Marketing Channels

Only available on StudyMode
  • Download(s) : 798
  • Published : November 23, 2011
Open Document
Text Preview
Question: Should companies involve their marketing channels in the design of the promotional programs? What are the advantages and disadvantages of doing so?

When a company is looking at promoting a new or existing product or service, the involvement of their marketing channel during the design of the promotional program is key component. According to the text Excellence in Business (Bovée, Thill, Mescon; p. 417-418), a market channel is the network of firms that work together to get goods and services from the producer to the customer.

When a company is designing is promotional program, or the manner it wishes to get information about its product to consumers, it has numerous factors and stakeholders to involve. Walk into any grocery store chain or look at any number of weekly advertisements and you will be able to see the same product advertised in numerous ways across numerous vendors. These various ways of advertising the same product across multiple vendors can also be referred to as a promotional mix. A promotional mix can be described as the blend of personal selling, advertising, direct marketing, sales promotion, and public relations a company uses to reach potential customers. (Excellence in Business; Bovée, Thill, Mescon; p. 487)

When a company is developing a promotional mix and working with their marketing channels, it is important to understand the five elements of promotion. Excellence in Business (Bovée, Thill, Mescon; p. 487) describes the five elements as:

1. Personal selling which is in-person communication between a seller and one or more potential buyers; 2. Advertising, or the communication which targets a market from an identified sponsor using mass communication; 3. Direct marketing sends advertising directly to potential customers; 4. Sales promotions includes sponsoring promotional events and activities such as coupons, contests, etc.; and 5. Public relations which is the non-sales communication between business and their consumers.

The inclusion of marketing channels into a company’s promotional program can help increase the products presence in the market and help ensure a solid hold. When a company brings new products to market they can include any of the five elements of promotion in their stragegies. Including the marketing channels into the promotional program has its advantages, it can also have disadvantages.

For a company to launch a new product they must be willing to weight the advantages and disadvantges of the promotional element to decide what is best for them. Below is a listing of some of those advantages and disadvantages.

Personal Selling
Advantage
• Message is tailored to customer
• Direct personal communication
• Highly flexible
Disadvantage
• Relative high cost

Advertising
Advantage
• Large reach
• Stimulates demand by presenting a constant message
Disadvantage
• Low to moderate cost
• Limited message flexibility

Direct marketing
Advantage
• Direct personal interaction with large reach
• Tailored messages to key groups
Disadvantage
• Relative high cost

Sales Promotion
Advantage
• Large reach
Disadvantage
• Can vary depending on promotion
• Only meets short term sales objectives

Public Relations
Advantage
• Large reach
Disadvantage
• No direct cost
• Unvarying message

While this discussion only takes a very broad looks at the inclusion of marketing channels in the development of a promotion program, you can see that while there are advantages and disadvantages, it is something that companies must consider. The ability to reach customers is growing as more and more products flood the market. Companies must work to keep the name in the spotlight in order to strive and turn profits.

2. Under the Practice Your Knowledge section on page 511 of your textbook, read the Handling Difficult Situations on the Job: Extolling a Better Way to Buy Insurance scenario and respond to the...
tracking img