INTRO TO PROMOTION

It is no longer enough for a business to have great products. Lots of businesses have those too.
Customers need to know about a great product and be persuaded to buy. That is the role of
promotion.

Promotion is all about communication. Why because promotion is the way in a business makes
its products known to the customers, both current and potential.

The main aim of promotion is to ensure that customers are aware of the existence and positioning
of products. Promotion is also used to persuade customers that the product is better than
competing products and to remind customers about why they may want to buy.

It is a common mistake to believe that promotion by business is all about advertising. It isn't.
There are a variety of approaches that a business can take to get their message across to
customers, although advertising is certainly an important one.

It is important to understand that a business will use more than one method of promotion. The
variety of promotional methods used is referred to as the promotional mix.

Which promotional methods are used depends on several factors:

Stage in the life cycle: e.g. advertising is important at the launch stage

Nature of the product: how much information is required by customers before they buy

Competition: what are rivals doing?

Marketing budget: how much can the firm afford?

Marketing strategy: other elements of the mix (price, product, place etc)

Target market: appropriate ways to reach the target market

The main methods of promotion are:

Advertising

Public relations & sponsorship

Personal selling

Direct marketing

Sales promotion
Main aims of promotion

Promotional activities have a variety of aims:

To inform current and potential customers about the existence of products

To explain the potential benefits of using the product

To persuade customers to buy the product

To help differentiate a product from the competition

To develop and sustain a brand

To reassure customers that they have made the right choice

Promotional methods – "above and below the line"

The way in which promotion is targeted is traditionally split into two types:

Above the line promotion – paid for communication in the independent media e.g. advertising
on TV or in the newspapers. Though it can be targeted, it could be seen by anyone outside the
target audience. Advertising is the main methods of above-the-line promotion.

Below the line promotion – promotional activities where the business has direct control e.g.
direct mailing and money off coupons. It is aimed directly at the target audience.
DELL
Advertising
Dell relies on print and media advertising as one of its main marketing
techniques. One of the latest media campaigns named “Future Ready” is a multi-
million dollar attempt by Dell to promote its technology solutions for enterprise
space makes an emotional appeal by illustrating the role of Dell technology in
assisting a little girl receiving a new heart from a donor.[2]
“Beginnings” is another noteworthy print and media marketing campaign
launched by Dell and the campaign attempts to associate the brand with an
entrepreneurial spirit, following the company becoming private in 2013. It is
important to note that, “Beginnings” marketing video clip has emerged into a
viral video in social media platforms, thus increasing the level of brand awareness
to a significant extent.

Sales Promotion
Sales promotion as a marketing technique is used by Dell in a frequent manner.
Dell official website has a dedicated page titled “Dell Coupons, Discounts and
Offers” that announces sales promotions and special offers for PCs, tablets and
accessories. Moreover, the company runs Dell Advantage Reward Program that
offers free second day shipping, exclusive access to presales and monthly offers,
and up to 20% discount on selected items. Dell also offers Promo eGift Card that
can be used to save up to USD 500 on selected TVs and electronic deals.
Additionally, the company regularly initiates seasonal and location-based sales
promotions.
MOUTH PUBLICITY
Word-of-mouth marketing (WOM marketing) is when a consumer's interest in a
company's product or service is reflected in their daily dialogs. Essentially, is it is
free advertising triggered by customer experiences — and usually, something
that goes beyond what they expected. Word-of-mouth marketing can be
encouraged through different publicity activities set up by companies, or by
having opportunities to encourage consumer-to-consumer and consumer-to-
marketer communications. Also called referred to as "WOMM" or "word-of-mouth
advertising," WOM marketing includes buzz, viral, blog, emotional and social
media marketing.
HARLEY DAVIDSON
Customer Relations When a person buys a Harley-Davidson motorcycle, they receive a free 1-
year membership to the Harley Owners Group (HOG), which was developed in 1983 as a
program to keep people active with their Harley. Simultaneously, it keeps the company close to
its customer. HOG has 295,000 worldwide members, 900 local chapters and is the largest
company-sponsored motorcycle enthusiast group. They conduct four US national rallies, two
touring rallies and 44 state rallies. These rallies encourage people to use their motorcycles and to
share in the excitement of riding. The people are given demonstration rides, have the opportunity
to ask questions, register their bikes and buy merchandise. According to Michael D. Keefe,
director of HOG, these rallies are considered "more like customer bonding. If people use the
motorcycle, they'll stay involved" (Berry, 104 ). " What the Harley management crew, who are
masters of marketing, do well is listen to their customers. The result is that Harley cannot keep
up with demand at current production levels" (Croghan 31). Company executives learn from
their customers by maintaining a database to track consumer desires. Company officers spend
almost every weekend from April through October at motorcycle events and dealerships
accumulating this information
The primary promotional tool for Harley-Davidson motorcycles are the HOG activities. Not only
does it serves as a customer relations device, but as a way to showcase and demonstrate new
products. As discussed in the image section, Harley develops a strong impression within
consumers. In 1983, the company developed a trademark licensing program which provides
income for dealers and the factory while expanding the total Harley experience. The company
program put a stop to bootlegged Harley Davidson merchandise and offered priceless
advertising. Harley has capitalized on the fact its product/image is chic. There are numerous
examples of fashion models draped over the bikes and wearing company T-shirts. The company
is starting to advertise in magazines geared to the general public. Twice a year, a Fashions and
Collectibles catalog is produced with various Harley merchandise. Clothes sold in stores such as
Bloomingdales and J.C. Penny exposes HarleyDavidson to people who may not have thought
about visiting a dealership. Another marketing strategy, Harley-Davidson Cafes, have been
opened in or near many dealerships to lure people into the showroom. In fact, the Harley-
Davidson Cafe in New York City won one of the 1994 Restaurant and Institutions Interior
Design Awards for its American appearance. Also, Harley-Davidson's advertising techniques are
so successful they were one of the 1995 finalists of the Kelly Award for advertising. The
company is able to promote the sale of its motorcycles by the financial services offered by
Eagelmark, a wholly owned subsidiary. The dealerships are becoming a one stop shop for bikes,
accessories, clothing and financing.