Marketing Communication - Coursework Example

Marketing Communication  Introduction Marketing has become the essential part of success for the businesses around the world. Businesses all over theworld produce goods and then market the good to make it known to the customers. The customers will only purchase the goods if they know about the product, its benefits etc. The marketing mechanism of the companies is directed to make the customers understand about the product and creating a bond with the customers. Marketing has thus become important in the modern world economy. Marketing makes the company name known to the customers and help to create a brand. It is thus helpful for making new customers and helps in retaining the old ones. The marketing has become important in the modern world because the customers have to be constantly reminded about the company. This has emerged as a practice because of the increased competition in the market. The customers have become more rational and the subject of the customer service has become important. The marketing highlights the benefit of the service of the company and helps in avoiding competition of the market. (Benefits of marketing, n.d.) Marketing is regarded as one of the topmost priorities for the companies of the world. The companies around the world follow a definite set of marketing mix for the promotion of their products. The marketing mix of the companies generally includes the methods of the promotion like advertisement, personal selling, direct selling, sales promotion etc. The companies set their priorities according to the industry and the products. The marketing mix has become an important part in the strategy formation of the companies. The paper deals in the importance of sales promotion as the strategic and tactical tool of the marketing mix. Marketing mix Almost every company in the world follows marketing mix. In this age of intense competition, it has become utmost important for the companies to follow some sort of marketing to make the product known to the customers. The marketing mix consists of different components like Advertising, Personal Selling, Direct Selling, Public Relations, and Sales Promotion. Every component is important for the sales strategy of the companies. Companies employ different components of the marketing mix according to their order of preference and other factors like the cost of the medium, type of product, industry etc. There are many companies, which employ every constituent of the marketing mix for the promotion of their products. The companies employ the components of the marketing mix in order of the reach of the medium. Companies preferring to a wide range of customers at the same time may use the advertising medium in televisions. Companies, which place great importance in building customer relationship, may employ the direct selling tactics, as it would help in getting the response of the customer quickly. The product life cycle in many ways, determine the components of the marketing mix employed by the company. The introduction phase will need heavy advertising as the product is launched in the market and the customers need to know about the specifications of the product. The maturity stage needs sales promotion and direct selling at greater extent as the customers are to be pursued in buying the products. Therefore, the evaluation of the marketing mix is an important criterion for the companies in the modern world. The management has to decide the right form of marketing mix for the company, which will help in the increase in the sales of the company. The marketing mix is an essential medium for attracting and retaining customers and almost all the companies all over the world follows the model for their development. (The marketing communications or promotional mix, n.d.; Introduction to marketing communications, n.d.;Marketing communication mix, n.d.).                                    Source: The marketing communications or promotional mix, n.d.  Sales Promotion Sales promotion is one of the most important components of the marketing mix. The sales promotion generally consists of any strategies taken by the companies to increase the sales of the company. The different strategies of the companies in accordance to the sales promotion is directed for a short time period and to a definite group of customers. The sales promotion generally consists of some activities and encourages the customers to perform these activities. The sales promotion has assumed great importance in the modern world to attract the customers. The amount of sales promotion in the USA exceeds that of the advertisements. There is a close line of delineation between the advertisements and the sales promotion. For example, a company announces a contest for the customers and offers the winners a prize of holidaying in Switzerland. The note is communicated through the advertisements on television. Here, the path of conveying the message is the advertisement while, the contents of the advertisement is the sales promotion. It is to be noted here that the factors of sales promotion are that it should be of short time frame and it should encourage activities from the customers. Various companies use different forms of sales promotion. Some of the techniques used by the organizations are original methods of sales promotion. Therefore, the scope of this form of the marketing mix is evolving by the day and more and more methods are being uploaded in this genre. The different forms of the sales promotion, which are popular around the world, are as follows: “Buy one get one free”- This are done for the customers who purchase the products. “Contests”- This is one of the most popular methods of sales promotion. The contests attract the customers to buy the products and give them the chance to win attractive prizes. Free gifts- Free gifts are given away by the companies to promote the products to the new customers. New Media- Websites are now used for the sales promotion measures. For example, Kit Kat in the UK printed specific codes in their packets. The codes when entered into a customized website gives them the chance to win prizes.   Discounts- Discounts are offered to the customers for the increase in the sales of the product. In addition to these measures, the companies to increase the sales of the companies use various different methods. The sales promotion has turn out to be one of the most significant instruments in draw customers and it is one of the topmost priorities of the management of the company. This type of the marketing mix is used in the maturity and the decline stage of the product life cycle where impetus is needed for increasing the sales of the company. (What is sales promotion, n.d.; sales promotion, n.d.) Sales promotion as strategic and tactical tool From the above paragraphs, it can be inferred that the sales promotion is one of the most important ingredients of the marketing mix. The sales promotion has become important in the modern world with the increased level of competition and the companies are trying hard to attract the customers with different forms of the marketing medium. All the components of the marketing mix are important and have their own place in the marketing of the products. Sales promotion is particularly important for the companies in the maturity and the decline stage of their life cycle. The sales promotion has become one of the most essential strategic and tactical tools for the management for increasing the sales of the company. Sales promotion is the combination of the measures put in by the company to increase the sales of their products. There are two distinctive features in the sales promotion functions. The sales promotion strategy of a company consists of a specific time line and it encourages the customers to be a part of some activity. The sales promotion strategy is generally aimed at pursuing the customers to buy the products. The sales promotion strategy can be undertaken with the help of the push, pull and the combination of both the strategies. The “push” strategy generally involves giving the intermediaries the benefits of contests and prizes. This helps in the promotion of the products in the lower level of the chain and hence the customers get to know more about the product. The pull strategy involves the promotion of the products to the consumers who in turn demand the products from the retailers. Some companies employ a combination of both the strategies. The car manufacturers deal in this type of promotion where they offer cash back offers to the customers and incentives to the dealers. (Sales promotion-push strategy-pull strategy-promotions, n.d.) In addition to the push and the pull strategies different companies employ the sales promotion strategies according to the scope of the market and according to the nature of the market. These are specific strategies employed by the company in promoting the product and increasing the sales of the company. The strategies are used in the sales promotions of the companies because of the reasons as follows: Price discrimination: The sales promotion allows the company to charge different prices in different markets. The sales promotion includes giving away coupons and discount vouchers, which can be given to the special markets for the companies. The price sensitive markets are targeted by this kind of measures.  Gifts and contests: The companies use the strategies of offering gifts and rewards to the customers. This helps in the increase of the customers for the company. Customer behavior: Sales promotion is one of the most useful tools for changing the customer behaviors. The customers may not be inclined to the product but the assurance of free gifts can change the perception of the customer. Increased sales: Sales promotion results in the increased sales. Increased profits: Sales promotion employs price discrimination, which helps the companies to earn extra profits. Competition: In this age of competition, it is essential for the companies to be in the minds of the customers. Sales promotion is a useful tool in this process. Loyal customers: The sales promotional tactics is important ingredient in the retention of the loyal customers. The loyal customers are rewarded as a result of the sales promotion. The customers feel happy about the functions of the company and their loyalty increases. These are the reasons for employing sales promotion strategies by the companies. From the paragraph above, it can be seen that the sales promotion measures are important for the development of the company in the long run. The management of the company works towards the development of the sales promotion strategies for this reason. (Cuizon, 6th March, 2009) Sales promotion has increased in importance as it is used as one of the most important ingredient in the strategic and the tactical tools of the company. The tactical aspect of the sales promotion in terms of the company can be described as follows: It impacts directly and quickly in the sales of the company. It can be changed according to the situation. It can be utilized as rendered efficient by the companies. The strategic impact of the sales promotion can be pointed as follows: It helps to increase the competitive advantage of the company. It helps to maintain relationship with the customers. It helps in adding new customers as well as retaining the old ones. Thus it can be said that the sales promotion strategies of the companies are one of the most important strategic and tactical aspects. It helps in the increase in the sales and the scope of the market. It also helps in increasing the visibility of the product as well as evading the competition. (Kim, n.d.) Conclusions Sales promotion is one of the most important ingredients in the marketing communications mix. Sales promotion is useful in the creation of a brand as well as increasing the customers of the product. The sales of the products boost due to the sales promotion. However, the type of the sales promotion varies from company to company. Sales promotion ideas can be original and thus is evolving with the growing needs of the community. The sales promotion has become one of the most important parts of the strategic and tactical mix of the company for the development of the products. However, sales promotion strategies should be compatible with other marketing mix constituents for increasing the viability of the products to the customers.      References 1. Benefits of marketing. (n.d.). Practice promotion. Available at: http://www.filbin.net/benefits.html (Accessed on 31st March, 2010) 2. The marketing communications or promotional mix. (n.d.). Available at: http://www.davedolak.com/promix.htm (Accessed on 31st March, 2010) 3. What is sales promotion. (n.d.). Know this.com. Available at: http://www.knowthis.com/principles-of-marketing-tutorials/sales-promotion/what-is-sales-promotion/ (Accessed on 31st March, 2010) 4. Sales promotion. (n.d.). Available at: http://www.marketingteacher.com/Lessons/lesson_sales_promotion.htm (Accessed on 31st March, 2010) 5. Sales promotion-push strategy-pull strategy-promotions. (n.d.). Available at: http://www.davedolak.com/promo.htm (Accessed on 31st March, 2010) 6. Cuizon, G. (6th March, 2009). What are sales promotions. Suite 101.com. Available at: http://strategic-business-planning.suite101.com/article.cfm/sales_promotions (Accessed on 31st March, 2010) 7. Kim,D. (n.d.). Promotion strategies of Korean firms. 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