, government and charitable organizations. However, the treatment meted out to advertisement defers from an organization to an organization.

Advertising development involves a decision across five Ms Mission, Money, Message, Media and Measurement.

Mission looks at setting objectives for advertising. The objectives could be to inform, persuade, remind or reinforce. Objective has to follow the marketing strategy set by the company.

Money or budget decision for advertising should look at stage of product life cycle, market share and consumer base, competition, advertising frequency and product substitutability.

Messages development further is divided into four steps, message generation, message evaluation and selection, message execution, and social responsibility review.

Once the message is decided the next step is finalizing the media for delivering the message. The choice of depends on reach of media, frequency of transmission and potential impact on customer. Based on this choice of media types are made from newspaper, television, direct mail, radio, magazine and the internet. After which timing of broadcast of the message is essential as to grab attention of the target audience.

Checking on the effectiveness of communication is essential to companys strategy. There are two types of research communication effect research and sales effect research.

Promotion is an incentive tool used to drive up short term sales. Promotion can be launched directed at consumer or trade. The focus of advertising to create reason for purchase the focus of promotion is to create an incentive to buy. Consumer incentives could be samples, coupons, free trial and demonstration. Trade incentive could be price off, free goods and allowances. Sales force incentive could be convention, trade shows, competition among sales people.

Sales promotion activity can have many objectives, for example, to grab attention of new customer, reward the existing customer, increase consumption of occasional users. Sales promotion is usually targeted at the fence sitters and brand switchers.

Sales promotional activity for the product is selected looking at the overall marketing objective of the company. The final selection of the consumer promotional tools needs to consider target audience, budget, competitive response and each tools purpose.

Sales promotion activity should under-go pretest before implementation. Once the activity is launched it should be controlled as to remain within the budget. Evaluation program is a must after implementation of the promotional scheme.

Companies cannot survive in isolation they need to have a constant interaction with customers, employees and different stakeholders. This servicing of relation is done by the public relation office. The major function of the public relation office is to handle press releases, support product publicity, create and maintain the corporate image, handle matters with lawmakers, guide management with respect to public issues.

Companies are looking at ways to converge with functions of marketing and public relation in marketing public relation. The direct responsibility of marketing public relation (MPR) is to support corporate and product branding activities.

MPR is an efficient tool in building awareness by generating stories in media. Once the story is in circulation MPR can establish credibility and create a sense of enigma among sales people as well as dealers to boost enthusiasm. MPR is much more cost effective tool than other promotional activities.

The communication establishes through a direct channel without using any intermediaries is referred to as direct marketing. Direct marketing can be used to deliver message or service. Direct marketing has shown tremendous growth in recent years. The internet has played major part in this growth story. Direct marketing saves time, makes an experience personal and pleasant. Direct marketing reduces cost for companies. Face to face selling, direct mail, catalog marketing, telemarketing, TV and kiosks are media for direct marketing.

Advertisement, Promotional activity, Public relation and direct marketing play an essential role in helping companies reaches their marketing goals.

Authorship/Referencing – About the Author(s)

The article is Written By Prachi Juneja and Reviewed ByManagement Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. To Know more, click onAbout Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to and the content page url.

Marketing Startegy – Meaning and Its Importance

Country of Origin Effects on Marketing

Distribution Channels – Meaning and Their Significance

Value Networks and Marketing Channels

Introduction to Online Advertising Models

Facebook as a Digital Marketing Tool

Changing World of Marketing and Increased Demands on Marketers

Marketing Model based on Customer Value Creation through Market Sensing and Learning

Why Data is the New Holy Grail for Contemporary Marketers

How Cutting Edge Technology has Transformed the Sales and Marketing Function

Why Marketers Need to Focus on Creating Experiences to Thrive in the New Economy

4Ps of Marketing Explained for the Age of Market Fragmentation

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Marketing Management

Marketing is art of developing, advertising and distributing goods and services to consumer as well as business. The 21st century has seen the advent of the new economy, thanks to the technology innovation and development.

Companies in 21st century have to adapt to ever changing environment. Technology revolution, globalization and market deregulation factors are among many sculpting the new economy.

In this world of extreme competition, companies with a total focus on customer are going to be the winner. Companies must understand importance of customer satisfaction and then build process around it.

Marketing managers are routinely using the statistical tools like regression analysis, factor analysis, etc., models like markov process model, sales response models to support decision making process.

Factors influencing the market can be categorized under 6 different titles, demographic, economic, ecology, technology, regulatory-political and society-culture.

Consumer behaviour captures all the aspect of purchase, utility and disposal of products and services. Social, cultural, individual and emotional forces play a big part in defining consumer buying behaviour.

A market consists of two parts consumer market and business market. Business buying behaviour is influenced by economical, company, individual and interpersonal factors.

A marketing strategy defines how an organization reaches its pre-defined goals. The article discusses in detail about the meaning and purpose of marketing strategy.

Dealing with competition is not an easy task and it requires dedicated resources of manpower, system and budget. To deal with competition companies need to design a competition strategy.

Positioning is all about consumers rather than the product, the challenge is to develop a positive perception in consumer mind. There are many differentiation tools available to the company to extract maximum benefits.

Organizational set up has to be conducive to support new product development. Foremost companies must allocate funds for research and development, the conventional way is the percent of sales technique.

A company may decide to become a global player, if international markets offer better profitability than the domestic market.

Marketing strategy of a company revolves around 4Ps – Product, Price, Place and Promotion. Creating a unique product identity and branding strategy is important in formulating success of the company.

This article discusses a key concept in marketing called the Country of Origin Effect. This is the effect on consumer psyche wherein they associate certain qualities with certain countries and this influences their consumer behavior. The key theme in this article is that COO can be harnessed for good as well as lead to negative outcomes because consumers and their perceptions once formed are hard to change.

To design marketing strategies around services, it is essential to understand characteristics of services. Services are intangible, thereby creating uncertainty in consumer about the end product.

Pricing strategy is dynamic in nature and should reflect changing condition in competition as well as the market. Overall price strategies follow six step model which is discussed in this article.

Distribution channles are a linking network between the producers and the consumers. The article discusses in detail about these channels, their role and significance in a firms marketing strategy.

Value Networks and Marketing Channels are ears and eyes of companies in the market. They provide companies with valuable information of customers, competitors and other players in the market.

Companies are looking forward to moving away from the conventional supply chain and moving towards value network. In a value network traditional supplier-wholesaler-retailer are considered as partners rather than as a customer.

Marketing Communication is an integral part of any companies overall growth process. Communication is achieved through advertisement, sales promotion, public relation exercise, direct marketing and interactive marketing.

The four main tools of promotion are advertising, sales promotion, public relation and direct marketing. Each of these tools are discussed in detail.

Sales Force is a link between companies and customer. Sales Force is expensive and companies are looking forward to managing them in an efficient and effective manner.

This article discusses three approaches that can be used in strategic marketing. The focus of this article is on how the contemporary consumer scene needs data, experience, and what can be called gut feeling or intuition to ensure that marketers stay ahead of their rivals.

This article introduces the various online advertising models and their relevance to the marketers in marketing their products. The key themes in this article are that the different online advertising models provide the marketers with various options based on which they can select the model of choice depending on their budget and expected revenue.

The advent of Web 2.0 and Social Media has been a game changer for marketers as they now have unparalleled reach and unmatched penetration into all corners of the world with Facebook and other social media. This article considers the advantages and disadvantages of using Facebook as a digital marketing medium and examines the other issues as well. The key theme in this article is that marketers must perform their due diligence before integrating Facebook into their marketing strategy and must perform a cost benefit analysis, which would provide them with the data needed to make informed choices.

This article examines the traditional push marketing and the new age pull marketing based on how these two methods differ and how new age pull marketing is enabled by Big Data and the power of the online and mobile media. The key themes in this article are that while traditionally marketers used to push products and brands to the consumers, new age technologies have enabled them to pull consumers based on predictive capabilities that let them sense, intuit, and determine what the consumers would do next.

This article examines the changing world of marketing with the emergence of a borderless world and a market that operated on a 24/7 basis. The key themes in this article are that the combination of the art of selling with the science of prediction results in a machine driven analytics marketing and yet, the human element is yet to be made obsolete.

This article examines the latest trends in Marketing wherein the concept of Customer Value Creation has become important for firms to capture market share. In order to actualize superior customer value, firms need to develop and fine tune their learning and sensing strategies which entails beyond the ordinary marketing abilities to intuit, sense, and learn from the market.

We leave Digital Footprints online and on our Smartphones, and this provides marketers with humungous data about our consumer preferences. This article examines how marketers are developing the ability to intuit and sense our behavior and the implications that such power has over us. This article also explains how we can be careful in our Digital Footprints and at the same time, analyzes how Data has become the New Holy Grail for marketers.

With the use of Big Data, Artificial Intelligence, and Data Analytics, the field of sales and marketing has been revolutionized. This article examines and explains how the use of such technologies has transformed the way in which marketers and salespersons operate. Some real-world examples of Facebook and its Algorithm driven customization of news feeds are also discussed. Apart from that, this article also examines how the very process of attention capture that is at the heart of advertising has been transformed.

Marketing is returning to the first principles wherein the art and science of creating experiences for consumers that were the case in earlier eras are now coming back again. The New Digital Economy is as much about consumption for the intrinsic worth as it is about experiencing and the notions of absolute and relative value and perceptions. Further, technology is now being employed to achieve these objectives in pursuit of the age-old aspects of personal familiarity and the intangible aspects of experiences that now drive consumption.

Gone is the age of mass marketing and now, it is the Age of Market Fragmentation. This means that marketers need to devise entirely new marketing strategies for the new age. Hence, the 4Ps of marketing have to change according to the needs of the market landscape. This article explains how the 4Ps relate to the new age of un-scaling where instead of economies of scale, firms compete by micro scaling and fragmented consumer segments.

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Two Awesome Examples of Promotional Campaigns Done Right

Sometimes, you just have to take your hat off to excellent examples of promotional campaigns done right.

With many folks saying advertising is dead, its nice to see examples like the two below and say, Uh, really?. Especially since both show a mix of cool and (where Audi and BMW are concerned) outright cheek.

This is probably one of my favourite examples of corporate fisticuffs Ive seen. Below on the left is a billboard ad from German auto manufacturer Audi, and the response from fellow German competitor BMW (click to expand):

Audis ad shows their new A4 saloon, with the challenge to BMW of, Your move. Its classic advertising at its best, with a gentle poke at a direct competitor. A competitor that was clearly up for the challenge.

Up steps BMW with their response, a picture of their sporty M3 and the words, Checkmate. Brilliantly simple, and one that would end any mine is bigger than yours game.

Except Audi have their own sports car heritage, as was quickly evident in the response below (click to expand):

In a wonderfully cheeky piece of advertising sass, Audi put up a new billboard with their R8 supercar and the statement, Your pawn is no match for our king. Game over, right? not quite.

BMW has a long history in race cars, especially when it comes to Formula 1 racing. And they were more than happy to show this when they brought out a blimp with their F1 race car emblazoned on it along with the words, Game over.

Note: Audi reached out to advise that the blimp was photoshopped into a screengrab of the billboards. Bugger. Still epic response though. 😉

Scheduled for release next summer,Monsters Universityis the sequel to the massive hit, Monsters Inc. A prequel to the original movie, it looks at the two characters from the original movie and how they met at the titular Monsters University.

Now, normally, movies are pretty good at coming out with cool promotional campaigns, with studios trying to outdo each other on the viral effect. But Pixar and Walt Disney have really come up with something pretty cool for this one.

Instead of the normal movie site, Pixar has gone all out and created a fully functionalUniversity website(hat tip toMatt Andalorofor the heads-up on this).

Not only can you explore the School of Scaring, where the Monsters learn their trade, but you can check out the MU sports and athletics teams; get alumni news; check out MU events; and much, much more.

It looks and feels exactly like a University website would, adding to the realism and authenticity of actually spending time with fellow students. Which is exactly what the new movie will be about result.

As I mentioned at the start, many folks have decreed advertising to be dead, as social media and new media platforms look to share messages differently.

Yet, as these two examples above show, advertising is alive and well, and more creative than many of their social media equivalents.

To the naysayers of advertising and traditional marketing, perhaps its less the medium thats dead as much as its just crappy advertisers and marketers that are killing creativity.

Then again, thats true of all mediums, including social media. Heres to creativity, especially when its integrated and not silod.

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Promotional Emails

Be careful with special offer emails. This is the kind of stuff thats nearly guaranteed to end up in thePromotional tab in Gmail. Its the kind of stuff that people get really annoyed with. When you send a special offer, make sure you segment your lists first. You dont want to send an discount code to someone who just paid full price yesterday.

When there is real value for the customer, there can be real value for the business too. As long as you maintain that balance, special offers can be a win-win.

Most 500px users are familiar with Plus and Awesome accounts. They are mentioned frequently in emails and calls to action to upgrade are all over the site. So when an email shows up offering a discount, there is a foundation of knowledge in place.

The important parts of this email 15% off and Upgrade Now contrast nicely with the white background. Users will know exactly what to do.

The copy in this email is all about giving, not getting.

Special offers are often seasonal and CrashPlan did something interesting with this holiday email. If you give CrashPlan to someone else, you get two free months for yourself. This is useful to people are the holidays and the added incentive makes it an especially useful email.

This special offer is framed liked a transactional email. The subject line You have a special offer from eBay sounds more like a notification than a special offer.

The offer itself is sold by the items you could have,if onlyyou had PayPal Credit. This is a perfect example of benefits over features.

Its not surprising to see a great email from Starbucks. They send some of the best promotional email out there.

In this email, which is sent only to members, they offer a buy three, get one free deal for a very limited time. Nearly all Starbucks offers are time-sensitive. This is because they need people to actually come visit a location, not just order things online.

Avoid the gray area of email marketing. You know, that space where you arent really sure if the email youre sending will end up in the inbox or a spam folder. Sale emails can be dangerous. Send themonlyto people who have explicitly requested them and consistently engage with your emails.

Low engagement rates are a spam signal. Tread lightly.

Crate and Barrel does a great job emphasizing the 60% off in a contrasting color. That number is key and the entire email is built around drawing attention to it.

This email is loaded with eye candy. The photos are great, the clothes and accessories look great and there are six calls to action in the body of the email.

Not only is the offer timely This Weekend Only it offers a discountandfree shipping. The colors and layout guide the eye towards the blue box where the click needs to happen.

Notice how little copy is used. Less is often more.

This is a common theme youll see from big retailers. They throw a bunch of things at the wall and see what sticks. If youve got data, its much better to personalize but if your product selection is as broad as Targets, you can use it to your advantage.

This email works because it gets the customer thinking about possibilities. I dontneeda new camera but thats a really good deal. Use this tactic carefully as it can backfire.

Everyone expects to get more emails during the holidays.

You have a green light to send a promotional email (to people who opted in) but not to badger your subscribers or annoy them.

Use the built-in context of the holidays to craft a message that will be welcome in the inbox.

500px sells everything with imagery. Their site has tons of beautiful images, so it makes sense to build that experience into their emails as well.

What starts as a holiday greeting ends with a nice offer. For people who arent interested in upgrading, this is just a holiday card. And for those that are, its well-timed offer.

By the time customers receive this email, theyve likely already heard a few news stories about howAmazonis prepping for the holiday season. They know the deals will be good. The context is already there. This email is just a green light to start shopping.

If youre a great copywriter, lean on that skill.

Its exactly whatLaura Roederhas done here and it makes for a great email. And this isnt even the offer, its building excitement for one thats coming soon. Not everyone gets tons of press coverage like Amazon so building your own momentum can lead to better sales and more conversions.

You have two options when it comes to announcing events via email. You can include the announcement in an exiting email (like a newsletter) or send a separate email dedicated to the announcement. Both can work and we have examples of each.

As always, the format is less important than the content. Can you concisely and clearly communicate value? Do that, and your event will be off to a great start.

This is an example of building the announcement into an existing newsletter. Peep does a great job using a conversational tone. If youve read the blog, it sounds like Peep. He sells the conference but he doesnt go overboard. Why? Because if youve already subscribed to the newsletter, you already knowConversionXLdoes great work.

This is a different approach.KISSmetricssent this email with the sole purpose of announcing the webinar. Its rare that startups are willing to talk about their challenges so they get your attention from the beginning. The story builds your interest before sealing the deal with a call to action.

Another example of a dedicated announcement email,Unbouncedoesnt waste much time getting recipients to the conference website. Conferences are big investments so people are likely to spend a lot of time researching before they commit. The landing page really sold the show. This email was just a catalyst.

Upgrade emails exist in many forms. There are a few different approaches in this section. Pay special attention to Buffer as they seem to be onto something great with their version.

This isnt a dedicated upgrade email or is it?

In this report that Buffer sends each week, they ask users to upgrade above the fold. Recipients see the call to action before they even see the metrics.

TripAdvisordoes something very similar. This is a great example of making the most oftransactional email. Users like receiving their reports and probably feel good about about the metrics. Its the perfect time to ask them to upgrade.

Jason Friedon how to use free trials:

You should emulating drug dealers. Drug dealers give you a little taste and get you hooked, then you buy from them.

Instead of going for the upgrade right away, Spotify lets you try their premium service for free first. And the service is great. Email marketing always works best when the product does the selling for you.

This approach is similar to Spotify butTodoistspends a little more time on the benefits of the service. This is useful to newbies since the software does so much.

The emphasis on no commitment and no credit card alleviates some of the anxiety around free trials. And just when the users interest is piqued, they bring it home with a bold, red button.

Why is there so much click-bait out there? Because it works.

The problem with click-bait is that the headline oversells the content, leaving the reader disappointed.

Most clickbait is disappointing because its a promise of value that isnt met the payoff isnt nearly as good as what the reader imagines, [Verge Editor-in-chief Nilay] Patel said. BuzzFeed headlines pay off particularly well because they actually make fairly small promises and then overdeliver.

Read the full post:Why BuzzFeed Doesnt Do Clickbait

So theres your strategy. Now lets see how some of the pros do it.

Keep an eye on the subject lines in this section. In this email, Diggs subject is The Only Way to Drink Puke.

Digg makes money with ads. That means they need visitors. And that means they need consistently keep people interested and entertained so theyll come back.

They cant risk disappointing readers. So they dont. See example A this email.

Again, focus on the subject line: The Sneaky Thing Thats Sabotaging Your Sleep.

Its exactly the kind of the thing a lot of people are sick of seeing. The copy is this email promisesa lot. Thats fine if people are happy after the click.

Quora lets their users generate subject lines for their emails.

Each newsletter arrives with a question from my feed, meaning the subject lines are always interesting and cover a wide range of topics. You never know what youre going to get with a Quora email but its always worth checking out.

We wrote more about this strategy in20 Tips for Dramatically Better Emails.

Survey your customers about your product. I bet youll find that they know about half of what it does.

Did you know emails are great for onboarding and inactive users. They can be promotional or behavioral. We suggest the latter, sincehighly targeted behavioral emailsconsistently perform better than promotional emails.

If youve ever used Adobes tools, you know they are beastly. Powerful and useful, yes but overwhelming.

Now that most Adobe users pay a monthly fee to use their creative suite, its important to continually remind users that they are getting something great for their money. This email is a perfect way to engage users with the software and make them feel good about their investment.

If you signed up forLaunchRock, you are likely launching something. So the marketing team at LaunchRock knows there is a clock ticking on your pending launch and their chance to get you using their product.

For users who havent setup their LaunchRock page (and the business is monitoring this on the backend), they offer paid services to do it for you. Its a smart way to get people using the productandmake money on the consultation service.

Pinterest sends a great onboarding series. Seriously, go sign up for a new account to get some great ideas for your own onboarding email.

As a new user, I didnt know about place boards but after seeing this email, I created one. So it worked really well.

Onboarding emails are designed to drive engagement. So when Pinterest says Heres something cool you probably didnt know then immediately prompts the user to try it, everyone wins.

Saying Im sorry can be really hard but sometimes it must be done.

If youve upset your users or customers, email is a good way to send a personal message apologizing.

You also have an opportunity to delight the recipient (more on that here) by giving them something free or surprising them. Check out what we mean.

When Buffer first added feeds to their app, users were upset because they could only add one. It was still better than before, just not as good as people hoped.

Instead of getting defensive, CEO Joel Gascoigne sent this email apologizing for the disappointment. And he announced that, effective immodestly, users could add up to 15 feeds.

Weve all sent an email we wish we could take back. Maybe it had a bad link, an incorrect date or a grammar error.

In this case, Copyblogger sent an email about an upcoming webinar but listed the time incorrectly. This email arrived shortly after apologizing for the error and for the extra noise in the inbox.

They got it right though. The correction had to be made and the email was short and sweet.

Your tech team invests a lot of team energy trying to achieve 99.999% uptime but somehow people are still upset when your site goes down. It happens, and it often requires an apology.

Sumday kept this email brief but still got the point across.

If you want to make people feel special, invite them to something. A special email list, a pre-sale, a beta group it makes people feel really good.

Be sure to spend time segmenting your lists before you hit send on an invitation. Dont send them to everyone that defeats the purpose and try to segment based on past behavior. Its a great indicator of future behavior.

Perhaps because Ive made a purchase within just a few days of signing up for a new account, Amazon wants to strike while the iron is hot. In this email, they invite me to join a site called that curates deals for clothing and other fashion products.

Within five days of opening the account, I made two purchases.

My purchasing behavior is trending upward. Theyve had to do very little to entice me to buy. They see this as a signal that Im ready to spend and are trying to built a habit of frequent purchasing.

Read more on this email in our postHow Amazon Dominates E-Commerce With Email Marketing.

Everyone is used to orientation sessions. New job, new school, new software you need to get oriented. So this email from Divvy inviting new users to an orientation is not only useful, its expected.

Google loves to build anticipation for new products by requiring an invite to join. By the time you get this email, you are well aware of the product and itching to get your in.

The email starts with the good stuff the call to action. For those wanting more information, its there too, complete with a video walkthrough and an explanation of the new features.

Go to Chapter 4: Transactional Emails

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Promotional Activies in Markeng (An Overview

Promotional Activities in Marketing: Definition, Needs, Objectives and Other Details!

Todays market is full of offers and discounts. Marketers use multiple promotion programmes to entice customers to buy products and services. While objectives of advertising are long term and generally of brand building, sales promotion programmes often pursue a single goal, that is, to maximize sales in short run.

The consumer promotion programmes are visible to the audience because they are often advertised in the mass media. Companies also undertake trade intermediary promotion and sales force promotion programme to increase sales. This is important because in both direct and indirect marketing programmes, sales and trade play an important role in the product and information flow process.

Hence, without adequately promoting the product at trade and sale force end, many consumer promotion programmes will not achieve its desired objectives. Sales promotion programmes are short term programmes aimed at maximizing sales in a period of time but what is most important to remember is that the sales promotion programme should be designed in such a way that it does not affect the overall brand image of the firm and its product.

Many companies offer sales promotion programmes more frequently. Though they are able to optimize their sales in a short run period but frequent use of sales promotion leads to brand value erosion. Sales promotions are increasingly being used to accomplish an ever-expanding list of marketing objectives.

Companies pursue short term and long-term marketing goals. In the long run, they wish to build brands, which deliver value over long period of time. In the short-term, they pursue sales market share goals. The demand for products and services is affected by various extraneous factors like seasonality of business, entry of new competitor into the business. In off seasons, sales are not healthy and there is a fall in market demand which creates excess inventory in the pipeline and companies use sales promotion schemes to promote sales during off-season period.

The definition of promotion is the co-ordination of all seller-initiated efforts to set up channels of information and persuasion to facilitate the sale of goods, or service or the acceptance of an idea. The promotion refers to the activities to push forward or to advance an idea, in such a way as to gain its approval and acceptance. Promotion is telling and selling. Brink and Kelly have defined promotion as, the coordination of all seller initiated efforts to set up channel of information and persuasion to facilitate the sale or a product service or the acceptance of an idea.

Product planning, pricing and distribution are marketing activities that are performed mainly within the company or between the company and its marketing partners. Sales are the life-blood of the business. The ultimate aim of production is sale. Sales revenue is the important source of income. Sale is not self-generating activity.

The stiff competition has increased the importance of sales promotion efforts on the part of the producers. Thus, sales promotion means all the steps that are taken for the purpose of obtaining or increasing sales. In the words of Hopkins Sales promotion is an organised effort applied to selling job to secure the greatest effectiveness for advertising and for dealers help.

Sales promotion, as a tool of marketing promotion, gives rise to increase in product usage as well as expansion of a product or introduction of a new product. Promotion means any marketing effort whose function is to inform or persuade actual or potential consumers about the merits of a given product or service for the purpose of introducing a consumer either to continue or to start purchasing the firms product or service at same (given) price.

Promotion is the fourth major component of companys total marketing mix (along with product planning, pricing and distribution). Its intent is to inform, persuade and influence people. Promotional activity in marketing is basically an exercise in communication. It is a basic ingredient in non-price competition and it is an essential element in modem marketing.

It is an exercise in information, persuasion and influence. Communication is necessary in exchange activities. For instance, we have the best products with good package, fair price etc. The products cannot be sold to consumers unless buyers know it. People must know that the right products are available at the right place and at the right price.

This is the job of promotion in marketing. Promotion is a spark plug in marketing mix. It can be defined as the coordinated, self-initiated efforts to establish channels of information and persuasion to facilitate or foster the sale of goods or services, or the acceptance of ideas or point of view.

Thus, promotion refers to activities and processes designed to change or reinforce behaviour and/or ideas of the consumers, through communication, so that they are persuaded to buy what they might not otherwise buy, and what they dont really want to buy. Promotion is telling and selling. It is an exercise in information, persuasion and influence. These three are inter-related in the sense that to inform is to persuade; and if a person is persuaded he is informed.

In the present era, selling is a complicated task. There may be stiff competition. There may be many substitute products. Products have become more consumer-oriented. Consumers have become more sophisticated. For instance, they possess the best products at a fair price. The products are of a better quality than the substitute produce for sale. But sales are not automatic.

The prior idea of the production is for the sales. How will the buyers get the products, when they have not heard of our products? Therefore, people must have knowledge of the existence of the product and its availability. This is possible only through a good propaganda. There arises a need for proper flow of information along with products from producer to consumer. Thus promotion is the process of marketing communication aimed to inform, persuade and influence people. The statement Nothing happens until somebody sells something gives in a nutshell the place of promotional activities in todays business.

The promotional activities must aim:

(a) To inform prospective buyers about the existence of a product and its want-satisfying capabilities.

(b) To remind the users of past and present to its various roles on consumption.

(c) To persuade the prospective buyers in a most effective manner.

Selling, Promotion and Sales Promotion:

Selling and promotion are propagated synonymously. Selling is a narrow term and refers to the transfer of title from the seller to the buyer. It does not include advertising and other demand creating methods. But promotion is a broader term; it includes advertising, personal selling, sales promotion and other selling tools.

Promotion and sales promotion are different terms. Sale promotions are only a part of promotion. Promotion covers all other marketing activities more efficiently and effectively. Sales promotion helps the selling activity only. To attract customers, awaken their demand and stimulate them to act in the desired manner are the main purposes of promotion.

Sales promotion acts as a bridge between advertising and personal selling to coordinate efforts in these two areas. The main tasks of promotional activities are to establish and maintain communications with large market segments. Promotion is essential in modem marketing and is in the form of non-price competition.

Promotion is a very wide term including advertising, personal selling, sales promotion and other promotional tools that can be devised to reach the goals of the sales programme. On the other hand, sales promotion is only a part of it. Sales promotion has been defined as activities, other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and expositions, demonstrations etc.

The Need for Promotional Activities:

Promotion is the final element in the marketing mix. The manufacturer has to take effective steps in meeting the consumer in the market after taking the decision relating to the nature of products, its price and its distribution. The present age is of consumer-oriented markets and therefore, it is the responsibility of manufacturer to know what is required by the buyers.

Even the most useful and want-satisfying product will be a marketing failure if no one knows it is available. Thus, it becomes essential, rather a duty, of the manufacturers to make the customers know from where, how, when and at what price the product would be available.

As the distance between producers and consumers increases and as the numbers of potential consumers grow, promotional activities are necessary. More and more promotional activities are required to induce the consumers to purchase more and more products and thus demand for the product is created. A basic purpose of promotion is to let potential customers know about the products.

Secondly, there is stiff competition among the manufacturers. Therefore, promotional activities are necessitated. When a producer increases his promotional activities, others also follow the same and this leads to promotion war.

Thirdly, large scale production can be achieved only with methods of large scale selling, which is possible only through the promotional activities.

Fourthly, when there is an imperfect market condition, product cannot easily be sold on the basis of product-differentiation. In such a situation, only the promotion activities draw the attention of consumers. The customers are attracted to buy the products on the basis of promotional activities.

Personal selling is a direct or personal method of selling the products. In other words, personal selling is direct selling. Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders.

Direct marketing involves direct communication with selected target customers on a one-to-one basis to obtain an immediate response and cultivate lasting customer relationships. For example, using mail, fax, telephone, e-mail, the internet etc.

Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. For examples, it includes, newspapers, magazines, outdoor posters, banners, direct mail, radio, TV, internet etc.

A variety of short-term incentives to encourage trial or purchase of a product or service. For examples, samples, exhibitions, demonstrations, coupons etc.

Publicity includes non-personal promotion of demand for products by obtaining publicity through news in media, TV, Radio magazines, etc.

Public relations include building good relations with the public by obtaining favourable publicity, building a good corporate image or avoiding unfavourable publicity.

The overall purpose of promotion is:

Communication is the basis of marketing, it is not enough merely to communicate, but communication should be convincing enough to supplement and provide adequate advantages as compared to competitors product. The favourable change in the pattern of consumer demand is secured through commercial information, persuasion and influence with the help of personal selling, advertising, publicity and sales promotion devices.

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Oral presentation in a conversation with one or more prospective purchasers for the purpose of making sales.

Short-term incentives to encourage the purchase or sale of a product or service.

Building good relations with the companys various clients by obtaining favourable response building up a corporate image and handling or heading off unfavourable rumours, stories and events.

The important purpose of promotion is to change the location and shape of the demand curve. Creation of demand is one of the functions of selling. But promotion is responsible for the creation of demand. Promotion is an exercise in information, persuasion and influence, which are inter-related, in that to inform is to persuade and if a person is persuaded, he is probably also being informed. Promotional activities are essential for imperfect competition.

Due to the increase in the physical distance between producers and consumers, there is the increase in need for promotion. There is also the increase in the number of potential consumers, which increases the problem of market communication.

There are many middlemen-wholesalers and retailers-existing between the producer and the final consumer. The information must be passed on not only to the consumers, but also to the middlemen. In turn, the middlemen communicate to the consumers about the products. Thus promotion is the important process of marketing communication.

Today consumers give more importance to want-satisfaction rather than to their needs. They are selective in their choice of alternative expenditure. A firm must have the best promotional programme to attract such customers. During economic decline, selling is a problem. At that time, promotion is essential to maintain the standard of living and the high level of employment in the country.

Objectives of Promotional Activities:

Histy and Will have put in the following objectives of promotion:

The idea of promotion is to influence, stimulate, maintain and create demand for a product. Promotion is responsible for demand creation. To create demand for products, a number of promotional activities must be taken. These activities can be employed to maintain the demand and to capture demand from competitors. They are alternative instruments for meeting competition and for the creation and maintenance of consumer demand.

It aims at creating awareness. It provides information to consumers and retailers about product features, where the products can be obtained and what the products are capable of doing or achieving brand preferences.

(Performance Objectives). It gives specific information about a product, and influences the consumers decision of purchasing.

In marketing system, promotional activities are exercised through communication. If the executives know the benefits of communication, they can manage the promotional programme in a better way. The word Communication is derived from the Latin word Communis which means common. When, we communicate, we are trying to establish a commonness with someone.

The fundamental four elements of communication process are:

The sender sends the message and the receiver receives the message. True communication takes place only when the two parties mean the same thing or have in common the same message.

(The process of communication has two divisions, explicit and implicit. Explicit communication means the use of language that is verbal. Implicit communication is in the nature of non-verbal communication, i.e., understanding a message through symbols).

The three elements or stages of a communication process are a message, a source and a receiver. But to be more elaborate, the communication process is of five stages.

At the first stage the source originates the communication. The person is a sender of the message. For example, the marketing executive communicates the ideas or information to his subordinates.

The second stage is encodingthe idea to be communicated is converted into a message form i.e., the idea is translated in a language (explicit) or medium of expression (implicit) suitable for transmission.

In the third stage, the message carrying the idea flows or moves from the source towards the receiver by print media or sound wave.

In the fourth stage decoding takes place i.e., the message is interpreted.

In the fifth stage the receiver receives the decoded messages and acts as per the message received. It is the largest of the communication.

The other elements affecting communication process are noise and feedback. Noise consists of extraneous interferences with communication. It creates many obstacles in reducing effectiveness of the communication process. It can be actual noise, such as thundering or other kinds of interferences. Any sort of disturbance affecting the receivers attention while receiving the message is noise. Noise is present in some degree or another, in all communication processes.

Feedback is essential for effective communication. It determines the effectiveness of the communication. It reveals the acceptance or rejection of the receiver. Feedback takes many forms a nod, an expression of interest or a smile from the listener or reader. Feedback is the reverse flow of communication from the consumer to the marketer.

Promotional Campaign and Promotional Decision:

A campaign is a co-ordinated series of promotional efforts built around a single idea designed to reach a predetermined goal. Campaign is an appropriate activity to apply to the entire promotional programme. Promotional decisions are guided by previous results. They are concerned not only with the target of market channel of distribution to be used, but also with price and product.

The steps of promotional decisions are:

4. Appealing to its nature and timing

Relative Costs of Different Forms of Promotion:

The methods of promotion vary considerably according to the cost for messages delivered. If there is less availability of fund, low cost promotional input is used. More combination of promotion mix may prove more productivity. The decision is taken according to the availability of fund. Cost is given importance. A better approach will decide what promotional goals are to be achieved; and then the cost to be involved can be figured out.

4 Ingredients of Promotional Methods that Constitute the Promotion-mix

Product Promotion (Explained With Diagram)

30 Major Objectives of Sales Promotion

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