Answer 1. Public Relation( PR) and advertising play different roles in business promotion. While advertising relates to creating paid announcements that are promoted via various media channels, PR is a strategic communication process that aims to strengthen the mutually beneficial relationships between the organization and public as a whole. Unlike advertisements that are more or less targeted to customers, PR's ambit is much wider that includes employees, stockholders, suppliers, government regulators, interest group and the press.
Furthermore, advertisements have fewer takers when it comes to credibility. Customers view it as a core marketing tactic to sell or promote organization's products and services. By contrast, an article written by an unbiased journalist( as is the case of PR) is likely to enhance the trustworthiness of the organization in the general public. As the article carries the third party endorsement and does not solely aim to sell 'something', it assists customers to shape an opinion regarding the business. As such, public relations can create a powerful effect on customers at a much lesser cost than advertising.
Answer 2. Four elements of marketing strategy include market segmentation, product positioning, product differentiation, and promotion tactics. While promotion tactics directly relate to advertising, other three elements are not directly related to it. Still, they do have an impact of how an organization will market its products.
For example, market segmentation allows the company to search for a group of people that can be catered by their unique products. Advertising, in this case, is more focused on USPs( Unique Selling Points). Likewise, positioning facilitates customers to relate to the specific characteristics of the product. Some famous advertisements of the positioning period include Volkswagen( "Think Small") and Avis( "We 're only no.2). Marketers can use various channels to position their product. Cosmetics manufacturers running full page colored advertisements on women magazine is a worthy example.Last but not the least, persuasive advertisements are used in case of product differentiation for the purpose of branding. Emotional appeals like excitement, fear, and love, can be utilized to optimize the advertising campaigns.
Answer 3. Integrated Marketing Communication (IMC) is a customer-oriented approach that is positively linked with brand loyalty, customer satisfaction, brand awareness, and increased sales. Unlike isolated communication techniques, IMC integrates various tools as social media, advertising, telemarketing, and direct mail that boost up the organizational campaigns by reducing the marketing costs.
The primary importance of IMC lies in 'reinforcement'. By communicating the same information in press releases and feature articles, marketers can reinforce the messages that can be further followed up by direct mails or emails. Secondly, IMC assists in cost cuttings as it reduces copy-writing, designing, and photography costs. Lastly, IMC helps in maintaining a creative consistency as key messages and headlines get repeated in each form of communication. The customer also receives consistent messages that reinforce the basic campaign of the organization. The bottom line is that this synergistic approach helps in brand awareness and relationship building that are some of the keys to long-term business development.
Answer 4. Free-market economies are characterized by four fundamental assumptions. First, buyers are sellers remain updated with the information concerning types of products, substitutes, market price, and the like. The information helps them take prudential decisions when it comes to selling and buying. Second, there are many buyers and sellers in the market. Availability of multiple sellers ensures a more market-responsive product as customers can switch to another seller if one does not meet their expectations. Likewise, multiple buyers ensure that sellers will get a fair price of their unique products.
The third assumption of a free market economy relates to the absence of social costs( externalities). That is, the government might tax/compensate the people for any harm or benefits accrue to them without their direct involvement in transactions. For example, restrictions on tobacco advertisers. Lastly, self-interest guides the people and organizations of the free market economy. People always want more- for less leading to an open competition. It automatically enhances the availability of product and services at competitive prices.
Answer 5. With business contours have changed drastically, a lot of companies are engaged in marketing warfare. Among four marketing warfare strategies including defensive, offensive, flanking, and guerrilla marketing, various companies are choosing what is the best fit for them.
Fast food chains as McDonalds and Burger King have been known for their offensive marketing campaigns against each other. The moves of these food chains often aim to fetch the customers from each other. For instance, Burger King launched the Big King, its new sandwich, against McDonalds' famous, the Big Mac.
Flanking fundamentals involve avoiding direct conflict to make moves in the area in which an organization is not perceived as a threat. Mercedes-Benz flanked General Motors long back in the 1950s. With an intention to target the market captured by Cadillac brand, they priced their cars much higher than Cadillac as the move to highlight their product as 'superior.' It was a long drive and finally in 2004, Mercedes outsold Cadillac.
Reference
Arens, W. (2012). Contemporary Advertising and Integrated Marketing Communications. McGraw-Hill.
