Promotion is defined as the attempt to persuade others to participate in an exchange with them. Promotion happens because of the need to inform the customers of the existence of a product or service that may be useful to them.
There is some relation between promotion and customer demand. There are instances where promotional activities increase the total customer demand for a firm’s products or services. In some cases, a little promotional efforts bring tremendous increases in customer demand. Sometimes, however, promotion does little to improve total revenues. These results will depend on the nature of the product or service, the stage of the firm’s development, and the nature of competition. It will be very useful to the small business operator to know how he can use the various types of promotion to his advantage.
