Discuss the roles and functions of the elements used in business markets.

      

Discuss the roles and functions of the elements used in business markets.

  

Answers


Lellah
1. Advertising:
Any paid form of non-personal promotion transmitted through mass media about an organization, product or service with the sponsor clearly defined.. It is impersonal and communicates with a large number of people through paid channels such as print and broadcast advertisements, motion pictures, brochures and catalogue, posters and flyers, billboards and signs, point of sale display .Advertising can take the form of pioneering advertising ,competitive advertising, or reinforcement advertising:
1. Pioneering advertising can be used at the early stages of the product lifecycle when it is necessary to explain what the product will do and its benefits. This will aim at generating general demand and interest in the product.
2. Competitive advertising on the other hand emphasizes special features of the product or brand as a means of outselling the competition (i.e. communicating unique features, quality and benefits (whether real or imaginary) that distinguish the product from the competitors. It is mostly used when the product has reached maturity stage.
3. Reinforcement advertising tends to remind customers that the product still exists and that it has certain positive properties and benefits. Reminds customers that they made right choice to purchase the product. It is related to the product at maturity stage where the emphasis is to maintain the established market share in the face of stiff competitions. It is aimed at creating attitudes and preferences that lead to further purchase.
Advertising plays an important role in supporting other areas of marketing activities such as personal selling efforts of the sales force by generating leads providing information on new developments to the wider audience prior to sales force visit. This means that advertising can be used to support other promotion mix elements: sales promotion personal selling publicity and even pricing.
Pros
1. Flexibility allows you to focus on a small, precisely defined segment or a mass market
2. Cost efficient-reach a large number at a low cost per person, allows the message to be repeated, and can improve public image.
3. Allows for repeating the message-lets the buyer receive and compare the messages of various competitors.
4. Very expressive, allows for dramatization.
5. Also used to build a long term image of a product.
6. Trigger quick sales, Sears advertising a weekend sale.
Cons
1. Absolute amount of outlay very high,
2. Rarely provides quick feedback, or necessarily any feedback
3. Less persuasive than personal selling
4. Audience does not have to pay attention
5. Indirect feedback (without interactivity)

2) Personal selling:
An interpersonal communication tool which involves face- to-face activities undertaken by individuals representing organizations in order to inform, persuade or remind an individual or group to take appropriate action, as required by the sponsor’s representative . Personal selling consists of such activities as sales presentations, sales meeting,, sales incentive programs ,sales samples, sales fairs and trade shows (or demonstrations) .
Advantages:
1. Personal selling is preferred because it creates mutual long- term buyer-seller relationships which are essential for the health and profitability of organizations.
2. Salesforce is able to carry the organizations message professionally and confidently and can help to reduce the cultural and social distance between the seller and buyer .
3. Sales representatives play important tasks of prospecting, informing ,persuading , installing and demonstrating, coordination between the organization and buyers
4. Gathering information of and monitoring competitors’ activities .
5. Is a more specific element of communication aimed at one or more persons. It has a greater impact on consumers as buyers feel a great need to listen and respond
6. Effective at building buyers’ preferences, convictions and actions.
7. Provides immediate feedback
8. Allows marketers to adjust message quickly to improve communication.
Disadvantages:
1. Cost per person is high which makes it the most expensive promotional tool.
2. Long term commitment is needed to develop a sales force.

3. Sales Promotion
It relates to materials that act as a direct inducement, offering added value, or incentive for the product, to resellers, sales persons or consumers. Consists of a variety of promotional tools designed to stimulate earlier and/or stronger market response (i.e. encourages trial or purchase). It includes consumer promotions such as samples, coupons, rebates, price-offs ,premiums, contests, lotteries, or demonstrations) or trade promotions such as buying allowances, free goods, merchandise allowances, cooperative advertising, push money or dealers sales contest or
Sales promotions may be used by manufacturers, distributors, retailers , trade associations and non-profit institutions (churches may use raffles, games, testimonial dinners etc to promote their programs ). Sales promotions are generally categorized into three -
1. Consumer - oriented- to encourage/stimulate customers to patronize a specific product or store or firm through coupons, samples rebates, premiums, lent-off, contests and sweepstakes
2. Trade-oriented activities focused on members of the distribution channel (or intermediaries)-e.g. retailers and wholesalers. The techniques include allowances, discounts, joint/cooperative advertising , training etc
Objectives Of Sales Promotions :
1. Stimulating trial or purchase among non-users,
2. Rewarding loyal customers and encouraging more use or purchase of larger quantities
3. Breaking brand loyalty of competition brands/attracting competitors’ brand users.
4. Supporting advertising.
5. Encouraging off – season buying.
Advantages of sales promotion:
1. Creates a competitive edge
2. Provides quick returns/ short term profits
3. Channel members put pressure on manufacturers for sales promotions
4. Increases in sales by providing extra incentives to customers to purchase.
5. Attract customer traffic and maintain brand/company loyalty.
Disadvantages / Limitations
1. Consumers may just wait for the incentives
2. May diminish image of the firm
3. May represent decline in the product quality.
4. Reduces profit margins as customers may stock up during the promotion.
5. May shift focus away from the product itself to secondary factors and there may be no product differential advantage.

Lellah answered the question on November 8, 2021 at 05:37


Next: What are the elements of the communication model in marketing?
Previous: Describe biotin stating its meaning, role in the body and effects of its deficiency

View More Principles of Marketing Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions