What is a promotion strategy?

A promotion strategy is a plan to create or increase demand for a product. It outlines the tactics
you’ll use to raise awareness about your product and get people interested in buying it.

The goal of a promotion strategy is to introduce potential customers to your product and
convince them to make a purchase. You want to move them along the buyer’s journey—the
path customers take from realizing a need, considering your product as a solution, and finally
deciding to buy.

Promotion strategy vs. marketing strategy

Your promotion strategy is just one piece of a larger marketing strategy—a long-term plan
outlining how you’ll market and sell your product. A successful marketing plan covers all the
tactics you’ll use to promote your product, including the full “marketing mix”: product, price,
place, and promotion. Your promotion strategy is a key component of the marketing mix.

Here’s a breakdown of the marketing mix, also known as the 4 P’s of marketing:

Product: The item you’re selling.

Price: How much you should charge for your product in order to make a profit.

Place: Where you should sell your product to reach your target audience.

Promotion: How you create demand for your product and move customers through the
marketing funnel.

The 4th “P” of marketing—promotion—is your promotion strategy.

Promotion strategies and the marketing funnel

The buyer’s journey is often visualized as a funnel divided into three sections: top of funnel,
middle of funnel, and bottom of funnel. Customers enter their journey at the top of the funnel,
then decide to purchase your product once they reach the bottom. A successful promotion
strategy includes different tactics to appeal to customers in each section of the marketing
funnel.

Top of funnel

When a customer is at the top of the funnel, they know the problem they want to solve and are
looking for a solution. They may not know your product exists yet, so at this stage your
promotion strategy should grab the customer’s attention and build awareness about your brand
and your product.

Example promotion strategies: TV ads, event sponsorships, content marketing

Middle of funnel

In the middle of the funnel, customers weigh your product against other available options. To
keep them in the funnel, you need to show how your product is different from the competition
and convince customers that your product is the best option. Here, your promotion strategy
should create an emotional connection and show how your product can specifically resolve
customer pain points.

Example promotion strategies: Customer reviews, free samples, case studies

Bottom of funnel

Customers decide if they want to purchase your product when they’re in the bottom of the
funnel. To target bottom-of-funnel customers, your promotion strategy should prompt people
to take action.

Example promotion strategies: Special deals, email offers, flexible return policies

12 types of marketing promotion strategies, with examples

1. Paid advertising

Paid advertising is often the first type of promotion that comes to mind. This straightforward
strategy involves paying to show an advertisement in a specific place at a specific time, so you
can capture the attention of your target market. It’s a great way to build brand awareness and
introduce your brand to people who may not have heard of it before.

Here are some examples of paid advertising:

Television ads

Radio ads

Newspaper and magazine ads

Billboards

Online display ads (for example, through Google or social media)

2. Content marketing

Content marketing is a common type of digital promotion strategy, focused on distributing

valuable content in order to attract and retain an audience. The idea behind content marketing
is this: It associates your brand with useful, relevant content that helps customers solve issues—
building trust over time and ultimately encouraging customers to buy your products. Content
marketing is a great promotional tool for any company, but it’s especially helpful for businesses
with longer sales cycles, like B2B and SaaS companies. For these companies, content marketing
helps provide enough customer education for buyers to make informed purchase decisions.

Content marketing comes in many forms, including:

Blog posts

Videos

Social media posts

Email newsletters

Podcasts

Whitepapers or reports

Content created to improve SEO (search engine optimization)

3. Sponsorships

Sponsorships involve aligning your company with another brand—like an event, TV program,
charity, or even a celebrity. For example, Pepsi routinely sponsors the Super Bowl, while Red
Bull sponsors NASCAR and extreme athletes of all kinds. Nowadays, sponsorships often include
social media influencer marketing—creating partnerships with individuals who became famous
through social media platforms like Instagram or Youtube.

The goal of a sponsorship is to boost your brand’s public image and credibility. Aligning yourself
with another brand can drive media exposure, improve public relations, and expand your
audience—plus make you stand out from the competition.

4. Email marketing

Email marketing helps you connect with your target audience via—you guessed it—email. You
can send emails to any subscribers on your mailing list—whether they’re potential customers,
loyal customers, or something in between. For example, you can collect email addresses from
potential customers by offering free products or services in exchange for their information.

There are lots of things you can send via email, including:

Newsletters and exclusive content

Information about product releases

Special deals and coupons

Read: 19 types of marketing you should know about

5. Retargeting

Retargeting focuses on customers (or potential customers) with high purchase intent. In other
words, it involves targeting segments of your customer base who’ve already made it down to
the bottom of the marketing funnel. Prioritizing retargeting can help you get a high return on
your investment, since this audience is already primed and ready to buy.

For example, retargeting could include:

Sending reminder emails to customers who filled up an online shopping cart but didn’t check
out.

Showing targeted advertisements to customers who purchased your products in the past.

Sending nurture emails to people who purchased something a while ago but haven’t been back.

6. Referral marketing

Referral marketing is when you get customers to tell their friends about your brand. Also known
as word-of-mouth marketing, referral marketing happens organically when you have a great
product—but you can also speed it along with special deals and incentives for customers who
refer their connections.

Referral marketing is a powerful strategy because it’s virtually free. And since people tend to
trust their friends, referred customers are more likely to actually purchase your product than
someone who just sees an ad. For example, Dropbox used referral marketing to permanently
increase signups by 60 percent—eventually growing into a multi-billion dollar startup.

Read: Marketing project management: How to structure your strategy

7. Event marketing

Event marketing involves participating in, sponsoring, or hosting events in order to promote
your brand or product. This strategy helps you connect and engage with customers first-hand,
so they can get a real sense of your product and what your brand represents. Not only that, but
events can help you build your brand presence, generate leads, and generate goodwill with
customers.

Event marketing comes in many forms, including:

Conferences

Trade shows

Seminars and classes

Webinars

Virtual events

Live streaming events

Community events

Read: 7 steps to crafting a winning event proposal (with template)

8. Special Causes

Aligning your brand with a special cause makes customers feel like they’re part of something
bigger. They’re not just helping themselves by purchasing your products—they’re also helping
make the world a better place. This can help boost brand loyalty and give customers a reason to
choose your brand over competitors.

The clothing company Patagonia is a great example of this. By promoting their sustainable
manufacturing processes, Patagonia attracts and retains customers who believe in
environmental preservation.

9. Customer reviews

Customer reviews are one of the most powerful marketing tools out there. Brands like Amazon,
Yelp, and TripAdvisor built their businesses out of reviews—generating trust by promoting
customer feedback. The beauty of this strategy is that it encourages customers to promote your
brand for you. And as long as you have a high-quality product (and positive reviews), this type of
user generated content can go a long way in convincing potential customers to purchase.

Collecting customer reviews often happens organically, but you can speed it along by specifically
requesting reviews from current customers via email or website banners. Some newer brands
also seed reviews by sending products to customers in exchange for their honest feedback.

10. Customer loyalty programs

Customer loyalty programs reward people who repeatedly interact with your brand. It’s a way
to keep customers coming back by offering deals, discounts, and exclusive product launches.
The more customers purchase from your company, the more perks they earn. For example, the
beauty company Sephora promotes a loyalty program that offers discounts and gifts to
customers who spend a certain amount.

Loyalty programs don’t just boost customer retention—they also help convince potential buyers
to choose your brand over competitors. By promoting loyalty programs, you demonstrate ways
customers can save money and get more bang from their buck over time.

11. Free samples, giveaways, and trials

Everyone loves free stuff. Giving away samples of your product can help promote customer
satisfaction and make customers feel like they’re getting a great deal. But most importantly, free
samples and trials give potential customers first-hand experience with your product—and
therefore the confidence to actually buy it later on.

To employ this promotion strategy, companies can:

Offer a trial period so customers can try out the product risk free. Gyms, apps, and online
software companies often do this.

Offer free samples for customers who visit stores in person. The warehouse club Costco is
famous for using this method.

Include free samples when customers purchase a product. This method can encourage existing
customers to try new products. For example, online beauty suppliers like Glossier often include
free skincare and makeup samples with every purchase.

Organize contests with free prizes. This is a good way to collect contact information from
potential customers. For example, a hotel company might encourage potential customers to
enter their contact information for a chance to win a free vacation.

12. Coupons and deals

Special deals can help you capture customers at the bottom of the marketing funnel—people
who are deciding whether or not to purchase your product. Deals work in two ways: First, they
create a sense of urgency and encourage customers to act quickly before the deal is over.
Second, they help customers save money and feel like they’re getting a high return on their
investment.

The types of deals you can offer are endless. Here are some examples:
Special intro offers for first-time customers

Bundling products together and offering them at a discount (for example, a 10-pack of socks)

Buy one, get one free deals

Rebates

Seasonal sales and discounts (like Black Friday promotions)

Discounts on special item categories

Birthday coupons for customers

Free shipping for customers who spend over a certain amount