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Army and Air Force Exchange Service - Case Study Example

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Army and Air Force Exchange Service

Being a company with unique business model, AAFES conduct its advertising in unique way too. AAFES is not to active in using television and other media as active channels for advertising purposes however advertising is being done in direct way through the use of local means of advertising to the soldiers at the bases. Since AAFES is almost also a monopoly therefore advertising is not mostly done in its most conventional means.
Sales promotion activities of the firm take place in store i.e. firm displays various sales promotional activities and items in house besides offering sales promotion on its website. The website of the firm provides different sales promotional activities for making a purchase on line. In store sales promotional activities involve displaying of different sales promotional material.
Since AAFES is a sort of monopoly therefore it mostly utilizes direct marketing as one of the most important mean of promoting the firm's products and services. However, this is not on the individual basis however it is done on the basis of the groups of customers i.e. army bases where soldiers are stationed.
There is no personal selling done by the firm however it offers an opportunity for personal selling through its website where it offers different services and products customized to the individual needs and demands.
Firm maintain good public re...
Public relations at the firm are also done through the issuance of a magazine The Exchange Post; through which firm tends to provide information about latest development at the firm.
Analysis
While analyzing the promotional mix of the firm, it is important to consider the unique business model and structure which it follow. It is a sort of monopoly which serves a very specialized and scattered target market group. This can therefore create significant problems for the firm in terms of developing a uniform and standardized promotional mix. Therefore what is most important to understand before analyzing the firm's promotional mix
In relation to the products and services offered by the firm, the sales promotion is one of the viable and only useful tools for the firm to initiate its promotional mix activities. Firm employ sales promotion as its main promotional activity therefore considering the typical characteristics of the target market of the firm, sales promotion seems to be a natural option for the firm.
Competitive Advantage
As discussed above that the firm is a monopoly therefore it enjoys a competitive advantage due to restrictions on other organizations to sell like AAFES therefore it has the competitive advantage in almost every activity including promotion.
It has competitive advantage in promotion because of the fact that it has physical presence where its target market resides therefore it is much closer to its intended buyers. This provide the firm a ready opportunity to understand and analyze the buying behaviors of the buyers mostly closely therefore customizing its promotional activities accordingly. The close proximity with the buyers provide the firm its competitive advantage in terms of ...Show more

Summary

Promotional mix of an organization involves a series of different activities which a firm undertakes in order to communicate the benefits of the goods and services provided by it. A promotional mix or marketing communication mix is therefore a combination of advertising, public relations, sales promotions, direct marketing as well as personal selling.
Author : zbradtke
Army and Air Force Exchange Service essay example
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