Any form of communication a business or organization uses to inform, persuade, or remind people about its products.
Aim of Promotion
To inform potential customers about the product.
To persuade them to buy it.
To increase market share/sales.
To improve brand image.
To compete with competitor’s products.
The Promotional Mix
A combination of the different types of promotion.
Four Basic Types of Promotion
Personal selling
Advertising
Sales promotion
Public relations
Personal Selling
This type of promotion requires contact with potential buyers.
The salesperson acts on behalf of the organization.
They tend to be well trained in the approaches and techniques of personal selling.
Public Relations
Any activity designed to create a favorable image toward a business, its products, or its policies.
Publicity
A specific kind of public relations that involves placing positive and newsworthy information about a business, its products, or its policies in the media.
Publicity Disadvantage
Its contents cannot be controlled by the business.
Publicity Advantage
It is free!
Principal function of publicity
Building an image.
Advertising
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
What makes a good advertising campaign?
Eye-catching design
Catchy slogan
Humor
Examples of Advertising Media
Radio
Billboard
Television
Newspaper
Internet
Leaflet
Magazine
Sales Promotion
All marketing activities, other than personal selling, advertising, and public relations that encourage consumers to purchase the product.
Sales Promotion Examples
Buy now, pay later
Temporary price reduction
Running a competition
Free gift with purchase
Free sample
Testers
Loyalty cards etc.
Sales Promotion Advantages
Help beat competition and generate more sales.
Increases market share.
Sales Promotion Disadvantages
Decrease profitability, not sustainable in the long run.
What do they do?
Advertising – Creates awareness of a business’s product.
Public Relations – Creates a favorable image for the business itself.
Sales Promotion – Efforts stimulate sales.
Personal Selling – Builds on all of the other efforts by helping customers complete the sale.
Modern/Alternative Strategies
Innovative ways of communicating with potential customers and persuading them to buy their products