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Zappos: Case Study

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Using the case "Getting Zapped by Promotions"

What are the differences between publicity and advertising?
How does a sales promotion activity such as the loyalty program help ensure continued customer support?
Is Zappos likely to increase or decrease its use of social media in its promotion mix? Why?

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Solution Summary

Case study on Zapped on Promotions is discussed in a structured manner in this response. The related references are also provided.

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1. The key differences between publicity and advertising are that advertising is a paid promotion done by a firm to increase the sales of its products. For example, if Zappos buys an advertisement on Facebook, it is advertising. On the other hand, publicity is unpaid promotion is done by others or a third party and is a part of the dissemination of information or news. For example, if a blog mentions Zappos and describes some of the services provided by it and the blog is not paid by Zappos it is publicity. What is important is that publicity can be critical of Zappos. For instance, a new report stating that the shoes sold by Zappos do not fit properly is publicity but it gives a poor name to Zappos. Advertising is a part of the promotion mix whereas publicity is a part of the public relations mix. Advertising is impersonal, it is controlled by Zappos itself, and it is aimed at the target audience of Zappos which are potential customers. On the other hand, publicity can be personal/ general, Zappos has no control over publicity, and the target audience of publicity is the general public (1). Advertising helps build the image of a company, has a positive impact on the sales of products, and is expensive. Publicity is low cost, can have either a positive or ...

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  • MBA, Eastern Institute for Integrated Learning in Management
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