3.3 The Marketing Mix – Promotion Methods
Objective
Understand the full Promotion Mix (Advertising, Sales Promotion, Direct/Online Promotion, Packaging & Branding), how each tool supports specific business objectives (profit, market‑share, brand‑equity, CSR), and how to plan, implement and evaluate promotional activities.
1. Promotion Mix – Overview
- Promotion is one of the four elements of the marketing mix (Product, Price, Place, Promotion).
- Its purpose is to communicate product value, persuade target audiences to purchase and build lasting relationships.
- The mix consists of four inter‑related tools:
- Advertising
- Sales Promotion
- Direct / Online Promotion
- Packaging & Branding (Physical Promotion)
Each tool can be linked to the four key business objectives:
| Tool |
Profit growth |
Market‑share gain |
Brand‑equity building |
CSR / sustainability |
| Advertising |
Drives sales volume through awareness and persuasion. |
Reaches new geographic or demographic segments. |
Creates and reinforces brand image and positioning. |
Can promote ethical messages, eco‑friendly product lines, or charitable campaigns. |
| Sales Promotion |
Generates immediate revenue spikes and encourages repeat buying. |
Accelerates adoption of new products, helping capture market share. |
Supports brand trials that later translate into loyalty. |
Can incorporate green incentives (e.g., “recycle‑and‑redeem” coupons) or community‑based contests. |
| Direct / Online Promotion |
Targets high‑value customers with personalised offers, increasing average spend. |
Enables rapid entry into niche markets via data‑driven targeting. |
Builds one‑to‑one relationships that enhance brand perception. |
Facilitates transparent communication of CSR initiatives and collects consent‑based data. |
| Packaging & Branding |
Adds perceived value that can justify premium pricing. |
Differentiates product on shelves, aiding shelf‑share growth. |
Creates a lasting visual identity that reinforces brand equity. |
Uses recyclable or biodegradable materials and clear sustainability labelling. |
2. Advertising
2.1 Definition & Core Purpose
Advertising is a paid, non‑personal form of communication that uses mass‑media channels to reach large audiences. Its main purposes are to:
- Create or reinforce brand awareness.
- Build a favourable brand image.
- Persuade target customers to buy (or consider) a product.
- Support other promotional tools (e.g., remind customers of a sales‑promotion).
2.2 Typical Media & When to Use Them
| Media |
Characteristics |
Typical Use |
Example (A‑Level context) |
| Television |
High reach, visual & audio impact, expensive |
National brand launches, image building |
30‑second TV ad for a new smartphone |
| Radio |
Good for local reach, low production cost |
Promoting time‑limited offers, local services |
Radio spot advertising a weekend discount at a fast‑food chain |
| Print (newspapers, magazines) |
Targeted readership, tangible, longer life‑span |
Luxury goods, B2B services, regional campaigns |
Full‑page magazine advert for a premium watch |
| Outdoor (billboards, transport ads) |
High visibility, limited message space |
Brand reinforcement, geographic targeting |
Billboard promoting a new energy drink near universities |
| Digital (YouTube, display banners, streaming ads) |
Targetable, measurable, interactive |
Younger audiences, performance‑driven campaigns |
Pre‑roll video ad for a video‑game launch |
| Trade‑magazine (B2B) |
Highly specialised readership, credibility |
Promoting industrial equipment, professional services |
Full‑page advert for a CNC machine in “Manufacturing Today” |
2.3 Advantages & Disadvantages
| Advantages |
Disadvantages |
- Creates strong brand awareness quickly.
- Can reach large or highly specific audiences.
- Supports long‑term brand equity.
- Highly creative – can shape perception.
|
- Often the most expensive promotion tool.
- Harder to measure direct sales impact.
- Message may be ignored (ad‑blocking, channel clutter).
- Risk of negative public reaction if the message is poorly received.
|
2.4 Legal & Ethical Considerations
- Advertising must not be misleading or deceptive (Advertising Standards Authority guidelines).
- Claims about health, safety, performance or environmental benefits must be substantiated.
- Digital ads must comply with data‑privacy regulations (e.g., GDPR, e‑Privacy Directive).
- Social responsibility: avoid stereotyping, respect cultural sensitivities, and consider the impact of “green‑washing”.
3. Sales Promotion
3.1 Definition & Core Purpose
Sales promotion is a short‑term incentive designed to encourage the immediate purchase or sale of a product or service. It is used to:
- Stimulate demand quickly.
- Introduce new products.
- Clear excess or obsolete stock.
- Support other promotional activities (e.g., advertising).
3.2 Types of Sales Promotion (Audience‑Based)
| Audience |
Technique |
Typical Use |
Example |
| Consumers |
Coupons / Vouchers |
Encourage repeat purchase or trial |
10 % off coupon in a newspaper |
| Consumers |
Samples / Free Trials |
Introduce a new product |
Free sachet of shampoo in a supermarket |
| Consumers |
Contests & Competitions |
Increase brand engagement |
Photo contest on Instagram with a holiday prize |
| Trade (retailers, wholesalers) |
Trade Allowances |
Encourage larger orders |
5 % discount on bulk purchases |
| Trade |
Display Allowances |
Improve in‑store visibility |
Funding for end‑cap displays |
| Trade |
Dealer Incentives |
Motivate retailers to push the product |
Bonus for achieving a quarterly sales target |
| Sales Personnel |
Commission & Bonuses |
Reward individual performance |
10 % commission on each unit sold |
| Sales Personnel |
Contests & Prizes |
Stimulate competitive selling |
Trip for the top seller of the month |
3.3 Objectives of Sales Promotion
- Increase short‑term sales volume.
- Introduce new products or line extensions.
- Encourage trial and repeat purchase.
- Clear excess or obsolete stock.
- Support the launch of a new brand.
- Strengthen relationships with retailers and sales staff.
3.4 Business‑Objective Alignment
- Profit growth: Immediate sales uplift and higher average transaction value (e.g., “buy‑one‑get‑one” offers).
- Market‑share gain: Accelerated adoption of a new product, helping capture share from competitors.
- Brand‑equity building: Trial promotions that convert first‑time buyers into loyal customers.
- CSR: Eco‑incentives such as “recycle‑and‑redeem” coupons or community‑based contests.
3.5 Advantages & Disadvantages
| Advantages |
Disadvantages |
- Quick impact on sales figures.
- Can be highly targeted to specific segments.
- Provides measurable results (redemption rates, ROI).
- Supports other promotional tools (e.g., reinforces advertising messages).
- Encourages trial of new products.
|
- Risk of eroding brand equity if over‑used.
- May create price‑sensitive customers who wait for offers.
- Costs can be high for large‑scale campaigns.
- Short‑term focus may distract from long‑term brand building.
- Potential legal/ethical issues (misleading offers, unfair competition).
|
3.6 Planning a Sales Promotion Campaign (Step‑by‑Step)
- Set clear objectives – e.g., “Increase sales of product X by 12 % in the next 8 weeks.”
- Identify the target audience – consumers, trade partners, or sales staff.
- Select the most appropriate technique(s) – match objective with technique.
- Determine budget & resources – include cost of incentives, distribution, administration.
- Obtain budget approval & ensure CSR/ethical compliance – seek sign‑off from finance and, where relevant, sustainability teams.
- Design the offer – ensure the value proposition is compelling, clear and legally compliant.
- Choose distribution channels – in‑store, online, direct mail, mobile app, etc.
- Set timing & duration – align with product life‑cycle, seasonal peaks or competitive activity.
- Communicate with stakeholders – inform retailers, sales staff and internal teams of the promotion details and expectations.
- Implement & monitor – track redemption rates, sales uplift, operational issues.
- Evaluate results – compare outcomes with objectives and calculate ROI.
3.7 Evaluation Metrics (KPIs)
- Redemption rate = (Number of coupons redeemed ÷ Number of coupons issued) × 100 %
- Incremental sales = Sales during promotion – Average sales in a comparable period
- Cost per acquisition (CPA) = Total promotion cost ÷ Number of new customers acquired
- Return on Investment (ROI) = (Incremental profit ÷ Total promotion cost) × 100 %
- Break‑even volume = Total promotion cost ÷ (Selling price – Variable cost per unit)
4. Direct & Online Promotion
4.1 Definition & Core Purpose
Direct promotion communicates directly with individual customers or businesses, often using personal or digital channels. Its aims are to:
- Generate an immediate response (order, enquiry, click).
- Provide personalised offers that increase relevance.
- Collect customer data for future marketing activities.
4.2 Main Techniques
| Technique |
Medium |
Key Advantages |
Typical Use (A‑Level example) |
| Direct Mail |
Post, catalogue, leaflets |
Highly targetable, tangible |
Seasonal catalogue for a clothing retailer |
| Tele‑marketing |
Phone calls (inbound/outbound) |
Immediate two‑way communication |
Call centre selling broadband packages |
| Email & SMS Marketing |
Electronic messages |
Low cost, easy to track opens/click‑throughs |
Discount code sent via SMS after a store visit |
| Catalogue / E‑catalogue |
Printed or online product listings |
Comprehensive product information |
Online catalogue for a home‑appliance brand |
| Direct Response Advertising |
TV/Radio ads with a call‑to‑action, QR codes, or “reply‑paid” forms |
Combines mass reach with a measurable response |
Infomercial with a toll‑free number for orders |
4.3 Digital Promotion (Social Media, Influencers, SEO/SEM, Mobile Apps)
- Social Media Advertising – paid posts on Facebook, Instagram, TikTok; highly targetable by demographics, interests, behaviour.
- Influencer Partnerships – collaboration with individuals who have credibility with a specific audience; useful for brand awareness and trust.
- Search Engine Marketing (SEM) & Optimisation (SEO) – paid search ads (Google Ads) and organic optimisation to appear when customers search for relevant keywords.
- Mobile Apps & In‑App Promotions – push notifications, loyalty points, geo‑fencing offers.
- Content Marketing – blogs, videos, podcasts that provide value and subtly promote the brand.
Digital promotion is measurable (click‑through rates, conversion rates, cost‑per‑click) and can be integrated with sales‑promotion offers (e.g., a coupon code delivered via Instagram story).
4.4 Advantages & Disadvantages
| Advantages |
Disadvantages |
- Highly personalised – can increase relevance and response.
- Easy to track and analyse (open rates, click‑through, conversion).
- Often lower cost per contact than mass media.
- Facilitates database building for future marketing.
|
- Can be perceived as intrusive (spam, cold‑calling).
- Data‑protection regulations (GDPR, e‑Privacy) add compliance requirements.
- Requires up‑to‑date, accurate contact databases.
- Digital fatigue may reduce effectiveness over time.
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4.5 Business‑Objective Alignment
- Profit growth: Personalised offers increase conversion value.
- Market‑share gain: Targeted digital campaigns can quickly penetrate niche segments.
- Brand‑equity building: Ongoing, relevant communication nurtures long‑term relationships.
- CSR: Transparent data‑handling statements and promotion of sustainable products reinforce responsible brand positioning.
5. Packaging & Branding (Physical Promotion)
5.1 Definition & Role in Promotion
Packaging and branding are the visual and tactile elements that communicate a product’s identity, quality and value at the point of purchase. They act as a silent salesperson by:
- Attracting attention on the shelf (colour, shape, size).
- Conveying key information (ingredients, usage, price).
- Reinforcing brand image and positioning.
- Supporting other promotion tools – e.g., a coupon printed on the pack.
5.2 Key Elements
- Brand name & logo – recognisable symbols that build equity.
- Colour scheme & typography – evoke emotions and differentiate from rivals.
- Packaging material – functional (preserves product) and can signal quality (premium glass vs. plastic).
- Legal information – nutrition facts, safety warnings; must comply with regulations.
- Promotional add‑ons – QR codes, “buy‑one‑get‑one” labels, limited‑edition designs.
5.3 Advantages & Disadvantages
| Advantages |
Disadvantages |
- Influences purchase decisions at the point of sale.
- Can differentiate a product in a crowded market.
- Provides a platform for additional promotions (e.g., coupon on the pack).
- Supports brand equity over the long term.
|
- Design and production can be costly.
- Environmental concerns – packaging waste and sustainability pressures.
- Regulatory compliance adds complexity.
|
5.4 Business‑Objective Alignment
- Profit growth: Premium packaging justifies higher price points.
- Market‑share gain: Eye‑catching design improves shelf‑share.
- Brand‑equity building: Consistent visual identity reinforces brand recall.
- CSR: Use of recyclable or biodegradable materials and clear sustainability labelling meets consumer expectations for responsible brands.