What is promotion? Meaning, definitions and strategic implementation methods

Due to the impact of the global spread of the new coronavirus infection (hereinafter referred to as the new coronavirus) in 2020, the economic situation in Japan continues to be difficult in many parts.

According to the Bank of Japan Tankan March 2021 survey, the manufacturing industry has improved significantly due to an increase in exports, and non-manufacturing industries other than face-to-face services have also improved in many industries. Business confidence continues to be severe in areas such as accommodation, food and beverage services, and personal services.

Indicators such as employment and ordinary profits have also fallen in the face-to-face service industry, and while the Japanese economy as a whole is recovering from the impact of the new coronavirus, face-to-face services have been strongly affected by requests to shorten business hours and refraining from going out. The mold service industry has been completely left behind.

The environment will continue to be severe, with an increasing number of local governments applying “Priority Measures to Prevent the Spread” and considering the possibility of declaring a state of emergency again.

On the other hand, some

marketing-

related numbers are on the rise.

According to the 2020 Detailed Analysis of Japan’s Advertising Expenditures and Internet Advertising Media Expenditures, announced by the four companies of the Dentsu Group (CCI/D2C/Dentsu/Dentsu Digital), Japan’s total advertising expenses were 6,159.4 billion yen (compared to the previous year). (88.8% compared to the previous year), and although there were signs of recovery since autumn, the result was significantly lower than the previous year.

However, even under these circumstances, “Internet advertising expenses” continue to grow in an upward trend, reaching a market size of 2.2 trillion yen, comparable to “four media advertising expenses,” or 36.2% of total advertising expenses. It has grown up to.

Among these, “Internet advertising media expenses” reached 1,756.7 billion yen (105.6% compared to the previous year) due to further expansion of programmatic advertising and an increase in social advertising and video advertising due to demand from people staying at home.

What becomes clear from this analysis is that even in the era of Corona, the importance of promotions such as advertising, mainly using the Internet, has increased significantly.

However, the terms promotion, advertising, and

PR

are becoming commonplace in marketing activities, but how many business people actually understand their definitions and the differences between them when using them?

Although they are used in different ways, for example, when the words promotion and PR come up frequently during a meeting, it is not uncommon for members to have different understandings of each other and end up not being able to agree on what they are talking about.

If it’s an internal meeting, it’s easy to form a somewhat unified concept, but especially when communicating with people outside the company or people working for the first time, be sure to check in advance, “What do you mean by that word?” There will also be a need.

Therefore, in this article, I would like to focus on the word promotion, define the easily confused words used in marketing fields such as PR, public relations, and advertising, explain the differences between them, and go further to explain promotion methods.

*”Detailed analysis of advertising expenditures in Japan in 2020 and Internet advertising media expenditures”: Of the survey results of “Advertising expenditures in Japan in 2020” announced by Dentsu in February 2021, the breakdown of Internet advertising media costs is shown by advertising type, It is analyzed from different perspectives such as by trading method, and also includes predictions for 2021.

What is promotion? Definition 4Ps of marketing

The well-known definition of promotion is one of the so-called “4Ps of

marketing

,” and it refers to activities that arouse consumers’ desire to purchase.

The 4Ps of marketing are the four classifications of the ”

marketing mix

,” which organizes marketing into specific strategies for the flow from product development to sales, and the initial letter “P” is used for each category.

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It is difficult to understand promotion simply by referring to it as “communication,” but this is because promotion has a wide definition. It would be easier to understand if they were divided into broad and narrow senses.

Promotion in a broad sense refers to all types of direct and indirect communication with consumers, and does not necessarily refer only to actions that directly lead to sales, but also includes improving brand image and expanding awareness.

Promotion in the broad sense can be said to be a wide range of communication with consumers, including promotion in the narrow sense described below.

What is promotion in a narrow sense?

On the other hand, promotion in a narrow sense often refers to SP (Sales Promotion), which is familiar in corporate marketing.

Among the elements of promotion in the broad sense, promotion in the narrow sense refers only to “Sales Promotion,” a method of directly approaching customers and encouraging them to purchase, without other elements.

Among the promotional elements, it is a sales promotion method that approaches customers more directly, and it involves making a detailed plan to determine what kind of customer group to approach, implementing sales promotions, and measuring and verifying the effectiveness. Repetition is a sales promotion activity in the narrow sense of promotion.

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<Relationship between the 4Ps of marketing and promotion elements>

In this way, promotion has two meanings: one in a broad sense and one in a narrow sense. When discussing strictly about marketing, it is important to check in advance so as not to confuse these two.

From now on, let’s narrow down the meaning to “Sales Promotion” in a narrow sense and look at the differences between it and other elements.

Difference between promotion and other elements

Difference from PR

The meaning of promotion becomes clearer when viewed from the perspective of how it differs from PR.

Among the elements of promotion in a broad sense is “Public Relations.”

PR and promotion in the narrow sense of sales promotion activities are often confused, so let’s review the definitions carefully.

In the first place, PR is difficult to define, and few people understand it accurately.

Therefore,
the definition provided by the Japan Public Relations Association, a public interest incorporated association,
is quoted below.

“Public relations is a way of thinking and acting to create desirable relationships between an organization and the people (individuals and groups) surrounding it.It developed in the United States from the end of the 19th century to the 20th century, It was introduced to Japan from the United States after World War II in 1946.

Nowadays, “public relations”, which has been established as a translation of PR, has a strong nuance of unilateral communication, and “PR” as an abbreviation has a strong nuance of advertising, and is often expressed in parallel with “public relations/PR department.” is often seen.

However, as mentioned above, public relations originally meant “creating desirable relationships.” Companies are essentially required to think and act in a way that builds good relationships with the public, namely stakeholders such as consumers, employees, shareholders, business partners, and local communities. In that sense, public relations can be said to be the day-to-day business activities themselves.

Since PR involves building public relationships, it can be said to be an indirect approach. You can clearly see that there is a big difference from promotion, which is a direct approach.

Difference between PR and public relations

Also, PR and public relations are often confused, so let’s clarify them here.

PR is a concept that originated in the United States, and refers to a wide range of activities that build good relationships with the public, as the Japanese translation of “Public Relations” refers to, while public relations is one of the many PR methods that originated in Japan, and external media It often refers to activities focused on “information dissemination” and “push-type information provision,” such as posting on the Internet, activities to attract interviews, and issuing press releases.

In other words, public relations is a concept and activity that is subsumed by PR. Although the two seem similar, they have different characteristics.

However, public relations and PR are sometimes considered to be synonymous.

When they are considered different, the line is often drawn between “public relations is a communication from a company or organization” and “PR is a two-way or multidimensional connection.”

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Difference between advertising and promotion

Let’s also look at the difference between advertising and advertising.

According to the `

`OR Encyclopedia Wiki

” created by the Japan Operations Research Society, an advertisement is “a message presented non-personally for a fee by a specified individual or organization for the purpose of notification or persuasion.” . In other words, it is a paid message that discloses the name of the advertiser, such as a company, etc., and is posted through a non-personal method, i.e., a medium.

The purpose of advertising is to inform the public at large. In corporate activities, it means widely disseminating the company’s products and services, and spreading the existence and characteristics of the products and services by posting them in paid advertising media.

The characteristic of advertising is that it is sent to an unspecified number of people, and the company can decide on its content. Therefore, depending on your budget, you can freely decide the target range and publication period, and you can send out your message at your own initiative.

On the other hand, promotion refers to all sales promotion activities including advertising, and you can see the difference.

Advertising media includes the following types with different targets, formats, and budgets, and measures that combine these are often implemented.

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Difference between PR and advertising

Let me further explain the difference between PR and advertising.

1.While PR has a high public nature and credibility, it does not go according to your company’s wishes.

2.Advertising has a high degree of freedom and conveys a strong message, but it is costly and lacks credibility.

There is a difference.

Since PR, including public relations activities, is reported from the perspective of a third party, the media, it is known to have much higher credibility than advertising and to have a higher penetration rate among the public.

On the other hand, because the content is mainly based on interviews and news releases, the disadvantages are that it is difficult to control the company’s own timing, and the content is left up to the sender.

On the other hand, advertisements are sent by the company themselves, so while they can freely send messages, they are less reliable and pervasive than those sent by third parties.

Another disadvantage is that costs tend to increase due to media costs and production costs.

Furthermore, if you pay advertising fees or other compensation to media outlets that disseminate your company’s information in the form of articles, etc., this is not PR but advertising.

Even if it looks like an article, it must be labeled as an “advertisement article.”

We must not forget that the true meaning of PR is to conduct activities and disseminate information so that the media will voluntarily cover it and disseminate it widely.

What is PR activity?

Now that we have clarified the differences between promotion and PR, PR and public relations, and advertising, let’s also touch on what PR activities are in corporate activities.

Let’s introduce the five functions of the PR department described in

Kotler

& Keller’s Marketing Management.

<Five functions of the PR department>

1. Press measures A function to publish information in a way that makes the company look good. Typical examples include news coverage and press releases.

2. Product Publicity Functions that support product publicity. Having the mass media report on your company’s products and services as articles and news, and disseminating information about your products through your own media.

3. Corporate Communication Communication functions within and outside the company. Promote understanding of the company through internal and external communication.

4. Lobbying The function of establishing relationships with legislators and bureaucrats. They may also actively negotiate with the aim of promoting or abolishing laws and regulations.

5. Consulting A function that provides advice to management. Advise management on social issues and the company’s position and image in normal and adverse times.

Promotion as sales promotion

Definition of sales promotion

What is sales promotion?

Next, let’s explain the sales promotion aspect of promotion.

You must hear the word “sales promotion” every day, not only in departments directly involved in sales, but also in peripheral operations such as marketing and sales planning.

However, there are often no clear answers as to what the meaning or definition of the word is.

Sales promotion is an abbreviation for sales promotion, and as mentioned above, it is the Japanese translation of Sales Promotion. It is also called “SP” for short for Sales Promotion.

The purpose of sales promotion is to motivate purchasing through various measures, increase the desire to purchase, and ultimately lead to purchasing decisions.

It is important to understand the difference between “sales promotion,” which is the various measures that lead to purchases, “advertising,” which is a part of sales promotion, and “public relations,” which is the dissemination of information widely.

The sales promotion activities include the following depending on the situation.

4 types plus 1 sales promotion method

There are four typical types of sales promotion methods.

In addition to the four types mentioned above, digital promotions are becoming increasingly popular during the coronavirus pandemic.

SNS and listing advertisements were on the rise even before the coronavirus pandemic, but since 2020, when face-to-face sales promotion has become almost impossible due to the declaration of a state of emergency and people refraining from going out, online events that take advantage of the advantages of non-face-to-face and non-contact, The use of digital promotions such as web campaigns and digital flyers is rapidly increasing.

Of course, traditional promotions are unlikely to disappear because they involve a real-life experience that digital doesn’t have.

However, digital promotions such as SNS can generally reduce costs, create a sense of familiarity through the use of personal media such as smartphones and word of mouth, and have the potential for explosive spread due to “busuru”. It has many advantages over traditional methods, such as: Therefore, it is important to consider digital promotion as a method that will stick even after the coronavirus.

Among these 4 types plus 1 methods, it is desirable to carefully consider which method is suitable for your company’s objectives and issues before developing sales promotions.

Strategic approach in sales promotion

In this section, we will look at the strategic approach to sales promotion (sales promotion, hereinafter referred to as promotion), which is promotion in the narrower sense of promotion, including how to plan, execute, and verify effectiveness.

What is SP strategy?

The ultimate purpose of promotion is to link purchasing decisions through various measures. However, blindly implementing numerous promotional measures will not lead to purchases. That requires a strategy.

First, collect and analyze market information. They investigate the market size and customer needs of the products and services to be introduced, and analyze the growth potential of the market. It is also important to understand the characteristics and trends of competitors that pose a threat to your products. You will also want to organize and analyze your company’s existing products and resources. Accurately understanding the market, competition, and your company’s current situation is the first step in your SP strategy.

The next step is “segmentation,” which involves detailed analysis of market (customer) characteristics. The market is divided by region, gender, age group, industry, size, etc., and the characteristics and needs of each category are clarified.

As a result of segmentation, ”

targeting

” work is performed to narrow down (or expand) targets,

personas

, product items to be introduced, sales areas, timing, etc.

In addition, perform “positioning” to confirm your company’s position in the narrowed down target categories. The process involves comparing products with competing products and identifying points of differentiation and uniqueness.

Only after the above steps can a detailed implementation plan for the promotion be made.

The promotion mechanism and theme will be formulated, and the methods to be adopted, details of media and tools, and expression methods will be considered from various angles and finalized.

When organized, the steps are as shown in the figure below.

<10 steps of strategic promotion>

①Collect market information (marketing research)

② Analysis ③ Market segmentation (segment)

④Targeting ⑤Positioning ⑥Marketing mix 4P (selection of target products, sales area, etc.)

⑦ Detailed promotion execution plan ⑧ Selection of promotion method ⑨ Selection of promotion tools ⑩ Execution/verification

In this way, by implementing promotions that make full use of strategic methods, you can directly approach your target customers.

actual promotion

Promotional techniques and tools

Promotion method

For example, if you were a bakery and had your own store, what kind of promotional methods would you use?

There are many more that can be mentioned depending on how they are devised. As mentioned above, there are various promotional methods, but here we will organize them into the following four categories, focusing on the content of the promotion. The tools used for promotion will be discussed later.

1. Premium method A method of promoting purchase intent by offering benefits and premiums. Providing bonuses, novelty goods, coupons, gifts, etc. to store visitors and buyers to encourage them to visit the store and make purchases. In the example of the bakery above, they would “give out cash vouchers that can be used in the store by drawing lots,” “give original goods to customers who responded to a questionnaire,” and “provide cards with menus and recipes that go well with the bread.” Applicable.

2. Trial method A method that provides an opportunity for customers to actually try the product. By allowing consumers to actually experience the product through samples, free samples, trial sessions, etc., it leads to purchase. It also includes methods to introduce usage through demonstrations. In the example above, the trial methods include “providing sample foods in the store” and “holding a free arranged menu class using our bread.”

Another widely used method is to have monitors actually use the product and conduct a survey on their level of satisfaction and areas for improvement.

3. Price method: Induction through limited discounts. Increase purchasing intent by offering discounts for a limited period or target audience, such as time sales, coupons, cash back, and volume increase campaigns. In the above example, “Issuing a coupon ticket” and “Holding a time sale in the evening or later” are applicable.

4. Systematic method A method that leads to repeat customers through the structure of the sales system. Acquire repeat customers by using mechanisms such as membership systems, point cards, and fixed sale days. In the example above, this includes “selling limited edition products on the 10th of every month as appreciation day” and “issuing point cards.”

Based on the market analysis of targets and regions before selecting a promotion method, it is possible to increase the promotion effect by considering the advantages and disadvantages of each method and combining multiple methods.

Tools for promotion

Let’s organize the tools used for promotion by classifying them into the following seven categories. As with the promotion methods mentioned earlier, each tool has its advantages and disadvantages, so it would be a good idea to consider using multiple tools.

1. Advertising using mass communication tools. The four major media, newspapers, magazines, television, and radio, have great influence but are also expensive. Small and medium-sized businesses actively use local mini-comic magazines, free newspapers, and community FM, depending on their budget. In the bakery example above, “advertise in a local community magazine” would be applicable.

2. In-house printing tools Printed materials produced in-house such as flyers, posters, pamphlets, catalogs, and postcards. In addition to being spread through direct mail, newspaper inserts, and posting, it is also frequently used as a tool for door-to-door sales and exhibition sales. In the example above, this includes “creating flyers and posting them in the neighborhood” and “informing repeat customers about sale periods and new products via postcards.”

3. Goods-type tools Novelty items, sample items, and other goods to be distributed to customers and events. While costs can be reduced for samples of your own products, production costs are high for novelty goods such as ballpoint pens and calendars with the company name and contact information engraved on them. In the above example, “giving original goods to customers who respond to a questionnaire” and “providing sample food in the store” would be applicable.

4. Web-based tools: Use of electronic media such as the Internet and SNS. It can be divided into web advertising such as listing advertising and affiliate advertising, and in-house promotion such as owned media, video posting, and SNS transmission. Web-based tools are generally inexpensive to start with, but require ongoing effort. In the example above, an example would be “Send out information every day on Twitter and Instagram.”

5.POP

Mainly displays, in-store flyers, stands, posters, panels, mannequins, etc. installed inside and outside retail stores. Abbreviation for “Point of purchase advertising”, translated as point of purchase advertising or in-store advertising.

POPs outside the store have the role of attracting customers, and POPs installed inside the store near the products have the role of encouraging customers to make purchasing decisions, and both are used very often.

In the example mentioned above, multiple tools are used, such as “putting up a banner in front of the store,” “placing a signboard with recommended products at the entrance,” and “adding POPs to seasonal product shelves.”

6. Exhibiting at events, exhibitions, product exhibitions, etc. It is a tool that allows you to communicate directly with visitors, and allows you to carry out public relations (PR) and SP at the same time. In the example mentioned above, “Hold a free arranged menu class using our bread” is a good example.

7. Other SP advertising Advertising tools other than mass media, web advertising, and POP mentioned above. This includes outdoor advertising such as billboards and digital signage, and transportation advertising such as trains, buses, and wrapped cars.

summary