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Promotion
Promotion
A means of communicating information to the consumer,
informing and persuading customers to buy or use a particular product
AIDA is an acronym used in marketing and advertising that describes a
common list of events that may occur when a consumer engages with an
advertisement.
A - Attention (Awareness): attract the attention of the customer.
I - Interest: raise customer interest by focusing on and demonstrating
advantages and benefits (instead of focusing on features, as in traditional
advertising).
D - Desire: convince customers that they want and desire the product or
service and that it will satisfy their needs.
A - Action: lead customers towards taking action and/or purchasing
Uses of promotion
•Increase Sales
•Attract new customers
•Encourage customer loyalty
•Encourage trial
•Create awareness
•Inform
•Remind potential customers
•Reassure new customers
•Change attitudes
•Create an image
•Position a product
•Encourage brand switching
•Support distribution channel
Main aims of promotion –
•ensure customers are aware of the
existence and positioning of products
•persuade customers that the product is
better than competing products
•remind customers about why they may
want to buy
Promotional methods
Promotional methods used to pursue
marketing objectives–
•Advertising (offline and online)
•Sales promotion and merchandising
•Personal selling
•Public relations/publicity/sponsorship
•Direct marketing
Composition of promotional mix
depends on:
Stage in the product’s life cycle
For example, advertising and PR often
important at the launch stage
Nature of the product
What information do customers require
before they buy?
Competition
What are rivals doing? What promotional
methods are traditionally effective in a
market?
Marketing budget
How much can the firm afford?
Marketing strategy
Other elements of the mix
Target market
Appropriate ways to reach the target
market
2 tests of promotional effort:
Was it effective? – did it achieve its
objectives, how was response measured?
Was it efficient? – were objectives
achieved at the acceptable cost, were any
promotional overspends justified by
better-than-expected sales?
Promotional effectiveness and
efficiency
Effective
Ineffective
Efficient
Objectives achieved at
Low promotion budget
lowest costs
but objectives not
Effective and cost efficient achieved
Inefficient
Objective achieved but at
high cost
Expensive promotion
which fails to achieve
objective
Advertising
•Paid for communication
•Many different advertising media
•TV, radio, newspapers and magazines,
online, cinema, billboards
•Consumers subjected to many
advertising messages each day = hard to
get through
•Mass market advertising is very
expensive
Advertising
Advantages
Wide coverage
Control of message
Repetition means that the message can
be communicated effectively
Can be used to build brand loyalty
Disadvantages
Often expensive
Impersonal
One way communication
Lacks flexibility
Limited ability to close a sale
Personal Selling
•Promotion on a person to person basis
•Two way communications
•Meeting with potential customers to close
a sale
•By telephone, at meetings, in retail outlets
and by knocking on doors
•Highly priced, low volume and highly
technical products rely heavily on personal
selling
Personal Selling
Advantages
Disadvantages
High customer attention
High cost
Message is customised
Labour intensive
Interactivity
Expensive
Persuasive impact
Can only reach a limited number of
customers
Potential for development of relationship
Adaptable
Opportunity to close the sale
Sales promotion
•Tactical, point of sale material or other
incentives designed to stimulate
purchases
•Short term incentives to increase sales
•Some promotions aimed at consumers,
others at intermediaries or sales force
Examples of sales promotion
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Coupons
Money off
Competitions
Demonstrations
Free samples
Loyalty points
Free gifts
Point of sale displays
BOGOF
Merchandising
Trade in offers
Sales Promotion
Advantages
Disadvantages
Effective at achieving a quick boost to
sales
Sales effect may only be short-term
Encourages customers to trial a product
or switch bands
Customers may come to expect or
anticipate further promotions
May damage brand image
Merchandising
•The process of maximising the
effectiveness of retail distribution
•Displaying products to maximise
sales
•Usually operates at the “point-ofsale”
Public Relations (“PR”)
Activities that create goodwill toward
an individual, business, cause or
product
Main Aims of PR
•To achieve favourable publicity
about the business
•To build the image ad reputation of
the business and its products,
particularly amongst customers
•To communicate effectively with
customers and other stakeholders
Typical PR Activities
•Promoting new products
•Enhancing public awareness
•Projecting a business image
•Promote social responsibility
•Projecting business as a good employer
•Obtain favourable product
reviews/recommendations
Sponsorship
•Sponsorship takes place when a
payment for an event, person,
organisation is given in return some
consideration of benefit
•A specialised form of public relations
•Common in the worlds of arts and
sport
•Sponsorship should benefit both sides
Direct Marketing
Promotional material directed
through mail, email or
telephone to individual
households or businesses
Why Use Direct Marketing?
•Allows a business to generate a specific
response from targeted groups of customers
•Allows a business to focus on several
marketing objectives:
•Increase sales to existing customers
•Building customer loyalty
•Re-establishing lapsed customer relationships
•Generating new business
Direct Marketing
Advantages
Disadvantages
Focus limited resources on targeted
promotion
Response rates vary enormously
Can personalise the marketing message
Negative image of junk mail and email
spam
Relatively easy to measure responses and
success
Database expensive to maintain and
keep accurate
Easy to text different marketing
messages
Cost effective of customer database is
well managed
Test your knowledge!
Chewing gum wars in the UK market