Promotion is carried out through various promotional campaigns. They include all the various ways in which a business organization can communicate with both its existing customers and potential customers.
It is usually clear who the advertiser is and in most cases advertisement is the specific message. In most cases advertising is paid for by a sponsor. However, results of many promotional campaigns are difficult to measure in terms of actual sales generated.
When are promotional campaigns effective?
The purpose of promotional campaigns is to either make the public aware of the goods and services that the firm offers, persuade them to purchase the product or remind them that the product still exists on the market.
A successful promotional campaign must be distinctive to stand out from the competition. What is said in promotion is as important as how it is said. That is why marketers should focus their creativity on devising original and outstanding promotional messages. So, their promotional campaigns are not simply ignored by the average person from the target market.
Remember that promotional campaigns are directed at a target market whether it is to mass audience or small niche. Its intention is to generate customer loyalty and repeat purchasing. This often helps to reduce the level of price sensitivity and allows the firm to produce in bulk to enjoy the advantages of economies of scale.
In the end, promotion ought to be used to shape and develop awareness, perceptions, knowledge and attitudes regarding a product.
3 methods of measuring promotional campaigns
There are three main approaches to use when devising a Promotional Mix and measuring results of a promotional campaign including DAGMAR, AIDA and FAB. Let’s take a look at them in details.
1. DAGMAR – Defining Advertising Goals and Measuring Advertising Results
The DAGMAR model stands for Defining, Advertising Goals and Measuring Advertising Results.
It is the model of buying behavior used when building awareness of the firm’s product. It is based on five key stages:
STAGES:
Unaware.
Aware.
Comprehension.
Conviction.
Action.
CONSUMER:
Does not know us.
Knows something of us.
Recognizes us.
Prefers us.
Purchases.
PROMOTION:
Use the media to inform.
Build the media presence.
Introduce product information.
Reinforce via advertising.
Personal selling.
Promotional Mix is then designed to allow the potential consumer to move smoothly though to purchase process as human beings follow a specific psychological process when deciding whether to buy a product or not – buy cheaper products more on impulse than high cost items. Also, the business needs to be aware of competitors’ reactions and be ready to take actions. In DAGMAR, advertising will be one of the key promotional methods at the early stages of this buying process while other forms of promotion will be more effective at later stages.
2. AIDA – Attention, Interest, Desire, Action
The AIDA model stands for Attention, Interest, Desire, Action.
It is the model of identifying the four stages of the sales process in successful selling. This practical tool provides the set of criteria for judging the extent to which the promotional strategy draws the attention of potential customers, how it engages their interest, the intensity of desire from the public and the level of action taken to make a purchase.
- Attention. The Promotional Mix should raise awareness of the product by getting the attention of both existing customers and potential customers to ensure they know about the product. Strategy? GRAB attention.
- Interest. The Promotional Mix should make customers interested in the product by stimulating them through different forms of sales promotion or a memorable slogan. Strategy? EXCITE interest.
- Desire. The Promotional Mix should generate a desire for the product by using for example free samples to create a special feeling of need, hence persuade customers to buy the product. Strategy? CREATE desire.
- Action. The Promotional Mix should encourage customers to take action and actually go and buy the product. Strategy? PROMPT action.
3. FAB – Features, Advantages and Benefits
The FAB model stands for Features, Advantages and Benefits.
It is the model of focusing on what the product actually does for the customers instead of focusing on the product itself. FAB is used to explain the uses of a firm’s products and emphasizes all the benefits that customers can gain from owning a product. FAB promotional campaigns mainly include trade fairs, industry exhibitions and public demonstrations.
In summary, marketers can consider different marketing acronyms when deciding on a Promotional Mix including DAGMAR, AIDA and FAB. Each method of measuring promotional campaigns has its advantages and limitations. That is why it is important to always select the mixture of promotional activities that best suits the firm’s particular marketing objectives.
