Part 3 The digital marketing mix
Chapter 11 – Promotion in the digital environment; communication to the
consumer
Why is promotion essential in the digital channel?
Promotion is related to the use of marketing communication to inform consumers and
other stakeholders about the organization and its products, services and brands.
Promotion is part of the communication mix and it is essential to realize, enhance
and retain this visibility both on- and offline. In this context, the concept of visibility is
defined as the degree to which a consumer encounters a product, service or brand.
The main objectives of promotion are the increase of the number of sales,
maintaining or expanding market share, informing target markets, increasing brand
awareness, increasing conversion and stimulating traffic to website, mobile site,
physical store or app.
Digital retailers are the most important players, but producers and manufacturers are
also actively promoting. It is important to coordinate these various activities
seamlessly, as there needs to be a harmonious feeling and it is certainly not the
intention that retailers and brands deliver different messages.
11.1 The promotional mix and cross-media promotion
The elements of the promotional mix used to be tailored to reflect the IMC strategy
(Integrated Marketing Communication). The content, frequency, timing and media
type of communications was determined by the organization. But in this social media
age, this approach is simply no longer feasible. The market is in control and
produces an unpredictable stream of user-generated content on top of all the
information that organizations provide. To communicate a message effectively using
various media and promotional opportunities, organizations must understand the
strengths and weaknesses of any medium in relation to each promotional activity.
11.1.1 The new promotional mix including social media
The new promotional mix is actually the old promotional mix, but with some
interesting additions and different accents. The most prominent newcomer, social
media, is already mentioned above. These are the main activities from the traditional
promotional mix which can of course be applied in the digital channel:
Advertising ads are usually paid promotions via mass media. TV and radio
commercials are usually one-way communication. However, the digital
channel offers opportunities to personalize ads and to offer a more interactive
slant.
Personal sales personal selling is based on personal contact between
account managers or sellers and (potential) customers. A chat box on a
website is a new feature in the digital world.
Public relations relates to ‘articles’ in external media sources. So this might
be a positive message about an organization in a blog.
, Direct marketing prospects or existing customers are approached directly,
attempting to provoke a response (= a purchase). Customer knowledge is
essential and most direct marketing happens via e-mail.
Sales promotion includes the use of special – often short term –
techniques, usually with direct sales as an objective. The sale happens thanks
to discounts, groupons, sampling, etc. A digital platform like Groupon.com.
Sponsoring the provision of money or a money-based performance that the
sponsored party delivers. Product placement in GTST is an example.
Promotional communications should always be in line with the marketing needs and
values of the organization whether it concerns advertising, sponsorship, PR or direct
marketing. In principle, this also applies for social media. Although this is quite hard,
through adopting a pro-active policy towards promotion that really attracts customers
to the material, they can be influenced. Social media performs two related
promotional roles:
1. Communication with people. Firstly, social media makes it possible to
communicate with people in a simple and accessible way.
2. Communication between people. Secondly, social media allows people to talk
to each other about the brand, the products or services, based on their
personal experiences.
Social media fulfils a hybrid promotional role and has taken on a main role in the
promotional mix. All forms of social media are tools to monitor and influence
customer behaviour. However, organizations still seem to struggle to implement
social media for promotional purposes. Because all forms of social media can be
used as tools for promotional activities, organizations simply cannot afford to pass up
on this phenomenon.
The new promotional mix requires fundamental changes in organizational attitude
with respect to promotion. Firstly, organizations need to accept that a vast amount of
information about their products and services will be communicated through social
media. Secondly, consumers react to this information, which affects all aspects of
consumer behaviour. Thirdly, people are increasingly turning away from the
traditional elements of the promotional mix.
Organizations should reckon that they need to learn to communicate with their
consumers, rather than communicating to their consumers. The following aspects are
important in the use of social media as part of the promotional mix:
Develop a private community. People like to get in touch with others who
share similar interests and needs. Organizations can channel those needs by
creating communities of like-minded people. These communities must focus
on shared interests and values.
Use blogs and social networks to get customers involved. People feel more
involved in products, services or brands if they can give feedback.
Use both traditional and digital promotion to increase customer engagement.
Engaged customers communicate more than people who are not engaged.
Provide a lot of relevant information. People are quicker to communicate about
products, services or brands if they are well informed.