Advertising and Promotion
Too often people spend a great deal of time developing a product, making sure the brand is exciting and the packaging and labelling are perfect. Then they sit back and expect the product to ‘walk out the door’. In most cases, this will not happen. You must promote the product. Product promotion will not create ongoing sales, but it will let the consumers know the product is available and what is so special about it.
It may come as a surprise but promotion is not just advertising. Rather there is the promotional mix - a range of promotional options based on the needs of the marketplace and the characteristics of the product. It is important for all businesses to plan their promotions and develop a budget for these plans. This will help ensure the promotions are focused and will be more effective.
See Marketing plans for more.
The promotional mix
The promotional mix is a range of promotional options based on the needs of the marketplace and the characteristics of the product. The promotional mix includes:
- Publicity
- Public relations
- Personal selling by sales reps
- Sales promotions including tastings and demonstrations
- Unpaid direct promotion, such as stands and giveaways at events
- Participation in trade shows
- Direct advertising
The aim of promotion is to communicate and create awareness that the business has a product or service that will satisfy an individual’s needs. Unless the market is made aware that the product exists, then all the costs and decisions made in creating the product will have been for nothing.
The function of promotion is to create awareness and convey information; promotion by itself can’t sell a product or service if the need for that product or service is not there. Promotion can not create need and will not push the consumer to purchase.
Each business needs to select the elements for the promotional mix that are relevant and compatible with its product, the stage in its business life cycle, the channel of distribution, and the media and communications behaviour of the target market. In most situations a combination of promotional events will be required to achieve the desired goals.
Decision factors
There are several factors influencing the decision as to a promotion mix:
- Consumer characteristics—the characteristics of the consumer must be matched to the promotion utilised. For example, ‘Foodies’ looking to connect with a food producer may prefer a personalised tasting in an appropriate environment
- Product factors—promotion must be tailored to the characteristics, features and application of the product or service being sold. For example, a new product needs to have lots of demonstration and tastings to encourage trial. It is best to budget for a higher level of promotional activities in the product’s introduction period. Once people know and trust the product, they need ongoing reminders.
- Distribution factors—if you are the manufacturer then promotions must be conducted not only for the end consumer but also for wholesalers, distributors and retailers. This supports the distribution channels and encourages them to distribute the product. The longer the channel, the more complex the promotional mix. If you have a producer, a wholesaler and a retailer between you and the end, you need three integrated strategies to promote your product.
- Company factors—the size and scale of operations of the business have a direct relationship to the promotional mix. New and smaller businesses will only have a limited budget to spend. Simple brochures, personal tastings and selling, with direct mail in the form of a newsletter, will be appropriate. Bigger businesses with greater scale will be able to afford advertising, whether this be magazine, bill board or sponsorship.
- Competitive factors—use the promotional mix to reinforce the ways in which you are different from your competitors, but focus first and foremost on your marketing objectives and the character of your business.
e-marketing
The internet is now a growing part of our lives, whether it is simply to send and receive emails or to browse the web for all kinds of information. A website is now a business essential, in the same category as a business card and brochure. Your website becomes an integral part of the promotional mix.
Food groups and associations
Linking your business with a regional food group, industry body or food association can further help promote your business. These groups can help open up new market opportunities, through trade shows, exhibits and networking possibilities.
South Australia has several key food groups, such as Flavour SA, which is a member-based industry association focussed on helping small to medium manufacturers increase their domestic sales and assist in direction to export markets.
For more on Food Groups and food associations.
Developing a campaign
There are four key steps involved in developing and implementing a promotional campaign are:
- Image - an effective image illustrates what you’d like to say, captures your uniqueness, and stands out in a crowd.
- Message - an effective message motivates your audience to take a specific action.
- Techniques – a combination of posters, your telephone message, media releases, trade fairs and conferences, sponsorship, etc.
- Implementation - divide your plan into small steps, allocate responsibility, deadlines and a budget, and go for it.
How has the SA Food Centre helped others?
The SA Food Centre aims to promote South Australia's food businesses through Food Talk, Food-e-News and the Premiers Food Awards. You can subscribe to receive copies.
Who can I contact?
The SA Food Centre can provide advice and assess your business’ advertising and promotion needs.
- Page last modified: November 15, 2011, 5:51 pm
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