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What are the different types of promotion methods

Updated: Jun 18, 2023

There are above-the-line and below-the-line promotions


Above-the-line Promotion


Above-the-line promotion uses newspapers, radio, television as advertising media, as they reach out to all segments of the general population. The main types of advertising are informative and persuasive advertising. Informative advertising focuses on providing information of the product and its benefit, while persuasive advertising targets a specific market segments to purchase the product with attractive messages and images, encouraging impulse buying.


Below-the-line Promotion


Below-the-line Promotion is directed to a very targeted customers that makes purchasing decisions using a "pull" strategy. They usually complement above-the-line promotions. They use


  1. Publicity

    1. Sales literature - booklets, handouts, posters, brochure

    2. Signage - on business premise

    3. Product endorsements - by social media influencers and celebrities

    4. Product placements - a demonstration of the product in movies or television programmes

    5. Trade shows - live demonstration event to attract individual and business customers

  2. Public Relations

    1. Sponsorship - involves funding a sports or charity event

    2. Donations and fundraising - promoting a social cause through donation, part of a firm's corporate social responsibility (CSR)

    3. Press releases - to clarify or provide explanation on certain business decisions effecting the public

  3. Point-of-Sale (POS) promotion - product display at convenient location, such as the check-out counter

  4. Sales Incentives

    1. Vouchers/Coupons - freebies or discounts to purchase a specific product within a period of time

    2. Competitions - creates awareness on the product benefits or features through a contest.

    3. Loyalty programmes - incentives are awarded when points are accumulated from continuous purchases.

  5. Direct Mail - Persuasive promotional messages in letters or emails to customers

  6. Personal Selling - Involves personalize one-to-one customer and client relationship. Services are usually highly customized.

  7. After-sales Care - After sales services offered to customers who have purchased the product.


PAST YEAR QUESTIONS


  1. Identify two aims of promotion. (2 marks) May/June 2018/11

  2. Identify four aims of promotion. (4 marks) May/June 2020/13

  3. Identify and explain two ways MSH could promote its services. (6 marks) Feb/Mar 2018/12

  4. Identify and explain one advantage and one disadvantage to a business advertising in a national newspaper. (4 marks) Feb/Mar 2019/12

  5. Do you think that using leaflets is the best way for a firm to promote her products? Justify your answer. (6 marks) May/June 2019/11

  6. Identify and explain two methods of promotion a firm might use to increase sales. (6 marks) May/June 2019/12

  7. Identify and explain two advantages to a firm's business of using free samples as a method of promotion. (4 marks) Oct/Nov 2019/11

  8. Explain how two methods of sales promotion could increase sales for a firm. (6 marks) May/June 2020/11

  9. Identify and explain one advantage and one disadvantage to BG of using social media networks for promotion. (6 marks) Oct/Nov 2018/12



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