Costco (14) - case PDF

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Promotional Mix Costco Wholesale promotes its products through four main marketing communications tactics. This element of the marketing mix presents how the firm communicates with its target customers. Costco uses wholesale discounts as a form of sales promotions to lure consumers to its warehouses/stores. Members are guaranteed low prices for products sold per pack or in wholesale amounts. In addition, Costco uses direct marketing through emails to members, as well as The Costco Connection, which is a monthly publication that promotes products available at Costco warehouses/stores. On the other hand, personal selling happens when sales personnel persuade customers to purchase certain products at the warehouses. Costco applies public relations to boost its corporate and brand image. For example, the company has sustainability programs for its supply chain, and gives donations to support programs for children, education, and health and human services. The lack of advertising is a major factor that separates Costco’s marketing mix from those of other retailers like Walmart. Costco does not advertise, and relies more on its low prices and product value to attract consumers. Thus, this element of the marketing mix shows that Costco Wholesale Corporation effectively promotes its business and products even without advertising...