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Generate a spike in short-term sales, attract first-time customers and broaden exposure of your brand. Data management and on-going communication help you build long-term brand value.
Consumer sales promotions have traditionally been viewed as an easy, economical and measurable method for producing a short, sharp spike in sales. While coupons, value-packs and sweepstakes offerings do give consumers an incentive to buy immediately, sales promotions have a more strategic role to play in building and delivering on a brand promise.
With the exception of low-cost impulse purchases, most people go through a decision making process, consciously or not, before laying out their hard-earned cash. The stages are:
Different types of marketing activities address various aspects of these mental processes. For example, advertising and public relations speak to consumers at the awareness, information gathering and evaluation stages. Promotions, however, go straight to the heart of decision making and purchasing behaviour and alter the short-term price/value relationship that the product offers the consumer. The result is an immediate incentive to buy.
Beyond the tactical application of sales promotions as a reactionary weapon in the battle for sales and profits, these customer interactions open a door for dialogue and should be viewed in the broader context of building brand loyalty. Effective promotions alter the consumer's price/value perception of a product, which generates short-term sales and alters long-term brand value.
All else being equal, a sales promotion will entice customers to choose your product over the competitors and make them less likely to be influenced by competitors' offers in future. Backed by a solid strategy and good execution, a promotional campaign can have lasting residual market value.