Tag Archives: promotion

Why are Prices Going Up?

Pricing is a very strategic part of marketing and planning. And, yes, price is also one of the four P’s and is usually referred to as a tactic. However, when an organization is setting strategic objectives, the price level is a critical factor that may be adjusted to help a company meet its objectives. However, raising prices can be difficult as consumers tend to balk at paying more for a product or service that they have had for years. Among companies raising prices are two affecting many college students: Netflix and Whole Foods.

In January, Netflix raised prices for its subscription plans by 18% to $13/month. The increase is intended to help Netflix cover increasing costs for original content and streaming services. Some of its highly-rated content includes “Bird Box,” “Stranger Things,” and “The Crown.” According to Netflix, it has 10% of all U.S. TV screen time, or a billion hours each day.

In February, Whole Foods raised prices on hundreds of its products in order to cover increasing costs of inflation, including transportation, ingredients, and more. The price increases range from a few cents to several dollars, depending on the product and manufacturer.

Is it worth the price?

Group Activities and Discussion Questions:

  1. Question students: Why are Netflix and Whole Foods raising prices? How does the price increase fit into the company’s strategy? What environmental factors should be considered?
  2. Show a video about Netflix price increase: https://mashable.com/video/netflix-raises-prices/?jwsource=cl#tzDtP.YOImq1
  3. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  4. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  5. Divide students into groups and have each group work on any/all of the six steps.
  6. When setting the price level, assign each team a different model to use (demand-oriented, cost- oriented, etc.).

Source: Ad Week, Wall Street Journal, other news sources

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53rd Super Bowl (2019)

The Super Bowl has become one of the premier venues for marketers. The thrills, the chills, the excitement and surprises – and that’s just the advertisements! At a cost of $5 million for 30 seconds of air time, the Super Bowl is also the most expensive advertising placement of any event or show. Add the costs of designing and producing ads, plus the integration into other marketing tactics, and a company can easily spend upwards of $6 million at a single event.

Love them or hate them, Super Bowl advertisements have become a talking point during and after the game. It’s a big stage, and can also be a big risk. This year it had an audience of 98.2 million viewers and a 41.1 U.S. household rating in 49.3 million homes. While still large, this was the lowest viewing in 10 years. However, days later we are still watching ads, arguing about them, and measuring results.

Watch the ads – which ad is your favorite?

Group Activities and Discussion Questions:

  1. Bring up one of the Web sites that have all the Super Bowl ads: https://www.ispot.tv/events/2019-super-bowl-commercials
  2. Divide students into teams. Have each team select a Super Bowl ad to analyze and present in class.
  3. What is the target market, key message, and offer from the ad?
  4. How does the ad integrate with a company’s other advertisements?
  5. Are the messages integrated with a company’s Web site and social media?
  6. As a class, after each commercial have students assign one to five stars for the advertisements. Which advertisement won the class vote?

Source:  Ad Week, CBS, iSpot.tv, Nielsen, other news sources

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YouTube Ads Leaderboard: 2018

Starting a new year is a good time to examine the winning campaigns from last year. The most compelling advertisements and videos are ones that have a strong story, humor, inspiration, and excitement. They build a bond with the audience, and inspire thoughts and action. It’s not easy to create a short video that engages audiences and inspires them to share the video and view it more than once, so it is worth examining the top ad videos from 2018.

Here are the most viral brand videos posted to YouTube in 2018. Combined, these top five videos generated more than 172 million views last year!

  1. Amazon – Alexa Loses Her Voice (50+ million views)
  2. YouTube – Music (39+ million views)
  3. OPPO F7 (India)– Real Support Makes Real Hero (31+ million views)
  4. Nike – Dream Crazy (27+ million)
  5. Turkish Airlines – Safety Video with the LEGO Movie Characters (25+ million)

Remember, these are the ads that people choose to watch. An algorithm factors in organic and paid views, watch time, and audience retention.

Which ads do you watch online?

Group Activities and Discussion Questions:

  1. Discuss the importance of branding and brand management. How do the videos fit into branding?
  2. Divide students into teams. Have each team analyze one of the following videos with respect to target market, key message, type of appeal, etc.
  3. All ads are available at: https://www.thinkwithgoogle.com/advertising-channels/video/youtube-leaderboard-year-end-2018/
  4. When teams have completed this, have each team show the video and discuss their analysis with the rest of the class.
  5. What are the commonalities between the videos? What are the differences?
  6. What should other companies do to replicate the success?

Source:  Think with Google. YouTube ads leaderboard: Global year-end 2018.

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