SALES AND PROMOTIONS

What could possibly go wrong?

Look at these sales & promotions…do you find them attractive?

Look at the following promotions and discounts….what could possibly go wrong?

On Sale!

You are going to read about promotional offers that went wrong…can you predict what was the problem with the promotions in the following companies?

Use the following words/ ideas to help you predict:•Heavily advertised offer•2 for the price of one•Queue for more than an hour•Two free flight to the US•Free mobile phones•Astonishing demand•A storm of protest•A mess-up in production•Set fire to the company’s offices.

Remember? Complete the following chart:

Buy a Big Mac2 for the price of

one

Demand was huge, clients had to queue for an hour and restaurants were closed

Spend over 100 on products

2 free flight to the US

300,000 people claimed price, court cases and loses

of 50 million

Save tokens A military jetA student formed a consortium to buy tokens and get the jet at

10th of full price

Find a bottle top with winning number 349

30,000 cashProduction error: 800,000 tops with winning number; Pepsi had to pay out five

times its budget

In January, 2010 …

It started with a single, horrifying car crash in southern California in August 2010. After two separate recalls covering 7.5 million vehicles, Toyota was forced to announce it was suspending the sale of eight of its best-selling vehicles, a move that cost the company and its dealers a minimum of $54 million a day in lost sales revenue.

How did a company that became the world's largest and most profitable automaker on the back of a rock-solid reputation for quality and dependability find itself at the center of the biggest product recall? And what does this mean for Toyota's brand image in its largest and most profitable market?

Can marketing have anything to do with physics?

Heisenberg’s uncertainty principle

States that position x and momentum p, can’t be known simultaneously.

The more precisely the position of some particle is determined, the less precisely its momentum (behavior) can be known, and vice versa.

How could you apply this to marketing?

Ice melting in a warm room is a common example

of increasing entropy, described in 1862 by Rudolf Clausius as an increase in the disgregation of the water molecules in ice: order leading to disorder.

How could you apply this to marketing?

Good job!