Page 476 - Foundations of Marketing

Integrated Marketing Communications | Chapter 15 443

to promote their intangible services. Bank of America Merrill Lynch promotes its flexible
financing by describing the experience of a lifestyle designer who used the company’s ser-
vices to help her business. The story allowed Bank of America to create visual appeal for
the advertisement by providing photos of the tabletop designs representing the work of the
lifestyle designer.

Costs and Availability of Promotional Methods

Costs of promotional methods are major factors to analyze when developing a promotion mix.
National advertising and sales promotion require large expenditures. However, if these efforts
succeed in reaching extremely large audiences, the cost per individual reached may be quite
small, possibly a few pennies. Some forms of advertising are relatively inexpensive. Many small,
local businesses advertise products through local newspapers, magazines, radio and television
stations, outdoor displays, Internet ads, and signs on mass-transit vehicles.
Another consideration that marketers explore when formulating a promotion mix is avail-
ability of promotional techniques. Despite the tremendous number of media vehicles in the
United States, a firm may find that no available advertising medium effectively reaches a
certain target market. The problem of media availability becomes more pronounced when
marketers advertise in foreign countries. Some media, such as television, simply may not be
available, or advertising on television may be illegal. For example, the advertising of cigarettes
on television is banned in many countries. In addition, regulations or standards for media con-
tent may be restrictive in varying global outlets. In some countries, advertisers are forbidden to
make brand comparisons on television. Other promotional methods also have limitations. For
instance, a firm may wish to increase its sales force but be unable to find qualified personnel.

Push and Pull Channel Policies

Another element that marketers consider when planning a promotion mix is whether to use
a push policy or a pull policy. With a push policy , the producer promotes the product only
to the next institution down the marketing channel. In a marketing channel with wholesalers
and retailers, the producer promotes to the wholesaler because, in this case, the wholesaler push policy Promoting a prod-
is the channel member just below the producer (see Figure 15.4 ). Each channel member in uct only to the next institution
turn promotes to the next channel member. A push policy normally stresses personal selling. down the marketing channel

Figure 15.4 Comparison of Push and Pull Promotional Strategies

Push policy Pull policy

Producer Producer Flow of
products

Flow of
Wholesalers Wholesalers
communications

Retailers Retailers

Consumers Consumers

From Pride/Ferrell, Marketing 2014, 17E. 2014 Cengage Learning.

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