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Lesson 7 of 10The Marketing Mix
Unit 2 · Lesson 7 of 10

Promotion: The Promotional Mix

Promotion is how a business informs, persuades and reminds its target market. Choosing the right mix of tools, and measuring whether they worked, is what turns a campaign from a guess into a plan.

4 min read11 practice questionsAsk AI about this →

Key things to remember

  1. 1Promotional mix: advertising, public relations, sales promotion, personal selling, direct marketing, and digital and social media.
  2. 2AIDA: Attention → Interest → Desire → Action.
  3. 3CPM , the cost to deliver 1,000 impressions.
  4. 4Conversion rate .
  5. 5Marketing ROI
  6. 6Push strategy promotes to intermediaries; pull strategy promotes to consumers so they ask stores for the product.

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.

Attentionnotices the messageInterestwants to know moreDesirewants to own itActionbuys itAdvertisingpaid mass messagesPublic relationsnews coverage, sponsorshipsDirect & digitalemail, targeted online adsSocial mediashares, comments, creatorsPersonal sellingone-to-one help and adviceSales promotioncoupons, contests, dealsLines show where each tool is usually strongest; most tools work at several stages.Integrated marketing communications: blend the tools behind one consistent message.
Fig 1The tools of the promotional mix, all delivering one consistent message.
ToolWhat it isStrengthWeakness
AdvertisingPaid, non-personal messages in media such as TV, radio, print, billboards, streaming and online adsReaches huge audiences and repeats the messageExpensive overall; easy to ignore or skip
Public relations (PR)Building goodwill and earning unpaid media coverage through press releases, events and sponsorshipsHighly believable because it is not paid advertisingThe business cannot control what the media says
Sales promotionShort-term incentives: coupons, contests, samples, loyalty points, buy-one-get-one dealsCreates quick sales and encourages trialEffect fades when the deal ends; can train customers to wait for sales
Personal sellingFace-to-face or live communication by a salespersonAnswers questions and adapts to each customerHighest cost per customer reached
Direct marketingMessages sent straight to chosen individuals, such as email, text messages and flyersTargeted and easy to measureNeeds consent and can feel like spam
Digital and social mediaWebsites, search ads, social media posts, influencers and online videoPrecise targeting, two-way conversation, measurable resultsCrowded feeds; negative comments spread fast
The promotional mix compared.

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.

  1. Attention — break through the noise: a striking image, a surprising headline, the first two seconds of a video.
  2. Interest — give a reason to keep looking: what the product is and what makes it different.
  3. Desire — make the customer want it: benefits, reviews, demonstrations, showing people like them enjoying it.
  4. Action — tell them exactly what to do next: "Shop now," "Use code SPRING15," "Get tickets before Friday."
AIDA in one social media post
A strong post often does all four in seconds: a scroll-stopping first frame (attention), a quick look at what is new (interest), a customer reaction or result (desire), and a clear call to action with a link (action).

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).
APush strategy
  • 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
BPull strategy
  • 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

Three simple advertising metrics.

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.

Impressions are not customers
A cheap CPM means nothing if the ad reaches the wrong people. 100,000 impressions shown to people outside the target market can be worth less than 10,000 shown to the right ones. Always judge CPM together with fit and conversions.
Promotion rules in Canada
The federal Competition Act prohibits false or misleading advertising, including fake "regular" prices used to make a sale look bigger. Canada's Anti-Spam Legislation (CASL) generally requires a business to have consent before sending commercial emails or text messages, and every message must include a way to unsubscribe.

Worked examples

Reveal one step at a time and try to beat it to the next line.

Example 1
A hypothetical sneaker store is choosing between two ads. Option A is a social media video ad costing $900 for 150,000 impressions. Option B is a local radio spot costing $1,400 for 200,000 impressions. Which has the lower CPM?
Example 2
A hypothetical bakery spends $2,500 on an email and social media campaign for its holiday cookie boxes. It tracks $9,000 of revenue gained from the campaign. What is the marketing ROI?
Example 3
A hypothetical online shop had 12,500 visitors from a campaign, and 350 of them made a purchase. The average order was $42. Find the conversion rate and the revenue from those orders.
Example 4
A hypothetical community organization is running a one-day spring craft fair aimed at local families with young children. Its budget is small. Choose a promotional mix and show how it moves families through AIDA.

Where marks get lost

  • Using "advertising" and "promotion" as if they mean the same thing — advertising is only one tool inside the promotional mix.
  • Confusing public relations with advertising: advertising is paid and controlled by the business; PR coverage is earned and not controlled.
  • Forgetting the × 1000 in CPM, or dividing impressions by cost instead of cost by impressions.
  • Calculating ROI as revenue ÷ cost instead of (revenue − cost) ÷ cost. For a $2,500 campaign that brings in $9,000, that mistake gives 360% instead of the correct 260%.
  • Picking tools because they are popular rather than because the target market actually uses them.

Flashcards 10

Promotional mix
Advertising
Public relations
Sales promotion
+ 6 more

Practice

1
A hypothetical local grocery store sponsors a youth soccer league and is featured in a free newspaper story about it. Which promotional tool is this?
2
Put the stages of the AIDA model in order.
  1. 1Interest
  2. 2Action
  3. 3Desire
  4. 4Attention
3
A hypothetical streaming-service ad costs $2,400 and delivers 320,000 impressions. What is the CPM? (Round to the nearest cent.)
$
4
A hypothetical campaign for a bike shop costs $4,000 and brings in $11,000 of revenue gained. What is the marketing ROI?
%
5
A hypothetical online store's landing page had 8,000 visitors and 184 purchases. What is the conversion rate? (Round to one decimal place.)
%
6
Match each promotional tool to its example.
Advertising
Sales promotion
Personal selling
Direct marketing
Social media marketing
7
A hypothetical company sells expensive, custom-built equipment to factories. Which promotional tool should be the centre of its mix?
8
Which promotional tool uses short-term incentives such as coupons, contests or buy-one-get-one deals?
9
A hypothetical snack brand runs TV and social media ads so that shoppers ask their local stores to stock its new chips. Which strategy is this?
10
A hypothetical ad platform charges a CPM of $8. How much would a business pay for 250,000 impressions?
$
11
Before sending promotional emails to customers in Canada, what does a business generally need under Canada's Anti-Spam Legislation?

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