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Definition of Promotion

Promotion is defined as a communication strategy used by companies to make their products and services known and thus encourage their purchase. The document explains that promotion seeks to generate gratification in the consumer so that they acquire the product at the offered price. It also describes different types of promotions such as samples, coupons, discounts, and prizes; and indicates that the chosen promotion depends on the desired objective and stage of the product.

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12 views3 pages

Definition of Promotion

Promotion is defined as a communication strategy used by companies to make their products and services known and thus encourage their purchase. The document explains that promotion seeks to generate gratification in the consumer so that they acquire the product at the offered price. It also describes different types of promotions such as samples, coupons, discounts, and prizes; and indicates that the chosen promotion depends on the desired objective and stage of the product.

Uploaded by

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Copyright
© © All Rights Reserved
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Definition of Promotion

Promotion is a tool that companies use to make themselves known.


products, as a way of information when a communication agent
promote something, it is with the aim that the person being promoted receives
a reward from this one and have the willingness to acquire it for the price that
is offered. Promotion comes from the verb 'Promote' so it is clear
to understand based on its etymology that it is a communication strategy of
part of the companies that produce goods and services in order to
society knows it.
The promotion is made in order to boost the product, however, depending
the time in which the impact received by the consumer occurs varies, let's see
the following scenario: When a product first enters the market it is necessary
turn to the advertising of this, in a pleasant way, emphasizing the
new features and the brand logo, it starts with the offer of this,
Immediately the customer wants to know the price of this and finds a
relatively cheaper entry price compared to other brands of the
same nature. By accepting this directive, the consumer commits to buying or acquiring
the good or service, considering that the promotion is feasible and favorable.
When time passes and the product or service is already established in the market,
Marketing agents have the task of preserving it in the position it is.
consagro, promoting sample and savings promotions, in which despite the
price increases, demand and scarcity, the producer makes the effort to
keep it at the same quality and at the same price.
Another type of promotion is when the customer purchases more of the product in
packages and offers at a more general cost where the discount is appreciated in
cash, for example, if a shampoo costs 50 pesos and the conditioner costs
30 if there are no promotions, the cost of the two together is 80 pesos, but
if it comes in a promotional presentation of the two together in a single package or
wrapper for 70 pesos, the discount is indicated which is significant.

The 13 most well-known and used types of promotions. Providers and


wholesalers

Using the appropriate promotional tool, it is possible to reach the receiver.


the group of target recipients for the promotions that are within
our marketing-mix plan. We must know well what benefits each one has
one of them to know how to choose properly.
In this post we will see what the most well-known and used promotions are.
which does not mean they are the only ones nor that all of them are suitable for
certain business models.
There are different types of promotions:

Samples: It is a type of promotion aimed at new products that is intended to


purpose to highlight the characteristics of an article - offering a small
amount for free - that the recipient does not know. The value of this type of
the promotion is largely diminished for products that are already
they are settled in the market, in which case it is better to choose another
different promotion. Still, it can be a good way to boost sales.
Currently, there are quite a few ways to deliver the samples, expanding into
comparison with those existing a few years ago. To the typical options of offering them
at the point of sale, by mail or along with other products has been added the
possibility of ordering them through the internet.

Let's remember that, if a sample is to be offered alongside another product, it must


be compatible. In this regard, it is worth noting that it is possible to orchestrate a promotion
crusade that benefits two products that do not lead to cannibalism -that are not
substitute products for each other.
Coupons: They consist of rights to discounts or other facilities obtained by
the buyer upon obtaining a product. They manage to increase during the validity of
the coupons for the sales of that product, but it is a rather inadequate mechanism
to secure customer loyalty. It is a good option to counteract
competitor movements, boosting sales of a product and achieving
that uncontrolled promotions from other companies affect consumption as well
our product.
Coupons can be offered on a product's packaging or by other means -
magazines, brochures, internet, etc.
Just like with the samples, it is possible to use the coupons to make
cross promotions.
Refunds or cash returns: They are characterized by returning part of the
import spent to a consumer as long as it is sent to the seller/manufacturer
some proof of purchase -ticket, label, etc.-. It is not a promotion that
have great acceptance among the public, mainly due to the difficulties
to obtain a refund of the amount. Nonetheless, it is advisable if desired
obtain direct feedback from the client, as the return can be utilized
of the purchase receipt so that the recipient of the promotion can do some type of
survey -value our product or company, for example-.
Direct discounts: These are discounts marked by the manufacturer directly on
the packaging. It gives the impression of having reduced the price, but it can have an effect
rebound in the client if they know the product in advance and do not notice a drop
the actual price. It has the disadvantage of the lack of action on the part of the retailer,
What this marking can see as an intrusion in its pricing policy.
Awards: They are complementary products - that are not susceptible to replace the
item that is purchased in a first place - that is given away or discounted when buying
another product. This type of promotions have a similar effect to coupons, with
its same advantages and disadvantages.
Promotional gifts: items with the logo of the company or product that
delivered to the client.

Loyalty rewards: Discounts, benefits, etc. provided to a customer.


for the continuous or repeated use or acquisition of a product or service.
Exhibition at fairs, events...: their purpose is to showcase the product.
to the customer when they are more receptive.
–Contests: prizes related to the product being promoted that
are granted to certain participants based on luck or their abilities. This
the option is interesting when parallel benefits are desired such as
feedback, tracking on social networks, etc.
Offer more product: It consists of increasing the usual amount of product in
the same packaging or unit of purchase, with the aim of increasing purchases
per consumer.
–Commission based on objectives: It consists of offering a higher commission for those
intermediaries that manage to sell more quantity of a product.
Travel and assistance to congresses: Invitations to special events with the intention
to convince intermediaries or consumers of the benefits of a product.
Article published by Rodrigo Tovar Monge thanks to the collaboration agreement.
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