The Role of Promotion in the Marketing Mix: A Comprehensive Guide

Posted on Sep 2, 2024 in Economy

The Role of Promotion in the Marketing Mix

Promotion informs consumers about the rest of the marketing mix. Without it, consumers do not know about the product, the price, or the place. Promotion is more than just advertising, and it includes several activities. It is crucial when you are selling in a mass market or you have a brand name. Promotion includes:

  • Advertisements: They can take different forms, e.g., on TV, in newspapers.
  • Sales Promotion: e.g., money-off coupons.
  • Personal Selling: Sending out sales representatives to talk directly to the consumers.
  • Public Relations: Involves making the public aware of the company, e.g., creating publicity in the media.

The Aims of Promotion

  • To inform people about particular issues.
  • To introduce new products to the market.
  • To compete with competitors’ products.
  • To improve the company/brand image.
  • To increase sales.

Advertising

The Advertising Process

  1. Set Objectives: A business needs to determine the purpose of advertising.
  2. Decide the Advertising Budget: Set a limit on how much the business can spend on advertising. It can be decided based on:
    1. A percentage of predicted sales revenue.
    2. How much competitors are spending.
    3. How much the business can afford.
  3. Create an Advertising Campaign: Decide on what advertising campaign to run. Can be determined based on:
    • Target audience.
    • Objectives.
  4. Select the Media: Using the suitable media for advertising that is the most cost-effective. E.g., TV, newspaper.
  5. Evaluate the Effectiveness of the Campaign: Has the advertising met objectives?

Different Types of Advertising

  • Informative Advertising: Involves giving as much information about the product as possible. (e.g., computer)
  • Persuasive Advertising: Involves persuading consumers that they need the product and should buy it. (e.g., perfume)

Design of Adverts

Businesses usually use the AIDA model:

  • Attention: Informs consumers that the product exists.
  • Interest: Consumers need to become interested in the product.
  • Desire: Makes consumers want the product.
  • Action: Prompts consumers into buying the product.

The AIDA model is most effective on products that are not used regularly. It is less effective on products that are bought on a daily basis because people will know how good the quality really is.

Promotion

Different Types of Promotion

Promotion is usually used to support advertising and to encourage new or existing customers to buy the product. Its main function is to boost sales in the short-term, but not in the long term. It is used to attract new customers so that they can try out items with the hope that they will like it and continue to buy it after the promotion has ended. Here are some ways in which promotion is used:

  • Price Reductions: Involves sales or price reduction coupons.
  • Gifts: Gifts are placed in the packaging of the product to encourage consumers to buy it. (e.g., toys in McDonald’s Happy Meal).
  • Competitions: A card may be put in the packaging allowing the consumer to enter contests such as the lottery.
  • Point-of-Sale Displays and Demonstrations: Can be put near the window and displayed attractively. It could also encourage people to buy it if they can see how it works (demonstrated by sales staff).
  • After Sales Service: e.g., warranty services. It reassures the customers that if the product has a problem then they can go and fix it for free. This makes the product more attractive than others without a warranty.
  • Free Samples: Encourages people to try the product. It can be included in other products as well. E.g., washing machine comes with free washing powder.

The Advantages of Promotion

  • Can boost sales during the year when sales are traditionally low (encourage off-season purchases).
  • Encourages people to try a product.
  • Encourages people to buy a product or the product in greater quantities.
  • Encourages people to buy a product instead of competitors’ products.

Which Type of Promotion Should Be Used?

When deciding on what type of promotion should be used, these points should be considered:

  • The Stage of the Product Life Cycle: e.g., use informative advertisement in the introduction stage of the life cycle.
  • The Nature of the Product Itself: e.g., consumer goods use coupons but producer goods use discounts on bulk buying.
  • The Advertising Budget: Obviously, the type of promotion depends on how much you can spend.
  • The Cultural Issues Involved in International Marketing: Businesses need to consider whether their type of advertising might offend the local people. They should also take into account things such as how many people own a TV, literacy level, etc.
  • The Nature of the Target Market: Different markets require different media for advertising.