Promotion is one of the market mix elements, and a term used frequently in marketing. Fundamentally, there are three basic objectives of promotion:
- To present information to consumers as well as others.
- To increase demand.
- To differentiate a product.
There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product.
Promotional Pricing
Promotional pricing means temporarily reducing the price of an established product in order to increase interest in customers. This is sometimes done because the sales of the product are falling and the firm wants to renew customer's interest in it. Or perhaps the product has gone out of fashion, and the firm wants to clear their stock (e.g., sales on last season's clothes).
Promotional pricing often involves reducing prices to unsustainably low levels. In some cases, products and services may be sold at or below cost. A buy-one-get-one-free scheme may even be used. When this is done, interest in goods can be greatly increased, meaning sales are also likely to increase dramatically.
This technique may be used by retailers or producers alike. When it is used by retailers, the goal is generally to attract attention to the business and to attract regular customers. When the technique is used by producers, the goal is generally to attract customers to a product or brand and to encourage brand loyalty.
Quaker Oats man
A Quaker Oats promotion at a Publix grocery store.