By the Book

Russell Bowman and Paul Theroux present a nuts-and-bolts industry overview in Promotion Marketing Tools & Resources.

Chapter One: The Basics

Understanding the Role of Promotion in Marketing

It is important to understand how promotion fits into the overall mix of marketing strategies and tactics. It is also important to customize promotion’s definition and role with your own company’s (or a client’s) structure and policies, because it is justifiably different from one corporation to another. Also, define exactly what is expected from any promotion tool in terms that are easily understood by all parties involved, including sales, marketing, accounting, and research departments. In short, what is sales promotion’s role? A simple example would be a new product or service being introduced by a multi-product/service company:

1. In this case the role of advertising might well be to generate broad exposure of the brand name and the product/service benefits.

2. Trade promotion’s role would be concentrated on adequate retail distribution or dealer/representative participation.

3. Consumer promotion’s primary role would logically be to gain trial of the product or service within the first few months following introduction.

Following this definition, a number of tools can be considered to accomplish the objective assigned to promotion.

How to Differentiate the Role of Promotion from Advertising, Public Relations, and Other Marketing

The overall field of marketing communications is so diversified that many practitioners cannot agree on the best definitions for the primary elements of the marketing mix. Generally, most marketers and communications people agree on the definitions of advertising and public relations, but since sales promotion is often “everything else,” communication professionals often disagree on the best definition for promotion. Following are definitions for the three basic marketing elements that are generally accepted, and will serve as a foundation for the material contained in this book.

Advertising is the use of established media to present a brand or corporate image and to communicate product or service benefits to the audience involved.

Promotion is marketing activities that provide consumers, employees or business-to-business audiences an incentive. Promotion also includes co-operative activities that involve other participants in the distribution cycle to help sell a product or service, such as retailers.

Additionally, promotion at many companies is also defined as all communication activity that is not established as traditional advertising or public relations.

One promotion definition often used that should be avoided is the suggestion that promotion is a temporary, short-term marketing activity. Indeed many promotions are designed to be very long-term, as they fit a continuing need for the brand/company and, although updated and evaluated from time to time, should remain a core marketing effort long term.

Pubic relations (publicity) in many companies is not considered marketing, but in some firms will act in concert with advertising and promotion to form an integrated plan. Generally, public relations (p.r.) seeks the non-paid (editorial) segments of media to convey information and favorably effect public (or trade) opinion. The gray area between promotion and “product publicity” comes with activities such as event marketing. In some cases, the option to include such efforts in the p.r. plan (and budget) vs. the promotion plan (and budget) is an individual decision that will vary by company.

Relating Promotional Objectives, Strategy & Target Audiences to the Tools of Promotion

The best start for sound promotional planning is a set of well-defined objectives that establish the role or goals to be accomplished by the promotion(s). In some cases, more than one objective can be accomplished, but generally it is best to limit the objectives to be accomplished by any one promotion to a reasonable level of expectation. Some common objectives for promotion are as follows:

1. To gain trial among non-users of a specific brand or consumer service.

2. To increase repeat purchase and/or multiple purchases.

3. To expand product/service usage, e.g. to encourage consumers to use a given product/service for applications other than its primary use.

4. To defend position (share) against competitive threats.

5. To support and reinforce an advertising campaign/theme or specific image.

6. To increase distribution and/or retailer/dealer cooperation.

The Tools of Promotion Overview

As an overview, promotional tactics can be separated into three basic types:

1. Those distributed or advertised by media or mailing.

2. Those carried on or in a package or at the point of purchase.

3. All others.

Promotion Tools and Targeted Audiences

In many cases, the choice of a promotion tool and its method of delivery (or choice of media) will be greatly influenced by the target audience for the product or service. Some of the more obvious examples would be the choice of a magazine to advertise any promotional offer, e.g., cosmetic offers in women’s magazines, or men’s electric razor offers in men’s magazines. Additionally, with the vast expansion of TV target audiences as a result of cable TV, much more selectivity is available today. In much the same vain, radio audiences today in most major markets offer diversified selectivity, by age groups and other demographic choices.

Traditionally, consumer promotion offers are associated with printed communications (magazines, FSIs, direct mail) because of the need to make a printed offer such as a coupon or sweepstakes entry blank. More recently, however, TV and radio are being used as well to build retail traffic and often in conjunction with print, as in TV commercials tagged with “Look in this Sunday’s newspaper for a coupon.”

One of the best methods of targeting a promotional offer is direct mail, because mailing lists can be segmented by demographics, geography (ZIP codes, etc.), ownership characteristics, and even lifestyle. Marketers can deliver promotional incentives through individually created and customized “single sponsor” mailings or via direct mail “co-ops,” many of which offer demographically selective target audiences such as Hispanic and/or African-American families, seniors, teenagers, or families with new babies.

Promotion Tools and Integrated Marketing

The creative and strategic use of promotion tools is often the best route to integrating an overall marketing program for maximum impact. Promotion tools get consumers involved in doing something, sending away for something, entering something, or redeeming something. Probably the best examples are brands or services that have used premiums to complement and gain consumer involvement in a consumer advertising campaign. Classic examples include the Campbell Kids, the Green Giant, and Tony the Tiger.

A more recent example from the Promotion Marketing Association’s 1998 Marketer of the Year, Taco Bell, is the in-store premium offering of the chain’s TV commercial star, a Spanish-speaking Chihuahua. In 1998 and again in 1999, Taco Bell offered a series of stuffed “talking” dogs available only at their retail fast-food outlets for $2.99. To date, more than 20 million talking Taco Bell dogs have been sold at retail and customers love them.