HCBE Faculty Articles


Promotion Mix Practices of Market Leaders: A Cross-Sector Analysis

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South African Journal of Business Management







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Models which describe promotions practice in various situations have tended to be widely accepted without much attempt at empirical validation. Many approaches rely on the popular dichotomy which separates ·consumer' and 'industrial' marketing. It is argued that this separation is not entirely justified as far as the promotional activities of advertising and selling are concerned, and that the traditional models do not adequately describe promotions strategy in South African companies. The objective of this article is to review some of these approaches and to compare them with current findings of leading South African companies. A study of 25 leading companies across five sectors was undertaken. The purpose was to evaluate their promotions mix practices, and specifically to compare levels of expenditure on advertising and personal selling. The results are somewhat surprising, showing that personal selling expenditure is greater than advertising in all five the sectors studied.

Modelle wat die verskillende promosiepraktyke beskryf, is gewoonlik aanvaar sonder dat daar gepoog is om dit empiries te bekragtig. Baie van die benaderings berus op verdeling in ·verbruiker'- en 'industriele' bemarking. Daar word aangevoer dat hierdie skeiding nie heeltemal geregverdig is sover dit promosie-aktiwiteite t.o.v. advertensies en verkope aangaan nie, en dat die tradisionele modelle die promosiestrategie in Suid-Afrikaanse firmas nie voldoende beskryf nie. Die doel van hierdie artikel is om 'n oorsig van sommige van die benaderings te gee en hulle te vergelyk met die bevindinge van toonaangewende Suid-Afrikaanse firmas. Vyf-en-twintig vooraanstaande firmas uit vyf sektore is ondersoek. Die doel was om hulle promosiepraktyke te evalueer, en meer spesifiek, om hulle uitgawes op advertensies en verkope te vergelyk. Die resultate is ietwat verbasend deurdat dit toon dat in al vyf sektore die uitgawes t.o.v. verkope meer is as die uitgawes t.o.v. advertensies.

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