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Week 7 Principles of Marketing Promotion

marketing promotion

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0% found this document useful (0 votes)
111 views13 pages

Week 7 Principles of Marketing Promotion

marketing promotion

Uploaded by

Clement Bunya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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THE PROMOTION ELEMENT IN MARKETING

Promotion is one of the key elements of the marketing mix, alongside product, price, and
place. It encompasses all the activities a company engages in to communicate and promote its
products or services to its target audience. Promotion plays a crucial role in creating brand
awareness, influencing consumer behaviour, and ultimately driving sales. Here's a detailed
explanation with examples:
Components of Promotion:
Promotion involves several components, often referred to as the promotional mix:

Advertising:
Advertising is a form of mass communication that utilizes paid, non-personal messages
disseminated through various media channels to promote products, services, or ideas. It
involves strategic planning, creative development, and the use of persuasive techniques to
influence target audiences and achieve marketing objectives. This includes paid
communication through various media channels like TV, radio, print, online, and social
media to reach a wide audience. Super Bowl Commercials: Companies spend millions on
Super Bowl commercials to reach a massive audience. These ads not only promote their
products but also aim to create brand buzz. Coca-Cola's TV commercials during the Super
Bowl promote its brand and products.
Public Relations (PR):
Public Relations in an academic sense encompasses the strategic management of
communication between an organization and its stakeholders to build and maintain a positive
image. It involves the deliberate use of various communication tools and channels to
establish relationships, manage perceptions, and navigate the organization's interactions with
the public.PR activities focus on building and maintaining a positive image for a company or
brand. This can involve media relations, press releases, and managing crises. For instance,
when Apple releases a new product, they often hold press conferences to generate media buzz
with huge public anticipation and generate media coverage.

Sales Promotion:
Academic discussions on sales promotion involve the use of short-term, incentive-driven
marketing tactics to stimulate immediate purchasing behaviour. This includes promotional
activities such as discounts, coupons, contests, and other techniques aimed at influencing
consumer buying decisions within a limited timeframe. Sales promotions offer short-term
incentives to encourage immediate purchase or customer loyalty. Examples include
discounts, coupons, contests, and free samples. Fast-food chains like McDonald's often run
limited-time promotions offering discounted meals. Black Friday Sales: Retailers use sales
promotions during the Black Friday shopping period to drive immediate sales. Stores like
Walmart and Best Buy offer deep discounts and limited-time deals to attract customers.

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Personal Selling:
In academia, personal selling is characterized by interpersonal communication between a
salesperson and potential customers. It involves building relationships, understanding
customer needs, and using persuasive techniques to guide individuals through the sales
process, often in a face-to-face setting. This involves direct one-on-one communication
between a salesperson and potential customers. It's common in industries where complex or
high-value products are sold, like real estate or industrial equipment. Apple's product launch
events are personal selling because Apple's executives personally showcase new products to
the audience.
Direct Marketing:
Direct Marketing is studied as a targeted form of advertising that communicates directly with
consumers through various channels such as email, direct mail, or telemarketing. It
emphasizes personalized communication and aims to generate a direct response from the
recipient, facilitating a measurable and trackable outcome. Direct marketing includes
reaching out to individuals directly through channels such as email, direct mail,
telemarketing, or SMS. Companies like Amazon use email marketing to recommend products
to customers based on their browsing and purchase history.
Digital Marketing:
In academic discussions, digital marketing is the application of marketing strategies and
tactics through digital channels, including the internet, social media, mobile devices, and
other digital platforms. It involves leveraging technology to reach and engage audiences,
analyse data, and optimize marketing efforts in the online environment. In today's digital age,
online promotion plays a significant role. It includes activities like search engine optimization
(SEO), social media marketing, content marketing, and pay-per-click (PPC) advertising. For
example, Airbnb uses social media and content marketing to promote unique
accommodations.
Email Marketing: Online retailers like Amazon and clothing brands like ASOS use email
marketing to send personalized product recommendations, discounts, and special offers
directly to customers' inboxes.
Social Media Influencer Campaigns: Brands collaborate with social media influencers to
promote their products. For example, fashion brands partner with Instagram influencers to
showcase clothing and accessories to their followers.
Sponsorship:
Sponsorship is explored academically as a marketing strategy involving a financial or in-kind
support relationship between a sponsor and a sponsored entity, such as events, sports teams,
or causes. Scholars examine the motives, benefits, and impact of sponsorship on brand
awareness, image, and consumer perceptions.

Product Placement:

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In academic research, product placement is analysed as a marketing technique where
products are strategically integrated into entertainment content to influence audience
perceptions and behaviour. Scholars explore the effectiveness, ethical considerations, and
impact on brand recall and recognition.
Exhibition:
In academic contexts, exhibitions are examined as organized events where businesses
showcase their products or services to a targeted audience. Scholars investigate the role of
exhibitions in marketing, including their effectiveness in generating leads, building
relationships, and creating brand visibility.

Packaging:
Academic discussions on packaging involve the study of designing and creating product
containers with a focus on both functional and marketing aspects. Researchers explore how
packaging influences consumer perception, purchasing behaviour, and brand image, as well
as its role in ensuring product protection and information conveyance.

Importance of Promotion Mix to an Organization


Increase Brand Awareness: Promotion activities help create brand recognition and increase
awareness among the target audience.
Boost Sales: Effective promotion can lead to increased sales and revenue, especially when
well-timed promotions and discounts are used.
Build Customer Loyalty: Promotion strategies that focus on customer engagement and
rewards can build long-term customer loyalty.
Competitive Advantage: A well-crafted promotion mix can set a company apart from
competitors and create a unique selling proposition.
Educate Consumers: Promotion can inform consumers about the features, benefits, and uses
of a product or service.
Adapt to Market Changes: Promotion allows companies to respond quickly to changing
market conditions, such as economic shifts or shifts in consumer preferences.
Measure and Adjust: Modern promotion channels, especially digital marketing, provide
data that allows organizations to measure campaign effectiveness and make data-driven
adjustments.
Create Hype and Excitement: Promotions can generate excitement and anticipation around
new products or events, driving enthusiasm and participation from the audience.

KEY FUNCTIONS OF PROMOTIONS


Creating Awareness:

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One of the primary functions of promotion is to create awareness about the company's
products or services. Marketers use various promotional tools like advertising, public
relations, and digital marketing to introduce their offerings to the target audience. This initial
stage is crucial as it puts the brand on the consumer's radar.
Building Interest:
Promotion aims to generate interest and curiosity among potential customers. Marketers craft
compelling messages and campaigns to make their products or services seem attractive and
relevant. By highlighting unique features, benefits, or solutions to specific problems, they
pique the interest of the audience.
Informing and Educating:
Promotion plays a vital role in informing and educating customers about a company's
products or services. Marketers provide detailed information through content marketing,
product descriptions, and instructional videos. This helps customers understand how the
offerings can meet their needs or solve their problems.
Persuading and Convincing:
Beyond information, promotion is about persuasion. Marketers employ persuasive techniques
to convince potential customers that their product or service is the best choice. This can
involve showcasing testimonials, endorsements, or social proof to build trust and credibility.
Creating Desire:
Promotion works to create a desire for the product or service. Marketers use emotional
appeals, storytelling, and visual imagery to make the audience envision how the product can
improve their lives or fulfil their desires.
Driving Action:
Ultimately, promotion aims to drive action, typically in the form of a purchase or another
desired behaviour (e.g., signing up for a newsletter, requesting a demo). Calls to action
(CTAs) are strategically placed in promotional materials to guide consumers toward taking
the desired steps.
Building Brand Identity:
Promotion contributes to building and reinforcing a brand's identity. Consistent messaging,
imagery, and tone across promotional materials help shape how consumers perceive the
brand. Over time, this contributes to brand loyalty and recognition.
Differentiating from Competitors:
Promotion helps a company stand out in a crowded marketplace. Marketers highlight what
makes their products or services unique and superior to competitors'. Effective promotion can
create a distinct market position for the organization.
Supporting the Sales Process:

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Promotion assists the sales team by generating leads, nurturing prospects, and creating a pool
of potential customers. This pre-selling stage makes the sales process more efficient and
effective.

Responding to Market Changes:


Promotion is agile; it allows organizations to respond to market changes swiftly. For instance,
when consumer preferences or market conditions shift, marketers can adjust promotional
strategies to stay relevant.
Measuring and Analysing Results:
Modern promotion, especially digital marketing, provides tools for measuring and analysing
campaign performance. Marketers use data and analytics to assess the effectiveness of
promotions, allowing for data-driven adjustments and optimization.
Building Customer Loyalty:
Promotion is not solely about acquiring new customers; it's also about retaining existing ones.
Marketers use loyalty programs, email marketing, and personalized offers to keep customers
engaged and loyal to the brand.
In summary, promotion serves as a multifaceted tool for marketers within an organization. It
encompasses various functions, from creating awareness and interest to persuading,
convincing, and ultimately driving action. Effective promotion is essential for building brand
identity, staying competitive, and adapting to changing market dynamics. It plays a crucial
role in connecting the organization with its target audience and fostering customer
relationships.

How to develop a Promotion Process:


Developing a promotion process is a critical aspect of marketing strategy that involves
planning, executing, and evaluating promotional activities to achieve specific marketing
objectives.

Set Clear Objectives:


The first step in developing a promotion process is to establish clear and measurable
objectives. These objectives should align with broader marketing and business goals. For
example:
Objective: Increase brand awareness by 20% among the target audience within the next six
months.
Identify the Target Audience:

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Determine the specific audience you want to reach with your promotional efforts. This
includes demographics, interests, behaviours, and pain points. For example: Target Audience:
Millennial gamers aged 18-30 interested in video game accessories.
Choose Promotion Channels:
Select the most appropriate promotion channels to reach your target audience effectively.
Channels can include:
 Digital Marketing (e.g., social media advertising, email marketing)
 Traditional Advertising (e.g., TV, radio, print)
 Public Relations (e.g., press releases, media interviews)
 Content Marketing (e.g., blog posts, videos)
 Events and Sponsorships (e.g., trade shows, local events) Example: If you're
promoting a new mobile app for fitness enthusiasts, you might focus on digital
marketing channels like social media ads and influencer partnerships.
Develop a Creative Strategy:
Create a creative strategy that outlines the key messages, themes, and creative elements of
your promotion. Ensure that your messaging aligns with your brand identity and resonates
with your target audience. For example: Creative Strategy: Highlight the app's user-friendly
interface, personalized workout plans, and success stories of users who achieved their fitness
goals.

Design Promotional Materials:


Create the promotional materials needed for your campaign. This may include graphics,
videos, written content, and ad creatives. Ensure that the materials are visually appealing and
consistent with your brand. Example: Design eye-catching social media graphics and a
promotional video showcasing the app's features and benefits.
Allocate Budget and Resources:
Determine the budget required for your promotion process, considering factors like
advertising costs, content creation expenses, and personnel. Allocate resources and
responsibilities within your marketing team or agency. Budget Example: Allocate GHC
450,000 for a three-month social media advertising campaign.
Implement the Promotion:
Launch your promotional campaign across selected channels. Schedule posts, ads, and
content to ensure a consistent presence. Monitor the campaign's progress and make real-time
adjustments as needed. Implementation Example: Start running Facebook and Instagram ads,
publish blog posts, and engage with influencers to promote the fitness app.
Measure and Analyse Results:
Use key performance indicators (KPIs) to track the effectiveness of your promotion.
Common KPIs include website traffic, conversion rates, social media engagement, and ROI.
Analyse the data to assess the success of your promotion process. Measurement Example:

6|Page
After one month, analyze data to see if website traffic increased, how many app downloads
occurred, and the return on ad spend (ROAS).
Optimize and Iterate:
Based on the data and insights gathered, optimize your promotion process. Make necessary
adjustments to improve results. Repeat the process for future campaigns, incorporating
lessons learned. Optimization Example: If social media ads are driving the most conversions,
allocate a higher budget to that channel in the next campaign.

Evaluate and Report:


At the conclusion of the promotion process, evaluate whether you achieved your initial
objectives. Prepare a report summarizing the campaign's performance, highlighting successes
and areas for improvement. Evaluation Example: If brand awareness increased by 25%
instead of the targeted 20%, report this as a success in your campaign evaluation.
In summary, developing a promotion process involves a systematic approach that starts with
clear objectives, audience identification, and channel selection. It continues with creative
strategy, resource allocation, implementation, measurement, optimization, and evaluation. By
following this process, marketers can create effective and impactful promotional campaigns
that align with their marketing goals and resonate with their target audience.

The simple communication model (Linear Communication Model)


Characteristics:
 Linear and one-way.
 Limited interaction between sender and receiver.
 Little emphasis on feedback.
 Typically used to explain basic communication processes.
Components
Sender: Initiates the communication process. Message: The content or information being
communicated. Channel: The medium used to transmit the message. Receiver: The recipient
of the message. Encoding and Decoding: The sender encodes, and the receiver decodes the
message. Feedback: Optional, but often minimal. Example: A company sending a
promotional email to its customers. The email contains product information, and the receiver
may or may not provide feedback.
The simple communication model, also known as the linear communication model, is a
fundamental framework used to understand how communication occurs between a sender
(the source of the message) and a receiver (the recipient of the message). It illustrates the
basic components and flow of a communication process.

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Sender (Source):
The communication process begins with the sender, who initiates the communication by
encoding a message. Encoding involves converting thoughts, ideas, or information into a
format that can be easily transmitted to the receiver. This format may include spoken words,
written text, visual images, or other forms of communication.
Message:
The message is the actual information, content, or idea that the sender wishes to convey to the
receiver. It represents the core of the communication process. The message can be verbal,
non-verbal, written, visual, or a combination of these forms.

Channel (Medium):
The channel refers to the means or medium through which the message is transmitted from
the sender to the receiver. Channels can include face-to-face conversation, written
documents, emails, phone calls, video conferencing, social media platforms, and more. The
choice of channel can significantly impact the effectiveness of communication.

Encoding and Decoding:


Encoding is the process by which the sender translates their thoughts and ideas into a form
that can be conveyed through the chosen channel. Decoding, on the other hand, is the process
by which the receiver interprets and understands the message. Effective communication relies
on successful encoding and decoding.

Receiver:
The receiver is the individual or group intended to receive and interpret the message. They
play a crucial role in the communication process as they are responsible for understanding,
interpreting, and responding to the message. The receiver's background, knowledge, and
experiences can influence their interpretation of the message.
The communication process typically has a specific purpose or goal. This purpose can vary
widely, from conveying information and sharing ideas to persuading or influencing the
receiver's behaviour.
In summary, the simple communication model provides a structured framework for
understanding how messages are generated, transmitted, and received in a communication
process. It highlights the key components of sender, message, channel, encoding, decoding,
receiver, feedback, noise, context, and purpose. Successful communication requires careful
consideration of each component and the dynamic interactions between them.

The Cyclical Communication Model (Wilbur Schramm Communication),

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Wilbur Schramm, a prominent communication scholar, developed a more interactive and
feedback-driven model of communication compared to the traditional linear models. His
model highlights the complexities of communication and how it is a dynamic exchange
between the sender and receiver.
Characteristics:
 Interactive and feedback-driven.
 Recognizes the sender-receiver relationship as dynamic.
 Emphasizes the iterative nature of communication.
 Highlights the role of feedback in improving communication effectiveness.
Components:
Sender: Initiates the communication process. Encoding and Decoding: Sender encodes, and
receiver decodes messages. Message: The content being communicate. Channel: The
medium through which messages are transmitted. Receiver: The recipient of the message.
Receiver’s response (Feedback) : Central to the model, representing the receiver's response.
Continuous Feedback Loop: Feedback leads to ongoing communication adjustments.
Example: A company runs a social media campaign. Based on audience feedback and
engagement, they adapt their messaging and content strategy to better resonate with their
target audience.
Here's a breakdown of the key components:
Sender:
In Schramm's model, communication begins with a sender or the source of the message. This
can be an individual, organization, or brand. The sender initiates the communication process
by creating and transmitting a message.
Encoding:
After formulating the message, the sender encodes it, which means converting thoughts,
ideas, or information into a format that can be conveyed effectively to the receiver. Encoding
involves selecting words, images, and other elements to ensure the message's clarity and
impact.

Message Transmission:
The sender transmits the encoded message through a chosen communication channel or
medium. These channels can include advertising, social media, email marketing, print
materials, websites, or even face-to-face interactions. The choice of channel depends on the
target audience and the nature of the message.
Decoding:
Upon receiving the message, the receiver decodes it. Decoding is the process of interpreting
the message based on the receiver's background, knowledge, experiences, and cultural
context. This step is crucial because it determines how well the message is understood.

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Receiver:
The receiver is the individual or group for whom the message is intended. In marketing, the
receivers can be customers, clients, prospects, or the general public. The receiver plays a
critical role as they interpret and respond to the message.
Feedback:
Feedback is a central element in Schramm's model. It represents the response or reaction of
the receiver to the sender's message. It is essential for the sender to receive feedback to assess
whether the message was understood as intended and whether the communication was
effective.
Respond (Encoding Receiver's Feedback)
The feedback from the receiver serves as a new message. This message is encoded by the
receiver, similar to how the original message was encoded by the sender. It includes the
receiver's interpretation, thoughts, and reactions to the sender's message.
Message Transmission (Receiver's Feedback):
The feedback message, now encoded by the receiver, is transmitted back to the sender
through a communication channel. This channel can be the same as the one used for the
initial message or a different one, depending on the context.
Decoding (Receiver's Feedback):
The sender, now in the role of the receiver, decodes the feedback message from the original
receiver. This step is crucial as it allows the sender to understand the receiver's perspective,
reactions, and any adjustments needed in future communication.
Continuous Feedback Loop:
Schramm's model illustrates a continuous feedback loop, emphasizing the ongoing and
iterative nature of communication. Feedback informs subsequent messages and interactions,
leading to more effective communication over time.

Noise:
Similar to other communication models, Schramm acknowledges the presence of noise or
interference in the communication process. Noise can disrupt the clarity and accuracy of
messages and can include distractions, language barriers, and other factors.
In marketing, the Schramm communication model underscores the importance of two-way
communication, active listening to customer feedback, and the iterative nature of brand-
consumer interactions. Effective marketing campaigns consider the receiver's perspective,
adapt messaging based on feedback, and aim for ongoing engagement to build strong
customer relationships.
The Two-Step Flow Communication Model
The Two-Step Flow Communication Model is a theory that describes how information and
influence flow from mass media to opinion leaders and then to a wider audience. This model

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was proposed by sociologist Paul Lazarsfeld in the 1940s and is particularly relevant to
understanding how information and decisions spread within a society or community.

Characteristics:
 Emphasizes interpersonal communication.
 Recognizes opinion leaders as intermediaries.
 Highlights the influence of opinion leaders on the wider audience.
 Focuses on how information spreads within communities.
Components:
Mass Media: Initiates the communication by broadcasting information. Opinion Leaders:
Knowledgeable individuals who interpret and share information. Receiver (Opinion
Leader's Peers): Those influenced by opinion leaders. Feedback Loop: Information and
feedback can flow back to opinion leaders. Example: A new restaurant opens in a
neighbourhood. Food critics write positive reviews in newspapers and on social media. Local
food enthusiasts, who are considered opinion leaders, read these reviews, visit the restaurant,
and then recommend it to their friends and acquaintances. Their friends, in turn, decide to try
the restaurant based on these recommendations.
Mass Media:
The communication process in the Two-Step Flow model begins with mass media. This
includes newspapers, radio, television, magazines, and more recently, digital platforms and
social media. Mass media outlets disseminate information to a broad audience, including
news, advertisements, and various forms of content.

Opinion Leaders:
Opinion leaders are individuals who are considered knowledgeable, influential, and respected
within a specific domain or community. They are not necessarily famous or well-known to
the general public but hold expertise or credibility in certain areas. Opinion leaders actively
consume and interpret information from mass media sources.
Information Gathering and Interpretation:
Opinion leaders actively seek information from mass media sources that align with their
interests or areas of expertise. They analyse, interpret, and evaluate this information based on
their knowledge and beliefs.
Opinion Formation:
After gathering and interpreting information, opinion leaders form their own opinions,
attitudes, or recommendations regarding the content. These opinions are often well-informed
and carry weight within their respective communities or social circles.
Personal Communication:
The critical aspect of the Two-Step Flow model is that opinion leaders do not keep their
opinions to themselves. Instead, they engage in personal communication with their peers,

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friends, family, and colleagues. During these interactions, they share their opinions and
recommendations, often in a face-to-face or interpersonal setting.
Wider Audience Influence:
The information and recommendations disseminated by opinion leaders influence the wider
audience. This broader group of individuals receives information not directly from mass
media but through the filter of opinion leaders. They may be more likely to trust and act on
the opinions of these leaders because of their expertise and credibility.
Decision-Making and Behaviour Change:
The ultimate goal of the Two-Step Flow model is to understand how information leads to
decisions and behaviour change. When opinion leaders share their opinions and
recommendations, they can influence the decisions and actions of the wider audience. This
may include purchasing products, adopting new behaviours, or forming political opinions.

Feedback Loop:
The model also allows for a feedback loop, as the wider audience's reactions and experiences
can be relayed back to the opinion leaders. This feedback informs opinion leaders' ongoing
interpretations and recommendations.

Real-World Application in Marketing:


In marketing, the Two-Step Flow model suggests that it's not enough for companies to rely
solely on mass media advertising. They should also identify and engage with opinion leaders
within their target audience. These opinion leaders can play a crucial role in spreading
positive word-of-mouth, reviews, and recommendations, which can influence the purchasing
decisions of others. Example: Assuming a company launches a new smartphone. Rather than
relying solely on television ads, the company identifies tech-savvy individuals who are
considered opinion leaders within their social circles. These opinion leaders receive the
product, evaluate its features, and share their opinions and reviews with their friends and
acquaintances. As a result, their recommendations carry significant weight, leading to more
sales and adoption of the smartphone.
In summary, the Two-Step Flow Communication Model emphasizes the role of opinion
leaders in mediating and disseminating information from mass media to a wider audience.
Understanding this model is essential for marketers seeking to leverage the power of word-
of-mouth, influencer marketing, and community-based recommendations to reach and
persuade their target audience effectively.

Key Differences:
Linearity vs. Interactivity:
The Simple Communication Model is linear and one-way, while the Schramm Model and
Two-Step Flow Model emphasize interactivity and two-way communication.

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Feedback Emphasis:
The Simple Communication Model typically has minimal feedback, while the Schramm
Model and Two-Step Flow Model place significant importance on feedback and its role in
improving communication.

Role of Opinion Leaders:


The Two-Step Flow Model specifically introduces opinion leaders as intermediaries who
influence the wider audience, whereas the other models don't emphasize this aspect.

Dynamic Nature:
The Schramm Model and Two-Step Flow Model recognize the dynamic and iterative nature
of communication, with continuous feedback loops, whereas the Simple Communication
Model is more static.
In summary, these communication models serve different purposes and provide varying
levels of insight into how communication processes work. The Simple Communication
Model is a basic representation, the Schramm Model highlights interactivity and feedback,
and the Two-Step Flow Model focuses on interpersonal influence within communities.

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