The Three Faces Of Consumer Promotions : Economic, Informative And Affective

830 Words Apr 21st, 2016 4 Pages
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 to their maximum potential? The second Question is, are they as profitable as they might be, the third question is can this be achieved through their design and communication and the fourth question is what are their long-term effects? An integrative model was developed that theorizes that sales promotions have three distinct aspects. The three routes of promotional effects are the economic route, informational route, and affective route. The economic route effects pertain to a monetary or non-monetary gain or loss that a consumer promotion provides to the consumer. The most dominant source of economic effect is the face value of the coupon, the amount of the rebate, or the grand prize in a sweepstakes. There are also non-monetary…

Related Documents