Friday, April 20, 2012

In Response to Lyndzi
Can you think of a store that has drawn you in because of a pleasant ambient scent? What do you think the target market of that store consists of?


There are many stores that do this.  In a male's point of view, a nice scent still isn't going to get them to buy clothes they don't want or need.  At the same time, if we walk past a food place that smells very appealing we are much more likely to stop in.  Subway pumps the fresh bread smell into the store and outside onto the street to remind potential customers that they bake their own bread in each store and the bread is fresh.  
Another example of this are the waffle cabins that are now located at many ski slopes.  There is a machine that is very similar to a fog machine that pumps a syrup smell that reminds you of a home cooked meal into the air.  
This aroma spreads quite far and makes people realize how hungry they have become since they started skiing. Skiers also have more money so they have more disposable income and are therefore more likely to make an impulse buy which is what these companies try to get the consumer to do with the aromas.  
Do you feel more likely to buy from a retail store that smells different?  Can you walk by a food place that smells good without looking at the menu?

Tuesday, April 17, 2012

Gannett drops in profilts, rev: Strong TV advertising couldn't offset slump in print


Big broadcaster/publisher Gannett saw profit and revenue slide last quarter as stronger TV advertising couldn't offset a slump on the print side early in the year.
Net income fell 24% to $68 million from $90 million, in part on $20 million in restructuring costs. Revenue eased 2.6% to $1.22 billion from $1.25 billion.
Description: http://articles.chicagotribune.com/images/pixel.gifBroadcasting revenue of $176 million rose 7.5% on strong advertising demand, the company said Monday, citing higher auto spending, advertising associated with the Super Bowl, and an increase of $3.8 million in political ad demand. Gannett owns 23 stations covering 18.2% of the U.S. market.
Retransmission revenue rose 17% to $22.8 million. Television station digital revenues grew 6.4%.
Based on current trends, Gannett expects the percentage increase in total television revenues for the current second quarter to be in the high single digits compared to the 2011 period.
Broadcast operating income of $72.6 million, was up 14.4%.
In publishing, Gannett owns 82 daily papers led by flagship USA Today. Revenues fell to $874 million from $929 million reflecting soft advertising demand due in part to the tepid pace of the economic recovery. January was particularly weak and although activity improved in February and March it wasn't enough to overcome the slow start to the year, said CEO Gracia Martore.
Advertising revenues totaled $551.4 million compared to $601.7 million in the first quarter of 2011. Advertising revenues in the U.S. were 8.3% lower in the first quarter. At Newsquest, the company's operations in the UK, advertising revenues declined 6% percent, in local currency.
Digital revenues in the segment rose 12.5%.
According to market reports Gannett has had a few bad years now.  Is TV marketing just not as successful as it used to be?  What will be the next latest and greatest marketing scheme on TV?