2 management - School of International Business and ...

Tina Klein
– advertising is any promotion that is paid for, such as TV or radio commercials, print ads, Inter-
net ads, etc. YouTube has some great examples. One of my favorites is the hyperlink
Old Spice Commercial: http://www.youtube.com/watch?v=owGykVbfgUE
– public relations includes press releases, sponsorship deals, exhibitions, conferences, semi-
nars, and magazine articles. Word of mouth is also part of public relations. Personal electronics
products (cameras, computers, phones) often use public relations to inform their target
audience. See the hyperlink Apple iPad Press Release: http://www.apple.com/pr/
library/2010/01/27ipad.html"
– personal selling usually involves a face-to-face encounter between buyer and seller. Despite
all the excitement over new media, personal selling is still a key element of marketing.
– direct marketing uses databases or customer lists to target (known or potential) customers
with marketing communications. Examples are catalogues or product offers that are
received by snail mail or email.
– sales promotion is represented by offering short-term incentives such as coupons,
rebates, samples, and sweepstakes. Groupon is a new variation of this old marketing tool.
See hyperlink Groupon: http://www.groupon.com
Effective promotion can be tricky because it often requires coordinating a series of different activ-
ities, each one designed for a particular role in the purchasing process. For instance, your initial
promotion strategy should generate high exposure so you customers are aware of your product.
Ideally, a high percentage will also be motivated to give your product a try. After that, you'd like
customers to continue to use your product and become repeat buyers.
4 APPLYING THE MARKETING MIX
An effective way to understand the 4 Ps is to relate them to a product or service you're already
familiar with. For example, imagine you're in charge of marketing a new model for BMW this year,
or promoting a new handbag for Coach.
Now, consider the process of formulating a marketing strategy. Chances are, your primary mar-
keting concerns will be your product, price, promotion and place of distribution -- or the 4 Ps!
First, you should think about your target market. Who will buy your car or bag? Will you be tar-
geting men, women, or both? What are their common hobbies or interests? What is their financial
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