promotion is the actions created to communicate within the market to increase visibility and therefore sales of a product

it is a component of the marketing mix and it informs customers about the product and persuades them to buy it.

Designed to create:

• awareness

• interest

• desire

• action

(AIDA)

Types of Promotion

• Advertising - a paid form of communication that uses mass media to reach a large audience. It is used to inform, persuade, or remind consumers about a product or service.

• Digital communication - the use of electronic devices and the internet to communicate with customers. Includes activities such as email marketing, social media marketing, and search engine optimisation (SEO).

• Sales promotions - short-term incentives that encourage customers to buy a product or service. They can include things like coupons, discounts, and free samples.

• Public relations (PR) - is the practice of building positive relationships with the media and other stakeholders. It is used to generate positive publicity for a company or product.

• Personal selling - type of promotional activity in which a salesperson interacts with a potential customer in order to persuade them to buy a product or service. It is a one-on-one communication between the salesperson and the customer.

Factors that influence promotional decisions

Market segmentation

• Budget: The amount of money available for promotion will obviously have a big impact on the types of promotional activities that can be undertaken.

• Stage in the product life cycle: Products in the introductory stage will typically require a lot more promotion than those in the mature stage. This is because new products need to be made aware of and adopted by consumers.

• Type of product: The type of product will also affect the choice of promotional activities. For example, consumer packaged goods (CPGs) are often promoted through mass media advertising, while industrial products are often promoted through personal selling.

• Target market: The target market will also influence the promotional mix. For example, a young, trendy target market might be more receptive to social media marketing, while an older, more affluent target market might be more receptive to direct mail.

• Competitive environment: The competitive environment will also play a role in promotional decisions. For example, if a company is facing stiff competition from other brands, it may need to increase its promotional spending in order to maintain market share.

• Legal and regulatory environment: The legal and regulatory environment can also affect promotional decisions. For example, some countries have restrictions on the use of certain promotional techniques, such as comparative advertising.

• Environmental factors: Environmental factors, such as economic conditions and technological developments, can also affect promotional decisions. For example, a recession might lead to a decrease in advertising spending, while the development of new media platforms might lead to an increase in the use of digital marketing.

Types Of Branding

branding is a type of promotional method that involves the creation of an identity for the business that distinguishes that firm and its products from other firms.

the main types are:

• manufacturer / corporate branding

  • attaches a perception to the goods and services associated with the brand.

  • can be used to promote a unique recognisable characteristic to a product or company.

• Own Brand

  • good value for the consumer

  • high profits to the retailer

  • ties consumer to retailer

  • gives retailer bargaining power with major manufacturers

Benefits of a strong brand

• help a business to stand out from its competitors. In a crowded marketplace, it is important for businesses to have a unique selling point that will make them stand out from the competition.

• build trust and loyalty with customers. When customers have a positive association with a brand, they are more likely to trust it and to be loyal to it. This can lead to repeat business and increased sales.

• help attract new customers. When potential customers are considering a purchase, they are likely to be influenced by the brand image of the businesses that they are considering.

• increase prices. Businesses with strong brand images are often able to charge higher prices for their products and services. This is because customers are willing to pay more for products and services from brands that they trust and that they have a positive association with.

• improve employee morale. When employees are proud of the brand that they work for, they are more likely to be motivated and to be productive. This can lead to improved customer service and increased sales.

• reduced price elasticity of demand. allows the company to rise prices without losing customers (up to a point)

Brand loyalty is when customers keep buying from the same recognised brand. The aim is to try and make a brand so popular that consumers refer to other products as your brands name. (for example: Fitbit, Pritt stick & iPad.)

Ways to build a Brand

• Create USP’s (differentiation)

• Advertising

• Sponsorship - associating a brands name with an event raises its profile

• Use of social media - viral marketing

• Emotional Branding - trying to create a bond between the consumer and the product.

Key Definitions

Promotion - the activities designed to communicate with the market thereby increasing visibility and sales of a product

Branding - a promotional method that involves the creation of an identity for the business that distinguishes that firm and its products from other firms

Brand Loyalty - when customers keep returning to buy from a recognised brand

Sponsorship - associating a brand name with an event to raise its profile in the public eye

Unique Sales Points - a method of differentiation used to gain a competitive advantage by being the only business in the market to offer that product or service.

Advertising - creating awareness and desire towards a brand by communicating a clear brand message.

Viral Marketing - use of social media to encourage the spread of promotional activities and increase brand awareness

Emotional Branding - the practise of building brands that appeal to a consumers emotional state.