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Purpose and Functions of Promotion, Study notes of Business Economics

Universitas Dian Nuswantoro (UDN)Business Economics

The purpose and functions of promotion, including its goals, types, and benefits. It discusses the six promotional objectives, five promotional functions, and three types of promotion, which are physical, traditional media, and digital media. The document also highlights the benefits of promotion, such as maintaining consumer retention and loyalty rates and building communication media between business and consumers.

Typology: Study notes

2021/2022

Available from 02/16/2023

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Purpose and Functions of Promotion: Functions, Types, Benefits
A. Purpose of Promotion
In conducting promotions, the owners of products or services usually carry out promotions
with a specific purpose. There are several promotional goals that you need to know before
actually promoting, including:
1. The first purpose of promotion is to change the buyer's point of view and behavior towards
a good or service. After seeing the promotion of a product, the hope is that customers who
were originally not interested in buying goods or using services become interested and want
to buy products or use services.
2. The second purpose of promotion is to form an image or impression of the product or
service in the minds of customers in accordance with what is expected by the business actor
or brand owner. This promotional purpose is often known as branding. In order to brand or
introduce the brand to customers, sellers must use promotions that are attractive and
different from others in order to give an impression to potential customers.
3. The third goal of promotion is to compete with competitors. Competition with competitors
is a promotional goal that is most often used by various businesses. Promotion is very capable
of being used to keep the income rate stable, even though it has many competitors from a
business.
4. The fourth goal of promotion is to increase profits. The main purpose of promotion is to
get the maximum profit or increase the profit. If business actors want to get an increase in
profits. Previous promotional goals must have been achieved, from changing the point of
view, shaping the image of a business or branding to maintaining income to remain stable.
The success of the promotion process will significantly increase profits. This proves that a
business has been able to compete with competitors.
5. The fifth goal of the promotion is to get new potential customers. The real purpose of
promotion is not only to change the point of view and behavior of existing customers towards
the product or service. However, the purpose of promotion is also to acquire new customers.
That way, the purpose of promotion can be realized by keeping customers to keep believing
in the product or service, but also getting new customers.
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Purpose and Functions of Promotion: Functions, Types, Benefits A. Purpose of Promotion In conducting promotions, the owners of products or services usually carry out promotions with a specific purpose. There are several promotional goals that you need to know before actually promoting, including:

  1. The first purpose of promotion is to change the buyer's point of view and behavior towards a good or service. After seeing the promotion of a product, the hope is that customers who were originally not interested in buying goods or using services become interested and want to buy products or use services.
  2. The second purpose of promotion is to form an image or impression of the product or service in the minds of customers in accordance with what is expected by the business actor or brand owner. This promotional purpose is often known as branding. In order to brand or introduce the brand to customers, sellers must use promotions that are attractive and different from others in order to give an impression to potential customers.
  3. The third goal of promotion is to compete with competitors. Competition with competitors is a promotional goal that is most often used by various businesses. Promotion is very capable of being used to keep the income rate stable, even though it has many competitors from a business.
  4. The fourth goal of promotion is to increase profits. The main purpose of promotion is to get the maximum profit or increase the profit. If business actors want to get an increase in profits. Previous promotional goals must have been achieved, from changing the point of view, shaping the image of a business or branding to maintaining income to remain stable. The success of the promotion process will significantly increase profits. This proves that a business has been able to compete with competitors.
  5. The fifth goal of the promotion is to get new potential customers. The real purpose of promotion is not only to change the point of view and behavior of existing customers towards the product or service. However, the purpose of promotion is also to acquire new customers. That way, the purpose of promotion can be realized by keeping customers to keep believing in the product or service, but also getting new customers.
  1. The sixth purpose of promotion is to disseminate information. Steps to disseminate information are the basic purpose of promoting a product or service. Promotions also have the purpose of providing information to customers regarding products or services. Information that can be shared such as offers at attractive prices or bonuses. From the six promotional objectives above, it is concluded that the promotion is carried out with the aim that actors can increase the number of their business by making sales and increasing profits to the maximum. B. Promotion Function Promotion is included as one of the steps in building a business. In order to optimize the promotional programs that are being run or that will be carried out soon, business people must first understand the function of the promotion. There are several promotional functions that will greatly help business people in developing their business. The following are five promotional functions that need to be known as business actors, including:
  2. Introduce information about the products or services offered. In promoting or marketing, business people need to make careful consideration and planning to be precise in carrying out the promotion to be carried out. Knowing the promotion function according to business needs will greatly affect the success and failure of the promotion program. Therefore, in an effort to achieve the promotional goals that have been set, business people must set appropriate programs or based on the promotional functions they want to implement in the promotion. For example, business people want to do promotional programs to introduce products or services. The promotion that is carried out should be able to explain every nitty and outs of the product or service to potential customers. The program of such a promotional function can be greatly optimized when applied when first launching products and services to the general public. The right promotional steps from promotional functions such as placing advertisements in the mass media, hiring influencer services to use the product or service, to various other marketing activities that can introduce a product or service to customers widely.
  3. Invite potential customers.

The promotion function that has the aim of increasing added value for the business will provide maximum results if executed correctly. Therefore, a business person must first know and understand the added value that can have a positive impact on business continuity.

  1. The promotion function is a solution in an effort to simplify other business processes. The next promotional function is to encourage business activities that are carried out so that they can be optimized at every point in the operation of business processes. This promotion function depends on the business activities that you want to support through a promotional step. By conducting promotional programs, business people can make it easier for the marketing sector to be more creative in innovating new promotional programs and in accordance with market wishes. Traditional promotion by relying on word of mouth has also proven effective in shaping a business identity that is better known to customers. C. Types of Promotions After understanding the purpose and function of promoting a product or service. Next, let's discuss the types of promotions. The types and ways people do promotions can be done in a variety of ways. The characteristics of a product or service can determine the way and medium of its promotion. The following are the types of promotions that we usually see on a daily basis, including:
  2. Physical promotion Physical promotion is usually used in the physical environment. The physical environment is at certain events or events that are generally held in a place such as exhibitions, bazaars, festivals, concerts, and so on. Sellers or business actors usually set up "stands" or "booths" or some kind of small tents that are used to display and market their products or services. Physical promotion has its own advantages and uniqueness. This type of promotion can meet potential buyers directly to buy the products displayed or also use the services provided. With this promotional method, buyers can also directly see the products or services offered, as well as can directly ask about the product or service. Meanwhile, sellers or business actors can directly take advantage of situations and conditions to seduce and persuade potential buyers to buy products or use the services provided. The peculiarity of this type of promotion is that buyers and sellers can directly meet, so this type of promotion is very widely used until now.

However, this physical or in-person promotion also has some drawbacks. This type of promotion has limitations on the number of potential consumers because it is only held in certain environments or places such as campuses, schools, offices, and so on.

  1. Promotion through traditional media Promotion through traditional media means a type of promotion that uses traditional media to carry out promotions. This type of promotion usually still uses traditional media as a medium to meet potential customers. There are types of traditional media, namely print media such as newspapers, tabloids, newsletters, magazines, and the like. Meanwhile, for electronic media, it usually uses radio and television. Not only that, promotions that are often found outdoors such as banner advertisements or billboards or billboards are included as a type of traditional media promotion. Promotion with traditional media has advantages because traditional media has a wide reach and there are still many likes and interests. In addition, compared to physical promotion by using tents on a, the range of promotion with traditional media is indeed very wide because it utilizes mass media. However, behind the advantages, this type of promotion using traditional media has disadvantages because it requires considerable funds. The funds in this advertisement are usually used to hire radio and television services, billboard providers, and so on.
  2. Promotion through digital media Promotion through digital media can be called the most widely used type of promotion in today's digital era. This type of promotion through digital media means promotion that uses internet media and social media or social networks as a place to offer products or services. This promotion is the most modern way to promote because it has a wide reach. The influence of technology is very possible for people in cyberspace through mobile phones or laptops to be able to see the products or services being promoted. Now, many of the business actors are starting to migrate to digital media as a promotional strategy. Promotion through digital media proves to be very effective for finding potential customers every day and throughout the day. The purpose of promotion is of course so that digital media users can see and then buy products or use services. There are more than 2.

ensure customers feel satisfied and cared for by a business. The impact is that in the long run, consumers will be loyal to a business brand.

  1. Building Communication Media Between Business and Consumers Communicating with consumers individually to describe each product or service offered is quite a strenuous activity. Not only that, in the long run, this way of communication will greatly burden the human resources of a business. Promotion is a solution in streamlining human work. By determining the promotional program precisely in accordance with the needs and desires of consumers. Business people can build communication media or social media to bring the business closer to consumers. This promotional program can be used by business people as well as possible to introduce products or services that they want to market, form business characteristics to be known by consumers en masse, and convey various information related to business innovation to customers at a relatively much cheaper cost. Communicating using social media is very influential on the business to make it easier to increase profit margins.
  2. Bringing In New Consumers Through Old Consumers The benefit of promotion that is very influential is its ability to bring in new consumers to use the products or services of a business. Promotional programs that have been carefully designed and implemented appropriately and then get positive reciprocity from consumers will produce a magic power, namely the power of words of mouth. Words of mouth can be a powerful way of promoting a business. This magic power makes business actors do not need to spend business and costs in offering products or services. This is because satisfied consumers will encourage and promote the business to new potential consumers. One of the keys to a business being able to thrive and survive in the long run is the success of forming a positive impression in the minds of consumers.