The three Faces of Consumer Promotions: Economic, Informative and Affective
Sales Promotion is a large part of the marketing budget worldwide. Consumer promotion accounts for almost a quarter of the marketing budget. There are many ways retailers and manufacturers induce consumers to repeat purchase and brand switching. Types of promotional tools include coupons, sweepstakes, competitions, price discounts around calendar events (e.g., Christmas Sale, President’s Day Sale), annual discount events by manufacturers or retailers (e.g., semi-annual Nordstrom’s sale), free gifts, free samples, trial packages, and membership rewards.
There are 4 key managerial questions regarding sales promotions. The first question is, are they increasing profits …show more content…
The informational route signals unknown aspects of a brand or industry to the consumer. The informational route increases awareness among consumers. It can also create interpretations of a brand or industry that consumers might not otherwise have drawn in the absence of the promotion. Price expectations, quality expectations and promotional patterns are the most common inference-based informational effects of promotions. A disadvantage of price promotion is that consumers may associate the promotional price as a reference price, and view the regular price as unfavorable. Consumers might also think the product is poor quality because it is at a discounted …show more content…
They can do so by including price information or providing quality cues on their promotional materials. Managers can make the informative route positive by restricting a deal. Managers can imposing purchase limits thus increase sales. Customers will believe that the deal is a good one and will be very popular with other customers.
If a company decides to go with a sales promotion, they should weigh the positive effects against potential negative consequences when deciding whether or not they should spend their marketing budget on the consumer promotions versus other marketing tools such as advertising or trade promotions. The fine-tuning of a promotional offers may be the route to make a promotional sale successful and profitable.
In conclusion if used the right way sales promotion can be a key tool for managers to increase sales. Managers need to consider all 3 distinct aspects of sales promotion, economic, informational, and affective routes. For managers to have an effective promotional design, they need to understand the target segment and their relationship with the promoted
Sales Promotion is a large part of the marketing budget worldwide. Consumer promotion accounts for almost a quarter of the marketing budget. There are many ways retailers and manufacturers induce consumers to repeat purchase and brand switching. Types of promotional tools include coupons, sweepstakes, competitions, price discounts around calendar events (e.g., Christmas Sale, President’s Day Sale), annual discount events by manufacturers or retailers (e.g., semi-annual Nordstrom’s sale), free gifts, free samples, trial packages, and membership rewards.
There are 4 key managerial questions regarding sales promotions. The first question is, are they increasing profits …show more content…
The informational route signals unknown aspects of a brand or industry to the consumer. The informational route increases awareness among consumers. It can also create interpretations of a brand or industry that consumers might not otherwise have drawn in the absence of the promotion. Price expectations, quality expectations and promotional patterns are the most common inference-based informational effects of promotions. A disadvantage of price promotion is that consumers may associate the promotional price as a reference price, and view the regular price as unfavorable. Consumers might also think the product is poor quality because it is at a discounted …show more content…
They can do so by including price information or providing quality cues on their promotional materials. Managers can make the informative route positive by restricting a deal. Managers can imposing purchase limits thus increase sales. Customers will believe that the deal is a good one and will be very popular with other customers.
If a company decides to go with a sales promotion, they should weigh the positive effects against potential negative consequences when deciding whether or not they should spend their marketing budget on the consumer promotions versus other marketing tools such as advertising or trade promotions. The fine-tuning of a promotional offers may be the route to make a promotional sale successful and profitable.
In conclusion if used the right way sales promotion can be a key tool for managers to increase sales. Managers need to consider all 3 distinct aspects of sales promotion, economic, informational, and affective routes. For managers to have an effective promotional design, they need to understand the target segment and their relationship with the promoted