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Marketing Mix ยป Promotion Component (Marketing Campaigns)

What you'll learn this session

Study time: 30 minutes

  • The role of promotion within the marketing mix
  • Different promotional methods and their advantages
  • How to plan effective marketing campaigns
  • How to evaluate promotional activities
  • Real-world examples of successful marketing campaigns

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Introduction to Promotion in the Marketing Mix

Promotion is one of the 4Ps in the marketing mix (alongside Product, Price and Place). It's all about how businesses communicate with customers to persuade them to buy products or services. Think of promotion as the megaphone that lets businesses shout about what they're selling!

Key Definitions:

  • Promotion: All the methods a business uses to communicate with customers about its products or services.
  • Marketing campaign: A planned series of promotional activities designed to achieve specific marketing objectives.
  • Target audience: The specific group of consumers most likely to respond positively to a promotion.

Why Promotion Matters

Even the best product in the world won't sell if nobody knows about it! Promotion helps businesses to:

  • Inform customers about products and services
  • Persuade people to choose their brand over competitors
  • Remind existing customers about their products
  • Build and maintain a positive brand image

The AIDA Model

Effective promotion often follows the AIDA process:

  • Attention: Grab the customer's interest
  • Interest: Make them want to know more
  • Desire: Create a want for the product
  • Action: Get them to make a purchase

Promotional Methods

Businesses use a mix of promotional methods to reach their target audience. Each has its own strengths and weaknesses.

Advertising

Paid messages in media like TV, radio, newspapers, magazines, billboards and online.

Pros: Wide reach, creative control

Cons: Can be expensive, people may ignore ads

&handshake; Personal Selling

Face-to-face selling through sales staff, demonstrations and consultations.

Pros: Highly persuasive, immediate feedback

Cons: Expensive per customer, limited reach

&gift; Sales Promotion

Short-term incentives like discounts, competitions, free samples and loyalty cards.

Pros: Quick sales boost, measurable results

Cons: Temporary effect, can damage brand image

&newspaper; Public Relations

Building positive relationships with the public through press releases, events and sponsorships.

Pros: More credible than advertising, good for image

Cons: Less control, results hard to measure

@ Digital Marketing

Online methods like social media, email marketing, search engine optimisation and content marketing.

Pros: Targeted, interactive, often cheaper

Cons: Requires constant updating, technical skills needed

&envelope; Direct Marketing

Communicating directly with customers through mail, email, text messages, or phone calls.

Pros: Highly targeted, personalised

Cons: Can be seen as intrusive, data protection issues

Planning a Marketing Campaign

A successful marketing campaign doesn't happen by accident. It requires careful planning and consideration of several key factors:

The Campaign Planning Process

Step 1: Set Clear Objectives

What do you want to achieve? Common objectives include:

  • Increasing sales by a specific percentage
  • Raising awareness of a new product
  • Improving brand image
  • Entering a new market segment

Objectives should be SMART: Specific, Measurable, Achievable, Relevant and Time-bound.

Step 2: Identify Your Target Audience

Who are you trying to reach? Consider:

  • Demographics (age, gender, income, location)
  • Psychographics (interests, values, lifestyle)
  • Buying behaviour (when and how they shop)
  • Media consumption habits (what they read/watch)

Step 3: Choose Your Promotional Mix

Select the best combination of promotional methods based on:

  • Your budget
  • Target audience characteristics
  • Type of product or service
  • Campaign objectives
  • Competitor activities

Step 4: Set Your Budget

Decide how much to spend using methods like:

  • Percentage of sales: A fixed percentage of past or expected sales
  • Competitive parity: Matching competitors' spending
  • Objective and task: Based on what's needed to achieve objectives
  • Affordable method: What the business can afford after other expenses

Step 5: Create Your Message

Develop compelling content that:

  • Communicates your unique selling point (USP)
  • Appeals to your target audience
  • Is consistent with your brand image
  • Encourages the desired action

Step 6: Implement and Evaluate

Launch your campaign and measure its effectiveness:

  • Track sales before, during and after
  • Conduct customer surveys
  • Monitor website traffic and social media engagement
  • Calculate return on investment (ROI)

Case Study Focus: Cadbury's Gorilla Advertisement

In 2007, Cadbury launched a TV advert featuring a gorilla playing drums to Phil Collins' "In the Air Tonight". Despite not showing any chocolate or mentioning the product directly, the campaign was hugely successful.

Campaign elements:

  • Unusual, attention-grabbing content that created a talking point
  • Emotional connection through music and humour
  • Multi-channel approach (TV, YouTube, social media)
  • Clear brand identity through Cadbury's purple colour scheme

Results: Sales increased by 9%, brand affinity improved by 20% and the video went viral with millions of views online. The campaign won multiple advertising awards and is still remembered today.

Evaluating Promotional Activities

After running a marketing campaign, it's crucial to evaluate its effectiveness. This helps businesses learn what works and improve future campaigns.

± Measuring Success

Different metrics can be used depending on the campaign objectives:

  • Sales figures: Did sales increase during and after the campaign?
  • Market share: Has the business gained customers from competitors?
  • Brand awareness: Do more people recognise the brand now?
  • Customer feedback: What do customers say about the campaign?
  • Website traffic: Did more people visit the website?
  • Social media engagement: Likes, shares, comments and follows
  • Return on investment (ROI): Profit generated compared to campaign cost

! Common Promotional Mistakes

Businesses should avoid these pitfalls:

  • Targeting the wrong audience
  • Using inappropriate promotional methods
  • Inconsistent messaging across channels
  • Overpromising and underdelivering
  • Ignoring cultural sensitivities
  • Poor timing (e.g., promoting ice cream in winter)
  • Failing to differentiate from competitors
  • Not setting clear objectives or measuring results

Integrated Marketing Communications (IMC)

Modern businesses often use an integrated approach to promotion, ensuring all communications deliver a consistent message across different channels.

Benefits of IMC

  • Stronger, more consistent brand image
  • Greater impact through reinforcement
  • More efficient use of marketing budget
  • Clearer communication with customers
  • Better coordination between marketing activities

Multi-channel Marketing

Today's successful campaigns often use multiple channels simultaneously:

  • Traditional media (TV, radio, print)
  • Digital platforms (websites, social media)
  • In-store promotions
  • Direct marketing
  • Public relations activities

This ensures the target audience encounters the message multiple times in different contexts.

Case Study Focus: Compare the Meerkat

When price comparison website Comparethemarket.com launched their "Compare the Meerkat" campaign in 2009, they created a fictional meerkat character named Aleksandr Orlov who was frustrated by people confusing his meerkat comparison site with the market comparison site.

Campaign elements:

  • Memorable character and catchphrase ("Simples!")
  • TV adverts introducing the story
  • Social media accounts for the character
  • Meerkat toys as rewards for customers
  • Website (comparethemeerkat.com) that redirected to the real site
  • Books, apps and other merchandise

Results: The campaign increased website visits by 80% and quote requests by 45%. The company became the UK's most popular price comparison website and the campaign has continued for over a decade with new characters and storylines.

Ethical Considerations in Promotion

Businesses must consider ethical issues when planning marketing campaigns:

  • Truthfulness: Avoiding false or misleading claims
  • Targeting vulnerable groups: Special care with marketing to children or elderly people
  • Privacy concerns: Respecting customer data and consent
  • Environmental impact: Considering the sustainability of promotional materials
  • Cultural sensitivity: Avoiding offensive or inappropriate content
  • Social responsibility: Promoting positive values and behaviours

In the UK, promotional activities are regulated by the Advertising Standards Authority (ASA), which enforces codes of practice to ensure advertisements are legal, decent, honest and truthful.

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