Term 6 Week 6 Discussions Forum For MKT6250 Heal

Term 6 Week 6 Discussionsweek 6 Discussion Forummkt6250 Healthcare Ma

Discuss the differences between the two basic forms of advertising: product and institutional. Discuss the range of alternative sales positions. Omega Travel competes in a highly competitive market; despite offering superior service and having the best agents, it earns zero economic profits due to increased market competition. Does Omega operate in a perfectly competitive market? Why or why not? Additionally, consider the various sales positions available in the industry.

Paper For Above instruction

Introduction

Advertising is a vital component of marketing strategy, with two fundamental forms: product advertising and institutional advertising. Although both aim to promote a business or its offerings, they serve different objectives and employ distinct methods. Understanding these differences is essential for developing effective marketing campaigns and aligning sales strategies accordingly. Furthermore, exploring the range of sales positions available within industries like travel and how these roles contribute to organizational success offers insight into career development and operational structures.

Differences Between Product and Institutional Advertising

Product advertising focuses on promoting a specific product or service to generate immediate sales and brand recognition. It emphasizes features, benefits, and competitive advantages of the product, tailored to persuade consumers to purchase. Examples include advertisements for a new smartphone, a car model, or a particular travel package. The primary goal is to stimulate demand for the actual product or service, often using calls to action such as “buy now” or “limited-time offer” (Kotler & Keller, 2016).

In contrast, institutional advertising aims to build a positive corporate image, enhance reputation, and foster goodwill toward the company or organization as a whole. It may not directly promote a specific product but seeks to influence public perception and create a favorable environment for future sales. Examples include campaigns promoting corporate social responsibility, community involvement, or brand awareness initiatives. The focus is on shaping attitudes and strengthening brand loyalty over the long term (Belch & Belch, 2015).

The key distinction lies in their objectives: product advertising targets immediate sales, while institutional advertising focuses on long-term brand equity. Methodologies also differ; product advertising emphasizes persuasive messaging about specific features, whereas institutional campaigns employ messages that evoke emotional responses or affirm company values (Percy, 2018).

Range of Alternative Sales Positions

The sales function encompasses diverse roles, each tailored to different levels of responsibility, industry requirements, and skill sets. Common sales positions include:

- Sales Representative: Frontline role responsible for contacting prospects, demonstrating products, and closing sales (Coughlan et al., 2019).

- Account Manager: Manages relationships with existing clients, ensuring satisfaction and repeat business (Zoltners et al., 2016).

- Business Development Manager: Focuses on identifying new markets, partners, and opportunities to expand the company's reach (Marshall & Wynn, 2011).

- Sales Director: Oversees the entire sales department, setting strategies, and managing the sales team (Seung & James, 2017).

- Inside Sales vs. Outside Sales: Inside sales are conducted remotely via phone or online, while outside sales involve face-to-face interactions, often requiring travel.

- Technical Sales Specialist: Provides specialized knowledge about complex products, often in industries like healthcare, technology, or engineering (Cushman et al., 2018).

Positions vary in their scope, pay scales, and required expertise, but all crucially contribute to an organizations’ revenue generation. The diversity of sales roles reflects the complexity of modern markets and the need for specialized skills to meet varying customer needs.

Market Dynamics: Omega Travel Case Analysis

Omega Travel operates in a highly competitive market where consumers recognize its superior service and highly skilled agents. Despite this, the firm earns zero economic profits because of increased market entry by competitors over recent years. This scenario suggests Omega does not operate in a perfectly competitive market but rather in a monopolistically competitive environment.

In perfect competition, numerous firms offer identical products, and no single firm can influence prices; profits tend toward zero in the long run (Baumol & Blinder, 2020). Omega’s reputation for superior service indicates product differentiation, a hallmark of monopolistic competition rather than perfect competition. The high entry of competitors exploiting similar niches diminishes Omega’s market power, reducing its profits to zero despite its differentiated offerings.

Furthermore, the fact that consumers know Omega’s agents are the best yet the firm earns zero profits signifies the presence of free entry and exit, characteristic of monopolistic competition. Firms with differentiated services can sustain some short-term profits, but persistent market entry erodes these profits over time, leading to a zero-profit equilibrium in the long run (Pindyck & Rubinfeld, 2018).

Therefore, Omega Travel operates in a monopolistically competitive market, where differentiated services allow some market power, but increased competition prevents sustained economic profits. This environment encourages innovation and improved service quality but limits potential profitability.

Conclusion

Understanding the distinction between product and institutional advertising clarifies strategic marketing priorities. Product advertising aims at immediate purchase intentions, while institutional advertising builds long-term brand loyalty. The array of sales positions reflects the complexity of modern markets, requiring diverse skills and responsibilities. In the case of Omega Travel, despite its competitive advantage through superior service, the influx of competitors has eroded profit margins, positioning the company within a monopolistically competitive landscape. Recognizing these market dynamics is vital for strategic planning and sustaining competitive advantage amid evolving market conditions.

References

• Baumol, W. J., & Blinder, A. S. (2020). Economics: Principles and Policy. Cengage Learning.
• Belch, G. E., & Belch, M. A. (2015). Advertising and Promotion: An Integrated Marketing Communications Perspective. McGraw-Hill Education.
• Coughlan, A. T., Anderson, E., Stern, L. W., & El-Ansary, A. I. (2019). Marketing Channels. Pearson Education.
• Cushman, D. P., Kuc, C., & Roush, P. (2018). Strategic Selling: The Unique Sales Approach for Success. Wiley.
• Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.
• Marshall, G. W., & Wynn, G. (2011). Business Development Strategies. Routledge.
• Percy, L. (2018). Strategic Advertising Management. Oxford University Press.
• Pindyck, R. S., & Rubinfeld, D. L. (2018). Microeconomics. Pearson.
• Seung, J., & James, A. (2017). Leadership in Sales Management. Routledge.
• Zoltners, A. A., Sinha, P., & Lorimer, G. (2016). Sales Force Design: Strategies for Effective Key Account and Territory Management. M.E. Sharpe.