Promotion: Demand Creation and Message Control

Demand Creation: Quick vs Lagging

As we discussed earlier, the success of promotional activity may not always be measured by comparing spending to an increase in product sales since marketers may use promotion to achieve other objectives. However, when a marketer is looking to increase demand, certain promotional activities offer advantages in turning exposure to promotion into a quick increase in demand. In general, these activities are most effective when customers are offered a monetary (e.g., save money) or psychological (e.g., improves customer’s perceived group role or status level) incentive to make the purchase.

Message Control: Total vs. Minimal

Most promotions are controlled by the marketer, who encodes the message (or hires specialists such as advertising agencies to create the promotion) and then pays to have the message delivered. However, no marketer can totally control how the news media, customers, or others talk about a company or its products. Reporters for magazines, newspaper, and news websites, as well as those posting comments on social media, internet forums and online retailers, may discuss a company’s products in ways that can benefit or hinder a company’s marketing efforts. This is particularly true with non-paid promotions, where a marketer is looking to obtain a free “mention” by an influential message medium (e.g., newspaper article), but has little control in getting this to occur (for more see Disadvantages of Public Relations).