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Marketing Is The Process by Which Companies Determine What Products or Services May Be of

Marketing involves determining customer interests through market research and communication strategies to create value for customers. It focuses on identifying, attracting, and satisfying customers through products and services to capture value in return. Marketing aims to understand customer needs and wants better than competitors to help organizations achieve their goals. It is a management process of identifying, anticipating, and meeting customer requirements profitably through relationships and competitive advantage.

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0% found this document useful (0 votes)
91 views17 pages

Marketing Is The Process by Which Companies Determine What Products or Services May Be of

Marketing involves determining customer interests through market research and communication strategies to create value for customers. It focuses on identifying, attracting, and satisfying customers through products and services to capture value in return. Marketing aims to understand customer needs and wants better than competitors to help organizations achieve their goals. It is a management process of identifying, anticipating, and meeting customer requirements profitably through relationships and competitive advantage.

Uploaded by

Shruti Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Marketing is the process by which companies determine what products or services may be of

interest to customers, and the strategy to use in sales, communications and business
development.[1] It is an integrated process through which companies create value for customers
and build strong customer relationships in order to capture value from customers in return.[1]

Marketing is used to identify the customer, to keep the customer, and to satisfy the customer.
With the customer as the focus of its activities, it can be concluded that marketing management
is one of the major components of business management. The evolution of marketing was caused
due to mature markets and overcapacities in the last 2-3 centuries.[citation needed] Companies then
shifted the focus from production to the customer in order to stay profitable.[citation needed]

The term marketing concept holds that achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions.[2] It proposes that in
order to satisfy its organizational objectives, an organization should anticipate the needs and
wants of consumers and satisfy these more effectively than competitors.[2]

Further definitions

Marketing is defined by the American Marketing Association (AMA) as "the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large."[3] The term developed
from the original meaning which referred literally to going to a market to buy or sell goods or
services. Seen from a systems point of view, sales process engineering views marketing as "a set
of processes that are interconnected and interdependent with other functions,[4] whose methods
can be improved using a variety of relatively new approaches."

The Chartered Institute of Marketing defines marketing as "the management process responsible
for identifying, anticipating and satisfying customer requirements profitably."[5] A different
concept is the value-based marketing which states the role of marketing to contribute to
increasing shareholder value.[6] In this context, marketing is defined as "the management process
that seeks to maximise returns to shareholders by developing relationships with valued
customers and creating a competitive advantage."[6]

Marketing practice tended to be seen as a creative industry in the past, which included
advertising, distribution and selling. However, because the academic study of marketing makes
extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology
and neuroscience, the profession is now widely recognized as a science, allowing numerous
universities to offer Master-of-Science (MSc) programmes. The overall process starts with
marketing research and goes through market segmentation, business planning and execution,
ending with pre and post-sales promotional activities. It is also related to many of the creative
arts. The marketing literature is also adept at re-inventing itself and its vocabulary according to
the times and the culture.

Earlier approaches
The marketing orientation evolved from earlier orientations namely the production orientation,
the product orientation and the selling orientation.[7][8]

Western
Profit European
Orientation Description
driver timefram
e

A firm focusing on a production orientation specializes in producing


as much as possible of a given product or service. Thus, this
signifies a firm exploiting economies of scale, until the minimum
[8]
Production until the
Production efficient scale is reached. A production orientation may be
methods 1950s
deployed when a high demand for a product or service exists,
coupled with a good certainty that consumer tastes do not rapidly
alter (similar to the sales orientation).

A firm employing a product orientation is chiefly concerned with


Quality of
until the the quality of its own product. A firm would also assume that as
Product[8] the
1960s long as its product was of a high standard, people would buy and
product
consume the product.

A firm using a sales orientation focuses primarily on the


selling/promotion of a particular product, and not determining new
consumer desires as such. Consequently, this entails simply selling
an already existing product, and using promotion techniques to
Selling 1950s and
Selling[8] attain the highest sales possible.
methods 1960s

Such an orientation may suit scenarios in which a firm holds


dead stock, or otherwise sells a product that is in high demand,
with little likelihood of changes in consumer tastes
diminishing demand.
The 'marketing orientation' is perhaps the most common
orientation used in contemporary marketing. It involves a firm
essentially basing its marketing plans around the marketing
Needs and 1970 to
concept, and thus supplying products to suit new consumer tastes.
Marketing[8] wants of present
As an example, a firm would employ market research to gauge
customers day
consumer desires, use R&D to develop a product attuned to the
revealed information, and then utilize promotion techniques to
ensure persons know the product exists.

Social marketing[9] Benefit to society 1990s to present day Similar characteristics as marketing
orientation but with the added proviso that there will be a curtailment on any harmful activities to
society, in either product, production, or selling methods
A formal approach to this customer-focused marketing is known as SIVA[11] (Solution,
Information, Value, Access). This system is basically the four Ps renamed and reworded to
provide a customer focus. The SIVA Model provides a demand/customer centric version
alternative to the well-known 4Ps supply side model (product, price, placement, promotion) of
marketing management.

Product → Solution

Promotion → Information

Price → Value

Placement → Access

Marketing research
Main article: Marketing research

Marketing research involves conducting research to support marketing activities, and the
statistical interpretation of data into information. This information is then used by managers to
plan marketing activities, gauge the nature of a firm's marketing environment and attain
information from suppliers. Marketing researchers use statistical methods such as quantitative
research, qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlations,
frequency distributions, poisson distributions, binomial distributions, etc. to interpret their
findings and convert data into information. The marketing research process spans a number of
stages including the definition of a problem, development of a research plan, collecting and
interpretation of data and disseminating information formally in form of a report. The task of
marketing research is to provide management with relevant, accurate, reliable, valid, and current
information.

A distinction should be made between marketing research and market research. Market
research pertains to research in a given market. As an example, a firm may conduct research in a
target market, after selecting a suitable market segment. In contrast, marketing research relates to
all research conducted within marketing. Thus, market research is a subset of marketing research.

Market segmentation

Main article: Market segmentation

Market segmentation pertains to the division of a market of consumers into persons with similar
needs and wants. As an example, if using Kellogg's cereals in this instance, Frosties are marketed
to children. Crunchy Nut Cornflakes are marketed to adults. Both goods aforementioned denote
two products which are marketed to two distinct groups of persons, both with like needs, traits,
and wants.

The purpose for market segmentation is conducted for two main issues. First, a segmentation
allows a better allocation of a firm's finite resources. A firm only possesses a certain amount of
resources. Accordingly, it must make choices (and appreciate the related costs) in servicing
specific groups of consumers. Furthermore the diversified tastes of the contemporary Western
consumers can be served better. With more diversity in the tastes of modern consumers, firms
are taking noting the benefit of servicing a multiplicity of new markets.

Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and
Position.

[edit] Types of marketing research

Marketing research, as a sub-set aspect of marketing activities, can be divided into the following
parts:

 Primary research (also known as field research), which involves the conduction and compilation
of research for the purpose it was intended.
 Secondary research (also referred to as desk research), is initially conducted for one purpose,
but often used to support another purpose or end goal.

By these definitions, an example of primary research would be market research conducted into
health foods, which is used solely to ascertain the needs/wants of the target market for health
foods. Secondary research, again according to the above definition, would be research pertaining
to health foods, but used by a firm wishing to develop an unrelated product.

Primary research is often expensive to prepare, collect and interpret from data to information.
Nonetheless, while secondary research is relatively inexpensive, it often can become outdated
and outmoded, given it is used for a purpose other than for which is was intended. Primary
research can also be broken down into quantitative research and qualitative research, which as
the labels suggest, pertain to numerical and non-numerical research methods, techniques. The
appropriateness of each mode of research depends on whether data can be quantified
(quantitative research), or whether subjective, non-numeric or abstract concepts are required to
be studied (qualitative research).

There also exists additional modes of marketing research, which are:

 Exploratory research, pertaining to research that investigates an assumption.


 Descriptive research, which as the label suggests, describes "what is".
 Predictive research, meaning research conducted to predict a future occurrence.
 Conclusive research, for the purpose of deriving a conclusion via a research process.
Marketing planning

The area of marketing planning involves forging a plan for a firm's marketing activities. A
marketing plan can also pertain to a specific product, as well as to an organization's overall
marketing strategy. Generally speaking, an organization's marketing planning process is derived
from its overall business strategy. Thus, when top management are devising the firm's strategic
direction or mission, the intended marketing activities are incorporated into this plan. There are
several levels of marketing objectives within an organization. The senior management of a firm
would formulate a general business strategy for a firm. However, this general business strategy
would be interpreted and implemented in different contexts throughout the firm.

[edit] Marketing strategy

The field of marketing strategy encompasses the strategy involved in the management of a given
product.

A given firm may hold numerous products in the marketplace, spanning numerous and
sometimes wholly unrelated industries. Accordingly, a plan is required in order to manage
effectively such products. Evidently, a company needs to weigh up and ascertain how to utilize
effectively its finite resources. As an example, a start-up car manufacturing firm would face little
success, should it attempt to rival immediately Toyota, Ford, Nissan or any other large global car
maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest,
or a ceasing of production may be made. With regard to the aforesaid questions, each scenario
requires a unique marketing strategy to be employed. Below are listed some prominent
marketing strategy models, which seek to propose means to answer the preceding questions.

[edit] Marketing specializations

With the rapidly emerging force of globalization, the distinction between marketing within a
firm's home country and marketing within external markets is disappearing very quickly. With
this occurrence in mind, firms need to reorient their marketing strategies to meet the challenges
of the global marketplace, in addition to sustaining their competitiveness within home markets.
[13]

[edit] Buying behaviour

A marketing firm must ascertain the nature of the customers buying behaviour, if it is to market
its product properly. In order to entice and persuade a consumer to buy a product, marketers try
to determine the behavioural process of how a given product is purchased. Buying behaviour is
usually split in two prime strands, whether selling to the consumer, known as business-to-
consumer (B2C) or another business, similarly known as business-to-business (B2B).

BENEFITS & CRITICISMS OF MARKETING


Benefits
a) Improved Satisfaction of Target Market
b) Improved efficiency in activities
Criticism
a) Marketing wastes money
b) Marketing activity is intrusive

c) Marketing is manipulative

VALUE AND SATISFACTION


Value =
Monetary Costs Time Costs Energy Costs Psychic Costs
Functional Benefits Emotional Benefits
Costs
Benefits


Tools for tracking and measuring Customer Satisfaction: Complaint and
Suggestion systems, Customer satisfaction surveys, Ghost shopping, Lost customer

analysis

Four Ps

Elements of the marketing mix are often referred to as 'the four Ps':

 Product - A tangible object or an intangible service that is mass produced or manufactured on a


large scale with a specific volume of units. Intangible products are service based like the tourism
industry & the hotel industry or codes-based products like cellphone load and credits. Typical
examples of a mass produced tangible object are the motor car and the disposable razor. A less
obvious but ubiquitous mass produced service is a computer operating system. Packaging also
needs to be taken into consideration.
 Price – The price is the amount a customer pays for the product. It is determined by a number of
factors including market share, competition, material costs, product identity and the customer's
perceived value of the product. The business may increase or decrease the price of product if
other stores have the same product.
 Place – Place represents the location where a product can be purchased. It is often referred to
as the distribution channel. It can include any physical store as well as virtual stores on the
Internet.
 Promotion represents all of the communications that a marketer may use in the marketplace.
Promotion has four distinct elements: advertising, public relations, word of mouth and point of
sale. A certain amount of crossover occurs when promotion uses the four principal elements
together, which is common in film promotion. Advertising covers any communication that is
paid for, from cinema commercials, radio and Internet adverts through print media and
billboards. Public relations are where the communication is not directly paid for and includes
press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.
Word of mouth is any apparently informal communication about the product by ordinary
individuals, satisfied customers or people specifically engaged to create word of mouth
momentum. Sales staff often plays an important role in word of mouth and Public Relations

Market Segmentation

Market segmentation is the identification of portions of the market that are different from one
another. Segmentation allows the firm to better satisfy the needs of its potential customers.

The Need for Market Segmentation

The marketing concept calls for understanding customers and satisfying their needs better than
the competition. But different customers have different needs, and it rarely is possible to satisfy
all customers by treating them alike.

Mass marketing refers to treatment of the market as a homogenous group and offering the same
marketing mix to all customers. Mass marketing allows economies of scale to be realized
through mass production, mass distribution, and mass communication. The drawback of mass
marketing is that customer needs and preferences differ and the same offering is unlikely to be
viewed as optimal by all customers. If firms ignored the differing customer needs, another firm
likely would enter the market with a product that serves a specific group, and the incumbant
firms would lose those customers.

Target marketing on the other hand recognizes the diversity of customers and does not try to
please all of them with the same offering. The first step in target marketing is to identify different
market segments and their needs.

Requirements of Market Segments

In addition to having different needs, for segments to be practical they should be evaluated
against the following criteria:

 Identifiable: the differentiating attributes of the segments must be measurable so that they
can be identified.

 Accessible: the segments must be reachable through communication and distribution


channels.

 Substantial: the segments should be sufficiently large to justify the resources required to
target them.

 Unique needs: to justify separate offerings, the segments must respond differently to the
different marketing mixes.
 Durable: the segments should be relatively stable to minimize the cost of frequent
changes.

A good market segmentation will result in segment members that are internally homogenous and
externally heterogeneous; that is, as similar as possible within the segment, and as different as
possible between segments.

Bases for Segmentation in Consumer Markets

Consumer markets can be segmented on the following customer characteristics.

 Geographic
 Demographic
 Psychographic
 Behavioralistic

Geographic Segmentation

The following are some examples of geographic variables often used in segmentation.

 Region: by continent, country, state, or even neighborhood

 Size of metropolitan area: segmented according to size of population

 Population density: often classified as urban, suburban, or rural

 Climate: according to weather patterns common to certain geographic regions

Demographic Segmentation

Some demographic segmentation variables include:

 Age
 Gender
 Family size
 Family lifecycle
 Generation: baby-boomers, Generation X, etc.
 Income
 Occupation
 Education
 Ethnicity
 Nationality
 Religion
 Social class

Many of these variables have standard categories for their values. For example, family lifecycle
often is expressed as bachelor, married with no children (DINKS: Double Income, No Kids),
full-nest, empty-nest, or solitary survivor. Some of these categories have several stages, for
example, full-nest I, II, or III depending on the age of the children.

Psychographic Segmentation

Psychographic segmentation groups customers according to their lifestyle. Activities, interests,


and opinions (AIO) surveys are one tool for measuring lifestyle. Some psychographic variables
include:

 Activities
 Interests
 Opinions
 Attitudes
 Values

Behavioralistic Segmentation

Behavioral segmentation is based on actual customer behavior toward products. Some


behavioralistic variables include:

 Benefits sought
 Usage rate
 Brand loyalty
 User status: potential, first-time, regular, etc.
 Readiness to buy
 Occasions: holidays and events that stimulate purchases

Behavioral segmentation has the advantage of using variables that are closely related to the
product itself. It is a fairly direct starting point for market segmentation.

Bases for Segmentation in Industrial Markets

In contrast to consumers, industrial customers tend to be fewer in number and purchase larger
quantities. They evaluate offerings in more detail, and the decision process usually involves
more than one person. These characteristics apply to organizations such as manufacturers and
service providers, as well as resellers, governments, and institutions.

Many of the consumer market segmentation variables can be applied to industrial markets.
Industrial markets might be segmented on characteristics such as:

 Location
 Company type
 Behavioral characteristics

Location
In industrial markets, customer location may be important in some cases. Shipping costs may be
a purchase factor for vendor selection for products having a high bulk to value ratio, so distance
from the vendor may be critical. In some industries firms tend to cluster together geographically
and therefore may have similar needs within a region.

Company Type

Business customers can be classified according to type as follows:

 Company size
 Industry
 Decision making unit
 Purchase Criteria

Behavioral Characteristics

In industrial markets, patterns of purchase behavior can be a basis for segmentation. Such
behavioral characteristics may include:

 Usage rate
 Buying status: potential, first-time, regular, etc.
 Purchase procedure: sealed bids, negotiations, etc.

Promotion - introduction to the promotional


mix
It is not enough for a business to have good products sold at attractive prices. To generate sales
and profits, the benefits of products have to be communicated to customers. In marketing, this is
commonly known as "promotion".

There are four main aspects of a promotional mix. These are:

 Advertising - Any paid presentation and promotion of ideas, goods, or services by an


identified sponsor. Examples: Print ads, radio, television, billboard, direct mail,
brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages,
banner ads, and emails.
 Personal Selling - A process of helping and persuading one or more prospects to
purchase a good or service or to act on any idea through the use of an oral presentation.
Examples: Sales presentations, sales meetings, sales training and incentive programs for
intermediary salespeople, samples, and telemarketing. Can be face-to-face or via
telephone.
 Sales promotion - Media and non-media marketing communication are employed for a
pre-determined, limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples: Coupons, sweepstakes, contests, product
samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and
exhibitions.
 Public relations - Paid intimate stimulation of supply for a product, service, or business
unit by planting significant news about it or a favorable presentation of it in the media.
Examples: Newspaper and magazine articles/reports, TVs and radio presentations,
charitable contributions, speeches, issue advertising, and seminars.

Direct Marketing is often listed as a the fifth part of the marketing mix .[2][3]

Sponsorship is sometimes added as a sixth aspect. [4]

Promotional Mix in detail: Page 1 of 2.


Personal Selling
Personal selling involves selling a product or service on a one to one basis. This can either be
done face to face or over the phone. In our promotional section we talked about push and pull
strategies. If the organisation is using a pull strategy to sell the product a sales force will be
required to make sure that retail outlets are looked after well, that they have enough stock, are
trained well so they can push the product onto the consumer. With a push strategy the sales force
will need to try and persuade retail outlets to carry stock of your product.

Direct Marketing
The aim of direct marketing is to create one to one relationships with the organisations target
market. Direct marketing can come in the form of post, email, telephone calls and mail order.
The company usually contacts a named person at the address.

Advertising
Advertising can be defined as placing your message in any form of paid media.

Advertising can have a number of objectives, these usually are

 To promote
 To remind
 To support
 To compete
 To persuade

You have two types of advertising. Above the line advertising is advertising placed in
TV, radio, newspaper and cinema. Below the line advertising is based around
advertising via direct mail, sponsorship and sales promotion.

Sales Promotion
The aim of sales promotion is to increase short term sales and increase instore or web traffic. The
tactics used for this include loyalty cards, coupons, price promotions eg BOGOF, point of sales,
packaging promotion or web coupons.

Public Relations
Managing public relations is very important for the organisation. Image in marketing is
everything.. Having a good image helps the organisation develop a trust and a bond between
themselves and their customers. This good will is invaluble. Public relations activities include,
press releases. company literature, videos, websites and annual reports.

Sponsorship
Sponsorship is about providing money to an event, inturn the product or company is
acknowledged for doing so. For example the Bejing Olympics in 2008 will partly be sponsored
by Panasonic. Sponsorship helps the company improve its image and public relations within the
market and usually the company attempts to sponsor a person or event that mirrors the image
they are trying to aim for. Nike for example have successfully sponsored the golfer Tiger Woods
for many years.
Viral Marketing
Viral marketing occurs when consumers pass on or recommend your product/company/website
to others. This could be via email, or bulletin boards or word of mouth. There have been many
well known online viral marketing campaigns. These include The Blair Witch Project and the
establishment of Hotmail as a leading free email provider.

Advertising is a form of communication intended to persuade its viewers, readers or


listeners to take some action. It usually includes the name of a product or service and how that
product or service could benefit the consumer, to persuade potential customers to purchase or to
consume that particular brand. Modern advertising developed with the rise of mass production in
the late 19th and early 20th centuries.[1]

Commercial advertisers often seek to generate increased consumption of their products or


services through branding, which involves the repetition of an image or product name in an effort
to associate related qualities with the brand in the minds of consumers. Different types of media
can be used to deliver these messages, including traditional media such as newspapers,
magazines, television, radio, outdoor or direct mail. Advertising may be placed by an advertising
agency on behalf of a company or other organization.

Organizations that spend money on advertising promoting items other than a consumer product
or service include political parties, interest groups, religious organizations and governmental
agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service
announcement.

Money spent on advertising has declined in recent years. In 2007, spending on advertising was
estimated at more than $150 billion in the United States[2] and $385 billion worldwide,[3] and the
latter to exceed $450 billion by 2010.[citation needed]
Personal Selling
The pinnacle activity involved in selling products or services in return for money or other
compensation. It is an act of completion of a commercial activity.[1]

A sale is completed by the seller or the owner of the goods. It starts with consent (or agreement)
to an acquisition or appropriation or request followed by the passing of title (property or
ownership) in the item and the application and due settlement of a price, the douche of or any
claim upon the item. The purchaser, though a party to the sale, does not execute the sale, only the
seller does that. To be precise the sale completes prior to the payment and gives rise to the
obligation of payment. If the seller completes the first two above stages (consent and passing
ownership) of the sale prior to settlement of the price, the sale is still valid and gives rise to an
obligation to pay.

Sales promotion
From Wikipedia, the free encyclopedia

Jump to: navigation, search

Sales promotion is one of the four aspects of promotional mix. (The other
three parts of the promotional mix are advertising, personal selling, and publicity/public
relations.) Media and non-media marketing communication are employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or improve product
availability. Examples include:

 contests
 point of purchase displays
 rebate (marketing)
 free travel, such as free flights

Sales promotions can be directed at either the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called consumer
sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales
promotions. Some sale promotions, particularly ones with unusual methods, are considered
gimmick by many.

Public relations (PR) is the practice of managing the communication


between an organization and its publics.[1] Public relations gains an organization or individual
exposure to their audiences using topics of public interest and news items that provide a third-
party endorsement[2] and do not direct payment.[3] Common activities include speaking at
conferences, working with the media, crisis communications, social media engagement[4], and
employee communication. It is something that is not tangible; this is what sets it apart from
advertising.

PR can be used to build rapport with employees, customers, investors, voters, or the general
public.[3] Almost any organization that has a stake in how it is portrayed in the public arena
employs some level of public relations. There are a number of related disciplines falling under
the banner of Corporate Communications, such as Analyst Relations, Media Relations, Investor
Relations, Internal Communications and Labor Relations.

There are many areas of public relations, but the most recognized are financial public relations,
product public relations, and crisis public relations.

 Financial public relations deal with providing information mainly to business reporters.
 Product public relations deal with gaining publicity for a particular product or service
through PR tactics rather than using advertising.
 Crisis public relations deal with responding to negative accusations or information.

Direct marketing is a sub-discipline and type of marketing. There are two


main definitional characteristics which distinguish it from other types of marketing. The first is
that it attempts to send its messages directly to consumers, without the use of intervening media.
This involves commercial communication (direct mail, e-mail, telemarketing) with consumers or
businesses. The second characteristic is that it is focused on driving a specific "call-to-action."
This aspect of direct marketing involves an emphasis on trackable, measurable, positive
responses from consumers (known simply as "response" in the industry) regardless of medium.

If the advertisement asks the prospect to take a specific action, for instance call a free phone
number or visit a website, then the effort is considered to be direct response advertising.

Sponsor (commercial)

To sponsor something is to support an event, activity, person, or organization financially or


through the provision of products or services. A sponsor is the individual or group that provides
the support, similar to a benefactor.

Sponsorship [1] is a cash and/or in-kind fee paid to a property (typically in sports, arts,
entertainment or causes) in return for access to the exploitable commercial potential associated
with that property. For example, a corporate entity may provide equipment for a famous athlete
or sports team in exchange for brand recognition. The sponsor earns popularity this way while
the sponsored can earn a lot of money. A particular form of specialized brand sponsorship where
a brand sponsors an unusual event or pastime that then becomes synonymous with that brand (to
the point where future brands may be excluded from participation) is known as
'aboutsponsorship'. This provides a strong walled-garden sponsorship relationship between
particular events and the brand.

Advantages and Disadvantages of Each Element of the Promotional Mix

Mix Element Advantages Disadvantages


Advertising Good for building awareness Impersonal - cannot answer all a
customer's questions
Effective at reaching a wide audience
Not good at getting customers to
Repetition of main brand and product make a final purchasing decision
positioning helps build customer trust
Personal Selling Highly interactive - lots of Costly - employing a sales force has
communication between the buyer and many hidden costs in addition to
seller wages

Excellent for communicating Not suitable if there are thousands of


complex / detailed product information important buyers
and features

Relationships can be built up -


important if closing the sale make take
a long time
Sales Promotion Can stimulate quick increases in sales If used over the long-term,
by targeting promotional incentives on customers may get used to the effect
particular products
Too much promotion may damage
Good short term tactical tool the brand image
Public Relations Often seen as more "credible" - since Risk of losing control - cannot
the message seems to be coming from always control what other people
a third party (e.g. magazine, write or say about your product
newspaper)

Cheap way of reaching many


customers - if the publicity is achieved
through the right media

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