Promotion

PROMOTION Promotion is a form of corporate communication that uses various methods to reach a targeted audience with a certain message in order to achieve specific organizational objectives. Nearly all organizations, whether for-profit or not-for-profit, in all types of industries, must engage in some form of promotion. Such efforts may range from multinational firms spending large sums on securing high-profile celebrities to serve as corporate spokespersons to the owner of a one-person enterprise passing out business cards at a local businessperson’s meeting. Like most marketing decisions, an effective promotional strategy requires the marketer understand how promotion fits with other pieces of the marketing puzzle (e.g., product, distribution, pricing, target markets). Consequently, promotion decisions should be made with an appreciation for how it affects other areas of the company. For instance, running a major advertising campaign for a new product without first assuring there will be enough inventory to meet potential demand generated by the advertising would certainly not go over well with the company’s production department (not to mention other key company executives). Thus, marketers should not work in a vacuum when making promotion decisions. Rather, the overall success of a promotional strategy requires input from others in impacted functional areas. In addition to coordinating general promotion decisions with other business areas, individual promotions must also work together. Under the concept of Integrated Marketing Communication marketers attempt to develop a unified promotional strategy involving the coordination of many different types of promotional techniques. The key idea for the marketer who employs several promotional options (we’ll discuss potential options later in this tutorial) to reach objectives for the product is to employ a consistent message across all options. For instance, salespeople will discuss the same benefits of a product as mentioned in television advertisements. In this way no matter how customers are exposed to a marketer’s promotional efforts they all receive the same informat. Sales promotion describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity. As a reward, marketers offer something of value to those responding generally in the form of lower cost of ownership for a purchased product (e.g., lower purchase price, money back) or the inclusion of additional value-added material (e.g., something more for the same price). Sales promotions are often confused with advertising. For instance, a television advertisement mentioning a contest awarding winners with a free trip to a Caribbean island may give the contest the appearance of advertising. While the delivery of the marketer’s message through television media is certainly labeled as advertising, what is contained in the message, namely the contest, is considered a sales promotion. The factors that distinguish between the two promotional approaches are: 1. whether the promotion involves a short-term value proposition (e.g., the contest is only offered for a limited period of time), and 2. the customer must perform some activity in order to be eligible to receive the value proposition (e.g., customer must enter contest). The inclusion of a timing constraint and an activity requirement are hallmarks of sales promotion. Sales promotions are used by a wide range of organizations in both the consumer and business markets, though the frequency and spending levels are much greater for consumer products marketers. One estimate by the Promotion Marketing Association suggests that in the US alone spending on sales promotion exceeds that of advertising. In the Sales Promotion tutorial we saw that promotions can be classified into three main areas: • Consumer Market-Directed • Trade Market-Directed • Business-to-Business Market-Directed. In this tutorial we look more deeply into each of these classifications by examining the different types of promotions that fall into each. As we will see much of what is covered is very familiar to even those who are new to marketing as it involves promotional methods consumers are exposed to nearly every day. For marketers, it is important to understand the value each type of sales promotion holds for helping them meet their promotional objectives. 10 sentences indicating present tense : 1. Promotion is a form of corporate communication that uses various methods to reach a targeted audience with a certain message in order to achieve specific organizational objectives. 2. An effective promotional strategy requires the marketer understand 3. New product without first assuring there will be enough inventory. 4. Salespeople will discuss the same benefits of a product as mentioned in television advertisements. 5. Whether the promotion involves a short-term value proposition. 6. As we will see much of what is covered is very familiar to even those who are new to marketing as it involves promotional methods consumers are exposed to nearly every day. 7. Sales promotion describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity. 8. Marketers should not work in a vacuum when making promotion decisions. 9. Promotion decisions should be made with an appreciation for how it affects other areas of the company. 10. It is important to understand the value each type of sales promotion holds for helping them meet their promotional objectives. 10 sentences indicating past tense : 1. Communication that uses various methods to reach a targeted audience. 2. Inventory to meet potential demand generated by the advertising. 3. The overall success of a promotional strategy requires input from others in impacted functional areas. 4. Marketers attempt to develop a unified promotional strategy. 5. Customers are exposed to a marketer’s promotional efforts they all receive the same informat. 6. Marketers offer something of value to those responding generally in the form of lower cost of ownership for a purchased product. 7. In the Sales Promotion tutorial we saw that promotions can be classified into three main areas. 8. Sales promotions are often confused with advertising. 9. The contest is only offered for a limited period of time. 10. Sales promotions are used by a wide range of organizations. ARISTYA KUSUMA PUTRI 29210005 3EB19