Promotion is one of the 4Ps of the Marketing mix.
Remember for the exam:
Factors that influence the promotional mix
 | Target market – depending on the customers the Product is aimed at, will influence the promotional mix that the business wishes to use. For example, a zimmer frame business may choose to target customers with print promotions, as these are the media that are traditionally used by the older generation. However, a business targeting a younger audience may choose to promote using digital media. Other factors such as age, gender, education level, Location and income will all play a role when a business selects which promotion method is best. |
 | The nature of the market is also a factor that can influence the type of promotion used. For example, industries with a short product lifecycle (like technology), will have different challenges from a market with a long lifecycle. For example, the marketing of Heinz Baked Beans (a rarely updated product), will be focused on encouraging brand loyalty and switching from competitors. This compares with the marketing of Apple which has new product launches every 3-months and would focus its marketing on increasing customer awareness of their new and innovative products and the benefits of the upgrades. Products at the beginning of their product lifecycle will have an intensive spend on marketing. |
 | Finance available – some promotional methods can be very low Cost or even free (social media). However, national newspapers or some broadcast media like national radio & TV ads can be very expensive for ad space. The methods a business chooses will be dependent on the finance that is available to the business. Finance will also play a role in the frequency of the advert and the location it is shown, as some locations may be more expensive than others, for example, a billboard in London vs a billboard in Jaywick. |
 | Competitor mix is also another influential factor and will influence based on the type and intensity of competition. For example, in a highly competitive market, a businesses may rely heavily on sales promotions to entice customers away from competitors. this practice is common in supermarkets, where the Net profit percent can already be as low as 3%. The methods used here will primarily be to switch customers away from competitors and prevent customers from switching to an alternative. |
 | The Nature of the product or service will link in closely with the target market of the product and the type of customers that are being targeted. Different product types will have different promotional methods suited to them. Some products may find that they are ideal for advertising in print media, such as catalogue order companies, whereas some may find digital media better, such as technology companies like Spotify or Netflix. Products that are complex or have moving parts may be suited for broadcast where all the details and features can be demonstrated and explained. Products that need to encourage an emotional feel may be better suited for broadcast media, such as a restraint where a TV advert could show steam coming from the food to encourage the feeling of hunger. Some products or services have legal restrictions on them, for example, it is illegal for companies to advertise for cigarette and tobacco products. Other industries that have regulations may include fast-food, where there is a ban in Place to advertising before 9 pm or to target adverts towards children. |
Promotional Objectives
Businesses will promote for 4 different reasons, these are known as promotional objectives and are what the business wants to achieve from its promotion.
 | Increased Sales – businesses may choose to promote with the sole purpose of increasing sales, this could be to sell a greater quantity or perhaps be able to charge a higher Price for their product by making it look luxurious and high quality. Remember the formula Sales Revenue = Quantity Sold x Selling Price so increasing either of these will result in increased sales. |
 | Increased Market Share – another common marketing Objective is to increase market share. Market share is the portion of sales when compared to competitors selling the same product. E.g. apple has 18% of global smartphone sales (Q1 2022), with Apple’s competitors taking the remaining 82%. The benefits of greater market share are that the business may be able to have greater control over the market, such as cheaper raw materials over their competitors, able to set the market prices and greater brand recognition. |
 | Develop Customer Loyalty – customer loyalty is another factor that businesses may Aim to achieve. New customers can be very expensive to acquire, however, getting current customers to come back can be an affordable way for the business to generate sales revenue. Additionally, happy customers are more like to pass on positive marketing messages via word-of-mouth promotion and post positive reviews online. |
 | Develop Brand Recognition – Brand recognition is how recognizable a business is based on viewing its product or logo, tag line, packaging or advertising campaign. A business can achieve this by increasing the frequency of its marketing stimuli (number of times a customer sees it) and also making sure that the marketing mix properly ties in with branding, colours and logos. For example, a theme park would rarely brand itself with both red and black and these colours do not symbolize happiness and joy. According to Forbes, Apple is the most valuable brand measuring $241.2 billion! Read more: https://www.forbes.com/the-worlds-most-valuable-brands/#662c7cda119c |
