2 Promotion is Promotion is a marketing function needed to communicate information about goods, services, images,and/or ideas to achieve a desired outcome. It is the element of the marketingmix that encourages customers to buy or to have certain views or opinions.
3 Promotion as marketing communication Promotion can also be described as marketing communication because itinvolves sending a marketing message to a target audience. A business communicatesa message to a customer who receives the message. The purposeof the message is to tell customers about certain goods, services, or ideas andpersuade them to buy or to form an opinion. The customer gives feedback tothe business by buying, or not buying, the good or service being promoted;or accepting, or not accepting, the promotional point of view or image.
4 Apple is promoting different apps that appeal to teenagers For the under-20s crowd,cool is all about the technology.At a recent “What Teens Want” conference inManhattan, advertisers sought insights into atech-savvy and globally connected generationthat is remaking the image of the typical consumer.Tina Wells, chief executive of Buzz Marketing Group,says: “Technology is starting to define what’s cool.”For teens, “as long as it’s technology, it’s what’s hot.”
5 Who uses promotion?Any organization that has something to sell uses promotion at one time or another.These organizations include:• Large and small businesses• Government agencies• Special interest groups• Producers• Intermediaries (middlemen)• Individuals, such aspolitical candidates
6 Business relying on promotion for various reasons, such as Businesses that manufacture and sell tangible products, such as gaming systems, MP3 players,shoes, cars, and soft drinks, rely heavily on promotion. They develop creative promotions toreach a wide audience and sell their products. Because of this intense promotion, everyoneis familiar with companies such as Sony, Apple, Nike, Honda, and Pepsi.
7 Businesses that sell services use promotion: Businesses that sell services, such as hair salons, day-carecenters, and medical and dental offices, also use promotion. Theyinform target audiences about the benefits of their services to convincecustomers to buy from them rather than from competitors.Think about it—how many different places in your town can yougo to get your hair cut? What factors contribute to your choice ofone business over another?
8 Other companies and organizations promote images or ideas, rather than specific products. For example, the National Cattlemen’sBeef Association uses advertising to promote the image ofbeef as a healthy, popular food.
9 Some companies use promotion to maintain a prestigious corporate image, such as General Electricwith its “imagination at work” promotion. Other companiesuse promotion to improve a tarnished image. Many fast-foodrestaurants have attempted to establish healthier images forthemselves after being accused of contributing to the country’sobesity problem.
10 Some companies use promotion to Government agencies and special interest groups use promotionto communicate ideas as well. You will often see advertisementsor public service announcements regarding seat-belt use,drunk driving, pollution, etc.During an election campaign, youwill see many promotional messages supporting or detractingfrom certain candidates.
11 Promotion benefits Everyone benefits from promotion, not just companies and organizations with something to sell, but customers and the economy as well. Let’s look at some of these benefits:Increased sales. The most obvious way that businesses benefit from the use ofpromotion is through increased sales. They use promotion to “spread the word” tocustomers that they offer certain products, hopefully convincing those customers tobuy. If a business is managing its operations effectively, increased sales should leadto increased profits.
12 Strong position. As a result of promotion, businesses and organizations areperceived in certain ways by customers. Sales-oriented companies may use promotionto position themselves as more customer-friendly and harder working than theircompetitors. Political candidates often use promotion to position themselves as champions of certain causes, such as improved healthcareor lower taxes. Organizations advertise their positions on issues by using slogans such as “Buy American” and “Save the Whales.”
13 Increased customer loyalty. Another benefit of promotional activities is often increased customer loyalty to certain products orbusinesses. Businesses spend billions of dollars on promotion to create specific company images. Customers identify with these imagesand see themselves in the roles or lifestyles shown in the promotions. For example, American Eagle Outfitters and Hollister project animage of style and fashion. Some customers will buy clothes only from specific stores that project the “right” kind of image. Other customersare loyal to certain discount stores, such as Wal-Mart or Target, because of the image of quality products at reasonable prices.
14 Increased product/company awareness. Promotion also helps customers to learn that products exist and where they are available. After seeing a promotion for the Nintendo Wii, for example, customers may not immediately buy the gaming system. However, they will be aware that the Wii exists, and they will know where they can buy one. Then, the next time customers are in the market to buy a gaming system, they may remember the Wii promotion and choose Nintendo.
15 Better informed, more satisfied customers. Customers are better informed when businesses promote product benefits, features, and prices. Informed customers are in a better position to choose between or among products and make buying decisions that will best satisfy their needs.
16 Increased employment opportunities. Promotion benefits the economy by providing job opportunities. Millions of people are employed in the field of promotion. Many companies hire staff and maintain their own in-house promotional departments. Others hire the services of professional public relations and advertising agencies. Promotion also encourages demand. When demand for a product increases, businesses must be able to produce the product in the desired quantities. Therefore, promotion helps to create a need for mass production which in turn creates a need for more jobs.
17 Increased media support. Promotion helps to pay for mass media—television, radio, newspapers, magazines, Internet, etc. Without promotional dollars from advertisers, mass media would probably pass along their costs to the media users
18 Summary (A)Effective promotions are persuasive, relevant, appropriate, factual, repetitive, and coordinated. Promotion benefits companies, customers, and the economy by creating increased sales; strong position; increased customer loyalty; increased product/company awareness; better informed, more satisfied customers; increased employment opportunities; and increased media support.
19 Gray Zone (What do you think)? Individuals such as political candidates use promotion to convince the public to agree with them or to vote for them. Sometimes,along with positive promotions about themselves, political candidates or parties include negative advertisements about theiropponents in their promotional campaigns.These promotions aren’t illegal, but are they ethical? What do you think?
20 O rganizations have three major objectives when using promotion to influence customers. These objectives are to inform, to persuade, and/or to remind.Many companies use promotion to communicate important information about their products.Informingcustomers is especially important when a product is new on the market. Most customers aren’t interestedin buying a new product until they know more about it.
21 Promotion persuadesBusinesses and organizations also use promotion to persuade customers to buy a product or to have certain views or opinions.Persuasive promotions are designed to stimulate some sort of action in customers. They are often used while a product is growingin popularity and competing with many similar products. Companies must persuade customers to purchase their products over all the other available choices.Companies often use tools such as coupons, free samples, rebates, and contests as part of their persuasive promotions. These incentivesmay provide the boost a customer needs to choose one product over another. Can you think of a time such an incentive persuaded you to buy?
22 Promotion remindsSome companies need to remind customers of their existence.Usually in this case, the promotions try to build an image of thecompany or organization rather than trying to sell an individualproduct. Examples of promotions that remind include a popularrestaurant giving customers matchbooks bearing the companylogo and address or an established insurance company such asState Farm reminding its customers that, “like a good neighbor,”it is always there for them. Reminder promotions seek to reinforce afavorable company image that is already present in customers’ minds.
23 Promotional objectives are coordinated; Keep in mind that these three promotional objectives do notalways exist separately. Promotions may aim to achieve one, two,or all three of the objectives at once. When marketers coordinatetheir promotional objectives, methods, and budgets, they canachieve success for both the product and the company.
24 Activitiy Choose one promotion you’ve seen in the past week. Was it for a company or for a specific product?Did you find it relevant and appropriate? Was thepromotion meant to inform, to persuade, or to remind?How did it affect you as a consumer?