Organizing promotions is one of the areas in the advertising business. Typically, large companies need promotions, for which it is important to demonstrate a product or service “in person”. 
A business that is built on organizing promotions is highly profitable, since organizing this business does not require significant investments, while the potential profit can reach a high level.
Creativity and flexibility in action are the main criteria that are necessary to achieve success in this business. In most cases, the customer simply does not have the time to organize a promotion on his own and he has to turn to advertising agencies for help. In such a situation, it is necessary to demonstrate your organizational abilities and provide a competent plan for the event.
Organizing a business to conduct promotions is built in several fundamental stages:
- Business legalization is the main stage related to organizing a business. First of all, you need to decide on the form of doing business (limited liability company or individual entrepreneur).
- Search for office space. It is important to take into account the location and availability of accessible access roads. It’s great if the office is located in the central part of the city near a road with high traffic. It is also important that the entrance to the office is located on the front side of the building.
- Office arrangement and workspace optimization. At this stage, it is important to create an atmosphere that will maximally contribute to an excellent working mood.
- Finding partners is the most important stage in building a business for organizing promotions. There are advertising agencies in almost every city. It is with these advertising agencies that it is first necessary to establish partnerships, since they can provide orders for a certain percentage of the transaction.
- A full-scale targeted advertising campaign is 25% of success. It is necessary to identify your potential consumer and direct the advertising campaign specifically to him. In this case, these are small, medium and large businesses.
- Search for qualified workers.
The required capital investment does not exceed 100,000 rubles, most of which will be spent on renting and furnishing the premises. Full payback can be achieved in the first month; it all depends on how quickly the promotion is planned and carried out.
Almost everyone has witnessed how in stores people in bright clothes offer to taste a new type of cheese, ham, or wine. Buy 3 items and receive a fourth as a gift, look under the cap and win a miracle prize, buy one desired item in a set with some little thing - all such events are called the fashionable phrase promotion.
What are promotions
Translated from English, “promo” means promotion, improvement. A promotion is a set of actions aimed at promoting a brand, product or service provided. The consumer receives information about the product not from the media, television, but personally; he can visually familiarize himself with the product and test it. The most striking examples are the distribution of free advertising samples and tastings. The impact can be not only informational, but also stimulating: receiving a free product when purchasing a certain quantity of a product, receiving a gift after purchasing a product, or a discount on the purchase of goods or services. The goals of promotions can be different:
Promotion of a new or seasonal product on the market;
Liquidation of inventory, illiquid goods;
Product image support;
Increased sales;
Encouraging the buyer to purchase this particular product right now.
People have always used mechanisms to promote goods. For example, in 1804, coins of 5 francs were issued in France. Due to its large size and impressive weight, people were in no hurry to purchase a new monetary unit. Then Napoleon announced that he had personally signed a silk check for 5 million francs, which was sealed in one of the coins. The person who found the treasure coin could freely cash the check at the bank. All coins were sorted out within a matter of days. As a result, not only the costs of minting were paid off, but there was also enough for military needs. Yes, the “lucky” coin has still not been found; some collectors are still looking for it.
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Types of promotions
Promotions have become one of the most popular ways to promote goods or services. Consumers are quite bored with regular advertising, but people most often approach promotions with curiosity and genuine interest. The event is usually short-term in nature, and is carried out by promoters - specially selected and trained people. To attract the attention of consumers, promotional stands and bright branded or specific clothing are used. There are several main types of promotions.
Sampling (sampling)
Sampling means free distribution of goods or a bonus when purchasing another product. Samples can be distributed on the street, in retail outlets, sent by mail, and even delivered door to door. As popular wisdom says: “it’s better to bite, taste, touch once than to watch a commercial many times.” It must be said that product testing has been used since ancient times. At the markets, they first tasted sour cream, honey, cottage cheese, fruit, and then bought it.
Sampling can be of several types:
Pack swap ─ exchange, i.e. the consumer gives away the started pack, and in return receives a full pack. This type of sampling is most often used for small goods: chewing gum or cigarettes and is the most difficult, since it is very difficult to change the habits of, for example, a heavy smoker. In addition, sometimes such promotions can provoke an increase in sales from competitors. Not long ago, a large cigarette company “X” held a promotion: a person had to give away a started pack of brand “Y” cigarettes and receive a pack of “X”. People had a lot of ingenuity and they began to buy “U” cigarettes from nearby stalls, empty the packs, carefully put the cigarettes in a bag and give the pack with two cigarettes to the promoter. Thus, some smokers stocked up on cigarettes for several months, but nevertheless did not change their addiction to the previous brand;
Wet sampling ─ product tasting. There are stands with product samples at retail outlets. The buyer is offered to try sausage, cheese, juices, dairy products, etc. Such promotions are usually held in large retail outlets. The buyer tastes the product and in most cases purchases it. In addition, many people know that a hungry person buys much more than a well-fed person; and in this case, you can still try and evaluate the taste of the product. The number of sales increases several times. This type of sampling includes promotions of antiviruses and other useful computer programs. A person is offered to first install and try the program for free for a certain time, and only then purchase it;
Horeca sampling ─ presentation of alcohol and tobacco products in bars or restaurants. This type of sampling is effective when new varieties of elite alcohol or cigarettes appear;
Dry sampling ─ the buyer receives information about the product, and can take a sample home. A very common way is to distribute testers by pasting them into magazines. Such promotions are designed mainly for a female audience and the promotion of products for ladies: hygiene products, perfumes, cosmetics.
According to experts, a well-prepared and carefully thought-out sampling campaign can increase sales volumes by 2-3 times. But it is worth noting that organizing promotions of this type requires significant costs. This includes the production of samples, testers, and remuneration for promoters.
Leafleting
Leafleting is the distribution of leaflets, booklets, flyers. One of the most common and inexpensive methods of promoting goods and services. It is most often used when it is necessary to convey information to the consumer about discounts, sales, to attract people to specific retail outlets, entertainment venues, etc. Leaflets are handed out in high-traffic areas, for example, near the metro, and are placed in printed publications and mailboxes.
Flash games
Companies are developing flash games that fit their concept. For completing the game, various prizes and bonuses are awarded. The winner can be determined by rating for the entire period of the promotion or for some other time period. This type of promotion is relatively new in the CIS countries. One of the first companies to launch flash games for advertising was Rollton. The player had to help the cup of potatoes get to its destination. Every month the best player was awarded a mobile phone.
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Lotteries
The buyer purchases the product and becomes a participant in the lottery. He only needs to send the promotion code printed under the cap or on the inside of the package. For example, the 1000th code in a day or the 5000th in a week may be winning. Theoretically, you can win with just one code sent. But the more codes you send, the more your chance of winning increases. Accordingly, it is necessary to purchase a larger quantity of goods.
Accumulation system
The implementation scheme is very simple and extremely effective. The buyer finds promotional codes, collects them and exchanges them for prizes.
This scheme is also used for website promotion. In this case, visits accumulate. Users are asked to register and visit the site every day. As an incentive, after a certain number of days, an active visitor receives a gift.
Instant prize upon purchase
No registration, no sending codes: the buyer receives the prize instantly. This could be money hidden in product packaging or in special capsules, various prizes, or simply a gift for a purchase. The most obvious example is the promotion of Baltika beer, when the buyer could find under the lid bills in denominations from 10 to 1000 rubles or a prize bottle or a branded T-shirt.
On a large scale and with a huge prize fund, an instant promotional lottery “Monopoly” was held at McDonald’s, where, according to statistics, 1% of the population eats daily. Everyone who purchased any product had to find a sticker and read a message on it about their instant win. The lucky ones could win a million rubles, a car, various equipment, vouchers for tourist trips, cheeseburgers, ice cream and other products.
A very common type of promotion is a guaranteed gift for a purchase. For example, purchasing 4 liters. Neste motor oil, the buyer receives another liter as a gift. Or, when buying a washing machine, you become the owner of a terry robe. The purpose of the “gift with purchase” promotion is to encourage the buyer to make a choice in favor of the desired product. At the same time, the buyer remains satisfied. He made a profitable purchase, because he planned to buy this thing, and here he also got a gift.
It happens that people find out about interesting promotions and discounts after they end. To keep abreast of all ongoing promotions, you just need to go to the website of promotions in your region. On these same resources, visitors often exchange promo codes and thereby increase their chances of winning.
Creative competitions
The consumer receives prizes for his talents. This could be writing poetry, stories, making crafts, taking photos on a given topic, or demonstrating culinary skills. The winner is determined by open voting or jury selection.
A large number of creative competitions are organized by the Nestle company. For example, the touching “Million Hugs” photo contest recently ended. Young parents shared photos of hugs with their baby and received useful gifts for their child.
Flashmob
Flash mobs are a pre-planned action in which a group of people (mobbers) appear in a given place, perform certain actions according to the script, sometimes even absurd, and then unexpectedly disperse. Initially, a flash mob meant a fun time. A mandatory rule was the absence of advertising purposes and refusal to cover the event in the media. Now flash mobs are actively developing in the advertising business and many companies use them with great success to support their brand and products.
A bright and incredible flash mob was held in France for the Tic Tac brand. The actors came out to the city square and began asking passers-by for directions. At that moment, when they began to explain to them how to get to the right place, all the people nearby began to fall like dominoes. The frightened passerby began to look around. And in order to prevent him from coming to his senses, the screens began showing videos of people falling in the most unexpected places, as if in a chain. At the end of the video, one of those lying on the ground offered a Tic Tac to a passerby. After that, everyone immediately came to their senses, and life went on as usual.
A promotion is a combination of a number of decisions and is implemented as a promotional action. brand. The term is derived from the word promotion, which means development.
Promotions include different forms of influence on the control center. Three can be distinguished:
Informational, during which the demand. can see the product, taste it, learn about its properties and benefits;
Involving, when a person receives advantages in the form of all kinds of bonuses and privileges;
Psychological. It stems from interest of various kinds (the desire for new sensations), the chance to get more, as mentioned in the previous paragraph.
Characteristics of promotions
1. The key feature is their short duration. We can talk about a limited number of days or even a day. Moreover, the time is always limited - this is how the message gets across: hurry up to participate, don’t miss out on the benefits!
2. Promotion belongs to the category of indirect or hidden advertising - in contrast to television and others. Promotions are based on non-standard actions that convey information about the brand to the target audience. The special importance of promotion is that the audience often does not perceive the advertising background of the action, but sees the benefits of participation, and for this reason begins to act.
3. Promotions, regardless of type and scope, are based on incentives. The signal to make a purchase is reinforced by a number of incentives: tasting and testing, the opportunity to receive a bonus, prize, gift.
4. The key task is sales growth. The global task, in turn, implies fragmentation into components:
Getting to know the brand, product;
Increasing recognition of goods and packaging; obtaining information about its properties and advantages;
Switching from competitors' products to participating products;
Increasing the number of new brand followers;
Launch of new products;
Breaking stereotypes about the product (expanding the number of advantages, etc.);
Formation of positive emotions that give advantages to the product.
5. Promotion involves serious preparation: working out the mechanics of the promotion, budget and prize fund, development, involvement of personnel, purchase and delivery of special equipment, printing, etc.
Main types of promotions
First, let's select the groups:
1. Promotion, the purpose of which is to attract consumers, or Sales promotion.
2. Various events - Event marketing.
3. Promotions targeted at those involved in the marketing cycle. These are managers, distributors, sellers, etc. The term is Trade promotion. You can read about this in other materials.
Types and characteristics of promotions related to Sales promotion
1. Organization and holding of exhibitions. The main task is to attract new loyal customers and get acquainted with the product. The first step is to attract attention to the stand, and then the whole program comes into play. An exhibition is a large-scale mechanism; several groups of professionals are involved in it: they provide information, answer questions, distribute samples and gifts, arrange meetings with business partners, etc.
2. Leafleting, or distribution of leaflets, flyers, coupons and other printed materials. The task is to convey information about upcoming events and activities. Distribution materials must contain information about the product (TM), store, time, contacts. Often a campaign slogan (motto) and a small amount of enticing text are added.
This type of promotion is ideal for information. about the opening of new centers and boutiques, about the start of promotions, about discounts, the arrival of new collections, etc.
Leafleting is one of the proven, classical methods that have repeatedly confirmed their effectiveness. This method is low-cost, but due to its widespread use, its returns have been declining in recent years. And consumers are tired of the abundance of advertising, and in the flow of messages they do not always notice the most valuable ones. The solution is to make people interested: metro maps, recipes, tips, interesting and useful information are placed on leaflets and other materials.
3. Organization of tastings and testing. A great way to get acquainted with products that attracts almost everyone. Tasting is most relevant when introducing new consumer goods. The advantages are obvious - after all, any potential client can evaluate the taste and quality of the product. If the assessment is proper, the chances of further action, that is, a purchase, increase significantly.
Tasting and testing is a very expensive type of promotion, but at the same time it is also the most effective. As a rule, the costs pay off, if not immediately, then in the future. Since the product you like takes its place in the list of priorities, in the consumer basket for a long time!
Tastings are held both in shops and shopping centers, as well as in clubs and restaurants. These establishments will be optimal for the categories: alcoholic drinks, cigars, etc.
4. Sampling. Involves the distribution of samples. An excellent solution for promoting a brand to the masses, as it is based on psychology: even a lazy, jaded person won’t refuse something that you don’t have to pay for! The consumer seems to be naturally persuaded to test the product and then make a purchase.
The sampling method mainly concerns goods from the non-food sector, and is designed for new consumers, but it also has a good effect on brand loyalists. Sampling options: distribution in places where there are large crowds of people, as well as distribution by placing mini-packs of cream, perfume, etc. in magazines.
5. Using prizes to encourage more purchases. The method is fail-safe: a person gets a chance to buy more - but without overpaying! The following formulas usually apply:
By purchasing two units, the consumer receives the third product for free, in the form of a gift
When purchasing two goods, the buyer pays for one
6. Organization of lotteries in which prizes are drawn. The lottery mechanism is usually standard: first - purchase, then registration, the number and data of which are included in the drawing of various prizes. values, including the main one. This type of promotion is attractive because it leads to a certain excitement and stories to your friends; thereby increasing the total audience that learns about the promotion.
7. Guaranteed winnings, or a gift for a completed purchase. Another type of promotion that relies on psychology. Everyone loves gifts, regardless of age. Promotions where gifts are distributed are invariably successful. Such solutions are suitable for manufacturers from various segments, but are especially significant for goods with serious advertising restrictions, such as cigarettes and alcohol.
8. Conducting quizzes and competitions. They involve in the communication process. Often, acquaintances are involved, who, for example, must vote, etc. Such actions are distinguished by the fact that the commercial result does not come immediately, it is not so obvious. But a long-term effect is achieved.
9. Short-term price reduction. Such promotions involve reducing the price by a certain percentage during a given period (days, week), or even during happy hours. The goods are supplied with a special price tag and laid out on special racks.
10. Variety different programs loyalty. They increase consumer involvement and play a significant role in increasing brand loyalty. Such programs boil down to receiving bonuses for a purchase of a certain amount, or for the purchase of several units belonging to the same TM. There are both simple and multi-stage programs, when over a long period of time, with each purchase, points are accumulated and the number of bonuses increases.
Additional types of promotions
1. Creation of special promotional packaging. They already contain a bonus in the form of a product (of the same or smaller format or volume). The cost does not increase; the benefit is that a person usually purchases a package of several products, rather than just one. This is an increase in sales volume. Consumers, naturally, receive more, which pleases them.
2. Development and implementation of POS materials. The goal is to attract attention with the help of additional sources of information. Different visual materials are placed at points near which they are easier to notice.
3. Creation of a portable promotional area, or brand area. It is created on the territory of the retail outlet, the busiest places are used. This “island” is equipped with mobile structures and counters where goods are placed and promoters work. These promotional zones can hardly be called budgetary, but they are often built in order to increase the recognition of an existing brand, or to enhance the visualization of a new brand.
4. Creation of special packaging. Usually, the usual packaging design and pattern changes in honor of a promotion or significant event that is important to the audience. An example is holidays, major sports tournaments, etc. Bright special packaging attracts attention to a product that has already become familiar.
5. Use of a coupon system and affiliate programs. You can only receive a discount upon presentation of a coupon. It also performs the task of announcing new products, promotions, and attracting new expenses.
6. Return of a certain percentage of money. The consumer is guaranteed a refund of an agreed percentage of the purchase amount. Such promotions are in demand and serve as a good incentive to buy more than one unit of a product.
7. Implementation of the club program. The essence is the creation of a certain community of adherents of a particular brand, increasing loyalty to the TM. Club membership provides benefits to community members compared to ordinary customers: information about new products, promotions, receiving privileges when purchasing, additional bonuses and prizes. In the era of the Internet and social networks, this promotional format is very attractive to the audience.
Image promotions
1. Charity events, when part of the funds goes to appropriate purposes. Several objectives are achieved here. The manufacturer improves its social image in the eyes of people, at the same time adding advantages to the brand. The buyer makes a purchase, and at the same time becomes involved in solving a problem of a moral and social nature. Thus, a person feels important and useful.
2. Sponsorship. A situation where important events (sports, culture, children's events) are supported with the help of a company (sometimes a brand is also included).
Promotions related to Event Marketing
These include various events aimed at popularizing the brand and services. The most common types of typical events can be cited: presentations and corporate receptions, parties and fashion shows, exhibitions and concerts.
Event marketing is based on positive emotions, brightness, and creating a festive atmosphere. This helps attract consumers and increase their level of loyalty. Such events are expensive, and they are organized by those who strive for a breakthrough and decisive action in the market.
0 In this article we will talk about another stupid word that was forcibly introduced into the Russian language through television and radio broadcasting. This word is called "Promo". What does Promo mean?? However, before continuing, I want to recommend you some interesting articles on the topic of musical jargon, for example, what does Deb Gesture mean, who is Directioner, how to understand the term Diko, what is Dubstep, etc. If there was a shortage of goods in the USSR, then In our difficult capitalist times, so many different goods are sold that they have become difficult to buy. In order to “forcibly” push a product that was essentially useless to anyone, they came up with Promo. Various promotions influence the consumer in such a way that he is instilled with the idea of purchasing this particular brand or brand, going shopping only in strictly defined stores, having fun in these specific nightclubs, etc. The term “promo” was borrowed from the Latin language " promotion", which can be translated as promotion.
Example:
On our website there is a super promotion, buy two completely useless crap and get one crap completely free.
A promotion pushes a person to make a purchase now, rather than putting it off for the future. Such activities are called “promotion” among businessmen. In general, the word "promotion" can be interpreted as "moving forward", that is, to force the buyer to perform an action, usually to part with his money.
In order for promotions to be memorable and have an impact on the psyche of a potential client, they are made memorable and bright. For example, bright glossy materials, noticeable uniforms of promoters, beautiful cute characters next to each product. All this should form a positive perception of the promoted product and arouse strong interest.
What does Promo Room mean?
If you are a fan of making tourist trips, then you have certainly come across such an expression as “promo room”. What is Promo Room? Even people sometimes find it difficult to answer this question." savvy", working in travel agencies. However, many are attracted by the "promo room" because of its low cost. Let's try to figure out what a promo room is and what it comes with.Usually this is a standard room that can be booked at a low price. Why does the hotel need this? Everything is done to ensure that the hotel is placed in various price categories, since when searching on the Internet it is now possible to place price filters. Therefore, the “visibility” of expensive hotels among budget searches increases noticeably.
What types of Promo room numbers are there?
Promo room triple- this accommodation is provided strictly for 3 people;
Promo room dbl + chd- this double room has an extra bed for one child from 2 to 14 years old;
Promo room- in this case, the abbreviation “al” means that the food will be “all inclusive”;
Promo room dbl- this is a regular 2-bed room.
What does a promo plane ticket mean?
Few people know that it is possible to save on purchasing air tickets. Promo rates allow you to buy seats to some destinations at quite “delicious” prices. In fact, it doesn’t really matter where you fly; it could be a recently opened or popular route. Each carrier has its own set of promotional tariffs.Why do promotional rates appear?
The airline itself sets the length of stay of the traveler in the country of flight. maximum(maxistay) and minimum(ministay) - this allows you to reduce the price of air tickets;Ticket exchange or return is subject to fines, and in some situations such actions are impossible in principle;
Possibility of manipulating air tickets, such as changing fare conditions, various combinations practically absent;
Air tickets are sold in a short period of time, sometimes just a couple of days;
Limited number of air tickets.
Igor Gusakov,
Director of Consulting at GoodsForecast,
Forexis Group of Companies
A price promotion can have a tremendous impact on sales: with a significant price reduction, the increase in sales can reach several hundred percent! In addition, this is one of the few so-called Volume Building Blocks (that is, company actions that lead to changes in sales: advertising, promotions, motivational programs that stimulate the work of sales personnel, changes in product prices, etc.), influence which can be realistically assessed for sale. It's not nearly as easy as it might seem, but it's still possible.
What is a price promotion? By this term we will understand the actions of the manufacturing company aimed at reducing the price of its product at points of sale.
The easiest way to reduce the price of a product in a store is to reduce its selling price for the store itself. Naturally, you must first agree with the store to reduce the price for the buyer. Otherwise, the retail outlet may not change the price of the product, and simply pocket the difference. There are other options. The manufacturer and the store can reduce the price at the same time, or only the store will do this if the manufacturer can convince it.
Promotion support
The buyer must somehow understand that the price has changed. Not every person remembers the cost of all the goods he buys and will immediately notice a decrease in price. The buyer's attention to this fact can be drawn in various ways:
- place a special price tag in front of the product notifying about the promotion,
- include the product in the advertising brochure,
- broadcast advertising about price reductions on internal television, if it is available in the store,
- place the goods in a special way or in special places, and so on.
We will call all these actions support for the action. It has a huge impact on how many goods are sold during the promotion. After all, the more buyers find out about the price reduction, the more likely they are to buy this product. However, if a competitor finds out about the manufacturer’s plans to hold a promotion in a particular store and also reduces the price of a competing product, there may not be an increase in sales, despite the price reduction. Information about all the factors influencing the dependence of sales volume on price reduction is extremely important.
Elasticity table
Let us now turn to the question of finding the relationship between the sales volume of a product and its price. This task is not always related to price promotion. Let's assume that a company has released a new product. How much should this product cost in the store? The lower limit is the cost of the product. If the product has competitors, you also need to focus on their cost. Often, especially if the product is new, research companies are hired to ask potential buyers whether they would buy the specified product at a particular price.
Example. Let the break-even point, at which the company neither earns anything nor loses anything, be 10 rubles. Researchers surveyed 1000 people, asking each 10 questions: would you buy this product for 10 rubles, for 11 rubles, for 12 rubles, and so on, up to 19 (we will assume that no one will buy the product for 20 rubles)? Let's put the answers in a table and immediately calculate the company's profit by subtracting 10 rubles from the price of the product and multiplying by the number of potential buyers willing to purchase the product at that price:
Table 1. Dependence of the number of potential buyers and profit on price
Rice. 1. Dependence of the number of potential buyers and profit on price
It can be seen that the company will receive the maximum profit in this example at a product price of 15 rubles. The dependence shown in Fig. 1 in blue is called the price elasticity, and Table 1 is called the elasticity table. For consumer goods in general, the elasticity is low - when the price increases, demand almost does not change, since these goods are needed in any case. But for a specific consumer product in a competitive environment, the elasticity is high, that is, the higher the price, the fewer sales: buyers switch to competing products.
In the future, we will consider a similar, but still somewhat different dependence, namely the dependence of sales growth on the size of the discount on the product. Let's go back to the previous example. The company has determined that the optimal price for the product is 15 rubles, and sells it in stores at this price. A particular store sells 850 units of this product per day (for simplicity, data is taken from Table 1). Thus, the manufacturer earns 4,250 rubles per day. Then the manufacturer decides to hold a promotion, reducing the price by 20%, to 12 rubles. The number of purchases per day will increase to 960, but the profit will be only 1920 rubles, that is, it will be significantly lower. Why then would a company hold such an unprofitable event?
Promotional goals
Nobody said that price promotions must necessarily bring profit. It may serve other purposes:
- Those store visitors who try the product for the first time, noticing the price reduction, may later (if they like the product) become regular customers.
- The number of buyers may grow significantly more than indicated in the table. If a product has a long shelf life, you can buy it for future use while the price is low.
- We must not forget about the psychological factor - having seen a significant reduction in price, many buyers make a spontaneous decision to purchase a product, even if they did not initially plan to do so.
- There may be other reasons: an excess of goods in the manufacturer’s warehouse, similar activity of competitors, a drop in demand, an excess of raw materials that require urgent processing, etc.
Now suppose that the number of purchases with such a decrease will triple. Then the company’s profit will be (12-10)*(3*850)=5100 rubles. But you shouldn’t expect sales to remain at this level for a long time. Therefore, price promotions usually have a limited duration - from a week to a month.
In the next article we will look at how to estimate sales growth when conducting a price promotion.
Increasing competition in all markets without exception leads to marketers striving to find new ways to promote products. Today, advertising is increasingly using hidden and non-standard ways of influencing consumers. As a result of the search for new methods of promotion, BTL appears, i.e. indirect advertising, which also includes promotions. How to conduct them? And what types of them exist? We will talk about all this in our article.
Concept
So, we are interested in explaining, probably, there is no need to explain, but what does “promo” mean? Translated from English, this word means... "advertising". It couldn’t be simpler, could it? And yet, we invite you to delve a little deeper into the jungle of marketing and define the concept of product promotion. This term refers to a set of measures to convey to the consumer information about the advantages and merits of a particular thing (service, brand, manufacturer) and encouragement to make a purchase. The main promotion tool is advertising. It can be direct media (ATL), which we are all accustomed to: television and radio commercials, billboards on city streets, etc. But the consumer is reacting less and less to such methods of advertising, and there is a growing need to come up with new options for conveying marketing information to the population. This is how indirect, hidden advertising, or BTL, appears, which includes promotions. They mean non-standard actions to convey information about the product to the consumer. The latter is involved in the process of obtaining information and often does not even notice the advertising nature of the message or sees additional benefit in it and therefore decides to take part in this action.
Goals and objectives of the promotions
Any promotion always has a main goal - to increase product sales. But various steps lead to this super goal, including promotions. This method works well: as a result, it is possible to achieve solutions to specific problems that allow us to get closer to the global goal. They can be aimed at:
Increasing consumer awareness about the properties of the product;
Incentives for trial or repeat purchases;
Attracting new consumers;
Introducing new products and brands to the market;
Fight against stereotypical ideas about the product;
Formation of positive emotions in connection with the product.
Planning
There are several types of promotions, and their number is only increasing as marketers constantly strive to find new ways to advertise products. However, the stages of preparing such marketing actions are generally lined up in one chain. First you need to decide on the purpose and target audience of the promotion. What is the target audience? with a certain set of characteristics (gender, age, income, etc.) with which communication will be established. Then the most suitable type of action is selected, its timing, geographical scope and budget are determined. Then a script for the action is drawn up, personnel are selected, and the necessary materials are produced (leaflets, stands, uniforms, etc.). All data is collected into a single plan, in which those responsible for each type of action are assigned. Then the action is implemented and its effectiveness is assessed.
Types of shares
The easiest way to answer the question is: “Promotions - what are they?” through their classification. The oldest type is sampling. Newer, but already familiar: leafleting, tastings, competitions, lotteries, gift promotions. Among the newest types, it is worth mentioning switch selling, i.e. exchanging competitors' products for a promoted product, bonus promotions, coupons, cross-promotion, i.e. promotion paired with a non-competitive product, flash mobs. Promotions also include the area of merchandising, i.e., designing a point of sale with POS materials, consulting on the sales floor, etc. Some researchers also include marketing activities on the Internet.
Sampling
Giving out samples is a surefire way to get people to test a product. Free products are very attractive to the target audience. There are several options for sampling: distributing samples in crowded places, distributing through print media (gluing bags of shampoo, cream, perfume into magazines), exchanging half-empty packs for full packs of goods. When using sampling, you need to carefully study your target audience and their needs. Thus, not every customer will decide to take a bag of cheap mayonnaise in the lobby of an expensive store, because this may “hit” her image in the eyes of other visitors to the outlet. Conversely, giving away an expensive premium product in an economy store makes no sense. Since buyers will gladly take a sample, but are unlikely to ever make a purchase.
Leafleting
Coupons and flyers were very successful a few years ago. Today, this very cheap method of advertising has become so common that it has discredited itself and does not give the desired effect. Although leafleting is a very quick way to notify the target audience about something, for example, about an upcoming promotion in a store. But carrying out promotions with the distribution of leaflets needs to be carefully thought through. The consumer no longer takes or reads simply informational texts. He will read and save only what is beneficial to him. Therefore, leaflets need to be given value in the eyes of the consumer. That is, the received text must provide a benefit: a discount, the possibility of exchanging for a gift, etc. Or it must be interesting to the consumer - for example, until recently people were happy to take pocket calendars. Today you can interest a potential client by printing some recipe, advice, or other useful information on a leaflet.
Gift with purchase and raffles
Human nature is such that he loves gifts at any age. Therefore, promotions with the distribution of gifts are always a success. This is a great way to encourage the buyer to make more purchases, or at least one trial purchase. There are many options for such promotions. This could be the exchange of coupons or packages for prizes. An example of such promotion could be an advertisement for Magnat ice cream - the “Buy ice cream and win a car” campaign. In 2014, the company gave away two Porsche Caymans in pink and black, thereby encouraging customers to try new varieties of the cold dessert. In 2016, the ice cream manufacturer Magnat, whose Lamborghini promotion broke records for popularity, repeated its success and within 3 months accustomed customers to a new type of product. Promotions with gifts and lotteries are especially beneficial for those companies whose products are prohibited from advertising in the media (alcohol, cigarettes). An example is the Ochakovo company, whose promotional campaign “Win gold and silver bars” also brought dividends.
Competitions and quizzes
Another option for distributing gifts is a variety of competitions, which not only push consumers to purchase a product, but also involve them in communication. Very often, for example, photo competitions are held in which the winner is the one who gets the most votes. This not only forces the consumer to participate in the contest, but also encourages them to recruit their friends to vote for them. This leads to the participants disseminating information about the project themselves and reducing the company’s advertising costs. For example, EUROMAG magazine conducted a quiz “Win a trip to Norway,” encouraging consumers to learn more about the country’s tourist attractions and generating pent-up demand. Such shares do not bring immediate commercial results, but have a prolonged accumulative effect.
Tastings and testing
Once a consumer has tried a product, the chances of him making a purchase increase greatly. This is why tastings and tests are so popular when promoting products. Yes, this is a costly method of advertising, it requires special training, but with proper planning it is completely justified. You just need to carefully choose the location of the event. Thus, many residents of megacities remember how several years ago on weekends in hypermarkets there was literally no crowd to squeeze between the promotional stands with tastings. You need to understand that a consumer of the middle and high-income group will not try the product in a hypermarket. But in a restaurant or club, he will be happy to taste wine or cigarettes.
Advantages of shares
Involving consumers in communication with a product is today the most progressive way to promote the latter. Advertising campaigns (promotions) allow you to tell consumers about a product and overcome negative attitudes towards advertising. Promotion is a troublesome and often expensive business, but it usually brings quick and visible results.