Marketing is all about placing the product in the right place in the right time and to the right people. To do this in an effective way, we need the right tool of marketing communication. Sales promotion is one the few tool .
Sales promotions provide incentives to the distribution channel, to the company’s own sales people, or to the consumers.
Consumer promotions encourage customers to take the final step and make a purchase. They intend to acquire and retain consumers, boost sales in short run, clear inventory, increase awareness, distinguish themselves from competitors, and encourage brand switching.
Generating sales is a short term objective, whereas building a brand is a long term goal.
In order not to harm brand image and positioning over the long term, we need to ensure that consumer promotions are carefully designed to support them. Holding promotions too frequently will make customers used to to buying only while promotions are in effect. Avoiding promotions altogether will make it possible for competitors to draw customers away
Both advertising and sales promotions provide consumers with reasons to purchase a product or service. The distinction between them is that promotional campaigns provide customers with urgent incentives to purchase now. It is also important to understand the target market and the styles of ads to which they will be more sensitive.
Different group of consumers:
- Promotion-prone consumers respond to deals and will more easily switch to a brand when it is offered on deal. Price sensitive consumers do not care about the brand name. They just want the cheapest product. Neither of them is loyal, and as a result, not attractive in the long run.
- Brand loyal consumers usually do not need a promotion to make a purchase.If they are loyal to a competing brand, a promotion is not going to convince them to switch.
- Brand-preference consumers are the consumers who usually have a small set of brands that they prefer.Deals on one of those brands will modify their purchase behavior, and can even enhance their loyalty in the long run. They are the best group to pursue.
There are many types of consumer promotions which includes price-offs, coupons, premiums, contests and sweepstakes, and sampling activities.
We need to tailor consumer promotions very carefully in order to prevent the potential harm on our brand’s image.