Elements of the Promotional Mix

Promotion is defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods and services or promote an idea. Promotion is best viewed as the communication function of marketing. The promotional mix is defined as the basic tools or elements that are used to accomplish an organization’s objectives. The role and function of each promotional mix element in the marketing program has both advantages and limitations.

A.

Advertising—any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

Advantages: • • • cost-effective with large audiences ability to create images and symbolic appeals ability to control the message

Disadvantages: • • • • costly, particularly television difficult to determine effectiveness credibility and image problems clutter problems

B.

Direct Marketing—a system of marketing by which organizations communicate directly with target customers to generate a response and/or a transaction.

Advantages: • • • • consumer convenience target specific customer segments customized messages easier to measure effectiveness

Disadvantages: • • • consumers are bombarded image problems clutter problems

banners) D. distributors. or the ultimate consumer and can stimulate immediate sales. Advantages: • • • • can be used for a variety of IMC functions the Internet can target very specific groups messages can be tailored the interactive nature leads to a higher degree of customer involvement Disadvantages • • • • not yet a mass medium do not pay attention to banner ads a great deal of clutter on the Internet audience measurement for the Internet is still a problem (e. The major interactive medium is the Internet.g. Sales promotion is generally broken into two major categories: consumer-oriented and tradeoriented activities.. Interactive/Internet Marketing – interactive media allow for a back-and-forth flow of information whereby uses can participate in and modify the content of the information they receive in real time. Advantages: • • • way of appealing to price sensitive consumer way of generating extra interest in product or ads effects can often be more directly measured Disadvantages: • • • • • focusing too much attention on short-run many forms of sales promotion do not help establish or reinforce brand image and shortterm sales gains are often achieved at the expense of long-term brand equity problems with clutter consumers may become over-reliant on sales promotion incentives promotion wars may develop which result in lower profit margins . Sales Promotion—marketing activities that provide extra value or incentive to the sales force.C.

identifies the public policies and procedures of an individual or organization with the public interest. Personal Selling—direct person-to-person communication whereby a seller attempts to assist and/or persuade prospective buyers to purchase a company’s product or service or act on an idea.E. Advantages: • • • • direct contact allows for more communication flexibility can tailor and adapt message allows for immediate and direct feedback can target specific markets and customers Disadvantages: • • expensive way to reach large audiences difficult to have consistent and uniform message delivered to all customers . Public Relations—a management function which evaluates public attitudes. or idea that is not directly paid for nor run under identified sponsorship. product. Advantages of Publicity: • • • credibility is usually higher low cost way of communicating often has news value and generates word-of-mouth discussion Disadvantages of Publicity: • • lack of control can be negative as well as positive F. and executes a program of action to earn public understanding and acceptance. service. Publicity/Public Relations Publicity—nonpersonal communications about an organization.

measured. but it includes management of digital customer data and electronic customer relationship management (ECRM) systems. Internet marketing ties together creative and technical aspects of the Internet. response. Therefore. where an individual will at best be interested. is the marketing of products or services over the Internet. advertising. web-marketing. Internet marketing also refers to the placement of media along many different stages of the customer engagement cycle through search engine marketing (SEM). marketers can determine which messages or offerings are more appealing to the audience. development. pay per play. published an initial estimate to quantify the user data collected by large Internet-based companies. banner ads on specific websites. then decide to obtain more information at a later time. The Internet has brought media to a global audience. also referred to as i-marketing. and tested.[1] Advantages Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. and Web 2.500 times on average per user per month. visit a website. Internet marketers also have the advantage of measuring statistics easily and inexpensively. is a unique quality of the medium. or pay per action. onlinemarketing. The nature of the medium allows consumers to research and purchase products and services at their own convenience. working with comScore. The interactive nature of Internet marketing in terms of providing instant response and eliciting responses. and wireless media. In 2008 The New York Times. The results of campaigns can be measured and tracked immediately because online marketing initiatives usually require users to click on an advertisement. The advertisers can use a variety of methods: pay per impression. e-mail. and perform a targeted action.Internet marketing. Companies can reach a wide audience for a small fraction of traditional advertising budgets. Because exposure. e-mail marketing. including: design. Marketers and their . Counting four types of interactions with company websites in addition to the hits from advertisements served from advertising networks. and sales. search engine optimization (SEO). Internet marketing is sometimes considered to have a broader scope because it not only refers to the Internet. and overall efficiency of Internet media are easier to track than traditional off-line media—through the use of web analytics for instance—Internet marketing can offer a greater sense of accountability for advertisers. businesses have the advantage of appealing to consumers in a medium that can bring results quickly. Nearly all aspects of an Internet marketing campaign can be traced. pay per click. the authors found the potential for collecting data upward of 2. Therefore.0 strategies. Search Engine Marketing (SEM) or e-Marketing.. The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis. Such measurement cannot be achieved through billboard advertising.

However. packaging changes.clients are becoming aware of the need to measure the collaborative effects of marketing (i. but are an important part of ascertaining the value of media campaigns. Misleading or overstated claims can lead to regulatory or civil challenges. smell. as well as modifying advertising. the inability of shoppers to touch. Low-speed Internet connections are another barrier. green marketing is the marketing of products that are presumed to be environmentally safe. [edit] Limitations Internet marketing requires customers to use newer technologies rather than traditional media. and difficulty convincing senior management. The effects of multichannel marketing can be difficult to determine. A survey of 410 marketing executives listed the following barriers to entry for large companies looking to market online: insufficient ability to measure impact. taste or "try on" tangible goods before making an online purchase can be limiting. If companies build large or overly-complicated websites. In the USA.e. individuals connected to the Internet via dial-up connections or mobile devices experience significant delays in content delivery. changes to the production process. there is an industry standard for e-commerce vendors to reassure customers by having liberal return policies as well as providing in-store pick-up services. an example of this will be the existence of varying social. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other..[1] Other similar terms used are Environmental Marketing and Ecological Marketing. environmental and retail definitions attached to this term. the Federal Trade Commission provides some guidance on environmental marketing claims . including product modification. how the Internet affects in-store sales) rather than siloing each advertising medium. The legal implications of marketing claims call for caution. From the buyer's perspective. lack of internal capability.[2] According to the American Marketing Association.[1] Thus green marketing incorporates a broad range of activities.

Multi-level marketing (MLM). emphasis on recruitment of lower-tiered salespeople over actual sales. (also called network marketing[1][2][3][4][5]. encouraging if not requiring salespeople to purchase and use the company's products. and pyramid selling[8][9][10][11][12]) is a term that describes a marketing structure used by some companies as part of their overall marketing strategy. or even text messages. high initial start-up costs. direct selling[6][3]. and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion. The goal of marketers interested in creating successful viral marketing programs is to identify individuals with high Social Networking Potential (SNP) and create Viral Messages that appeal to this segment of the population and have a high probability of being taken by another competitor.[1] Viral promotions may take the form of video clips. It can be wordof-mouth delivered or enhanced by the network effects of the Internet. Not all MLM companies operate the same way. advergames. The structure is designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate. interactive Flash games. but also for the sales of other promoters they introduce to the company. complex and sometimes exaggerated compensation schemes. images. The term "viral marketing" has also been used pejoratively to refer to stealth marketing campaigns—the unscrupulous use of astroturfing on-line combined with undermarket advertising in shopping centers to create the impression of spontaneous word of mouth enthusiasm. and MLM groups have persistently denied that their techniques are anything but legitimate business practices The buzzwords viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes. pricefixing of products. potential exploitation of personal relationships which are used as new sales and recruiting targets. referral marketing[7]. analogous to the spread of pathological and computer viruses. ebooks. The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing. .[13] MLM companies have been a frequent subject of controversy as well as the target of lawsuits. brandable software. creating a downline of distributors and a hierarchy of multiple levels of compensation in the form of a pyramid. Criticisms have focused on their similarity to illegal pyramid schemes.

A pure play etailer uses the Internet as its primary means of retailing. and many more. Combining this new type of retail and the old of a general store is a new type of store which is part of the green economics movement. 24 hours a day. [edit] Advantages to e-tailing E-tailers who take part in pure play–type business have the opportunity to turn higher profit margins. Promote & Profit. such as labour.” An e-tailer is a retailer that primarily uses the Internet as a medium for customers to shop for the goods or services provided. retail space. Various forms of marketing and advertising are used to entice people to attend an event. due in part to the fact that many of the overhead expenses associated with a physical retail space. promoting ethical consumerism. air shows. seminars.Event Marketing . A brick and click e-tailer uses the Internet to push its goods or service but also has the traditional physical storefront available to customers. can be significantly alleviated. Examples of pure play e-tailers are Dell and Amazon. or market a company’s products and services. to engage perspective consumers. Some companies rephrase this definition of event marketing as event-based marketing. and inventory.Definition #1: The use of traditional or new media to promote.Definition #2: Using an event. 7 days a week. conventions. Event Marketing . One of the simplest examples is trade show marketing. build awareness. The second definition of event marketing is best embodied in Ruth Stevens' book “Trade Show & Event Marketing: Plan. Pure play allows for a retailer to be able to reach customers world wide. while still only maintaining one location for each and every customer to visit. workshops. Your business purchases booth space and presents your company’s products or services to trade show attendees. market. Types of e-tailers Two distinct categories of e-tailers are pure plays and bricks and clicks. fundraisers. . like those listed above.com. Event types could include anything from not for profit fundraisers to sporting events. or advertise an event. festivals.

or sponsoring sports teams. with the announcements coincidentally bearing the company's branding. so companies use surrogate advertising to market their products. but they still get consumers familiar with the company's branding. support and promotion. A company might pull outright advertising during these time slots and instead air a series of public service announcements about eating a balanced diet. using the company's logo or distinctive brand colors in the ads so that people are exposed to the company's branding without seeing an explicit ad for the company's product. issuing public service announcements. For example. There are a number of reasons for companies to use surrogate advertising."[citation needed] Surrogate advertising is advertising which embeds a brand or product message inside an advertisement which is ostensibly for another brand or product.[edit] Disadvantages to e-tailing Many studies have shown that e-tailers are failing to meet the needs of online customers and that they generally only have one chance to make a good impression if they want their customers to return. For example. sponsoring community events. Surrogate advertising may also be used when companies want to cultivate an image of social responsibility. It is said that the three most important things that e-tailers today must work on to ensure profitability are "search. Many nations have laws restricting alcohol and tobacco advertising. for example. All of these activities technically do not violate the ban on direct advertising. . One of the most common reasons is to circumvent a ban on direct advertisements of particular products. a cigarette company might issue public service announcements relating to a topic such as lung cancer. many health advocates have criticized advertisements for sweet treats aired during children's cartoons. Techniques used might include advertising another product with the same brand name. The company would justify the advertisement by claiming that it's an example of social responsibility.

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