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In this issue:
• Marketing Article: 7 Ways to Improve Profit Through Both Long- and Short-Term Strategies
• Marketing Article: Publicity Versus Advertising -- What’s the Difference?

7 Ways to Improve Profit Through Both Long- and Short-Term Strategies
by Bobette Kyle © 2007

Your marketing mix is the combination of promotions, products, places (distribution channels), and prices you choose for products, services, and the overall business. It is important to strike a balance between those four "Ps". By including both short- and long-term marketing strategies of each, you can create an even more profitable marketing mix.

Long-Term Marketing Strategies

Long-term strategies build brand and company awareness, and give sales revenue a gradual, permanent boost. Some of the benefits are indirect and cannot always be directly associated with profit. For this reason, long-term strategies can be difficult to execute when the focus is short-term.

Branding activities.

High profile activities and general-purpose advertising contribute to your company's image by building familiarity and trust. This, in turn, can create customer loyalty. Successful branding can have a large impact on market share, but is a gradual process so cannot always be definitively measured.

Industry relationships.

Building healthy relationships with distributors and others involved in the industry puts you in a position to know about new opportunities and potential problems as they occur. Long term, this improves the flow of product from you to your customers and creates new distribution channels.

Giving.

Donating money, services, and time can build a positive image with customers and employees. Over time, this increases a company's trustworthiness. When they see you consistently giving something back to the community, they are more confident you will take the same care with them.

Research and development.

A new product pipeline and research are short-term expenses, but represent future sales. Conduct research with customers (or potential target markets) and design products to meet their needs. This ensures future growth.

Short-Term Marketing Strategies

Short-term strategies create immediate revenue. Sales and accounting people often prefer these to long-term approaches because the results are direct and quantifiable. The disadvantage of relying strictly on short-term approaches is the effect is temporary. They tend to be limited-time techniques that do not work well over time. Some examples ...

Reduced price sales.

Sales encourage customers to act. Holding a sale will give customers who have been "meaning to buy" an incentive to do so, resulting in a revenue boost. Frequent sales can erode profit over time as customers become "trained" to wait for a sale instead of buying at full price.

Group discounts and offers.

This is a good way to introduce your products or services to a new set of customers, or give important groups a permanent discount. Carefully evaluate long-term impact, however. Over time, the gain in sales may not offset the cost of continual price reductions.

Blended Marketing Strategies

Some marketing strategies have both long- and short- term benefits. Pay per click (PPC) advertising, for example, is a way to communicate temporary price reductions or highlight a promotion. PPC can also build long-term brand awareness, however, as you expose more people to a Website.

Together, long- and short-term marketing programs help achieve immediate sales goals while building business reputation and goodwill. Implement both and your business will prosper for years to come.

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Bobette Kyle draws upon 15+ years of Marketing/Executive experience, online marketing experience, and a marketing MBA as inspiration for her writing. She is proprietor at the marketing plan and Website promotion site www.WebsiteMarketingPlan.com, where you can find more marketing strategy articles at: http://www.websitemarketingplan.com/techniques

Publicity Versus Advertising -- What’s the Difference?
by Mary Gormandy White © 2007

Many people have the misconception that publicity and advertising are the same things. While both publicity and advertising can play important roles in an organization’s overall marketing plan, they are very different. The three primary differences between publicity and advertising are (2) control, (2) cost, and (3) credibility.

Control
Advertising is a controlled form of communication, whereas public relations is uncontrolled. When you run an advertisement in a print publication, you purchase a specific amount of space on a page to run in a particular issue of the publication. You may even be able to specify that your ad be placed on the top left corner of the sports page. You control the content of the ad as well.

With publicity, you don’t dictate when, where, or if your promotional messages ever see the light of day. You can send a news release to a print publication, and the editor or journalist who receives it might see value in it and print it in the next issue. He or she might really find the information appealing and interview you for a cover story. However, your news release might just as easily end up in the garbage can, depending on its relevance, timing, or a number of other factors.

Cost
The control that you get with advertising doesn’t come without a price. The reason that you can specify when and where your advertisement will run is that you pay for the space, airtime, or bandwidth that it occupies. You are able to control the content because you also pay to have the advertisement itself created. Some advertisements can be produced inexpensively, and others are very costly.

When you are trying to generate publicity for your business through public relations efforts, the only cost is the manpower that it takes to create the documents that you send out to the news media and the costs of delivering or shipping. It is much less expensive to send a photograph and a news release to a magazine editor than it is to create a 4-color, camera-ready magazine ad.

Credibility
With advertising, you are able to make sure that the exact message that you want appears in the media exactly as you have specified. When consumers see an advertisement, most of them are aware that it is a paid promotion. Some consumers tend to be a little bit suspicious of advertising messages for this reason.

However, when your local newspaper runs a feature article about your business as a result of a news release that you sent to the editor, consumers generally don’t stop and think that the story started with a promotional message from the company. A story in the newspaper is generally considered to be much more credible than an advertisement in the newspaper. The reason for this is the third party endorsement effect associated with having someone outside your company saying good things about it.

The best marketing plans include a mixture of advertising and publicity. It’s important that you understand the differences between these two forms of communication so that you can make sound decisions about the ideal mix for your organization.

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Mary Gormandy White is Director of Continuing Education and Corporate Training at Mobile Technical Institute http://www.mobiletechwebsite.com. She teaches seminars, classes, and makes conference presentations on public relations, marketing and a number of additional management, customer service, and communication topics. She also assists clients with their public relations needs. Visit Mary’s blog (http://www.dailycareerconnection.com) regularly for useful professional development tips and career advice.