Business Presentation Promotion

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3.3.4 PROMOTION
Presented by group 4: Naira Freire, Noélly Almeida,
Odilia Ferreira and Willa Mulhovo
table of
CONTENTS
01 The aims of promotion
02 Different forms of promotion
How they influence sales

03 The need for cost-effectiveness in spending
the marketing budget on promotion
04
• Promotion – publicizing a
product/brand to increase customer
awareness or increase sales; refers to
making a product or service known to
the customer.
THE AIMS OF
PROMOTION
The aims of promotion include:

• To create a brand image for a product;
• To introduce a new product into a market;
• To improve the company’s image;
• To increase the sales of a product;
• Inform customers about a new product;
• Persuade customers to buy the product.
Different Forms Of Promotion
We can adopt many types of promotional strategies in a promotional campaign. The four
most popular ones are:
Sales promotion Direct marketing

• Sales Promotion: This happens when incentives
(special offers/sales) are used to increase sales, in • Direct marketing is the technique of pre-selecting
other words, a sales promotion involves using
and reaches out for specific group (companies or
short-term initiative's to increase product demand
and sales people) to inform and promote your product.
• Direct marketing is a fast and effective way to
• using techniques such as ‘buy one get one free’, promote products and services.
occasional price reductions, free after-sales • For example, companies can send out a targeted e-
services, gifts, flash discounts, giveaways, mail campaign to reach customers.
coupons, and loyalty reward programs.
competitions, point-of–sale displays (a special
display stand for a product in a shop), free
samples etc. to encourage sales.
Advertising
Public relations
• Advertising is a type of promotion whereby companies pay to
• Public relations, also known as PR, assists with
communicate their messages.
the preservation of a company's public image. • The message in advertising is directed to the mass audience
When a company uses public relations, it intends
instead of a specific individual, like in personal selling.
to influence the way its audience perceives it.
Some examples of PR campaigns include press • Advertisements uses printed and visual media.
releases, publicity stunts, and social media
endorsements. This strategy can help a company • can appear in traditional media like press, television, newspapers,
or brand protect, enhance, or rebuild its billboards, flyers, cinema magazines, radio, blogs etc. We can
reputation. further classify them based on the target
audience, marketing type, and purpose.
• There are 2 types of advertisements:
• o Informative Advertisement – where the promotion of a product

focuses on giving information about a product (i.e. the benefits of
the product).
• o Persuasive Advertisement – where the promotion of a product
focuses on persuading the consumer that they really need the
product and they should buy it.
The need for cost-effectiveness in spending
the marketing budget on promotion
• When a marketing department of a business is deciding

which type of promotion it should use, it must take into account the marketing budget – the
financial plan for marketing product/brand for a period of time
• i.e. if the budget is small, a business cannot afford to advertise on television
• It must plan out perfectly in order to have cost effectiveness, while reaching target audience
• This is where small businesses struggle compared to big businesses,
because their budget is so much smaller.
THE DISADVANTAGES OF
PROMOTION
• Promotional activities last for a short period.

• The promotion has many hidden costs associated with it.
• Decreases brand loyalty and can have a conflict with the
actual product.
• Promotions are sensitive to price changes.
Benefits of a business promotion
Creates a source of information: informs target audiences of the relative merits of a

product, service, brand or issue, persuasively.
Generates higher revenue: These promotions create a sense of urgency and encourage
customers to take action.
Provides communication opportunities: As a form of communication used to inform,
convince or remind the public about the goods, services, image, and community
involvement of a person or organization
Creates target marketing or market segmentation: By dividing customers into
specific groups based on shared characteristics and behaviors, businesses can create
targeted discount and promotion strategies that resonate with each group.
Creates a reason to buy.

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Come study with me

02 Different forms of promotion

How they influence sales

The aims of promotion include:

Sales promotion Direct marketing

• o Informative Advertisement – where the promotion of a product

• When a marketing department of a business is deciding

• Promotional activities last for a short period.

Creates a source of information: informs target audiences of the relative merits of a

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