Promotion Marketing

When a business develops new products and services, it must introduce these new product developments to the right customer groups. How can companies ensure that customers know about their new products or brands? Through promotion marketing. Let's take a look at the different types of promotion in marketing.

Definition of Marketing Promotion

Before we dive deep into promotion marketing strategy, let's look at the definition of promotion.

Together with product, pricing, and place, it makes up the 4Ps of the marketing mix to help a business achieve its financial goals. The right promotional strategy enables a company to reach more customers, generate higher sales, and increase customer loyalty and market share.

As a result, we define marketing promotion as follows.

Promotional Decision Process

We can break promotional decisions down into seven steps. They are as follows:

Step 1: Defining problems

This step determines the need for a promotional strategy by considering the type of product or service to be promoted, the target audience, the marketing budget, and branding messages.

Step 2: Establishing objectives

After the problems are defined, the next step is to determine your promotion's end goal or objectives. This step answers the question: What do you promote a product or service for?

Some common promotional goals include:

• Increasing brand awareness,

• Bringing more customers on board,

• Building relationships with existing customers,

• Breaking into a new market segment.

Step 3: Designing promotion mix

During this step, marketers create a promotion mix. A promotional mix is a combination of promotional strategies used in a promotional campaign. Examples include personal selling, email marketing, sales promotions, print ads, social media advertising, etc.

Step 4: Planning the promotion program

In this step, you plan how long the business will carry out the promotional campaign and the tools that should be used. The marketer will consider the promotion's budget, resources, objectives, and size.

Step 5: Pre-testing

After the plan is complete, it's time to test it before implementing it full-scale. During the testing, marketers should pay close attention to the additional promotional costs, customer responses, and unexpected issues that arise.

Step 6: Implementation

If the testing results prove positive, the plan is ready to launch full-scale. If not, more planning is needed to avoid extra costs during the implementation.

Step 7: Monitoring and evaluation

Marketers should monitor the performance of the promotional campaign regularly for improvement. The company should consider external factors such as economic recession, seasonal variations, and natural disasters, which can affect the customer's decisions.

Types of Promotion Marketing

We can adopt many types of promotional strategies in a promotional campaign. The five most popular ones are:

• Personal selling,

• Advertising,

• Direct marketing,

• Public relations (PR),

• Sales promotion.

Let's dive into each of these in further detail.

Personal Selling

The first promotional tool is personal selling.

It can be conducted face-to-face or via telemarketing. Personal selling is based on the sales process, which consists of nine steps (see Figure 1 below).

Fig. 1 - Steps of the Sales Process

Companies can conduct public relations for free in-house, as opposed to advertising which involves a fee for third-party promoters. One corresponding aspect of public relations is publicity, or how the customer perceives your product and service. While public relations is an internal process, publicity is contributed by external parties.

Sales Promotion Marketing

Sales promotions are short-term campaigns that create demand for a product or service. Examples include contests, coupons, giveaways, trade shows, and exhibitions.

Promotion Marketing Examples

Marketers can promote products on both online and offline platforms. The offline platforms consist of the physical environment, traditional media, and sponsored events, whereas the online platforms include different types of digital media.

• The physical environment: Promotion can occur in physical environments like brick-and-mortar stores or live events. Here, a brand ambassador or promotional model will represent a company to interact with the customer.

• Traditional media: The traditional form of media ranges from print media, such as newspapers and magazines, to electronic media, like radio and television. Placing billboards and banners in high-traffic areas is also a common form of traditional advertising.

• Sponsored events: Sponsorships involve paying an event, person, or organization to promote your products or services. One example is when companies fund athletes and clubs to acquire ad spaces in sporting events.

• Digital media: Digital media is a way of interacting with customers via the Internet and social networking platforms. For example, Gmail, blogs, Facebook, Instagram, LinkedIn, and Youtube. Unlike traditional advertising, advertising on these channels can be organic or paid. The main advantage of the virtual promotion is borderless distribution, which allows the company to reach as large an audience as possible. However, there's also the risk of system crashes or information overload.

Promotion Marketing Mix

Now that we understand the basics of promotion marketing let's take a look at some of the marketing mix and external factors that might influence promotion decisions in marketing.

The Stage of the Product Life Cycle

The first factor is the product's life cycle stage. There are four stages of a product's life cycle: introduction, growth, maturity, and decline (see Figure 2 below). These stages influence the type of promotional strategy.

Fig. 2 - The Product Life Cycle

Product Types

The promotional strategy might also vary based on the product type. Different types of products require various promotional tools.

Competition

The level of competition in the market also affects your promotional efforts.

Marketing Budget

Marketing budgets also influence promotional activities.