Promotion

Lesson 1: Promotional Methods

Vocabulary

Promotional mix: the combination of promotional methods available

Advertising: is a form of promotion that includes paid messages that call the audience's attention to a product.

Advertisements: are the messages being used.

Public relations: is the collection of direct, non- advertising messages a company presents to the public about itself, its brand, and its products.

Publicity: is unpaid for attention from the news media.

Press release: is a written or recorded statement from the company to the news media, with the goal of creating positive media attention and publicity.

Personal selling: is when a company's salespeople convince customers to buy the product through a verbal presentation or conversation.

Direct marketing: is when a company attempts to build a long-term relationship with a customer.

Direct mail: are messages the company sends to people's homes or to their e-mail addresses

Telemarketing: when the company calls people on the telephone to ask them questions or encourage them to buy the product

Sales promotion: is a short-term tool for giving customers incentives to buy the product within a specific time period.

Word of mouth: promotion happens in informal conversations between people.

 

Promotional Methods

  • Promotion is an important tool in the marketing mix.

  • Promotion is the area of marketing that communicates with the market about the product in the attempt to create a positive perception of the company and its products and to increase sales.

  • A promotional strategy should be supported by the other tools in the marketing mix, such as the product, place, price, and people associated with the product.

  • Good market research and analysis of market information will help you determine which promotional methods are most likely to be successful with your target market.

  • Some common methods used in the promotional mix include advertising, public relations, personal selling, direct marketing, and sales promotions.

Advertising

  • Usually, ads try to convince people to buy a particular brand name product. They show how the customer will benefit from this particular product.

  • Companies use advertising to get more customers interested in their products and to get existing customers to buy more.

  • The type of ad and the likely audience that the ad will reach determine how much the ad costs. Size, length, and other factors also affect the price.

  • Advertising can be an expensive promotional method, so marketers need to pay close attention to the advertising budget and run ads that will have the best chances of paying off.

  • Since advertising is expensive, it matters when and where you advertise. Choose ways that will be most likely to reach your target market.

  • Most customers are aware of ads and know their purpose is to increase sales. They are likely to be skeptical of an advertising message because they know the people who created the ad are trying to convince them to buy something.

  • Most people do not seek ads out for entertainment. Some people record TV programs or watch TV shows in ways that allow them to skip the commercials.

  • This has caused some advertisers to shift toward methods that are more likely to be noticed by the audience, such as product placement.

  • Product placement is when a brand name product is included in a program or story that is of interest to the audience, such as a TV show, movie, or book.

  • It's harder to ignore product placement when a favorite TV character is shown wearing a brand name watch or drinking brand name soda.

  • In some cases, people choose to watch advertisements, such as infomercials, which are extended commercials focused on a particular product or set of products.

Promotional Factors

  • The source of the message is an important factor in a promotional message.

  • If the message is coming directly from the company, such as through advertising or a company newsletter, people may be less likely to trust the message.

  • They will know it comes from a biased source with a financial interest in persuading them to buy the product.

  • If the message is coming from a third-party source, such as a news or research organization, people might be more likely to trust the message's credibility.

  • This depends on how much trust the people have in the third-party source and whether it is believed to be biased.   

  • In addition, your satisfied customers may be the source of a promotional message. In that case, people are more likely to trust the message if they don't think the person is being paid to promote the product.

  • However, if the message is an official statement of a company's position on an issue, the message will be considered most legitimate if it comes directly from the company.

  • The content of the promotional message is another thing people will consider.

  • They will consider how useful and relevant the message is for them personally.

  • If the message promotes a product that would benefit them or solve a problem for them, they will be more interested.

  • The style and personality of the message may also help to attract certain types of people.

  • A promotional message might create a positive or negative impression on people, or they might feel indifferent about it.

  • In some cases, it helps to give factual information along with the promotional message. Statistics or relevant facts that support the usefulness of the product may improve your message.

  • Facts about the market and need for the product can also strengthen the message.

  • However, a message that is focused on emotion is usually more effective than one that is focused primarily on facts.

  • The type of media used to convey the message is another factor that affects how people view your promotional message.

  • Different types of media give different impressions and reach different audiences. The media you use can help people figure out what type of target market you are trying to reach.

  • People are often able to make a rough guess at how much money a company spends on its promotional budget.

  • This affects their impression of the company and its size, power, and target market.

  • If your promotional budget is low, you will need to be especially creative at targeting your promotional messages to reach the people who are most likely to buy your product.

  • Some people want to support large, trusted brand name companies, but others prefer to support alternative small companies that are in touch with the local community.

  • Your promotional budget helps people to identify which type of company you are and what your priorities are.