Promotion Strategies Essay
What should be the promotional mix AND the advertising mix for Anheiser Busch? Promotional mix is said to be a policy by which commercial or business establishments employ the use of diverse tools of communication in supporting a number of varied marketing objectives which may include sales promotion, advertising, personal selling as well as publicity. Examining the basic rudiments of marketing mix, it would vital to argue that, Anheiser Busch could be in a better position of creating a comprehensive promotional and advertising mix.
Thus, it could employ such advertising tools as print and electronic media in order to establish a strong and reliable image in as far as its products are concerned. This is due to the fact that as a commercial entity dealing with beer, the market segment is principally squeezed by both domestic and international products. Therefore, I am of the opinion that, its promotional and advertising mix would entail developing a consistent approach which would encompass marketing strategies, personal selling including public relations.
This would infer that, advertising mix would involve employing both media and non-media procedures which are often employed for a specific period, this it could employ to stimulate as well as increase its product demand
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The promotional aspect involved acquiring foreign brands such as Grolsch as well as Stella Artois; however, the major challenge was developing a sturdy strategy for kick starting its signature brands Michelob, Budweiser, and Bud Light (Ransom, 2010). From such observation, they developed a systematic advertising approach which involved the use of diverse array of television, radio as well as digital media and positive sponsorship which was geared towards acquiring the market.
More so, through the concept of developing a strong advertising mix, the profoundly learned the art of identifying the changing consumers tastes in relation to products associated with both beer, malt fluids and nonalcoholic beverages. Challenges Despite their well established promotional approach, a number of marketing issues emerged. Some of these issues included the manner in which they had to price their products in order to overcome the escalating costs of promotion and advertising.
This singularly can be said to be a factor that affected the manner their success was viewed. From analyst observation, budget issues played an instrumental role of creating challenges affecting the manner in which the products were priced, branded and sold as well as determining the nature of the policy to employ without hurting or losing the consumers. Budgeting Anheuser-Busch enlarges the array of its demographic objectives-and diversifies its wire acquirements.
This is critically achieved via a well cut budget reflecting the nature of promotion activities to be executed as well as advertising concepts to be encompassed. As a principal domestic beer in the US. Eventually, this has resulted in them developing a marketing budget that is reflecting their products, nature of the competition they are involved in as well as the target of the promotion. And this has greatly helped them in acquiring the three core pillars of promotion and advertising audiences, that is, clients, resellers, and the company’s own advertising and publicity force.
Therefore, it can be asserted that, Anheuser-Busch budgeting is profoundly determined after establishing the principal competitors promotional budgets and this acts as their guide in determining which are the most appropriate channels to follow. Also another notable aspect regards the scope of developing entertainment promotions which have helped to cut promotional budgets considerably (Lodish, 2002). Conclusion In essence, promotional and advertising activities involve a number of diverse instruments which are often thought to be correlated due to the market requirements.
When examining the Anheuser-Busch promotional and advertising mix, it is instrumental to state that, advertising alone which encompasses, print, electronic and digital media is allowed $10, 000, 000, this is due to bill boards, internet as well as tourism marketing, while on the other hand promotional activities such as direct marketing, public relations among others is allotted $ 4. 7 million, this is typically effected on annual bases.
However, examining their annual sales, it would be paramount to posit that, these promotional and advertising activities which have made them to realize an annual profit exceeding $ 500,000,000 annually. It is no wonder that, A-B have liaised with such big and trusted names as ESPN, with immense programs on NCAA school basketball, National Hockey League games, Major League Baseball including SportsCenter. Alongside these are commercials in NBA games on TNT, preferred spots on BET, as well as two new main endorsements on E! ‘s Wild On including CNBC’s 11 a. m. -6 p. m. commerce block.
In the earlier period, A-B budgets were extremely cut and very vigilantly positioned with one endeavor in mind: getting Bud’s prime goal audience of males 21-35 and 21-50. Ahead of ESPN and TNT, nevertheless, A-B is adding up extra niche systems as it attempts to attain women. That is why there promotional mix including advertising mix is beyond the conventional marketing doctrines. References Lodish, L M. (2002) Advertising and Promotion. Oxford: OUP. Christ, P. (2008). Principles of Marketing. NY: OUP. Ransom, D. (2010, May 17). Neighborhood: potential business. Wall Street Journal. N. Y.