Monday, May 28, 2012

7 Main Types of Promotion

1.  Personal Selling


Avon is a company that has members of the public going door to door, selling merchandise. Upon each sale, the representative gets a commission. An advantage is the added personality, since the neighbourhood Avon seller is most likely a friend, and since they are not actually affiliated with the company, they will give you their honest opinion on how the products treat you. A disadvantage is the difficulty in finding new clients. People may not like the intrusion of a person trying to sell something in their home, they may find it rude.

2. Direct Marketing
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McDonalds sends direct mail coupons to homes that provide deals on their food. An advantage is that it can get people into your restaurant and more likely to buy more things. A disadvantage is that the vast majority of people perceive it as junk mail and throw it out and do not pay attention to it.

3. Advertising
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Advertising takes many forms, from TV spots, to magazine pages to billboards, it's the most well known form of promotion.An advantage is that it's the easiest type of promotion to get across, there are many different ways to get your message out there, you can also explain what your business is better. A disadvantage is that many people perceive ads as intrusive and annoying, and thus block them out at any chance they have.

4. Public Relations

Public Relations is the act of reaching out to third party sources and media ventures to represent themselves as a reputable company. An advantage is that you get to create a relationship with your customers, and how they represent themselves, and the types of activities and causes they support. A disadvantage is that it can be expensive and time consuming, and people may perceive it as disingenuous.

5. Sponsorship


An advantage of sponsorship is that your company and name could be seen by millions of people, and thus give your a large base of awareness. A disadvantage is that it can be really expensive, and if you advertise during a certain show or event, you may have to deal with the reputation given to you by that event or show.

6. Sales Promotion

A sales promotion is a a special short term technique to encourage customers to spend their money at the place of business. This can include contests like McDonald's Monopoly, Flyers, Special events etc. An advantage is that it can possibly provide a large short term boost to income, and it may retain many new customers. A disadvantage is that if it doesn't provide a new customer base, it could end up being very expensive.

7. Digital Communications
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Digital Communications is the act of using the internet, cell phone or digital device to promote the product. An advantage is that it's probably the best way currently to reach people, since a lot of people are using the internet. A disadvantage is that it's easy to rely only on digital, while ignoring the other areas.

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