Why is promotion in the marketing mix important?

Promotions are tools that marketers use to communicate with the audience and make them aware of the brand or product. It helps increase sales as well as maintain long term customer relationship.

When consumers are making a purchase decision, they weigh the value of their money against the benefits derived from a purchase. Promotions attempt to nudge this cost/benefit analysis in the brand's favor.

In short, promotions help in creating an interest among people and inculcates a desire to buy it.


The marketing mix is a set of tools that are used by marketers to ensure success for their products or services in the market. The term was coined by Neil Borden in 1964 and was later popularised by E. Jerome McCarthy in 1960s. In 1981, Borden published an article “The Concept of Marketing Mix” and stated there were only 4 elements of marketing mix — product, place, price and promotion.

McCarthy later added 3 more Ps to the list — packaging, positioning and people.

The first three elements of the marketing mix are often cited as the most important: product, place, and price. However, you shouldn’t ignore the fourth. Promotions are a key part of the marketing mix, and they can be one of the most effective ways to increase sales. A sales promotion is a short-term incentive that offers discounts, bonus products, or other special offers to customers. It's a way to get customers to buy your product or service. The purpose of promotion is to increase sales and create awareness for your product or service.

Promotions alone won't solve all your problems but if you can use them properly they can make a big difference, especially in the beginning when your company is new and no one knows about it. Here are some things to consider when planning your promotional strategy:

Make sure you have clear goals in mind before you start spending money on promotions.

In a marketing context, what is the meaning of promotion?

A promotional campaign is how you communicate the product, brand or service to the user. It can be done in a variety of ways, including advertising, public relations, personal selling, and direct marketing. Promotions are often used as marketing tools by companies and small businesses. They help to boost sales and create awareness about the product or service. It's important to have a clear goal for your promotional campaign and to track the results so you can see how well it's working.


Promotions are often used as marketing tools by companies of all sizes and industries. They help to boost sales and create awareness about the product or service. It's important to have a clear goal for your promotional campaign and to track the results so you can see how well it's working.

Create a positive reputation

Promotions are a vital part of any successful business. They can help you attract new customers, retain existing ones, increase sales and improve brand loyalty. However, to be effective, you need the right promotion strategy. Otherwise, you could end up spending money on promotions that don’t give you the results you’re looking for. In this guide, we’ll explain how to use promotions to grow your business.

Why are promotions important?

Promotions are important for every business — large or small — for a number of reasons:

1. They draw attention to your business

For a new business, it’s crucial to get noticed and establish a customer base as quickly as possible. Everyone loves a good deal or freebie. If you offer these, people will take notice — particularly if they’re looking for the products or services that you provide.

2. They help build brand awareness

Promotions help get your name out there in front of potential customers. And once they know your name — as long as it’s associated with positive things like great products and customer service — they’re more likely to consider buying from you in future.

What's the importance of promotion in marketing?

There are many different aspects to marketing, and promotion is one of the most important. Promotion is all about getting your message out there, and it includes advertising, public relations, and marketing communications. It's important to have a good promotional strategy, and to use a variety of different methods to get your message out there.

A sales promotion is a great way to increase sales and to get people interested in your product or service. It's important to make sure your sales promotions are effective and that they reach the right people. The meaning of promotion is to advance or support something. In marketing, it means using a variety of methods to get your message out there.


A great way to promote your business is through social media. There are a lot of different ways you can use social media for promotion, but the most common ones are through Facebook, Twitter, Instagram, LinkedIn, Snapchat, Pinterest, Tumblr, YouTube and other video sites like Vimeo. You can also use email marketing as a promotional tool by sending out newsletters or special offers via email. You should also consider promoting your business on other websites such as Yelp or TripAdvisor if you offer services such as restaurants or hotels.

Using a variety of different methods for promotion can help you reach more people and keep them engaged.

Word of mouth marketing

When a friend asks you whose services you trust and would recommend, they are asking you to provide a referral. This is the first stage of the referral process, and it’s a phenomenal opportunity for your business. The question is, how do you take advantage of this opportunity?

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 referred to as "word-of-mouth advertising," it includes buzz, viral, blog, emotional, and social media marketing.

The power of word of mouth has been proven time and again. Word of mouth is one of the most effective forms of marketing because it is based on personal recommendations from people you trust.


It's so powerful because it often feels like an unbiased recommendation from a friend or expert who's been there and experienced your product firsthand. In fact, 92% of consumers trust recommendations from friends and family over other forms of advertising.

In addition to being a more trusted form of marketing, word of mouth can also be incredibly cost-effective — so much so that nearly all businesses could see an increase in revenue if they were able to increase word of mouth significantly.

The good news is that you don't need to spend big bucks on fancy incentives in order to get word of mouth working for you. These five basic strategies will help you develop a word-of-mouth strategy that grows your business even when you're on a tight budget.

Asking your customers for referrals is a great way to grow your business because people trust recommendations from friends more than they trust advertising. In other words, when someone recommends your business to a friend, that friend is likely to become a customer. And if the new customer likes the experience he or she has with your business, he or she might even refer others to you.

But before you start asking for referrals, it’s important to create an environment in which customers want to give them. If customers aren’t completely satisfied with your product or service, there’s no reason for them to recommend you—or even give your company another chance. So make sure customers are happy before requesting referrals!

Offer incentives

Promotion marketing is a powerful tool for growing businesses. It’s a great way to attract new customers, keep existing ones and increase brand awareness.

In fact, according to a CMO Survey, over the next five years, companies plan to increase their budget for promotional marketing by an average of 12%.

And that makes sense: every year, shoppers around the world save billions of dollars thanks to promotions.

Promotion marketing is a way to provide value to your customers. It is based on the concept that people love a good deal. At Talon.One, we define Promotion Marketing as: "The use of targeted incentives, rewards and special offers with the goal of influencing a purchase, attracting customers and increasing brand awareness."


The foundation of successful Promotion Marketing is the effective delivery of a valuable and relevant reward or incentive to the right customer at the right time.

Promotion Marketing uses methods like discounts, coupons, referral campaigns, loyalty programs and product bundling to achieve business goals.

Re-engagement incentives

Re-engagement is the process of reconnecting with a customer who has previously engaged with your brand, but is no longer active in your sales funnel. The goal is to re-activate them, and bring them back into your sales funnel by incentivizing their interest or involvement.

There are many types of customer re-engagement strategies, depending on the needs of your business model and marketing goals. The best re-engagement tactics depend entirely on what makes sense for you.

The key here is to personalize messages to increase the engagement rate of your customers.

Re-engaged customers also have a higher lifetime value. In fact, according to Salesforce, 77% of companies that excel at lead nurturing have above-average revenue growth. If you are interested in how to run successful and scalable promotions we recommend our Promotion Growth Framework.

What are re-engagement strategies?

Customer re-engagement strategies are designed to engage with customers who are no longer active, with the goal of re-activating them and bringing them back into your sales funnel through incentives or offers. The key here is to personalize messages to increase the engagement rate of your customers.


These are old or inactive customers, people who have made a purchase but not recently, people who showed an interest in your offering but have yet to convert.

Make your product stand out

Differentiation is a common tool used by businesses to stand out from their competitors. For example, Apple's marketing team has differentiated its products by incorporating design features and product messages that make them stand out from the competition. For example, the iPhone was originally marketed as "the phone for people who think differently," and the iPad was identified as "the computer for people with big ideas."

In business, differentiating your product can help you increase sales and improve brand recognition.

Differentiating your product is an important first step to creating an effective and sustainable promotion strategy.

If you want to build a successful promotion strategy, there are several factors to consider.

First, what are your main competitors? What are their strengths and weaknesses? How do they differentiate themselves from each other? What can you do to make yours different?

Next, what channels are you going to use to promote your products? Are they all complementary or will some be more effective than others? Is it better to focus on the website, email marketing, social media or another channel?

Finally, how will you measure the effectiveness of the campaign and make improvements over time?

Promotions as a product differentiation strategy

Promotion is one of the 4 elements of marketing, along with product, place, and price (the 4 Ps). A business needs to promote its products and services to create awareness about them. There are many promotion strategies for businesses to choose from.

You can use promotions to alter the financial value of your products in many different ways. Simple promotions, like discounts, only alter the price of a product. But, depending on the competitors you’re up against, and the category of product you’re selling, this may actually work against you. An unexplained low price will reduce the value of the product in the eye of the customer, and may make them question its build quality.


More complex promotional techniques alter the value of a product in different ways. For example, you could offer one product for full price, with 20% off another product as part of the deal. This doesn’t reduce the perceived value of the first product, and it gives customers the chance to get a second product for less.

A promotion strategy allows you to analyze your pricing options and find out what works best for your business. Some business owners assume that lowering prices will always increase demand for their products or services. But there are other options as well.

Create a referral program

A referral program is a great way to boost your sales revenue, get new customers and build long-lasting relationships with them by giving them an incentive to recommend your product or service to their friends or family. You can think of it as a system that allows you to give something in return for your customer’s recommendation.

What is the most important thing about referral marketing?

It’s not only about getting new customers, but also about getting quality leads and improving customer retention, because if a customer refers your business to someone else, it means they have a very high opinion of your company and are happy with the quality of your products/services.

In addition to that, people are more likely to trust recommendations from their friends and family over any paid advertising: 92% of consumers trust referrals from people they know. This makes referral programs an effective method of spreading the word about your business without spending a fortune on marketing campaigns.

Here is how you can organize a successful referral program in 5 easy steps:

  • Define your goal

  • Create an incentive that works for both your business and your customers (and this will depend on your industry)

  • Make sure to promote it as much as possible

  • Track the performance of your program

  • Create a clear call-to-action - what does the customer need to do in order to make a successful referral? What’s the reward for them & for the new customer?

Build an email list

Email marketing is one of the most effective ways to get new customers and build loyalty among existing ones. According to one survey by The Manifest, 70% of people say email is their preferred method of interacting with brands. Also, HubSpot reports that for every $1 spent on email marketing, businesses generate an average return of $42. With numbers like that, it pays to start building an email list as soon as possible.

Create a community

Community building is a big marketing buzzword, but what is a way you can use promotions to build community? Other than referrals, which we’ve also talked about, you can use community buying campaigns to foster a community around your brand.

In community buying campaigns, customers can access a higher discount if a large number of people purchase the same product in a given time span. We can use coupon code redemptions to track how many times the product has been purchased.


Let's imagine that we are a fashion brand and want to run a promotion on trousers. We want as many customers as possible to buy trousers on two specific days in March. To do this, we create a campaign to give customers a 5% discount on trousers if they redeem a valid coupon code on March 13. We also inform them at checkout that, if they buy more trousers the next day and more than 500 people participate in the campaign, they will receive a 10% discount.

This campaign can be useful to increase customer engagement and the number of orders placed.

Include promotions in social media posts

The first step to building an effective promotion strategy is to understand the most important factors for your business. For example, your age demographic will dictate where you want to promote your products, and your target audience will determine which promotions will be most effective.

For example, if you sell to millennials (aged 24-39), social media marketing is a must. And if your brand has a specific target audience, such as stay-at-home moms, then you’ll want to be sure that you’re targeting them directly through promotions on websites that they already frequent.

Once you have a clear understanding of who you are selling to, it’s time to decide where you plan on promoting your business.

It’s never been easier to include promotions in social media posts. Coupons can easily be turned into shareable graphics for social media. According to Chatter Matters, 83% of Americans are more interested in purchasing a product or service when they’ve received a verbal recommendation from a friend or family member. And social media is the perfect avenue to harness this.

Have a unique selling proposition

The best place to start promoting your business is by making sure you have a strong USP (Unique Selling Proposition). If your business is offering the same product or service as every other business in your industry, then you’re not going to be able to compete on price or quality alone. You need to be able to identify what makes your company different and why customers should choose it over the competition.


The first step in identifying your USP is simply to think about the strengths and weaknesses of your company. In order for a USP to be effective, it needs to be unique and memorable, so you want it to be simple and easy for people to understand. And because it only takes a few seconds for someone new to form an impression of a business, you want that impression to be as positive as possible.

Once you have identified what makes your company different, you can begin customizing your marketing strategy around that difference. Distributing free samples or discount coupons can be a good way of getting people’s attention if they’re already aware of your brand, but if they don’t know anything about you yet, then you will need something more eye-catching.

What is promotional effectiveness in marketing?

Promotional effectiveness can be measured by many types of analysis methods such as:

  • Sales lift analysis

  • Economic value analysis

  • Elasticity analysis

  • Survey-based post-sale analysis

  • Econometric model analysis

The objective of these methods is often to find out the relationship between the cost and benefits of promotional activities and then calculate the payback period and return on investment (ROI) — an important metric that assesses the efficiency of an investment or compares the efficiency of a number of different investments.

What is the difference between marketing and promotion?

Marketing is about getting your product out there, getting people to know about it, and making them want it. Promotion is about making sure they buy it.

In other words, marketing is about creating awareness around your products or services, while promotion is about activating what you’ve marketed and enticing people to buy.

Why marketing and promotion strategies should work together

Promotion is just one aspect of the four marketing Ps: product, price, promotion and place. The other three are hugely important to success too – but without promotion, all the other marketing Ps will be wasted.

After all, if no-one knows your product exists or how great it is, it doesn’t matter how good the price point is or how well-placed it is in a store.

Promotion can be targeted at existing customers as well as prospective ones. It’s a way of rewarding existing customers for their loyalty (for example through loyalty schemes), upselling to them or keeping them up to date with new information that might interest them (such as through email newsletters).

Ultimately, the aim of marketing is awareness – and the aim of promotion is action. They are different stages in the customer journey and therefore have different goals

What are examples of a sales promotion?

A sales promotion is any initiative undertaken by an organisation to promote an increase in sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other elements of the marketing mix).

Examples of sales promotions include:

  • Discounts and coupons

  • Loyalty incentives (e.g., points systems)

  • Premiums (free giveaways)

  • Contests and sweepstakes

  • Buy-one-get-one-free offers

  • Trade shows, exhibitions and other events

  • Limited time only offers

  • Rebates and refunds

  • Product warranties and guarantees

Why do businesses use sales promotions?

Companies use sales promotions to increase demand for their products and services, improve product availability among distribution channel partners, and to coordinate selling, advertising, and public relations.

Sales promotions are an important component of any marketing campaign. There are dozens of ways to use sales promotions, but they tend to fall into either the pull or push strategy:

  • Pull promotional strategies make consumers aware of a company's product and brand, usually through advertising and other forms of marketing. This causes consumers to seek out the product.

  • Push promotional strategies attempt to persuade resellers, such as wholesalers, retailers and distributors, to stock a company's product. Once the reseller is persuaded to stock the product, it is then pushed on to consumers through point-of-sale displays and other marketing activities.

What is a consumer promotion?

Consumer promotions are the strategies businesses use to gain more customers or develop brand loyalty among current customers. Customer promotions are the tactics businesses use that give customers a feeling of getting a good deal or special value.

How to create a consumer promotion strategy

The type of consumer promotion you decide to create will depend on your business model, product, target audience and marketing goals. Here are some ideas for different kinds of consumer promotions that you can use to increase sales and build brand loyalty:

Coupons and discounts

Coupons and discounts are some of the most common types of promotions because they have been proven to work time and time again. This is something you’ve probably noticed by the big stack of coupons that arrive in your mailbox each week.

Customers love saving money, so no matter what kind of business you run, you can almost always give out some kind of discount or coupon. When it comes to giving out coupons, there are several things you need to consider:

What percentage off?

How much is enough when it comes to offering a discount? There’s no exact science behind this, but one thing is for sure: The bigger the discount, the better response rate you’ll get from your customers. But you also need to ensure you preserve your bottom line. By measuring your promotion analytics you can ensure you don’t end up in the red.

Why do businesses use sales promotions?

Using a sales promotion in your business will help you achieve objectives and goals such as introducing new products, beating austerity in your market, enticing new customers, sustaining competitiveness and overall customer base with more sales, more users and more customers.

Does promotional product marketing work?

Promotional product marketing works well. Almost 75% of people who receive a promotional item are able to remember the name of the company that gave it to them.

It takes only a few moments for promotional products to connect with your target market, but those impressions last for years. Think about it: How many times have you reached for a pen or opened up a bag or briefcase and seen the name of a company that you either do business with or would like to do business with?

Book your free demo to see how personalized promotions can help you increase customer engagement and drive sales.

What are some promotional marketing objectives?

Promotion is the communication channel a marketer uses to deliver a message about their product or service to the consumer. It's an important part of the marketing mix and can take many forms: Advertising, personal selling, sales promotion, and public relations are all examples of promotional efforts.

Promotions can be used to raise awareness of a new product or service, drive sales, improve brand or product reputation, or encourage people to try something new. Small business owners use promotions as a means to draw in prospective customers and build relationships with existing clients.

What are some promotional marketing objectives? The goals of promotion are to create awareness, get people to try products, provide information, keep loyal customers, increase use of a product, identify potential customers, and even teach clients about potential services.

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