8.8: The Fourth P — Promotion

Promotion is a part of the marketing mix that refers to the methods used to communicate with customers about a product or service. It involves a combination of promotional tools and techniques to reach a company’s goals. The promotional mix is the means by which a company communicates with its customers and may include advertising, social media, email marketing, personal selling, sales promotion, public relations, and more. The goal of promotion is to create a message that resonates with customers and encourages them to purchase a product.

Before deciding on an appropriate promotional strategy, a business should consider a few questions:

• What’s the main purpose of the promotion?
• Who is the target market?
• Which product features should be emphasized?
• How much can the business afford to invest in a promotional campaign?
• How do competitors promote their products?

To promote a product, you need to imprint a clear image of it in the minds of your target audience. What do you think of, for instance, when you hear “Ritz-Carlton”? What about “Motel 6”? Both are hotel chains that have been quite successful in the hospitality industry, but they project very different images to appeal to different clientele. The differences are evident in their promotions. The Ritz-Carlton website describes itself as the “gold standard” and promises that the chain provides “the finest personal service and facilities throughout the world.”^[1] Motel 6, by contrast, characterizes its facilities as “no frills” and assures you that you’ll pay “the lowest price.”^[2]

Promotional Tools

Advertising

Advertising is paid, non-personal communication designed to create an awareness of a product or company. Ads are everywhere — in print media (such as newspapers, magazines, mailers), on billboards, in broadcast media (radio and TV), and, increasingly, online. It’s hard to escape the constant barrage of advertising messages. Research on the exact number of ads the average person sees each day varies, but estimates suggest that we are exposed to anywhere from 4,000 to 10,000 ads daily. This figure includes all forms of advertising, from traditional media like TV and radio to digital platforms such as social media, search engines, and websites.^[3] You wear a GymShark T-shirt or a pair of lululemon pants while scrolling through your Facebook or Instagram feed while brushing your teeth with Crest toothpaste, and that’s just within the first 20 minutes of your day! At some point, you start a screening process for what you engage with, and you start ignoring brands and advertising messages, unless it’s something that you have a personal interest in.^[4] Even so, advertising is still the most prevalent form of promotion.

The choice of advertising media depends on the company’s product, target audience, and budget. A travel agency selling spring-break getaways to college students might post flyers on campus bulletin boards or run ads in campus newspapers. The co-founders of Sleep Country Canada found radio ads particularly effective, ingraining their catchy jingle, “Why buy a mattress anywhere else?” into listeners nationwide.

Personal Selling and Direct Marketing

Personal Selling

Personal selling refers to one-on-one communication with customers or potential customers. This type of interaction is necessary in selling large-ticket items, such as homes, and it’s also effective in situations in which personal attention helps to close a sale, such as sales of cars and insurance policies. Many retail stores depend on the expertise and enthusiasm of their salespeople to persuade customers to buy. Home Depot has grown into a home-goods giant in large part because it fosters one-on-one interactions between salespeople and customers. Best Buy has staff helping educate consumers on technical devices; the store also offers technical support through the “Geek Squad.” When you visit the Honda or Subaru dealerships to buy a vehicle, you will be greeted by a sales associate who will spend time with you discussing the vehicles’ features, financing, options, etc.

It is often used in business-to-business consultations and sales. The sales pitch is tailored to each customer’s specific needs.  There is a high level of personal interaction with immediate feedback. It works well in complex high-value product/service sales (e.g., real estate, custom software solutions). It is relationship-driven and requires in-depth explanations or demonstrations in industries where trust is critical.

Direct Marketing

Direct marketing is a marketing approach that involves direct communication with consumers to generate a response or transaction. It does not rely on intermediaries such as retailers or advertising platforms. The company communicates directly with customers through various channels to elicit an immediate response, such as making a purchase or signing up for a service. Examples include email marketing, catalogues, or direct mail campaigns. Customer interaction is limited with no face-to-face interaction and relies on impersonal communication. It is a good choice for quick responses to promotions, reaching a broad, segmented audience efficiently, or building brand awareness and driving online traffic.

Refer to Table 8.3 for a comparison of direct marketing and personal selling features.

Sales Promotion

A sales promotion is a marketing strategy that uses temporary offers or campaigns to increase sales, encourage customer loyalty, or build brand awareness. Sales promotions can include any of the following:

• discounts, coupons and rebates
• contests and sweepstakes
• free samples or trials
• bundling (e.g., buy a laptop and get a mouse free)
• loyalty programs (e.g., Starbucks Rewards)
• referral bonuses
• trade promotions (e.g., trade shows)
• in-store displays (e.g., while supplies last)
• seasonal promotions (e.g., Black Friday, Boxing Day, Back-to-school)
• event sponsorship and co-branding (e.g., movie promotions with fast-food chains)
• digital and social media campaigns (e.g., influencer collaborations, limited-time online sales)

It’s likely that at some point, you have either purchased an item with a coupon or because it was advertised as a buy-one-get-one special. If so, you have responded to a sales promotion — one of the many ways that sellers provide incentives for customers to buy. Some promotional activities are targeted directly at consumers and are designed to motivate them to purchase now. You’ve probably heard advertisers make statements like “limited time only” or “while supplies last.” If so, you’ve encountered a sales promotion directed at consumers.

Other forms of sales promotion are directed at dealers and intermediaries. Trade shows are one example of a dealer-focused promotion. Mammoth convention centres such as the Enercare Centre in Toronto host enormous events in which manufacturers can display their new products to retailers and other interested parties. At food shows, for example, potential buyers can sample products that manufacturers hope to launch to the market. Feedback from prospective buyers can even result in changes to new product formulations or decisions not to launch.

Publicity and Public Relations

Public relations (PR) refers to managing how others see and feel about a person, brand, or company. Free publicity—say, getting the company or product mentioned or pictured in a newspaper or on TV—can often generate more customer interest than a costly ad. Consumer perception of a company is often important to a company’s success. Many companies, therefore, manage their public relations in an effort to garner favourable publicity for themselves and their products. When the company does something noteworthy, such as sponsoring a fundraising event, the public relations department may issue a press release to promote the event. When the company does something negative, such as selling a prescription drug that has unexpected side effects, the public relations department will work to control the damage to the company. Every year, Fortune puts out its list of the World’s Most Admired Companies. In 2024, these were the top five in ranked order: Apple, Microsoft, Amazon, Berkshire Hathaway, and JPMorgan Chase. Approximately 3,700 analysts, directors and executives were polled about corporate reputation to determine the final list.^[5]

Digital and Social Media Marketing

Digital marketing is promotion through digital platforms, including websites, search engines, and social media. It includes all marketing efforts using digital channels to promote products, services, or brands. Examples include search engine optimization (SEO), pay-per-click (PPC) ads, and email campaigns.

In the last several years, the popularity of social media marketing has exploded. It is a subset of digital marketing focused specifically on using social media platforms to promote brands and engage audiences. You already know what social media is — Facebook, Twitter, TikTok ads, Instagram, LinkedIn, YouTube, and any number of other online sites that allow you to network, share your opinions, ideas, photos, etc. Social media marketing is the practice of including social media as part of a company’s marketing program.

The days of trying to reach customers through ads on TV, in newspapers, or in magazines are over. Most television watchers skip commercials, and few people read newspapers or magazines, and even if they do, they don’t focus on the ads.

Social media marketing can have many advantages for businesses, including:

• Brand awareness: Reaching a wider audience and increasing brand awareness.
• Website traffic: Sharing links to the company website or blog on social media can drive more traffic to the website.
• Customer engagement: Improving customer engagement and customer service by connecting with customers and potential customers in a  two-way communication.
• Brand loyalty: Building brand loyalty by providing opportunities for a targeted audience to participate in company-sponsored activities, such as contests.
• Incentives: Offering and publicizing incentives, such as special discounts or coupons.
• Feedback: Collecting feedback and ideas on how to improve products and marketing initiatives to get a better understanding of brand perception.
• Word-of-mouth: Allowing customers to interact with each other and spread the word about the company’s products or marketing initiatives.
• Low-cost: Taking advantage of low-cost marketing opportunities by being active on free social sites, such as Facebook.
• Target segments: Delivering personalized content to specific audiences, as social media platforms offer a range of targeting options.
• Rankings: Improving search engine rankings as Google and other search engines pull information from social media platforms into their search results.

Social media marketing can have several disadvantages, including:

• Negative feedback: Customers can publicly voice their complaints, which can damage a company’s reputation.
• Time-consuming: Social media marketing requires consistent content creation, community management, and engagement with followers.
• Difficult to measure: It can be challenging to measure the effectiveness of social media marketing, as it often involves tracking multiple metrics and analyzing complex data sets.
• Competition: With millions of businesses competing for attention on social media, it can be difficult to stand out.
• Platform changes: Social media platforms are constantly changing their algorithms and policies, which can make it difficult to predict and maintain success.
• Security and privacy policy issues: Social media platforms may have security and privacy policy issues.
• Not built for all groups: Social media marketing may not work for all groups of people.
• Expensive: Social media marketing can be expensive and confusing if done incorrectly.

Media Attributions

“Real Estate Agent Handing the Key to Her Client” by RDNE Stock project, used under the Pexels license.

“Networks, Technology, App image” by jonnyqueirozcl, used under the Pixabay license.