3.3 The Marketing Mix – Promotion Methods
1. Overview of the Promotion Mix
The promotion mix is a set of five inter‑related tools that together persuade, inform and remind target audiences about a product or service. In the Cambridge Business (9609) syllabus each method must be understood in terms of its objectives, usefulness, budgeting, implementation and evaluation.
- Advertising – paid, non‑personal communication.
- Sales Promotion – short‑term incentives to stimulate purchase or trial.
- Direct Promotion – personal selling, telemarketing and direct mail.
- Digital Promotion – online activities such as search advertising, social media and influencer marketing.
- Packaging & Branding – physical and visual presentation of the product.
Effective marketing integrates these elements so that each reinforces the others (e.g., an advertising campaign may launch a coupon‑based sales promotion, while social media amplifies the message).
2. Advertising Promotion
2.1 Definition
Advertising is a paid, non‑personal form of communication designed to inform, persuade or remind target audiences about a product, service or brand.
2.2 Primary Objectives
- Build or refresh brand awareness.
- Generate interest and desire for a new or existing product.
- Differentiate the brand from competitors.
- Support other promotional activities (e.g., sales promotions, PR).
- Contribute to overall marketing objectives such as market‑share growth or sales‑target achievement.
2.3 Budgeting Methods
- Percentage‑of‑sales – a fixed proportion of past or forecast sales (simple but may not reflect strategic needs).
- Objective‑and‑task – set specific advertising objectives, estimate the cost of tasks required to achieve them, then allocate the budget (most widely recommended in the syllabus).
- Competitive parity – match the spend of major rivals (useful for market‑entry situations).
2.4 Types of Advertising Media
| Media Type |
Typical Reach |
Typical Cost |
Key Advantages |
Key Disadvantages |
| Television |
National / International |
High |
Combines sight, sound & motion; strong emotional impact; high credibility. |
Expensive production & placement; limited audience targeting. |
| Radio |
Local / National |
Medium |
Good for commuters; lower production cost; flexible scheduling. |
No visual element; short attention span; can be ignored. |
| Print (Newspapers & Magazines) |
Local / National / Niche |
Medium‑to‑High |
Targeted readership; tangible; long shelf‑life; editorial credibility. |
Declining circulation; static format; colour spreads expensive. |
| Outdoor (Billboards, Transport) |
Local / Regional |
Medium |
High visibility; 24‑hour exposure; good for brand reinforcement. |
Limited message length; cannot convey detailed information; weather dependent. |
| Online/Digital |
Global / Highly Targeted |
Low‑to‑High (platform dependent) |
Precise demographic/behavioural targeting; interactive; real‑time measurability. |
Ad‑blocking; requires digital literacy; risk of negative viral feedback. |
| Direct Mail |
Targeted |
Low‑to‑Medium |
Personalised; measurable response; tangible. |
Often perceived as junk; limited reach; printing & postage costs. |
2.5 Advantages & Disadvantages
- Advantages
- Creates awareness quickly.
- Can reach large audiences simultaneously.
- Supports long‑term brand building.
- Flexible – adaptable to many media formats.
- Disadvantages
- High cost, especially for TV and prime‑time slots.
- Message may be ignored or forgotten (ad‑clutter).
- Hard to measure direct impact on sales without supplementary data.
- Risk of negative public reaction if the message is poorly received.
2.6 Planning the Advertising Process
- Situation Analysis – review market conditions, competitor activity and internal capabilities.
- Set Advertising Objectives – use SMART criteria (Specific, Measurable, Achievable, Relevant, Time‑bound).
- Identify Target Audience – segment by demographics, psychographics, geography and behaviour.
- Choose Media Mix – align objectives, budget and reach requirements with the most suitable media.
- Develop Creative Brief – state key message, tone, call‑to‑action, branding guidelines and media specifications.
- Produce Advertising Material – write copy, design visuals, record audio/video, test prototypes.
- Media Planning & Buying – negotiate rates, schedule placements, secure slots and confirm contracts.
- Launch Campaign – release ads according to the media schedule.
- Monitor & Evaluate – track reach, frequency, recall, click‑through rates and sales lift.
- Adjust & Optimise – refine creative or re‑allocate media based on performance data.
2.7 Key Performance Indicators (KPIs) & Evaluation
- Reach – number of different people exposed to the ad.
- Frequency – average number of times each person sees the ad.
- Recall / Recognition – % of audience that remembers the ad after exposure.
- Click‑Through Rate (CTR) –
CTR = (Clicks ÷ Impressions) × 100 %
- Cost per Thousand Impressions (CPM) –
CPM = Total Cost ÷ (Impressions ÷ 1 000)
- Cost per Acquisition (CPA) – cost to generate one paying customer.
- Sales Lift – increase in sales directly attributable to the campaign (pre‑ vs post‑campaign comparison).
- Return on Advertising Spend (ROAS) –
ROAS = Revenue from Ads ÷ Advertising Cost
2.8 Legal & Ethical Considerations (Advertising)
- Comply with national advertising codes (e.g., UK ASA, US FTC) – no misleading, deceptive or unsubstantiated claims.
- Observe copyright and trademark rules for music, images and slogans.
- Respect privacy when using personal data for targeting (GDPR, CCPA).
- Avoid offensive or harmful content; consider vulnerable groups (children, the elderly).
- Clearly label any paid sponsorship or product placement.
3. Sales Promotion
3.1 Definition
Sales promotion comprises short‑term incentives designed to stimulate immediate purchase, trial or repeat purchase of a product.
3.2 Primary Objectives
- Accelerate sales in a specific period (e.g., seasonal peaks).
- Encourage trial of a new product.
- Reward loyal customers and increase repeat purchase.
- Collect market information (e.g., through coupon codes or redemption data).
- Support broader marketing objectives such as market‑share growth or brand‑image enhancement.
3.3 Common Techniques
| Technique |
Typical Use |
Key Advantage |
Key Disadvantage |
| Discounts & Price Reductions |
Launches, clearance, seasonal peaks |
Immediate sales boost |
Can erode perceived value |
| Coupons & Vouchers |
Encourage repeat purchase, gather data |
Track redemption rates |
Redemption may be low; printing cost |
| Contests & Sweepstakes |
Generate excitement, collect leads |
High engagement |
Legal compliance required; may attract “trophy hunters” only |
| Loyalty Schemes (points, cards) |
Retention and cross‑selling |
Builds long‑term relationships |
Complex administration; reward cost |
| Bundling & “Buy‑One‑Get‑One” (BOGO) |
Move excess stock, increase basket size |
Perceived value for consumer |
May reduce profit margin |
| Samples & Free Trials |
New product introduction |
Reduces purchase risk |
Costly if uptake is low |
3.4 Evaluation Methods
- Redemption Rate –
Redemption % = (Number of redeemed coupons ÷ Number issued) × 100
- Sales Lift Analysis – compare sales volume in the promotion period with a comparable non‑promotion period.
- Incremental Cost per Unit – additional cost of the promotion divided by the extra units sold.
- Return on Promotion Investment (ROPI) –
ROPI = (Incremental Revenue – Promotion Cost) ÷ Promotion Cost
- Link results back to the original marketing objectives (e.g., % increase in market share).
3.5 Advantages & Disadvantages
- Advantages
- Quick impact on sales volume.
- Easy to measure (redemption, lift, ROI).
- Can be combined with advertising for greater effect.
- Disadvantages
- May train customers to wait for promotions.
- Potentially reduces brand equity if over‑used.
- Costs of discounts, coupons or prizes can be high.
4. Direct Promotion
4.1 Definition
Direct promotion involves personal, one‑to‑one communication aimed at persuading a specific individual or small group to purchase. It includes personal selling, telemarketing and direct mail.
4.2 Primary Objectives
- Provide detailed information and answer questions for complex or high‑value products.
- Build and maintain strong customer relationships.
- Close sales and achieve short‑term revenue targets.
- Gather market intelligence through direct feedback.
- Support other promotional elements (e.g., follow‑up after an advertising burst).
4.3 The Personal Selling Cycle
- Prospecting & Lead Generation – identify potential customers.
- Pre‑approach – research the prospect’s needs.
- Approach – make first contact (call, meeting, email).
- Presentation & Demonstration – tailor the message to the prospect’s needs.
- Handling Objections – address concerns and provide reassurance.
- Closing the Sale – ask for commitment and finalize terms.
- Follow‑up & After‑sales Service – ensure satisfaction and encourage repeat business.
4.4 Sales‑Force Management
- Recruitment & Training – select candidates with product knowledge and interpersonal skills; provide ongoing product, selling‑technique and ethical training.
- Motivation & Incentives – commission structures, bonuses, contests, career progression.
- Performance Monitoring – use sales targets, activity logs, customer‑feedback scores.
- Territory Planning – allocate geographic or account‑based territories to maximise coverage and minimise overlap.
4.5 Evaluation of Direct Promotion
- Conversion Rate –
Conversions ÷ Number of contacts × 100 %
- Average Deal Size – total sales value ÷ number of closed deals.
- Cost per Contact – total selling expense ÷ number of contacts.
- Customer Lifetime Value (CLV) – projected net profit from a customer over the entire relationship.
- Compare results with the original sales‑force objectives (e.g., revenue target, market‑share gain).
4.6 Advantages & Disadvantages
- Advantages
- Highly targeted – message can be customised to individual needs.
- Immediate feedback and ability to handle objections.
- Builds strong, long‑term relationships.
- Disadvantages
- Labor‑intensive and costly per contact.
- Scalability is limited compared with mass media.
- Potential for negative perception if seen as intrusive.
5. Digital Promotion
5.1 Definition
Digital promotion uses internet‑based platforms to reach and interact with target audiences. It includes search engine marketing, display advertising, social‑media marketing, influencer collaborations, email marketing and search‑engine optimisation.
5.2 Primary Objectives
- Reach specific audience segments with precise targeting.
- Drive traffic to a website, landing page or e‑commerce store.
- Generate leads or direct sales (online or offline).
- Engage customers through two‑way communication and user‑generated content.
- Collect data for ongoing optimisation and for other promotional elements.
5.3 Key Characteristics
- Precise Targeting – demographics, interests, behaviour, location, device.
- Interactivity – clicks, likes, comments, shares, reviews.
- Measurability – real‑time data on impressions, clicks, conversions, cost‑per‑action.
- Scalability – campaigns can be expanded or reduced quickly.
5.4 Measurement Tools & Linking to ROI
| Metric |
Formula / How Measured |
Decision Use |
| Impressions |
Number of times an ad is displayed. |
Assess reach; calculate CPM. |
| Click‑Through Rate (CTR) |
(Clicks ÷ Impressions) × 100 % |
Gauge ad relevance; optimise creative. |
| Cost per Click (CPC) |
Total Cost ÷ Clicks |
Compare efficiency of different platforms. |
| Conversion Rate |
(Conversions ÷ Clicks) × 100 % |
Assess landing‑page effectiveness; adjust offers. |
| Cost per Acquisition (CPA) |
Total Cost ÷ Number of conversions |
Determine profitability of each channel. |
| Return on Ad Spend (ROAS) |
Revenue from Campaign ÷ Advertising Cost |
Decide budget allocation across channels. |
5.5 Advantages & Disadvantages
- Advantages
- Cost‑effective for small budgets (pay‑per‑click or CPM models).
- Ability to test and optimise (A/B testing, multivariate testing).
- Immediate feedback and two‑way communication.
- Highly measurable – data can be linked directly to marketing objectives.
- Disadvantages
- Ad‑blocking software reduces reach.
- Privacy regulations (GDPR, CCPA) restrict data use.
- Rapidly changing platform algorithms require continual learning.
- Negative viral feedback can spread quickly.
5.6 Legal & Ethical Considerations (Digital)
- Obtain explicit opt‑in consent for data collection and email marketing.
- Comply with advertising standards – no misleading or unsubstantiated claims.
- Disclose paid influencer relationships clearly (e.g., #ad, #sponsored).
- Avoid targeting vulnerable groups with unsuitable content.
- Respect intellectual‑property rights for images, music and video.
6. Packaging & Branding as Promotional Tools
6.1 Definition & Objectives
Packaging and branding are the visual and physical elements that present a product to the market. Their promotional objectives are to:
- Attract attention on the shelf or online thumbnail.
- Communicate key benefits, ingredients or usage instructions.
- Reinforce the overall brand identity and positioning.
- Provide legal information (e.g., nutritional facts, safety warnings).
- Influence purchase decision at the point of sale.
6.2 Key Elements
- Design & Colour – creates visual appeal and differentiates from competitors.
- Brand Logo & Tagline – aids recall and builds equity.
- Information Hierarchy – clear presentation of the most important benefits.
- Material & Sustainability – affects perceived quality and environmental impact.
- Regulatory Requirements – mandatory labelling, safety symbols, allergen warnings.
6.3 Advantages & Disadvantages
- Advantages
- Continuous exposure – product is seen every time it is stocked.
- Can influence impulse buying at the point of purchase.
- Supports premium positioning through high‑quality materials and design.
- Disadvantages
- High design and production costs for elaborate packaging.
- Environmental concerns – waste and sustainability pressures.
- Legal limits on claims and mandatory label information.
7. Integration of the Promotion Mix
All five elements should be coordinated to deliver a consistent message, reinforce each other and maximise overall impact.
- Advertising – creates broad awareness and introduces the core message.
- Sales Promotion – provides a short‑term incentive (e.g., coupon) to convert awareness into trial.
- Direct Promotion – personal selling or telemarketing follows up with high‑value prospects.
- Digital Promotion – retargets interested users, amplifies social buzz and supplies real‑time data.
- Packaging & Branding – reinforces the message at the point of purchase and sustains brand equity.
When planning, map each activity to the specific marketing objectives (e.g., market‑share growth, sales‑target achievement, brand‑image improvement) and ensure that budgeting, timing and evaluation are aligned across the mix.