MKTG5001 · Foundation In Marketing
Promotion Objectives, Sales Promotion & Measurement
Promotion Objectives, Sales Promotion & Measurement stresses setting specific, measurable objectives, and uses the buyer-readiness ladder — Awareness, Knowledge, Liking, Preference, Conviction, Purchase — to choose the right objective for where customers are (new customers need a reason to try; established ones need retaining). Sales promotions (coupons, samples, discounts, contests, loyalty programs) must complement the brand. A key contrast: sales promotion is easy to measure (direct, short-term, countable) while advertising's brand effect is hard to measure — which is why mature products lean on sales promotion.
What this chapter covers
- 01Set specific, measurable promotion objectives
- 02The buyer-readiness ladder: Awareness → Knowledge → Liking → Preference → Conviction → Purchase
- 03Match the objective to the stage (new = reason to try; established = retain/defend)
- 04Types of sales promotion (coupons, samples, discounts, contests, loyalty) and brand fit
- 05Sales promotion = easy to measure (direct, short-term); advertising = hard to measure
- 06Mature products lean toward sales promotion
Pick advertising vs sales promotion for a mature brand
- 2 marksPlace the brand on the buyer-readiness ladder: as a long-established brand it already has high Awareness and Knowledge — customers know it. The gap is converting that into Purchase this quarter, not building awareness.
- 2 marksChoose the tool: lean on sales promotion (price-offs, multipacks, in-store displays) because awareness advertising adds little for an already-known brand, while promotion gives a direct push toward purchase at the bottom of the ladder.
- 1 markAdd the measurability argument: sales promotion produces a direct, short-term, countable sales response that is easy to measure, whereas advertising's diffuse, long-term brand effect is hard to measure — and mature products therefore lean to sales promotion.
- 1 markState the caveat: keep the promotion on-brand, because heavy discounting can erode equity and train customers to buy only on price.
Key terms
- Buyer-readiness ladder
- The stages a customer climbs toward purchase: Awareness, Knowledge, Liking, Preference, Conviction, Purchase. Promotion objectives should match the customer's current stage.
- Measurable objective
- A specific, quantifiable promotion goal (e.g. 'lift units sold 8% this quarter') that lets you judge whether the promotion worked.
- Sales promotion
- Short-term incentives — coupons, samples, discounts, contests, loyalty programs — that drive immediate action and must complement, not undermine, the brand.
- Measurability of promotion
- Sales promotion is easy to measure (direct, short-term, countable); advertising's brand-building effect is hard to measure (diffuse, long-term), which is why mature products lean on sales promotion.
Promotion Objectives, Sales Promotion & Measurement FAQ
What is the buyer-readiness ladder?
A sequence of mental stages a customer passes through on the way to buying: Awareness, Knowledge, Liking, Preference, Conviction and Purchase. The right promotion objective depends on which stage the target sits at — build awareness for new customers, push conviction and purchase for those near the bottom.
Why is sales promotion easier to measure than advertising?
Sales promotion produces a direct, short-term, countable response (coupons redeemed, extra units sold this week), so its effect is easy to attribute. Advertising mostly builds the brand over the long term in a diffuse way that is hard to isolate — which is why mature products, where awareness is already high, lean toward sales promotion.
Exam move
Memorise the six rungs of the buyer-readiness ladder and practise choosing an objective for a named customer stage. Lock in the standard contrast — sales promotion = measurable and short-term, advertising = hard-to-measure brand building — plus the equity-erosion caveat.
