Explain the role of promotion for Tesco
The role of promotion for any business is important because they need make their product/services aware to everyone. Tesco’s methods using in achieving these affects may vary, depending on their goals, markets and industries. Tesco’s promotions include advertising, sales promotions, sponsorships and other strategies. Tesco’s need to make sure that when promoting products/services they target the correct consumers those who are more likely to buy their product.

Increase brand awareness
Above the line promotions like television, radio and newspapers help business increase brand awareness. This is because these types of promotions target many people, for example in the UK 84% of the population read the national newspapers. If a brand is seen by people on a regular basis then it will stick in their minds and consumers will know more about the product. When Tesco are selling a new product/service then they will be reaching out to a new market they have to explain to customers what they are offering. Brand awareness can be measured by market, regionally or nationally. It takes a lot of time for businesses to build their brand awareness levels that match established competitors. During special occasions like Christmas and Easter their advertising increases as people tend to buy more during these festive periods so they more they advertise their products the more they will sell. This will increase brand awareness because if they are advertising double the amount then people will see their products/services more often and they will remember their products.

Provide information
Tesco’s also use promotions to provide information. Marketers may run media releases to explain to consumers that their products can help certain weaknesses. Tesco’s often use videos and demonstrations to show people how to use new products. For example in the mobile phone department Tesco’s sometimes have videos show off their new products as well as demonstrations on how to use it. This is an effective way to promote products because there are many customers who prefer to know about the product before they purchase. By showing a demonstration of the product/service and how it works informs the customers This is Promotions can inform people throughout the process of buying including their initial search.

Increase customer traffic
A frequency program promotion is made to reward people the more they visit and spend with a retailer. Tesco’s use promotion such as this to increase customer traffic throughout their stores. Tesco’s and other big supermarkets handout vouchers to customers which will offer them products/services at a discounted price with an expiry date. This is a great method because the customer will have to return to their store in order to get this promotional offer. For example Tesco’s send ‘10p off fuel per litre’ and their will be a time period for when this can be used.

Build sales and profits
The main reason why companies advertise and promote their products is to increase sales and profits. Tesco’s wants to attract new customers and steal customers from competitors to come and spend money with them. This is why Tesco’s promote good value for money products/services so that customers return to the store which will lead in an increase of their customer base, building a stronger relationship with customers and overall this will lead to increase in sales and profits.

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