Promotion is one of the four elements of
marketing mixThe term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients",...
(product, price, promotion, place). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision.
The specification of five elements creates a
promotional mixThere are seven main aspects of a promotional mix. These are:* Advertising - Presentation and promotion of ideas, goods, or services by an identified sponsor...
or promotional plan. These elements are personal selling, advertising, sales promotion,
direct marketingDirect marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional...
, and publicity. A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of
brand equityBrand equity is the marketing effects and outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. Fact of the well-known brand name is that, the company can sometimes charge premium prices from the consumer . And,...
,
positioningIn marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization....
, competitive retaliations, or creation of a
corporate imageA corporate image refers to how a corporation is perceived. It is a generally accepted image of what a company stands for. Marketing experts who use public relations and other forms of promotion to suggest a mental picture to the public...
. Fundamentally, however there are three basic objectives of promotion. These are:
- To present information to consumers as well as others
- To increase demand
- To differentiate a product.
There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product.
The term "promotion" is usually an "in" expression used internally by the marketing company, but not normally to the public or the market - phrases like "special offer" are more common. An example of a fully integrated, long-term, large-scale promotion are
My Coke RewardsMy Coke Rewards is a customer loyalty marketing program for Coca-Cola soft drinks. Customers enter codes found on specially marked packages of Coca-Cola products on a website. Codes can also be entered "on the go" by texting them from a cell phone...
and
Pepsi StuffPepsi Stuff was a major loyalty program launched by PepsiCo, first in North America on March 28, 1996 and then around the world, featuring premiums — such as T-shirts, hats, denim and leather jackets, bags and mountain bikes — that could be purchased with Pepsi Points through the Pepsi Stuff...
. The UK version of
My Coke RewardsMy Coke Rewards is a customer loyalty marketing program for Coca-Cola soft drinks. Customers enter codes found on specially marked packages of Coca-Cola products on a website. Codes can also be entered "on the go" by texting them from a cell phone...
is Coke Zone.
See also
- List of marketing topics
- Marketing management
Marketing management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities...
- Spin (public relations)
In public relations, spin is a form of propaganda, achieved through providing an interpretation of an event or campaign to persuade public opinion in favor or against a certain organization or public figure...
Two types of channel of distribution methods are available. Indirect distribution involves distributing your product by the use of an intermediary - for example, a manufacturer selling to a wholesaler and then on to the retailer. Direct distribution involves distributing directly from a manufacturer to the consumer. For example, Dell Computers providing directly to its target customers. The advantage of direct distribution is that it gives a manufacturer complete control over their product.