Types of promotion

From CEOpedia | Management online

Promotion is an active phase of communication between the company and potential consumers, in order to inform about the company's activity, its current and future offer, shaping a positive image, building positive relationships and stimulating demand, in line with the company's strategy.

Promotion instruments

The concept of promotion is often misused synonymously with advertising, however, these are not identical expressions. According to Philip Kotler there are 4 basic promotion instruments:

  1. personal sales,
  2. direct marketing,
  3. sales promotion,
  4. Public Relations and Publicity.

Personal sales

In a broad sense, personal sales include various forms of direct contact of employees with potential buyers, aimed at increasing the likelihood of making a purchase. In a narrow sense, this concept is based on the sale of products or services outside the company's headquarters, i.e. through sales representatives.

This form of marketing activity is closely related to the nature of the products offered. The most common personal sales items are highly processed consumer goods, e.g. vacuum cleaners, telephones, cosmetics, para-medical devices, production goods, etc. During the presentation of the offer, the merchant's task is to provide the customer with knowledge about the product, explain all doubts and technical problems, present the product, convince buyers about the necessity and expediency of purchase and consequently lead to a purchasing decision.

Direct marketing

This type of promotion is based on the use of various communication channels, i.e. telephone, fax, TV, Internet, in order to make contact with a potential group of recipients, trigger their reactions or enter into a dialogue. Known often as an interactive marketing system, because it is not characterized by a one-sided advertising dimension.

In addition to traditional communication instruments, today's promotion also uses bluetooth marketing, social media marketing, whisper marketing and viral marketing. The choice of a particular tool should of course be adapted to the characteristics of the target market, the state of knowledge and preferences of the target, the characteristics of the product and its life stage as well as the price and budget of consumers.

Sales promotion

This concept is a set of various economic incentives of a short-term nature, aimed at encouraging consumers to try and / or buy goods and services. They can take many forms:

  • tastings,
  • discount coupons,
  • quantity promotions type "2 for the price of 1",
  • awards,
  • lottery tickets,
  • scratch cards,
  • competitions,
  • gifts,
  • limited editions,
  • personalization of brands, packaging.

The basic purpose of the above actions is to induce consumers to feel the uniqueness of the occasion, which is supposed to accelerate the sales effect. Sales promotions should not be continuous, due to their economic size, but to be seasonally organized in the context of holidays or events.

Public Relations and Publicity

These activities are intended to contribute to efficient communication and building a positive image of the organization in the internal and external environment. Publicity is based on the preservation of the brand in the audiences' awareness by placing in the media a logo, a name, a product and publicity.

Public relations activities are aimed at building relationships in order to increase trust in the company. PR often uses press releases, speeches, seminars, reports, charity campaigns, sponsorship and events to create a positive image of the organization.

Other forms of promotion

  1. Trade fairs and exhibitions are based on the direct contact of potential consumers and sellers. They constitute an important form of market activation and marking their economic position against the competition. They give the opportunity to build or improve the company's image and commercial sales.
  2. Catalogs and guides - they are a relatively cheap form of promotion, which requires, however, appropriate graphic and technical and copywriting creation. They provide a wide range of technical and organizational information. A specific form of catalogs are, for example, industrial catalogs published periodically, along with the introduction of specific technological innovations.
  3. Sponsporing - this is an activity combining a promotional and advertising dimension with building a proper company image and interpersonal relations. In the advertising industry, for the sponsor to provide a particular good to an entity, he expects to perform a specific service, usually advertising, supporting his business. Such activities are in principle based on the placement in the space of trademark sponsors or a message informing about the fact of sponsorship.
  4. Lobbing - is based on the influence of an influential group of people for the benefit of the region, social group or institution. A concept derived from the political sphere, and already functioning in the Roman Empire, may also have a positive dimension, not only corruption, depending on the choice of instruments. Supporting or advertising specific ideas, initiatives and activities is also included in the forms of promotion.
  5. Merchandising - defined as a group of integrated logistic and marketing activities that, when applied in a consistent manner, will translate into commercial profit.In practice, it primarily involves the presentation of goods in sales spaces, the organization of these spaces and their appropriate adaptation to the preferences of customers, taking into account the principles of consumer psychology.
  6. Packaging - serving as a vehicle for advertising and information, also has a protective function and is also a marketing instrument. They are characterized by a specific shape, size, color, typography, cubic volume, which should be consistent with the visual identification of brands.
  7. QR Code - two-dimensional, square bar code, which is a modern technological solution in the field of promotion. It not only facilitates logistic operations of products in warehouse halls, but is also increasingly used in outdoor advertising.

E-promotion tools

The dynamic development of information technologies has contributed to the development of new forms of promotion, distributed via the Internet. They play an extremely important role in the current market situation and e-commerce trends. The most commonly used forms of internet promotion include:

  • organization's website,
  • display advertising,
  • promotion in search engines,
  • direct marketing on the web,
  • promotion on social networks.

Due to the economic dimension and the relatively low capital intensity of online promotional activities, they represent a great opportunity for both small and larger enterprises. Their appropriate selection and synchronization of activities form the basis for determining an effective promotion strategy.

Promotion strategies

The selection of individual forms of promotion and distribution channels should be made depending on the long-term goals and strategies of the company. The most popular types of promotion strategies include:

  • push strategy - used in the case of intensive distribution, is designed to encourage distribution channel participants to promote the offer and sell products or services,
  • pull strategy - its aim is to directly influence the consumer by creating demand for branded products.

Examples of Types of promotion

  • Advertising: Advertising is a form of marketing communication used to persuade an audience to take some action with respect to products, services, or ideas. Examples of advertising include television commercials, radio ads, online banner ads, direct mailings, magazine ads, and print ads.
  • Public Relations: Public relations is a strategic communication process that builds mutually beneficial relationships between organizations and their publics. Examples of public relations include press releases, media tours, community outreach programs, and special events.
  • Sales Promotion: Sales promotion is the use of incentives to encourage purchase of a product or service. Examples of sales promotion include coupons, discounts, product sampling, and rebates.
  • Direct Marketing: Direct marketing is a form of communication that is used to target a specific group of consumers. Examples of direct marketing include email campaigns, telemarketing, direct mail campaigns, and texting.

Advantages of Types of promotion

Promotion is an important part of marketing and can be used to reach a variety of goals. There are several different types of promotion such as advertising, public relations, sales promotion, personal selling, and direct marketing. Each of these methods of promotion has its own advantages.

  • Advertising is a great way to reach a large audience with a consistent message. It is especially effective for creating brand awareness, which can help build loyalty among customers.
  • Public relations can be used to build relationships with both customers and the media, and to help manage the reputation of a business. It is also an effective way to build trust and credibility with the public.
  • Sales promotion is a great way to attract new customers and encourage existing customers to buy more. It also helps to create a sense of urgency, which can be beneficial for businesses.
  • Personal selling is an effective way to build relationships with customers, provide them with information, and help them make informed decisions. It can also be used to tailor services and products to individual customers.
  • Direct marketing is an effective way to reach potential customers with targeted messages. It can also be used to collect customer data, which can be used to improve marketing strategies.

Limitations of Types of promotion

Promotion is a powerful tool to inform potential consumers about a company and its offer, build positive relationships and stimulate demand; however, there are multiple limitations to consider when using it. These include:

  • Limited budget: Promotion can be costly, depending on the type and scale of the campaign. Companies need to be mindful of their budget when creating a promotional strategy.
  • Audience: The type of promotion used should be tailored to the target audience. Not all types of promotion are suitable for all potential customers.
  • Timing: Timing is key for successful promotion. Companies need to plan their promotional campaign in advance and ensure that their message is delivered at the right time.
  • Legal restrictions: Companies should always be aware of any legal restrictions that may apply to their promotional activities.
  • Communication channel: Companies need to select the right channel to reach their target audience. The channel needs to be chosen based on the type of promotion and its purpose.

Other approaches related to Types of promotion

Promotion involves a variety of approaches to reach potential consumers and build relationships with them. These approaches include:

  • Advertising - this involves using various media platforms such as television, radio, print and online to spread the word about the company and its offerings.
  • Public Relations - this involves using relationships with different media outlets and other influencers to boost the company’s image and create a positive buzz.
  • Direct Marketing - this involves sending out targeted messages to potential customers directly, such as through email or direct mail.
  • Sales Promotion - this involves offering discounts, coupons and other incentives to attract customers.
  • Event Marketing - this involves hosting events such as conferences, seminars and trade shows to create awareness and build relationships.

In summary, promotion involves a variety of approaches to reach potential consumers and build relationships with them, such as advertising, public relations, direct marketing, sales promotion and event marketing.


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References

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