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PROMOTION

WHAT IS PROMOTION?
 Promotion is a marketing activity used by
businesses to encourage an increase in sales in
the short term.

 It is different from advertising since advertising is


for long term communication.
TYPES OF PROMOTIONAL
STRATEGIES
PRICE DISCOUNT
 When using this technique the business reduces
the price of goods to attract customers, for a
specified time.

 For example, Shoe Locker having a sale on brand


name shoes over the weekend.
FREE SAMPLES
 This technique is used with new products on the
market. Customers are given a small portion of
the product to try. This is done to encourage them
to buy the product if they are satisfied with it.
FREE SAMPLES
 For example, S.M. Jaleel may give out samples
of a new juice in groceries or, Neutrogena may
give out samples of a new face cream at
Pennywise cosmetics.
FREE TRIALS
 This is another technique used with new
products. The product is used for a period of time
and, if the customer is dissatisfied, he /she gets a
refund.
FREE TRIALS
 For example, Proactive the acne medication, has
a 30 day free trial to encourage customers to try
the product since it is new on the market.
COMPETITIONS
 The firm may have a competition to encourage
customers to buy more of the product than usual,
for a time period, in order to enter.
COMPETITIONS
 For example, Chubby soft drink, may hold a
essay writing competition for kids, requiring
customers to enter using 10 labels per entries.
LOSS LEADERS
 A business can reduce the price of a product,
without making a profit on it, in order to attract
customers to the store for a time period.
 For example, a store can reduce the price of T-
shirts to attract customers. Once customers come
in the store, they will be tempted to buy other
items.
BUY ONE GET ONE ( BOGO)
 Another popular promotional strategy is, “buy
one get one”.

 For example, Payless Shoe Stores may have a


BOGO sale for a time period. Customers may get
half off the second item or the second item free.
FREE GIFTS
 A business can give free gifts to customers upon
purchases.
 For example, Courts furniture store give
customers gifts upon purchases during the
Christmas season.
LOYALTY CARDS
 Another effective promotional strategy are
loyalty cards. Customers who receive these cards
can receive special discounts upon purchases.

 For example, customers who receive cards from


clothing stores, can receive a discount after
every $200.00 spent.

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