Advertising and Sales Promotion
Advertising refers to a means for communication with the users of specific goods and services. Advertisements are meant to inform people about a product or sway the audience into buying the product. On the other hand, sales promotions refer to the various means used to help increase the sales of a product. Advertising is similar to sales promotion in that they both increase company sales by communicating the attributes of the company’s goods and services. However, advertising and sales promotions are two distinct concepts. Advertising involves promotions to develop brand impressions, and the results become prevalent after a while. In contrast, sales promotion results are more immediate with a shorter time frame and generate direct revenue for the company.
Another disparity is that advertising depends on the audience reception to be effective; it involves persuading people that their products and services are worthy of their attention. On the contrary, sales and promotion consist of moving products and services and generating revenue for the company. Also, advertising involves incorporating various indirect methods to achieve a desired impression on the target audience. Sales promotion apply direct techniques of approach and immediate results (Andrews & Shimp, 2017).
For a company with a variety of products, advertising has proven to be more effective. Sales promotion focuses on a specific range of products and may involve using price cuts. Also, the advertisement strategy allows for the rise of the whole brand, and provides information and creates a brand impression on the audience. Sales promotion is untenable and focuses more on prices than developing the brand impression (Andrews & Shimp, 2017).
Customer-oriented promotions such as price cuts, vouchers, and cash discounts are utilized by companies at a regular rate to ensure more sales and stay competitive. The customary inducements result in long-term effects on the buying behaviour of customers. Prolonged deals and vouchers lose their effectiveness over time. Therefore, companies result to using loyalty discounts as a customer-oriented promotion to ensure along with term relationship with their customers. Value-added promotions can also help boost customers’ confidence levels in the product and can be combined with loyalty discounts to help build a long-term relationship with the customers. The other products that would fit in the four boxes include furniture products, meat, butter and clothing.
Several factors influence how the company allocates funds for advertising and promotion. This includes; the size of the target market, the extent to which a product dominates the market, the nature of goods to be marketed, the pricing and distribution strategy of the product. Goods with higher prices and direct distributions require more direct personal promotions that are relatively cheaper. Customer franchise-building refers to the ratio of advertisements to sales promotions in a company. It aimed at developing a brand image for the company and ensure its long-term success. A CFB ratio that is less than 50-55% is recommended when the company aims to achieve short-term goals such as developing the prices of the products. When building the long-term brand image of the company and long-term relations with the customers, a higher CFB is recommended (“Consumer Franchise Building versus Nonfranchise Building Promotions – Marketing Communications”, 2021).
I expect the coupons to have a long-term impact on customer behaviour. Coupons allow the consumers to switch brands as they allow the customers to purchase various products. Also, vouchers help promote the products bought and even develop long-term relations. Coupons are regarded as rewards issued based on previous purchases and the current purchase history of certain competitive brands.
References
Andrews, J., & Shimp, T. (2017). Advertising, promotion, and other aspects of integrated marketing communications. Nelson Education. (Andrews & Shimp, 2017)
Consumer Franchise Building versus Nonfranchise Building Promotions – Marketing Communications. ZABANGA Marketing. (2021). Retrieved 18 May 2021, from https://www.zabanga.us/marketing-communications/consumer-franchisebuilding-versus-nonfranchisebuilding-promotions.html.
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