Promotion (marketing)
Promotion is a term used frequently in marketing and is one of the market mix elements.
Contents
Definition
Promotion refers to raising customer awareness of a product or brand, generating sales, and creating brand loyalty. It is one of the four basic elements of the market mix, which includes the four P's:
- Price
- Product
- Promotion
- Place
Promotion is also defined as one of five pieces in the promotional mix or promotional plan. These are:
A promotional mix specifies how much attention to pay to each of the five factors, and how much money to budget for each.
Purpose
Fundamentally, there are three basic objectives of promotion. These are:
- To present information to consumers and others.
- To increase demand.
- To differentiate a product.
The purpose of a promotion and thus its promotional plan can have a wide range, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.
The term promotion is usually an "in" expression used internally by the marketing company, but not normally to the public or the market, where phrases like "special offer" are more common. Examples of a fully integrated, long-term, and large-scale promotion are My Coke Rewards in the U.S. or Coke Zone in the UK and Pepsi Stuff.
Types
There have been different ways to promote a product in person or with different media. Both person and media can be either physically real or virtual /electronic.
In a physical environment
Promoters have used newspapers, special events, endorsements, an other techniques.
Promotions can be held in physical environments at special events such as concerts, festivals, trade shows, and in the field, such as in grocery or department stores.
Interactions in the field allow immediate purchases.
The purchase of a product can be incentive with discounts (i.e., coupons), free items, or a contest.
This method is used to increase the sales of a given product.
Brand ambassadors
Interactions between the brand and the customer are performed by a brand ambassador or promotional model who represents the product in physical environments.
Marketing companies
Brand ambassadors or promotional models are hired by a marketing company, which in turn is booked by the brand to represent the product or service.
Person-to-person interaction, as opposed to media-to-person involvement, establishes connections that add another dimension to promotion.
Building a community through promoting goods and services can lead to brand loyalty.
Through media
Promotion can be done by different media, namely print media which includes newspaper and magazines, electronic media which includes radio and television, digital media which includes internet, social networking and social media sites and lastly outdoor media which includes banner ads, OOH (out of home).
Digital media is a modern way of brands interacting with consumers as it releases news, information and advertising from the technological limits of print and broadcast infrastructures.
Mass communication has led to modern marketing strategies to continue focusing on brand awareness, large distributions and heavy promotions.
The fast-paced environment of digital media presents new methods for promotion to utilize new tools now available through technology.
With the rise of technological advances, promotions can be done outside of local contexts and cross geographic borders to reach a greater number of potential consumers.
The goal of a promotion is then to reach the most people possible in a time efficient and a cost efficient manner.
Promotional activities to push a brand enabling social media channels to spread content making something viral, such as the advertising by Coke. Using the release of a new Bond film creating attention which then gets promoted across all social channels by people spreading the information due to excitement. Social media, as a modern marketing tool, offers opportunities to reach larger audiences in an interactive way. These interactions allow for conversation rather than simply educating the customer. Facebook, Twitter, LinkedIn, Pinterest, Google Plus, Tumblr and Instagram are rated as some of the most popular social networking sites.
As a participatory media cultures, social media platforms or social networking sites are forms of mass communication that through media technologies allow large amounts of product and distribution of content to reach the largest audience possible.
However, there are downsides to virtual promotions as servers, systems, and websites may crash, fail, or become overloaded.
Social capital
With promotion through participatory media, there is an opportunity to gain Social capital.
See also
- List of marketing topics
- Market mix modeling
- Marketing management
- Promotional merchandise
- Sales promotion
- Social capital
- Spin (public relations)
External links
- Promotion (marketing) @ Wikipedia
