It is no longer enough for a business to have great products. Lots of businesses have those too. Customers need to know about a great product and be persuaded to buy. That is the role of promotion.
Promotion is all about communication. Why because promotion is the way in a business makes its products known to the customers, both current and potential.
The main aim of promotion is to ensure that customers are aware of the existence and positioning of products. Promotion is also used to persuade customers that the product is better than competing products and to remind customers about why they may want to buy.
It is a common mistake to believe that promotion by business is all about advertising. It isn’t. There are a variety of approaches that a business can take to get their message across to customers, although advertising is certainly an important one.
It is important to understand that a business will use more than one method of promotion. The variety of promotional methods used is referred to as the promotional mix.
Which promotional methods are used depends on several factors:
Stage in the life cycle - e.g. advertising is important at the launch stage
Nature of the product - how much information is required by customers before they buy
Competition - what are rivals doing?
Marketing budget - how much can the firm afford?
Marketing strategy - other elements of the mix (price, product, place etc)
Target market - appropriate ways to reach the target market
The main methods of promotion are:
• Advertising
• Public relations & sponsorship
• Personal selling
• Direct marketing
• Sales promotion
The way in which promotion is targeted is traditionally split into two types - “above the line” and “below the line”.
Above the line promotion
This is paid for communication in the independent media e.g. advertising on TV or in the newspapers. Though it can be targeted, it can also be seen by anyone outside the target audience.
The main aims of above-the-line promotion are to inform customers, raise awareness and build brand positioning. Above-the-line tends to have a higher cost since the promotional methods used are less precise.
Below the line promotion
This concerns promotional activities where the business has direct control over the target or intended audience. There are many methods of below-the-line, including sales promotions, direct marketing, personal selling and sponsorship.
What are the aims or promotion?
Promotional activities have a variety of aims:
For example, promotion aims to:
- Inform current and potential customers about the existence of products
- Explain the potential benefits of using the product
- Persuade customers to buy the product
- Help differentiate a product from the competition
- Develop and sustain a brand
- Reassure customers that they have made the right choice
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