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.

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The promotion mix is also referred to as the ______ mix.

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The __________ stands for: differentiate, reinforce, inform, and persuade.

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What is the promotion mix?

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There are six key promotional tools which make up the communications mix:


  1. Advertising, 

  2. __________, 

  3. Sales promotions, 

  4. ___________,

  5. ___________,

  6. Branding.

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The __________ are the stages a customer passes through before making a purchase.

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Most communications campaigns aim to guide the customer through the buyer-readiness stages.

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Name the six buyer-readiness stages.

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The promotion mix is made up of two key elements: the promotion mix budget and tools.

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To use the ________ method, marketers have to define the objective of the promotion and figure out how the company should allocate resources to achieve set goals

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The _______ method involves setting the promotion budget to match industry averages

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After subtracting total costs from revenues or forecasted revenues, managers determine how much of the remainder to allocate to promotion. This method is known as:

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  • + Add tag
  • Immunology
  • Cell Biology
  • Mo

The promotion mix is also referred to as the ______ mix.

Show Answer
  • + Add tag
  • Immunology
  • Cell Biology
  • Mo

The __________ stands for: differentiate, reinforce, inform, and persuade.

Show Answer
  • + Add tag
  • Immunology
  • Cell Biology
  • Mo

What is the promotion mix?

Show Answer
  • + Add tag
  • Immunology
  • Cell Biology
  • Mo

There are six key promotional tools which make up the communications mix:


  1. Advertising, 

  2. __________, 

  3. Sales promotions, 

  4. ___________,

  5. ___________,

  6. Branding.

Show Answer
  • + Add tag
  • Immunology
  • Cell Biology
  • Mo

The __________ are the stages a customer passes through before making a purchase.

Show Answer
  • + Add tag
  • Immunology
  • Cell Biology
  • Mo

Most communications campaigns aim to guide the customer through the buyer-readiness stages.

Show Answer
  • + Add tag
  • Immunology
  • Cell Biology
  • Mo

Name the six buyer-readiness stages.

Show Answer
  • + Add tag
  • Immunology
  • Cell Biology
  • Mo

The promotion mix is made up of two key elements: the promotion mix budget and tools.

Show Answer
  • + Add tag
  • Immunology
  • Cell Biology
  • Mo

To use the ________ method, marketers have to define the objective of the promotion and figure out how the company should allocate resources to achieve set goals

Show Answer
  • + Add tag
  • Immunology
  • Cell Biology
  • Mo

The _______ method involves setting the promotion budget to match industry averages

Show Answer
  • + Add tag
  • Immunology
  • Cell Biology
  • Mo

After subtracting total costs from revenues or forecasted revenues, managers determine how much of the remainder to allocate to promotion. This method is known as:

Show Answer

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Table of contents

    Definition of Marketing Promotion

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

    Promotion refers to making a product or service known to the customer.

    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.

    Promotion decisions refer to the identification of promotional goals as well as the resources and tools needed to achieve those goals.

    As a result, we define marketing promotion as follows.

    Marketing promotions are tools that help companies communicate with customers and inform them about a product.

    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:

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

    Personal Selling

    The first promotional tool is personal selling.

    Personal selling is when a sales representative meets customers to carry out a transaction.

    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).

    Steps of the sales process, StudySmarterFig. 1 - Steps of the Sales Process

    Advertising

    We tend to immediately think of advertising when considering promotions; however, this is only one of the five primary promotional tools.

    Advertising is a type of promotion whereby companies pay to communicate their messages.

    The message in advertising is directed to the mass audience instead of a specific individual, like in personal selling.

    Advertisements can appear in traditional media like press, magazines, and radio or digital media such as blogs and social media. We can further classify them based on the target audience, marketing type, and purpose.

    Check out our explanations of Advertising and Advertising Media to learn more.

    Direct marketing

    Direct marketing is the technique of pre-selecting a specific group of customers to promote your product to.

    Marketers can deliver promotional messages via texts, emails, newspapers, or TV commercials. Customers are also provided with a method for a direct response, such as a hotline to place an order.

    Find out how direct marketing differs from other marketing techniques by reading our explanation of Direct Marketing.

    Public relations (PR)

    Public relations is the practice whereby companies gain attention by disseminating news and topics of public interest.

    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.

    • In the introduction stage, where awareness is low, companies may have to spend a lot on marketing expenses to create a demand.
    • As customer awareness grows, the focus of marketing shifts to differentiating the product from the competitors.
    • The maturity stage is the time for building customer loyalty and maximizing sales.
    • During the decline stage, companies should invest more in reinforcing a positive brand image.

    Check out our explanation of Product Life Cycle Stages to learn more.

    Promotion marketing The product life cycle StudySmarterFig. 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.

    Popular consumer goods like Coca-Cola beverages and McDonald's hamburgers can benefit significantly from commercials, whereas personal selling is more suitable for high-end products like cars or jewelry.

    Competition

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

    In paid search advertising, companies pay to rank higher for a particular keyword on the search engine. As there are multiple keywords with different search volumes and high levels of difficulty to rank, markers must invest a lot of time and effort in finding the right keyword for their campaign.

    Marketing Budget

    Marketing budgets also influence promotional activities.

    To avoid marketing on the wrong promotional channel, learning about your target customer's true needs and wants is important. Marketers can do this through market research and mapping out a customer journey.

    Typically, there are five stages to a customer's journey:

    1. Need recognition

    2. Information search

    3. Consideration of alternatives

    4. Purchase decision

    5. Post-purchase evaluation

    Knowing which stage your target audience is in will help you choose the right method of promotion and deepen customer connection.

    External Environment

    Regulations also affect the promotion of your product or service. For example, TV commercials about tobacco products are banned in many countries, and violations of this regulation can lead to hefty fines.

    Another important consideration for a promotional strategy is the strength of the economy.

    Consumers might expect discounts or coupons for a product or service during an inflationary period. The lack of incentives can deter them from buying.

    Promotion Marketing Strategy

    Decisions on how a promotion campaign should be carried out depend on the marketing strategies used. Overall, there are three ways to promote products:

    • A push strategy involves 'pushing' the product to the customer. Push strategies start with the product's producer, who pushes their marketing communications through various channels to intermediaries who eventually promote the product to the final consumer. Some examples include trade shows and direct selling.

    • A pull strategy involves directing communications efforts to the final customer and building up customer demand in less "pushy" ways, such as advertising, sales promotion, and referrals.

    • The mixed strategy combines both the push and pull factors.

    Only large brands can afford expensive forms of advertising like TV commercials or sports event sponsorship. Smaller businesses with limited funds may employ less costly personal selling and lower-scale promotional approaches.

    Promotion Marketing - Key takeaways

    • Promotion refers to making a product or service known to the customer. Its goal is to increase brand awareness, build customer loyalty, and generate more sales.
    • Promotion decisions refer to the identification of promotional goals as well as the resources and tools needed to achieve those goals.
    • There are seven steps to making a promotional decision: 1. Problem definition 2. Establishment of objectives 3. Design of promotion mix 4. Plan sales promotion program 5. Pre-testing 6. Implementation 7. Monitoring and evaluation.
    • There are five primary types of promotion in marketing: personal selling, advertising, direct marking, sales promotion, and public relations.
    • Marketers can promote products on online channels (digital media) and offline channels (stores, sponsored events, traditional media).
    • Many factors might influence your promotional decisions, including the stage of the product life cycle, product type, marketing budget, target market and competition, regulation, and economic strength.
    Frequently Asked Questions about Promotion Marketing

    What is an example of marketing promotion?

    There are various marketing promotions. Personal selling, advertising, direct marketing, public relations, and sales promotions are the five primary promotion types. 

    What is the role of promotion as a marketing function?

    Promotion is one of the 4Ps of marketing (price, product, promotion, place). Marketing promotions are tools that help companies communicate with customers and inform them about a product. 

    Why is promotion an important marketing function? 

    Promotion is an important marketing function as it helps make a product or service known to the customer. The right promotional strategy also enables a company to reach more customers, generate higher sales, and increase customer loyalty and market share. 

    What are the aims of promotion in marketing? 

    The aims of promotion in marketing include:


    • Increasing brand awareness,

    • Bringing more customers on board,

    • Building relationships with existing customers,

    • Breaking into a new market segment. 

    What is cross promotion marketing? 

    Cross-promotion in marketing refers to two or more brands (that are not competing) joining forces to target the same customer group.

    Test your knowledge with multiple choice flashcards

    The promotion mix is also referred to as the ______ mix.

    Most communications campaigns aim to guide the customer through the buyer-readiness stages.

    The promotion mix is made up of two key elements: the promotion mix budget and tools.

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