Question

Which of the following is more effective: advertising or sales promotions? Which of the two is more tactical, and which is more strategic? Explain.

Answer 1

Answer: Effectiveness of advertising or sales promotion totally depends on the context and the situation they are used. Advertising is general and broad in nature and hence it is more effective when a wide range of products needs to be marketed or when large target audiences are to be reached. In short advertising is more effective than sales promotion when a number of products are to be marketed together or mass marketing is required. Sales promotion works well when a single line of products needs to be marketed or marketing is focused on a particular type of customers. Advertising is more in strategic in nature as it has a broad focus on the overall goals of the company. The advertising strategies and plans are made by keeping in mind the achievement of the overall goals and the strategic direction of the company. The advertising is often focused on larger and wider goals like creating brand awareness and positioning the brand. Sales promotions are generally sales incentives that are short term and tactical in nature. These are often used to boost the sales and retain the customers over some period of time. They are mainly used for short term purposes like introducing a product, clearing the inventories and attracting traffic during off season and so on.