Promotional Strategies used by Businesses

1. Promotion Strategies
 Businesses use Promotion Strategies to increase the
sales of a given product/service. Businesses are
able to concentrate its limited resources in a
concentrated way to increase sales and achieve
a sustainable, competitive advantage.

2. Promotional Mix
Businesses may use
one or more of the
following:
1. Advertising
2. Personal selling,
3. Sales Promotion
4. Publicity

3. Principal Goals of Promotion
To inform.
To persuade.
To remind.
RIP acronym = Remind - Inform - Persuade

4. Definitions of Individual
Promotional Mix Elements
Advertising:
Any paid form of non-personal presentation of ideas,
goods, or services by an identified sponsor.
Personal selling:
Oral conversations, either by telephone or face-to-
face, between sales persons and prospective
customers.

5. Definitions of Individual
Promotional Mix Elements
Sales promotion:
Customers are given a short-term option to
simulate purchase.

6. Definitions of Individual
Promotional Mix Elements
Public relations:
All the activities that an organization engages
in to maintain or improve its relationship with
other organizations and individuals.
The planned and sustained effort to establish
and maintain goodwill and mutual
understanding between the organisation and
its publics.

7. Definitions of Individual
Promotional Mix Elements
Publicity:
A Public Relations technique that
involves non-paid communication of
information about the business.
 The purpose of Publicity is to obtain
a favourable presentation of any
news via a medium not paid for by
the sponsor.

8. Advantages of Advertising
Ability to reach potential customers where sales staff
cannot.
Great scope for creative versatility and dramatization of
messages.
Non-threatening nature of non-personal presentation.
Prestige and impressiveness of mass-media advertising.

9. Disadvantages of Advertising
Inability to close sales.
Too many Advertisements.
Potential customers may ignore the advertising
messages.
May not be able to get immediate response.
Adjustments may take a long time.
Difficulties in measuring effectiveness of the advert.
The cost of the advertisement may not be recovered.

10. Advantages of Personal Selling
(Sales)
Ability to close sales.
Ability to hold the prospect’s attention.
Immediate feedback and two-way communications.
Presentations can be tailored to the prospect’s needs.
Ability to precisely target the prospect.
Ability to get immediate action.

11. Disadvantages of Personal Selling
(Sales)
High cost per individual prospective customer.
Inability to reach some customers in rural areas
effectively.
Labour intensive.

12. Advantages of Sales Promotions
Ability to get quick feedback from customers.
Ability to add excitement to what is being offered at the
outlet/location.
May be offered at varying times

13. Disadvantages of Sales Promotions
Many sales promotions only provide short-term benefits.
Ineffective in building long-term loyalty for the business.
Not cost effective to use in the long term.

14. Advantages of Public Relations and
Publicity
Relatively low cost.
Effective because not seen as a commercial message.
Credibility and implied endorsements (e.g., articles by
travel critics).
Prestige and impressiveness of mass-media coverage
(e.g., feature articles).
Added excitement and dramatization.
Maintenance of a “public” presence.

15. Disadvantages of Public Relations
and Publicity
Difficulties in arranging consistent coverage of the
destination.
Lack of control over what gets printed or said.

16. Factors that Affect the Promotional Mix
Target markets
Marketing objectives
Competition and promotional practices
Promotional budget available
Nature of the Product
Stage in the Product Life Cycle