In: Economics
BASIS OF DIFFERENCE | SALES PROMOTION | DIRECT MARKETING |
Meaning | It is an activity undertaken to promote(to sell) a product. It is done by advertising or giving incentive to a potential customer to buy that product. | Direct marketing is when a company sells or promotes its product by itself. It doesn't seek help from intermediaries. |
Definiton | According to American Marketing Association (AMA) sales promotion can be defined as, " sales activities that supplement both personal selling and advertising and coordinate them and help them effectively, through displays, shows and expositions, demonstrations and other non-recurrent selling efforts not in the ordinary routine." | According to Kotler, "direct marketing represents a global approach to advertising campaigns because it combines communication and distribution channels, integrating them into the same strategy." |
Uses | It is used to introduce new product, clear out inventories, attract traffic, and to lift sales temporarily. |
It is used to stimulate immediate behavior that can be recorded, tracked, analyzed, and stored for future retrieval and use. |
Advantages | It helps create awareness of new products, strengthens customer involvement and loyalty, can be quick to develop, used to support other promotions as well, and helps reduce inventory. | It builds loyalty, no middlemen is needed, effective, easy to monitor, it reaches the personalised and targeted customers, and it reduces competitor awarness. |
Disadvantages | It may keep the customers to wait for promotion, can lower perception of the brand, issues with promotion clutter, and distributors may not be willing to accept. | It creates environmental impact( noticeably direct mail), image can be adversely affected by some direct marketing campaigns, it only reaches a limited number of customers, and it links with privacy intrusion. |
Reach | It reaches an 'n' number of customers/buyers. | It only reaches to a certain number of customers/buyers. |
Types |
1.Consumer sales promotion 2.Dealer promotion 3.Business promotion 4.Public relations 5.Sampling etc. |
1.Face-to-face marketing 2.Door-to-door marketing 3.Kiosk marketing 4.Email marketing 5.Targeted advertisements etc. |
Features | It is object based, short-term approach and non-recurrent. | It is focused, easily measured, personalized and the process is immediate. |