Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. The promotional mix is defined as the basic tools or elements that are used to accomplish the organization’s objectives.
The role and function of each promotional mix element in the marketing program can be discussed along with its advantages and limitations.
1. Advertising—any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor.
Advantages
- a cost-effective way of communicating, predominantly with large audiences
- ability to create images and symbolic appeals and for differentiating similar products and services
- opportunity to leverage popular advertising campaigns into successful IMC programs which can generate support from retailers and other trade members
- ability to control the message (what, when and how something is said and where it is delivered)
Disadvantages:
- the cost of producing and placing ads can be very high, particularly television commercials
- it can be difficult to determine the effectiveness of advertising
- there are credibility and image problems associated with advertising
- the vast number of ads has created clutter problems and consumers are not paying attention to much of the advertising they see and/or hear
2. Direct Marketing—a system of marketing by which organizations communicate directly with target customers to generate a response and/or a transaction. Direct marketing has not traditionally been considered an element of the promotional mix. However, because it has become such an integral part of the integrated marketing communications program of many organizations.
Advantages:
- changes in society (two-income households, greater use of credit) have made consumers more receptive to the convenience of direct-marketed products
- allows a company to be very selective and target its marketing communications to specific customer segments
- messages can be customized to fit the needs of specific market segments
- the effectiveness of direct-marketing efforts are easier to assess than other forms of promotion
Disadvantages:
- consumers and businesses are being bombarded with unsolicited mail and phone calls which makes them less receptive to direct-marketing
- direct marketing has image problems
- problems with clutter as there are too many direct-marketing messages competing for consumers’ attention
3. Interactive/Internet Marketing – interactive media allow for a back-and-forth flow of information whereby users can participate in and modify the content of the information they receive in real time.
The major interactive medium is the Internet, which is a global collection of computer networks linking both public and private computer systems. While the most prevalent perspective on the Internet is that it is an advertising medium, it is actually a medium that can be used to for other elements of the promotional mix as well including sales promotion, direct marketing, and public relations.
The rapid penetration of cell phones and smartphones is leading to a rapid growth in mobile marketing whereby marketing messages are sent directly to the devices.
Advantages:
- the Internet can be used for a variety of integrated marketing communication functions including advertising, direct marketing, sales promotion, public relations and selling. The Internet is also the foundation for social media sites such as Facebook and Twitter which are becoming an integral part of many marketers IMC programs.
- messages can be tailored to appeal to the specific interests and needs of the target audience
- the interactive nature of the Internet leads to a higher degree of customer involvement when customers are visiting a website.
- the Internet makes it possible to provide customers with a great deal of information regarding product and service descriptions and specifications, purchase information and more. Information provided by marketers can be updated and changed continually.
- The Internet has tremendous creative potential as a well-designed website can attract a great deal of attention and interest among customers and be an effective way to generate interest in a company as well as its various products and services.
Disadvantages
- the Internet is not yet a complete mass medium as about a quarter of U.S. households do not have access to the Internet and many do not have broadband access. In some countries, this percentage is much higher.
- there are problems with the Internet as an advertising medium as many Internet users do not pay attention to banner ads and the click-through rate on most is extremely low.
- there is a great deal of clutter on the Internet which makes it difficult for advertising messages to be noticed and/or given attention.
4. Sales Promotion—marketing activities that provide extra value or incentive to the sales force, distributors, or the ultimate consumer and can stimulate immediate sales.
Sales promotion is generally broken into two major categories: consumer-oriented and trade-oriented activities.
Advantages:
- provides extra incentive to consumer or middlemen to purchase or stock and promote a brand
- a way of appealing to price-sensitive consumer
- a way of generating extra interest in product or ads
- effects can often be more directly measured than those of advertising
- can be used as a way of building or reinforcing brand equity
Disadvantages:
- many companies are becoming too reliant on sales promotion and focusing too much attention on short-run marketing planning and performance
- many forms of sales promotion do not help establish or reinforce brand image and short-term sales gains are often achieved at the expense of long-term brand equity
- problems with sales promotion clutter as consumers are bombarded with too many coupons, contests, sweepstakes and other promotional offers
- consumers may become over-reliant on sales promotion incentives which can undermine the development of favorable attitudes and brand loyalty.
- in some industries, promotion wars may develop whereby marketers sales promotion incentives extensively which results in lower profit margins and makes it difficult to sell products at full price
5. Publicity/Public Relations
Publicity—non-personal communications about an organization, product, service, or idea that is not directly paid for nor run under identified sponsorship.
Public Relations—a management function which evaluates public attitudes, identifies the public policies and procedures of an individual or organization with the public interest and executes a program of action to earn public understanding and acceptance.
Advantages of Publicity:
- the credibility of publicity is usually higher than other forms of marketing communication
- low cost way of communicating
- often has news value and generates word‑of‑mouth discussion among consumers
Disadvantages of Publicity:
- lack of control over what is said, when, where and how it is said
- can be negative as well as positive
6. Personal Selling—direct person‑to‑person communication whereby a seller attempts to assist and/or persuade prospective buyers tolow-coste a company’s product or service or act on an idea.
Advantages:
- direct contact between buyer and seller allows for more communication flexibility
- can tailor and adapt the message to specific needs or situation of the customer
- allows for more immediate and direct feedback
- promotional efforts can be targeted to specific markets and customers who are best prospects
Disadvantages:
- high cost per contact
- expensive way to reach large audiences
- difficult to have the consistent and uniform message delivered to all customers
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