Promotion: A Cost or Benefit to the Organization?

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Marketing & Promotion 5. a. Research and discuss the following topic: Is promotion a cost or a benefit to an organization? As one of the four foundational elements of the marketing mix, promotion is a critical strategic factor in any organization getting its products. services and the value they deliver known. Like any of the four foundational elements of marketing, promotion is essential for creating a high level of awareness, interest and contributes to the trial of new products. The effects of promotional strategies are often seen in the context of broader advertising initiatives and programs designed to attract new prospects and turn them into customers (Villarejo-Ramos, Manuel, 2005). Promotion therefore is more of an investment and less of an expense, in that it contributes to the long-term success of a brand, tis products, and the acceptance in the market (Shapiro, 1990). Not only does promotion contribute to the broader awareness of a product and its continued adoption over time, it also is valuable in managing each phase of the product lifecycle of a given product. The development of promotional programs for products in each phase of their product lifecycle accentuates the role of this aspect of marketing as an investment (Villarejo-Ramos, Manuel, 2005). The development of an effective promotional program can also significantly increase the profitability of a product over time as well (Shapiro, 1990). Using a series of programs to provide incentives and

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