Promotion

1. What Is Promotion?

Promotion is the attempt by marketers to inform, persuade, or remind consumers and B2B users to influence their opinion or elicit a response. Most firms use some form of promotion. Because company goals vary widely, so do promotional strategies. The goal is to stimulate action from the people or organizations of a target market. In a profit-oriented firm, the desired action is for the consumer to buy the promoted item.

hint

Nonprofit companies use promotion too, but the goal is a bit different—it is to elicit an action, such as attend our ballet or donate your used items.

Promotional goals include:

• Creating awareness
• Getting people to try products
• Providing information
• Retaining loyal customers
• Increasing the use of products
• Identifying potential customers
• Teaching potential service clients what is needed to “cocreate” the services provided

1. Creating awareness:
   All too often, firms go out of business because people don’t know they exist or what they do. Small restaurants sometimes have this issue. Simply putting up a sign and opening the door is not enough.
   
   
   Promotion through ads on social media platforms and local radio or television, coupons in local papers, flyers, and so forth can create awareness of a new business or product.
2. Getting consumers to try products:
   Promotion is almost always used to get people to try a new product or to get nonusers to try an existing product. Sometimes, free samples are given away.
   
   
   Have you ever been to Costco on a Saturday, where there are numerous samples? This is the brand’s attempt at getting people to try a product, and of course, hopefully buy it.
3. Providing information:
   Informative promotion is more common in the early stages of the product life cycle. An informative promotion may explain what the ingredients (e.g., fiber) will do for a consumer’s health, describe why the product is better, inform the customer of a new low price, or explain where the item may be purchased.
4. Keeping loyal customers:
   Promotion is also used to keep people from switching brands. Slogans such as Campbell’s Soups’ “M’m! M’m! Good!” and “Intel Inside” remind consumers about the brand. Marketers also remind users that their brand is better than the competition.
   
   
   For years, Pepsi has claimed it has the taste that consumers prefer. Southwest Airlines brags that customers’ bags fly free.
5. Increasing the amount and frequency of use:
   Promotion is often used to get people to use more of a product and to use it more often.
   
   
   The National Cattlemen’s Beef Association reminds Americans to “Eat More Beef.”
   The most popular promotion to increase the use of a product may be frequent-flyer or frequent-user programs.
   
   
   The Marriott Rewards program awards points for each dollar spent at a Marriott property. At the Platinum level, members receive a guaranteed room, an upgrade to the property’s finest available accommodations, access to the concierge lounge, a free breakfast, free local phone calls, and a variety of other benefits.
6. Teaching the customer:
   For service products, it is often imperative to actually teach the potential client the reasons to purchase. The purchase of insurance or financial products is an example where the company educates the consumer on how to invest.
   
   
   For physical products, Colgate is an example, as it teaches people proper dental care.

term to know

Promotion

An attempt by marketers to inform, persuade, or remind consumers and B2B users to influence their opinion or elicit a response.

2. The Promotional Mix

To meet the goals we just addressed, companies use something called the promotional mix. The promotional mix is the combination of traditional advertising, personal selling, sales promotion, public relations, social media, and e-commerce. Each firm creates a unique promotional mix for each product. But the goal is always to deliver the firm’s message efficiently and effectively to the target audience.

These are the elements of the promotional mix:

did you know

In today’s digital era, we clearly identify digital or online marketing as a key and integrated element, even though its strategies frequently resemble traditional approaches, such as online ads, social media PR, and direct email campaigns.

Select the plus signs to see some examples of each promotion type:

Traditional Advertising:

Any paid form of nonpersonal promotion by an identified sponsor delivered through traditional media channels

Example: A 30-second TV commercial for Coca-Cola during the Super Bowl; a full-page magazine ad for Apple iPhone; and a radio ad for McDonald’s new menu item

Personal Selling:

A face-to-face presentation to a prospective buyer

Example: A car salesperson explaining financing options at a dealership; a real estate agent showing homes to clients; and a cosmetics representative giving a makeup demo at a counter

Sales Promotion:

Marketing activities (other than personal selling, traditional advertising, public relations, social media, and e-commerce) that stimulate consumer buying, such as coupons, samples, displays, or demonstrations

Example: Free sample tasting of a new snack at a grocery store; a “buy one, get one free” offer on shoes; and an in-store product demonstration of a kitchen appliance

Public Relations:

The linking of organizational goals with key aspects of public interest and the development of programs, such as publicity, lobbying, special events, or internal publications, to earn public understanding and acceptance

Example: Hosting a charity run sponsored by Nike; a press release announcing a company’s environmental initiative; and a media event showcasing a new hospital wing to the community

Social Media:

The use of platforms like Facebook, TikTok, Instagram, Pinterest, and blogs to generate buzz or engagement about a product or company

Example: An Instagram influencer posting about a new fashion line; a viral TikTok challenge promoting a soft drink; and a company account interacting with followers on X (formerly Twitter), using polls or giveaways

E-Commerce:

The use of a company’s website to generate sales through online ordering, interactive content, and other website elements

Example: Amazon promoting a flash sale through its website; a clothing brand offering virtual try-on tools on its website; and a video game company selling downloadable content directly online

Ideally, marketing communications from each promotional mix element (personal selling, traditional advertising, sales promotion, public relations, social media, and e-commerce) should give the same message to the consumer. We will address that in our next tutorial.

term to know

Promotional Mix

The combination of traditional advertising, personal selling, sales promotion, public relations, social media, and e-commerce.