The Marketing Mix: Promotion (HL IB Business Management)

Informative

• Informative advertising focuses on providing factual information about a product, service or brand
• Its goal is to educate and inform consumers about the features, benefits and value of a product, enabling them to make well-informed purchasing decisions

• When releasing a new drug, pharmaceutical companies such as Bayer, may decide to make a television advert that provides information on the medication's proven benefits

Persuasive

• Persuasive advertising is designed to influence consumers' attitudes and behaviours towards products or services
  
• It aims to convince customers that a particular product or service is desirable, necessary or superior to alternatives in the market

• Package holiday companies such as Eurocamp which aim their services at families, emphasise excellent weather and use images of children having fun in printed adverts

• Reassuring advertising aims to remind existing customers that they made the right decision when choosing a particular product over those of rivals
• It encourages customers to remain loyal and continue to purchase the product and others within the range

• Coca Cola reassures its customers through the use of television advertising that promote a 'feel-good' response

• Businesses can reach a large and diverse audience because mass media channels provide a high level of visibility
• It is effective for creating a strong brand image, enhancing brand recognition and establishing a sense of credibility and trust among consumers
• The marketing message can be communicated in an impactful manner using sound, images and graphics

• Above the line promotion can be expensive, especially for small businesses with limited budgets
• As it focuses on reaching a wide audience rather than specific target segments, advertising may not effectively reach the intended audience
• Advertising typically offers limited interaction or direct engagement with consumers
• With the rise of digital media traditional media consumption has decreased and consumers can easily filter out or ignore advertisements. 

Direct
Marketing

• Involves communicating directly with customers through email, text message, social media or post
  
• E.g. Takeaway restaurants distribute menus to households in the local community

• Businesses can target specific audiences and personalise the message to individual customers
  
• Direct marketing is measurable which enables businesses to track their results and adjust strategy accordingly

• Can be intrusive as customers may perceive it as spam
  
• Can also be costly, especially if businesses do not have an established customer database or need to purchase leads

Sales
Promotions

• Techniques that encourage the purchase of a product or service by offering temporary incentives or discounts
  
• Examples include free samples, buy one get one free (bogof), discount coupons, loyalty cards, point of sale materials and rebates (customers have to mail in to receive money back)

• Can quickly boost sales or customer engagement
• Can help to clear out stock or promote a new product
• Can encourage impulse purchases
  
• Can be targeted to specific segments of customers

• Can be expensive especially if the promotion requires a heavy discounting
• Can attract deal-seeking customers who may not be loyal to the brand
• May reduce the sales of full-priced products

Personal
Selling

• Where a salesperson interacts with customers one-on-one, either in person or through digital communication channels
  
• E.g. Luxury skincare products are often sold by brand representatives at concession stands in department stores

• Allows businesses to build relationships with their customers and understand their specific needs
  
• Enables businesses to provide personalised advice and guidance to customers

• Can be expensive due to the cost of hiring and training sales staff
  
• Limited impact as it is difficult to scale to large audiences

Public
Relations (PR)

• The business seeks to build relationships with the public and manage their reputation
  
• Public relations activities can include sponsorship, media relations, public events and community outreach activities
  
• Public relations can also involve eye-catching publicity stunts such as SpaceX's 2018 launch of a Tesla Roadster car into space 

• Can enhance a business's reputation and credibility
  
• Often cost-effective when compared to advertising or personal selling
  
• May achieve a wide reach as imaginative PR activity is frequently shared on social media

• PR can be time-consuming and is difficult to measure the direct impact of PR activities on profits
  
• Specialist - and expensive PR companies can often achieve the best results

• It combines the broad reach of advertising with the personal touch of below the line techniques which is likely to lead to increased customer engagement
  
• The integrated approach can lead to better brand recognition as customers receive promotional messages in a variety of ways

• Coordinating a multi-channel through-the-line campaign requires marketing expertise for which a business may need to employ an expensive specialist marketing agency
• Careful planning is needed to ensure that all elements present a coherent message

• Social media platforms have billions of active users which allows businesses to reach a vast audience across different demographics and locations
  
  
• Social media platforms enable businesses to deliver  promotional content to specific groups based on demographics, interests and behaviours, increasing the chances of reaching the right audience
  
  
• Businesses can create and share content easily, increasing brand visibility and exposure which helps generate brand awareness 
  
  
• Social media marketing can achieve organic reach and engagement without a large budget

• Effective social media marketing requires consistent effort and time to create quality content, manage multiple platforms, and engage with the audience which can be time-consuming, especially for small businesses with limited resources
  
  
• Social media opens up channels for public feedback and reviews, which can include negative comments or complaints which can be viewed by all other users
  
  
• Social media platforms frequently update their algorithms which may affect the visibility and reach of content
  
  
• Businesses face the challenge of breaking through the noise and capturing users' attention amidst the large volume of competing content