Promotion is the most visible of the four Ps, but it is more than advertising. It is every way a business communicates with its target market to inform people that a product exists, persuade them to choose it, and remind them to keep buying it. A local bakery handing out samples, a sneaker brand's sponsored athlete, a salesperson demonstrating a new car and a coupon in an app are all promotion. The skill is choosing which tools to combine, because every tool reaches different people at a different cost.
| Tool | What it is | Strength | Weakness |
|---|---|---|---|
| Advertising | Paid, non-personal messages in media such as TV, radio, print, billboards, streaming and online ads | Reaches huge audiences and repeats the message | Expensive overall; easy to ignore or skip |
| Public relations (PR) | Building goodwill and earning unpaid media coverage through press releases, events and sponsorships | Highly believable because it is not paid advertising | The business cannot control what the media says |
| Sales promotion | Short-term incentives: coupons, contests, samples, loyalty points, buy-one-get-one deals | Creates quick sales and encourages trial | Effect fades when the deal ends; can train customers to wait for sales |
| Personal selling | Face-to-face or live communication by a salesperson | Answers questions and adapts to each customer | Highest cost per customer reached |
| Direct marketing | Messages sent straight to chosen individuals, such as email, text messages and flyers | Targeted and easy to measure | Needs consent and can feel like spam |
| Digital and social media | Websites, search ads, social media posts, influencers and online video | Precise targeting, two-way conversation, measurable results | Crowded feeds; negative comments spread fast |
The AIDA Model
Good promotion moves a customer through four mental steps, remembered as AIDA. Each tool is better at some steps than others. A bold billboard grabs attention, while a salesperson is excellent at turning desire into action.
- Attention — break through the noise: a striking image, a surprising headline, the first two seconds of a video.
- Interest — give a reason to keep looking: what the product is and what makes it different.
- Desire — make the customer want it: benefits, reviews, demonstrations, showing people like them enjoying it.
- Action — tell them exactly what to do next: "Shop now," "Use code SPRING15," "Get tickets before Friday."
Choosing a Mix for a Target Market
- Target market — go where the audience already is. Teens and older adults use very different media.
- Product type — complex or expensive products (cars, business software) need personal selling; low-cost everyday products rely on advertising and sales promotion.
- Budget — a small business may rely on social media, PR and local sponsorships instead of TV advertising.
- Life-cycle stage — introduction needs messages that inform and encourage trial; maturity needs messages that persuade and remind.
- Push or pull — decide whether to promote mainly to the channel or to the final consumer (see below).
- Promotes the product to intermediaries such as wholesalers and retailers
- Uses personal selling, trade shows and discounts to stores
- Stores then "push" the product toward shoppers
- Common for new brands trying to win shelf space
- Promotes the product directly to final consumers
- Uses advertising, social media and consumer sales promotions
- Consumers ask stores for it, "pulling" it through the channel
- Common for well-known brands with large advertising budgets
Measuring Promotion
An impression is one showing of an ad to a viewer. CPM (cost per mille, or cost per thousand impressions) lets marketers compare media of different sizes on the same scale. Conversion rate measures how many visitors took the desired action, such as buying or signing up. Marketing ROI (return on investment) compares the revenue a campaign brought in with what it cost. A positive ROI means the campaign brought in more than it cost; an ROI of 100% means it brought in double its cost.