Promotional Decisions

Why do businesses use promotion:

• The main aim of promotion is to ensure that customers are aware of the existence and positioning of products

• Promotion is also used to persuade customers that a product is better than competing products and to remind customers about why they may want to buy

Promotional mix:

• The specific mix of promotional methods that a business uses to pursue its marketing objectives

• The elements of the mix need to be properly integrated to make them effective

  • Advertising

  • Sales promotion

  • Direct marketing

  • Personal selling

  • Public relations

  • Branding

Key factors influencing promotional decisions:

• Stage in the product’s life cycle: Position in the life cycle will require different promotional methods

• Nature of the product: What information do customers require before they buy?

• Competition: What are competitors doing? What promotional methods are proven to be effective in a market?

• Marketing objectives and budget: What does promotion need to achieve? How much can the business afford?

• Target market: Appropriate ways to reach the target market segments