Advertising and promotion

Definition of Advertising & Promotion

Advertising and promotion is the way businesses communicate with consumers and persuade them to buy their product or service.
The goal of advertising and promotion is to raise customer awareness, create interest and stimulate demand.

Types of Advertising

Traditional Advertising

This form of advertising includes media such as TV, radio, print (newspapers, magazines), and outdoor (billboards, transit).
Each medium reaches a different audience and has varying levels of cost and audience penetration.

Digital Advertising

Includes online methods such as search engine marketing (SEM), social media advertising, email marketing, and display advertising (ads on websites).
This type of advertising can be highly targeted, cost-effective and measurable.

Promotion Methods

Sales Promotion

This includes short-term tactics designed to stimulate quicker or greater purchase of certain products or services. Examples include coupons, discounts, competitions, and buy one get one free (BOGO) offers.

Personal Selling

Involves one-on-one communication between a seller and potential buyer. This could be in person (at a shop) or via phone or video call.

Public Relations (PR)

Activities aimed at creating a positive public image for the company. Examples include press releases, charity events, and managing social media platforms.

Factors Influencing Advertising & Promotion Choices

Target Audience

The characteristics, habits and preferences of the intended consumer group influence the type, content and channel of advertising and promotion.

Product/Service Being Sold

Different products or services may require different promotional tactics. For example, a luxury item may benefit from a high-end magazine ad, while an everyday item may be more suited to TV or social media advertising.

Budget

The available budget will play a large role in determining the scale and type of advertising and promotional activities. For example, TV advertising is often more expensive than social media advertising.

Stages in the Product Life Cycle

The stage of the product in its life cycle will influence the type of promotion used. A new product may require heavy advertising to build consumer awareness, while an established product might benefit from sales promotions to boost purchase.

Importance of Advertising & Promotion

A core component of a company’s marketing mix, advertising and promotion influence consumer perceptions, branding, and sales.
Well-managed campaigns can lead to increased sales, improved market position, and enhanced customer loyalty.
They help differentiate a product or service from competitors and communicate its unique selling proposition (USP).