• Promotion gives the consumer information and knowledge about the rest of the marketing mix.
  • Without it, consumers would not know about the product, the price it sells for or the place where the product is sold.
  • However, advertising does not necessarily increase sales and profits

Promotion aims to:

  • Create brand image
  • Establish loyalty
  • Brand
  • Increase sales
  • Cooperate
  • Compete
  • Introduce new products
  • Inform people about particular issues

Promotion includes:

  • Advertisements e.g. TV, magazines
  • Promotion (short term incentives to increase sales) e.g. coupons
  • Personal Selling e.g. sales representative sent to talk directly to customers
  • Public Relations (awareness on a large scale) e.g. conferences

Advertising Process

  1. Decide on the purpose or objective
  2. Decide the budget (how much to spend on advertising): this is often done by predicting how much sales will be in the future and then spending a certain percentage of the predicted sales on its advertisement- the budget may be set in line with competitors or just on how much the company is willing to spare.
  3. Create a campaign: choose target audience
  4. Select media/medium: time, place, cost effective
  5. Evaluate the effectiveness: changes in sales, image etc. Assess if the purpose of the campaign was achieved.

Types of Advertising

  1. Informative: emphasis on giving full information about the product
  2. Persuasive: persuade the consumer that they really need/want the product
  • Both times, the target audience (potential buyers) must be kept in mind.

Advertising Methods

TelevisionLarge audienceAttractive

Easy to reach target audience

ExpensiveNo hard copy


Food ProductsCars

Household Products

RadioCheaper than TVLarge audience


No visual messageExpensive

No hard copy

Not as wide of a target audience as TV

Local services/events
NewsEasy to reach target audienceLarge audience

Cheap/cost effective

Hard copy/permanency

Very informative

Black and whiteMay go unnoticed

Not eye-catching

Local products/events Cars
MagazinesEasy to reach target audienceColorful/attractivePublished only once a month/weekMore expensive than newspapersPerfumeGolf equipment

Large audience

May go unnoticedNo detailed informationLocal events
CinemasVisual ImageLow cost

Very effective

Easy to reach target audience

Seen by limited number of peopleCoca-Cola
LeafletsCheapWide range of people


Large audience

Encourage them to buy through money-off vouchers


May not be readLocal events
InternetLarge audienceDetailed information

Orders can me made instantly

Could be missedSecurity issues could discourage customers from buying online

Internet access may be limited in some countries

Competition from other websites

InsuranceTrain ticketing
OthersCheapMay not be seenNeon signs


Design of Advertisements

  • AIDA Model is often used to advertise expensive items which are not often purchased
  • Products that are bought frequently/out of habit do not require it
  • Target audience must be kept in mind
AActionPrompted into action


Advertising Agency

  • Employed for large-scale national advertising
  • They select the medium to be used, write the advert, design it and arrange for its display
  • Often, feedback on the advert’s success will also be obtained


Arguments For & Against Advertising

Provides informationHigher prices/ unnecessary cost
May help increase consumer’s standard of livingMay lead to exploitation
Increases sales, production, employmentTempting people to buy what they do not need or cannot afford
May lead to economies of scale for the firm which may lower price of product for customersEncouraging them to buy products that may be harmful
Creates competition between firms which may also lead to lower pricesCreating a materialistic society who think more emotionally than rationally
TV and newspapers are subsidized through the advertising revenueEncourages the wrong kind of values and behavior
Employment opportunities created


Types of Promotion

  • Promotion is used to support advertising and encourage new or existing consumers to buy the product
  1. Price Reductions: reduced prices/money-off coupons. Encourages the consumer to try the product and become a regular customer.
  2. Gifts: encouragement in the form of a package. The customer may continue buying the product even after the promotion has ended
  3. Competitions
  4. POS Displays/Demonstrations/Merchandising
  5. After-sales Service: used to reassure customers after purchasing expensive products. This may make the customer buy from a shop that offers an after-sales service rather than from somewhere that does not.
  6. Free Samples
  7. Sponsorships
  8. Trade Exhibitions

Advantages of Promotion

  • Promotes off-season purchases
  • Encourages new customers to try an existing product
  • Encourages consumers to try a new product
  • Encourages existing customers to buy a product more often or in greater quantities
  • Discourages purchasing from competitors over your product

Factors Affecting the Type of Promotion Used

  • Stage of the product lifecycle that has been reached e.g. new, well-established
  • Nature of the product e.g. manufacturing goods, consumer goods
  • Advertising Budget
  • Cultural issues involved in international marketing e.g. literacy rate, income
  • Nature of target audience e.g. local, international, national

Personal Selling

  • Advertising is too impersonal and targeted towards a mass audience
  • Personal selling tailors the firm’s message to the individual buyer
  • Staff must be full trained
  • Used when the exact nature of the product can vary e.g. property
  • Discussion is required over specific requirements
  • Price can vary depending on requirements
  • Advice required
  • If the product is costly, often reassurance is also necessary
  • Used extensively when selling to other businesses or to a niche market
  • Items may need to be individually tailored
  • Negotiation may need to take place
  • e.g. specialized machinery

Public Relations

  • Concerned with promoting a good image for the company e.g. sponsoring events, public stunts, donations, press releases
  • This is more based on ‘image advertising’ where the company’s name and image is promoted as well as its products
  • These raise the public’s awareness of the company and increases the likelihood of their choosing the product over its competitors

Customer Service

  • Customer service is concerned with keeping the customer happy by putting emphasis on making the customer feel important and creating a relationship upon trust, reliability and value
  • It is always more expensive to attract a new customer than it is to keep an existing one
  • Therefore, companies strive to retain their existing customer base
  • The product must stand out from its competitors- product differentiation- and good customer service is one way to achieve that
  • Good customer service:
High quality productsbrand loyalty increases
Give advice about the productattentioncare


may result in repeat business in the future and positive comments being passed to the customer’s friends and family

After-sales serviceshows business dedicationleads to repeat business as well as new customers

better reputation

Providing product informationreassures customermakes customer more comfortable/satisfied
Providing credit facilitiesmore affordablewidens the market segment as disposable income becomes less of a factor

may incur extra interest charges

Deliver goods for the customerconveniencecauses impulse buying


2 thoughts on “Promotion

  1. Jude MillsMarch 9, 2021 / 5:43 am

    I have very much enjoyed this informational content. Your layout is excellent. I will come back again.


  2. Peter JohnJune 12, 2021 / 9:10 am

    Thank you for writing and sharing this informative article. I am impressed with your different points and how you present them so clearly.


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