Unit 7: Marketing Promotional Strategy

E4/C2

The Promotional Mix

Businesses such as the HSBC bank need to communicate with their customers for the following reasons:

  • to make the customer aware the product is for sale

  • to explain to the customer, what is the product

  • to make the customer aware of how the product will satisfy the needs of different customers

  • to encourage the customer to buy the product

All of these points (shown above) are known as promotion (also called the 4Ps). Promotion is the most direct form of communication in the marketing mix.

There are two special kinds of promotion: the ‘above the line’ promotion and the ‘below the line’ promotion. The ‘above the line’ promotion uses independent media, i.e. advertising, e-commerce, internet, and interactive media. The ‘below the line’ promotion uses no media, i.e. direct mail, merchandising, public relations (PR), sales promotion, packaging and branding.

An organisation’s total communication programme is called, ‘the promotional mix’ (also called the marketing communication mix).  The promotional mix enables businesses to reach both their marketing and promotional objectives. There are ten elements of the promotional mix: advertising, branding, packaging, public relations, sales promotion, merchandising, direct marketing, interactive media, e-commerce and the internet.

When setting the promotional mix, businesses such as the HSBC bank need to balance out the different parts of the mix, to create an integrated approach to their marketing communications. In addition, they must devote enough resources for each component to be successful. Here are some examples of what businesses must bear in mind:

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  • Advertising- This component targets large, geographically dispersed audiences, often with high frequency. It has low cost per exposure, although the overall costs are high. Consumers perceive advertised products as more legitimate. It dramatises the corporate image and the brand of the business. Advertising enable businesses to build their brand image. It may stimulate short-term sales. It is impersonal as it follows the one-way communication. Also, advertising is very costly

  • Personal Selling- This is the most effective tool for building buyers’ preferences, convictions and actions. The personal interaction enables feedback and adjustments. It is relationship-orientated. Buyers are ...

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