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Promotion marketing is a technique used by companies to try to stimulate sales by offering something extra to the customer or supplier than what might otherwise be expected. This can come in the form of some sort of gifts or discounts, or as a specific advertising campaign tied to a single product or event. The goal of promotion marketing is to lure in consumers rather than to inform them about the products and services being offered. If done properly, promotions can be temporary measures that can stimulate business over a much longer period of time.
When a company attempts to market its products and services, it must make itself stand out from the various offerings of its competitors. In the modern world of marketing, it is rare that a company can simply sit back and let consumers come to them. Most companies need to be aggressive in pushing their products, and, at times, that means doing something out of the ordinary to attract attention. Promotion marketing is one such way to achieve this.
In short, promotion marketing is involved when a marketing campaign is instituted, usually for a limited period of time, in an effort to draw attention to specific products or services. The most common form of promotion is a sale, which allows consumers to benefit from reduced prices on certain products. By getting consumers involved in this way, the hope is that sampling consumers will become long-term customers for the company.
Of course, promotion marketing is not just limited to consumers. Companies might offer incentives to their supply channels to persuade those channels to push their products. Most commonly, promotions are targeted at a company's customer base. Whether it is a contest that requires a product's purchase for people to enter, or an offer to buy one product and get another free, promotions give the consumers the impression that they are getting something extra for their patronage. As a result, these customers are more likely to remember the company offering the promotion in the future.
It is important to realize that promotion marketing cannot always be used as a remedy for a struggling company. Such campaigns have to be used judiciously and sparingly, or else the company risks doing damage to its budget. If a company can use a specific, budget-conscious promotion as a way to both gain new customers and solidify their current base, it can be a very effective ploy.