In Bogazzi’s marketing model, Marketing as Exchange, the primary exchange can be seen as the communication of a product or service to the future customer. Starting the ‘ball of exchanges’ rolling is no easy task and this is why so many companies invest so much money into this stage of the marketing process. The variety of communicational tools used, and the way in which they are implemented can greatly affect how effectively the desired message is communicated to the desired audience. This is known as the communications mix and here the role of two main devices within this mix will be evaluated to see how effectively they can be used.

Sales promotion, as defined in KAS&W is the use of “short term incentives to encourage sales of a product or service”, and due to its quick effect is implemented to create a boost in sales. Although this increase in sales may only be sustained whilst the promotion runs, it may introduce, remind or reinforce positive emotions towards the product or service by the consumer. There are many different types of sales promotion that can be used, and here some of them will be explored.

Bargain packages involves individual packs marked with both original price and a new discounted price. Because each is individually priced the consumer sees that it is a limited offer ‘while stocks last’ and this invokes the consumer to purchase the ‘bargain’. Give-aways involve a ‘free gift’ included with the product and are effective with children’s consumables such as breakfast cereal when children ‘nag’ their parents to purchase the cereal for the gift. Coupons, where a certain offer is only available to those in ownership of a voucher (often taken from a used pack), creates a sense of individualism in the consumer, that only they can make use of said offer. Often for a limited time and larger quantity of product, Coupons encourage increased usage of the product. Self liquidating offers involve the company exchanging a set number of labels, lids, or ring-pulls plus a small fee for a set gift. The gifts are purchased in bulk and the individual gift value matches the small fee charged. This increases sales figures without sacrificing profits as the price is left unaltered and therefore is a cost effective strategy. Finally, sampling is when the company release free samples of the product to consumers. This is effective for introducing a product or service to new customers and is used in the hope that consumers will enjoy the sample and begin to purchase the product or service on a constant basis. This brings some custom away from rival products as well as other custom from consumers unaware of their ‘need’ for a product from this type of product.

Sales promotion is an effective method of introducing a product to consumers or to remind consumers of what a product is like when sales figures are falling. All types of sale promotion persuade consumers to try a product in the hope they will continue to use it after the promotion has run its course. The effectiveness of sales promotion depends not only of the type of promotion deployed but on several other factors also. 

Advertising is a much more long-term tool in the communications mix as it can associate a reoccurring feeling or emotion with the product, service or brand. Where as sales promotional tools gets people to try a product, advertising can make consumers ‘realise’ their ‘need’ for a certain brand. By creating and maintaining a brand image or message through advertising will help get customers and hold onto them. In television commercials companies such as Pepsi and Nike have pay vast amounts of money to sponsor admired celebrities, many of whom appear in their adverts. Nike is synonymous with success as their adverts depict sports personalities performing incredible tricks and stunts whilst wearing their products.

Advertising can be used to demonstrate alternate usage of the product as achieved by Hellmann’s and the use of Mayonnaise beyond salads, and the use of Worchester sauce on cheese on toast. This is an effective way of increasing sales through increased usage. Comparative advertising is another effective use of advertising. By favourably comparing your product to a competitors can ‘steal’ custom away from the alternate product and thus increase market share along with sales figures.

These two aspects of the communications mix are both useful in communicating the product with the consumer but their usefulness depends on several factors unique to the situation. The objective, target audience, amount and depth of information to be communicated, and budget must all be considered and as each of these points differ, so will the usefulness of each tool in the communications mix. A project to communicate a new flavour in a range may benefit from sales promotion to get people trying the new taste. But trying to communicate a new image of a company would be better shown through an image, endorsement or film as with an advertisement. The communications mix is not a generic thing and must be carefully selected after analysis of the situation

Bibliography

1.KAS&W, (2002, third edition) principles of marketing

2.Lancaster & Massingham, (1993, second edition) Essentials of Marketing

3.Richard Bagozzi, (Journal of marketing Oct 1975) Marketing as Exchange