Promotional Mix, Marketing Communication, and Service Marketing

Posted on Mar 21, 2025 in Business Administration and Management (BAM)

Promotional Mix Elements and Their Differences

The promotional mix encompasses various elements designed to reach a target audience effectively:

  • Advertising: Non-personal communication from an identified sponsor to promote ideas, goods, or services through paid media.
  • Mediums: TV (low reach), Radio, Press, Outdoor (highly effective), Cinema (less common), Internet (highly effective).
  • Sales Promotion: Marketing techniques used tactically to add value and stimulate sales.
  • Actions: Discounts, sales contests, consumer promotions (coupons, free samples, 2-for-1 deals).
  • Direct Marketing: Direct communication with customers using techniques like cell phone text messaging, email, interactive websites, online display ads, direct mail, and targeted TV commercials. Also known as direct response, it focuses on customer data and accountability.
  • Public Relations (PR): Building and maintaining relationships with stakeholders to enhance corporate identity, create awareness, promote a positive image, and assist in crisis management.
  • Methods: Speeches, interviews, press releases, internet presence, sponsorships.
  • Personal Selling: Interpersonal (one-to-one) communication, often face-to-face, to influence individuals or groups.
  • Actions: Obtaining orders, making presentations, demonstrating products, giving advice, running exhibition stands, providing literature, merchandising, conducting sales interviews, delivering goods, collecting payments, negotiating discounts, and establishing goodwill. (Note: High costs are associated with personal selling).

Managing Marketing Communication

Evaluation of Performance and Agency Types

Types of Marketing Communication Agencies:

  • Full-Service Agencies: Provide all services, including advertising, media, marketing communication, and support.
  • Specialized Services: Include creative shops, media independents, a la carte services, new media, and sales promotion specialists.
  • In-House Agencies: Internal teams focusing on various marketing communication areas, offering greater control, time savings, and market understanding.
  • Creative Boutiques: Small agencies specializing in creative development.
  • Media Buyers: Agencies focused on media purchasing.
  • Interactive and E-commerce Agencies: Specialize in websites and interactive media.

Agency Selection Process

  1. Define requirements.
  2. Develop a list of potential agencies.
  3. Conduct a credentials pitch.
  4. Issue a brief to shortlisted agencies.
  5. Conduct a full pitch.
  6. Analyze the pitches.
  7. Select the winning agency.
  8. Agree on contract details.
  9. Announce the winner.

Agency Selection Criteria

  • Agency size relative to the company.
  • Specializations.
  • Agency client list (avoiding competitors).
  • Track record and reputation.
  • Creative ideas.
  • Compatibility.
  • Range of services offered.

Service Marketing

Additional Elements of the Marketing Mix for Services

Service marketing is a subfield of marketing, encompassing both B2C and B2B services. It includes additional elements beyond the traditional marketing mix:

  • People: Well-trained service staff, staff appearance, and careful staff selection.
  • Process: Fast service tills, part-time staff for peak demand, and simple booking systems.
  • Physical Evidence: Short queues, modern equipment, and pleasant waiting areas.

Characteristics of Services

  • Intangibility: Services cannot be touched, seen, or tasted before purchase.
  • Inseparability: Services cannot be separated from the provider and cannot be stored.
  • Perishability: Services cannot be stored, requiring careful management of supply and demand.
  • Heterogeneity (Variability): Service quality depends on the provider, leading to potential variations.