Long Term vs. Short Term Focus in Communication Essay Example for Free

Long Term vs. Short Term Focus in Communication Essay There are pragmatic differences between sales promotion and advertising, which marketers must bear in mind when attempting to communicate with the customers. The same case will apply when marketers attempt to communicate with customer by defining the appropriate media and non-media communications that are aimed at driving customer interest, demand and sale upwards. Brand value does not always increase the sale of the product depending on the price of the product and affordability. Instead, brand value may be more instrumental in customer retention. In the short term, discounts have the potential of increasing product sales, but in the long term, the customers’ perception of the product may be negative or positive as they ponder over why there was a discount. Primary Differences between sales promotion and advertising There are fundamental differences between sales promotion and advertising. Advertising is the form of communication via the diversity of media with the goal of persuading and making people aware of products or services. Advertising is equally a service to the target and consumers to inform them with truthful contents that are ethically generated in order for it to be accepted by the public. Advertisements are clear, truthful, tasteful, precise, original, reputable and ethical communications to the public. (Guideline Marketing, 1998). Sales promotion is the application of incentives to elicit a positive reaction by the consumer. Sales promotion gives the consumer advantages of using the product or service on promotion. Sale promotions are characterised by sponsorship, free gifts and vouchers, public forum of information, exhibited, educative and consultative. Therefore the fundamental difference between and advertisement and sales promotion is the on their acceptability by the consumers. (Guideline Marketing, 1998). Some media and non-media marketing communication that are typically employed to increase customer interest, demand and sales The media marketing communication that are typically employed to increase customer interest demand and sales are digital media, print media, pod casting , narrow casting and broadcasting, posting mails, telephone marketing, among others. (Promotion and integrated marketing communications, 2007) Non media marketing communication that are typically employed to increase customer interest, demand and sales are price discounts, non-media advertising, special offers, sales coupons, product and services sampling, product and service price rebates, competitions and raffles, games, product and service premium offers and counter promotions. (Promotion and integrated marketing communications, 2007) Does brand value always increase with increasing sales of the product? Not always does value always increases with increasing sale of the product. Perhaps it may help in customer retention. But in some instances, it can increase sales because more sales are a sign that the customers are crediting the brand as well as their perceptions to the product. This has implications that more sales are solidifying the brand value as long as the product is being sold for the purpose of brand building. Brand values that have increased sales due to high sale imply that the brand value is attractive. When the sales increase, there are signs that the customers are satisfied and are bound to make references to other over the value of the brand. (Bacak, 2006). How discounts have the potential to affect short term sales and long term brand value. Under a good marketing management, discounts have the potential of positively affective the short term sales and long term brand value depending on the perceptions of the customers on the brand following the discount. The understanding discount strategy is that the sale force is not overwhelmingly profit motivated. Instead, the priority is to create value that customer perceive as satisfactory. Most business would create a discount to enable more consumers interact with the product or service. (Lin Lin, 2007, p. 1-131). According to Aaker (1991), discounts will provide short term sales competitiveness while customer benefit from the value that will be enhanced in the long term. During the time that a brand is under discount sale force, the consumers are given a chance to identify the product or service with their needs. (Lin Lin, 2007, p. 1-131). An example of products where price discounts positive short term sales increase and long term brand value is the cosmetics. In this case the higher the discount the higher the sales as long as the brand image is highly placed. Thus as soon as the discount is initiated, the short term sales shoot up and the consumers perception of the brand shift and this may be positive or negative. If negative, the consumer could be expecting even more price discounts in the long term. (Lin Lin, 2007, p. 130). Conclusion: This marketing communication paper has come out with very important lessons. First, in order to be successful in marketing communication, it is important to understand the fundamental differences between sale promotion and advertising so that the choice of media and non media communication can be rewarding to the marketing plan. Second, the possibility of an increasing brand value to increase sale is hinged on other factors like affordability. Finally, product price discounts have a short term effect of increased sales but a mixed effect on the brand value in the long term. Reference Aaker, D. A. (1991).Managing Brand Equity:Capitalizing on the Value of a Brand Name, NY: The FreePress. Bacak, M. (2006, March 18). The Benefit of Branding: Increase Your Sales and Promote Your Product by Building a Solid Brand. Retrieved April 10, 2009, from http://ezinearticles. com/? The-Benefit-of-Branding:-Increase-Your-Sales-and-Promote-Your-Product-by-Building-a-Solid-Brandid=163889 Guideline Marketing, (1998). Guidelines for publicity, advertising, practice promotion and allied marketing activities. Retrieved on April 10th, 2009, available at http://www. capelawsoc. law. za/Files%20for%20New%20Website/Guidelines/Advertising%20E. doc Lin, N. Lin B. , (2007, August). The effects of Brand Image and Products Knowledge on Purchase Intention Moderated by Price Discounts. Journal of International Management Studies. P. 1-131. Promotion and Integrated Marketing Communications, (2007). Marketing communications. Retrieved on April 10th, 2009, available at http://www2. cob. ilstu. edu/jsattaw/MKT%20230/Lectures/Lecture%209%20%20Promotion%20and%20Integrated%20Marketing%20Communication. ppt