Unit 5: Promotion Decisions
Promotion Decisions
1. Communication Process in Promotion
The communication process in promotion is about how a company sends
messages to its audience to inform, persuade, or remind them about its
products or services. Here’s how it works:
Sender: The company or brand that creates and sends the
message.
Encoding: The process of converting the message into symbols,
such as words, images, or sounds.
Message: The actual content or information the sender wants to
communicate.
Channel: The medium through which the message is delivered, like
TV, social media, print, etc.
Receiver: The target audience who receives and interprets the
message.
Decoding: The process by which the receiver interprets the
message.
Feedback: The receiver’s response, which helps the sender know if
the message was understood as intended.
Noise: Any distraction or interference that distorts the message,
like competing messages or technical issues.
2. Importance of Promotion
Promotion is crucial in marketing for several reasons:
Awareness Creation: Helps potential customers become aware of
a product or service.
Information Dissemination: Provides detailed information about
product features, benefits, and usage.
Persuasion: Encourages customers to choose a product over
competitors by highlighting unique benefits.
Brand Image Building: Enhances brand recognition and
establishes a positive image in the minds of consumers.
Sales Increase: Drives sales by stimulating demand through
various promotional activities.
Customer Loyalty: Strengthens customer relationships by keeping
them engaged and informed.
3. Promotion Mix Tools
The promotion mix consists of different tools that companies use to
communicate with their target audience. Each tool has distinctive
characteristics:
Advertising:
o Definition: Paid, non-personal communication through
various media.
o Characteristics:
Reaches a large audience quickly.
Useful for building brand image.
High cost but effective for mass marketing.
Examples: TV ads, online banners, billboards.
Personal Selling:
o Definition: Direct interaction between a sales representative
and a potential buyer.
o Characteristics:
Highly personalized and interactive.
Allows for immediate feedback and adjustment.
More costly and time-consuming per contact.
Examples: Face-to-face sales meetings, telemarketing.
Sales Promotion:
o Definition: Short-term incentives to encourage the purchase
or sale of a product.
o Characteristics:
Creates urgency and boosts immediate sales.
Often includes discounts, coupons, or contests.
Can be overused, leading to decreased brand value.
Examples: Flash sales, loyalty programs, rebates.
Public Relations (PR):
o Definition: Building good relations with the company’s public
through favourable publicity and handling crises.
o Characteristics:
Enhances credibility and trust.
Less control over the message compared to advertising.
Can be cost-effective with long-term benefits.
Examples: Press releases, community events,
sponsorships.
Direct Marketing:
o Definition: Direct communication with targeted individuals to
obtain an immediate response.
o Characteristics:
Highly targeted and measurable.
Allows for personalized messages.
Can be perceived as intrusive.
Examples: Email marketing, direct mail, SMS campaigns.
Developments in Marketing
1. Sustainable Marketing
Definition: Sustainable marketing refers to promoting products and
services in ways that benefit society while ensuring the long-term health
of the environment and economy. It focuses on the triple bottom line—
people, planet, and profit.
Key Aspects:
Environmental Impact: Companies emphasize eco-friendly
production methods, reduce waste, and use sustainable materials.
Social Responsibility: Businesses consider the social impact of
their actions, like ethical labor practices and community support.
Long-Term Value: Instead of focusing on short-term profits,
sustainable marketing looks at creating lasting value for consumers
and society.
Examples:
Companies promoting renewable energy products.
Brands using recyclable packaging and reducing carbon footprints.
2. Rural Marketing
Definition: Rural marketing refers to the strategies used to sell products
in rural or less urbanized areas. It focuses on understanding the unique
challenges and opportunities in rural markets.
Key Characteristics:
Limited Infrastructure: Rural areas often have fewer retail
outlets, so companies use local distributors or direct selling
methods.
Price Sensitivity: Consumers in rural areas may have lower
purchasing power, so affordable pricing strategies are essential.
Cultural Sensitivity: Marketing must align with local values,
traditions, and practices.
Media Usage: Companies may rely more on traditional media, like
radio or outdoor advertising, since digital penetration can be lower
in rural areas.
Examples:
Consumer goods companies offering smaller packaging to cater to
lower-income households in rural areas.
Mobile phone companies providing affordable plans tailored for rural
users.
3. Social Marketing
Definition: Social marketing is the use of marketing principles to
influence social behaviour for the benefit of individuals and society at
large. It often focuses on promoting social good rather than profits.
Key Aspects:
Behaviour Change: Social marketing aims to change harmful
behaviours and promote beneficial actions, like quitting smoking or
recycling.
Target Audience: Focuses on specific social groups that need to
be persuaded to adopt certain behaviours.
Non-Profit Goals: Unlike traditional marketing, the goal is often
not to make a profit but to improve societal well-being.
Examples:
Public health campaigns promoting exercise, healthy eating, or
smoking cessation.
Environmental organizations encouraging people to reduce plastic
use or conserve water.
4. Digital Marketing
Definition: Digital marketing refers to the use of digital channels,
platforms, and technologies to promote products and services to a
targeted audience.
Key Channels in Digital Marketing:
Search Engine Optimization (SEO): Optimizing website content
to rank higher in search engine results, making it easier for
customers to find the business online.
Social Media Marketing: Using platforms like Facebook,
Instagram, Twitter, and LinkedIn to promote brands and interact
with customers.
Email Marketing: Sending personalized and targeted email
campaigns to engage potential and existing customers.
Content Marketing: Creating valuable and informative content
(e.g., blogs, videos, infographics) to attract and retain customers.
Pay-Per-Click (PPC) Advertising: Running ads on platforms like
Google Ads, where businesses pay each time their ad is clicked.
Key Benefits:
Targeted Reach: Digital marketing allows companies to reach
specific demographics based on factors like location, age, and
interests.
Cost-Effectiveness: Compared to traditional marketing, digital
campaigns can be more affordable, especially for smaller
businesses.
Analytics and Metrics: Digital marketing provides real-time data
on campaign performance, enabling businesses to adjust strategies
as needed.
Examples:
E-commerce businesses using Facebook ads to promote discounts.
Companies using influencer marketing to reach younger audiences
through Instagram.
