The role of promotion in a company is to communicate with individuals, groups or organizations with the aim of directly or indirectly facilitating exchanges by informing and persuading one or more of the audiences to accept the company’s products.’ Dibb, Simkin, Marketing: Concepts and Strategies, 2002
Promotion is about communicating with customers in order to inform and persuade by changing people’s attitudes, via a multitude of online and offline channels. Attitudes are made up of values and beliefs that influence the way people think and feel. Promotion contributes to the customer’s perceptions of a product, influencing their view of the benefits provided, changing their attitudes – and perhaps changing their behaviour so that they buy a product or service.
Since the dawning of the digital age, social media channels and online advertising have begun to play a major role in this as they open up a whole new level of communications as people spend more and more time online.
Perceived value can be set out as having three levels (shown below). The first only contains the physical product, with no services attached. The second has the support services that must be provided to meet customer satisfaction, whilst the third includes intangibles such as brand, perceptions of quality, and the company’s reputation.