Promotion (n): methods of communicating messages to the market with the intention of selling a firm's product
OBJECTIVES (based on corporate objectives of organization)
1. Inform:
give sufficient information to influence purchasing decisions
--> to alert the market about a firm's product; raise awareness tof the business itself (name, purpose & brand)
* promote updated existing products, provide facts & figures about a business
2. Persuade:
generate impulse buying: make purchase without intentionally planning to have done so
--> to encourage customers to make a product, switch from rival brands & create loyalty toward brand/ product
* product differentiation- enhance product image; comparison advertising- directly/ indirectly compares firm's product with rival
3. Remind:
--> to retain customer awareness and interest of an established product
* suitable for products in the maturity or saturation stages of product life cycle

pull promotion- *to pull (attract) customer into buying
promotional technique used to stimulate demand for a product

above-the-line promotional activities
- any form of paid-for promotional technique through independent consumer media
(+) reach huge number of customers from potentially large audience figures
gain more notice due to more interesting & appealing

(-) may not appeal to the right segments or potential consumers
simply ignored from switching channels, pop-up advertisements, & advertisement in magazines
one way communication (unable to determine effectiveness)

Television advertising
· Moving pictures —strong and emphasized message speak for itself

· Can be designed to meet specific needs (channel choice)

· Increasing incomes levelsà increase ownership of TV
· Satellite TVà possible to broadcast worldwide
· Huge cost of producing & broadcasting advertisements
· Try to get message across in very short time (30secs)
Radio advertising

(Monitored & regulated by government agency)
· Reach very large audience
· Significantly cheaper than television advertising
· Do not rely on moving images people to multitask
· Broadband internet technologyà broadcast worldwide
· Only communicate audio messages (no visual impact)
· Lower attention levels compare to TV advertisements

(Income elastic)
· Audiences can be directly targeted based on the movie (promotion trailer to specific market segments)
· Size of movie screens exert more impact
· Captive audienceàharder to ignore screen
· Limited audience compare to radio & TV
Newspaper advertising
· Potentially reaching a wide audience
· Cheaper than using TV advertisements
· Important information can be detailed (future reference)
· Better target different markets
· Own dedicated websitesà wider reach & attractive
· High costs (colors, pictures/ photos, sizes)
· Short shelf life
· Use high photo-quality color images as attraction
· Future references & longer shelf life
· Target the right market segment
· Static (different advertisements)
· Advertisement clustersà ignored & complaints
· Long lead time between submission & publication
Outdoor advertising
· Billboards that automatically rotate (+advertisements)
· Digital à combine moving images & sounds =dynamic dimension
· High rate of exposure (different locations)
· Difficult to monitor the effectiveness
· Difficult to target market segment
· High levels of competition (advertising clutter)

Push promotion- *push (get) products to the customer
promotional methods that rely on intermediaries

below-the-line promotional activities
- the use of non mass-media promotional activities (free samples, discount vouchers, add-value promotions)- no commission need to be paid to external media agencies- direct control over the production of all its' advertisements- relatively cheap in relation to above-the-line methods
· Huge $$ spent to promote brand awareness
· Successful --> instantly recognizable
· Brand extension strategies to launch new products

(Memorable, desire, image, benefits)
· Catch & retain the attention of customers
· Memorable catchphrases
· Message designed to represent essence of business
· Well-known: synonymous with the brand
· Effective: give competitive advantage over rivals
· Visual symbol representing business
· Suitable logosà distinctive & memorable
· Part of their marketing strategy
· Carrier bags/ protective packaging display brand name
· Promote business after purchase been made
· “Bag-vertising”
Word-of-mouth promotion
· Spreading of information through oral communication
· Effective: no direct costs from firm
· Can be potentially damaging if negative messages
Direct marketing
· A larger share of any profits (no intermediaries to pay)
· Free to markets its’ products in a way that it fits
· Allow a business to contact clients
· Costs of producing & distributing promotional material
Direct mail
· Mail to home address to persuade firm’s products
· Regard most material as junk mail
· Does not always target the right audience--> waste
Sales promotions
· Temporary ways of boosting sales & attract new buyers
· Beneficial: sway customers away from other brands
· Encourages action > informing, reminder
Point-of-Sales promotion:
- promotion of a product at the place or location where the customer buys the product
· Process of promoting a business
· Getting media coverage without directly paying for it
· Celebrities: subliminal messages
· Providing financial funds & resources to support
· Required to provide publicity & prime advertising space

Promotional Mixthe combination of individual promotional methods used by a business(such as advertising, direct marketing, packaging & sales promotion)


Attention --> raise existing & potential customers' awareness of the product
Interest --> stimulate & keep customers interest
* use of memorable and interesting advertisements
Desire --> generate a desire or feeling of 'need' for product
* use of free samples to lure customers
Action --> encourages customers to take action: to purchase product
* use of discount vouchers or sales promotion methods

Features, Advantages & Benefits--> focus on the effect of product on consumers
(trade fairs, exhibitions, demonstrations)

*COST. of promotional mediumconsidering cost per headexample case:television advertising--> (+) highest potential reach; (-) most expensive Advertising on internet--> (+) relatively cheap; (-) popularity= competition
NATURE. of the productcertain products suited to particular type of promotionexample case:instance, insurance service & financial planning--> personal selling*beauty & cosmetic products--> women's magazinesrecruitment--> newspaper or trade magazine
product's POSITION in its' life cyclelaunch stage: extensive promotion getting products noticed & established in marketdecline stage:withdrawn promotion as focus switch to marketing new products
LEGISLATION*law preventing certain products (tobacco) from being advertised in certain media *Personal selling--> promotional techniques rely on sales representatives directly helping & persuading potential & existing customers to make purchase - promote through knowledge, assistance, presence & enthusiasm - tailored to the individual needs of the consumer; engage in dialogue
- help business build positive, trusting & longterm relationship with customer
- sales agents can be expensive to hire
* legislation--> if promotional activities consider to be socially unacceptable, authorities may withdraw from campaign
- governments & pressure groups introduce legislation & codes of practice
- consumer protection legislation exist to ensure consumers are not deceived by misleading or dishonest advertising
- (!) corporate social responsibility: costly ;good media publicity-->promote brand image & improve community relations gain

- benefit workers in the form of reating jobs: advertising industry --> HUGE industry
- promotion leads to substantial increase in sales

Effectiveness of promotional campaign--> manager look at quantitative indicators

advertising elasticity of demandsales revenue > business spends on the promotional campaign promotional strategy: GUERRILLA MARKETING
raise maximum exposure of a brand, product or businessby using minimum input and high unconventional methodsaim: ambush/ catch the attention of customers through unusual and/ or shocking technique