Print-friendlySales Promotion Considerations
In considering the effectiveness of sales promotion programs, a marketing manager should consider several conditions within the market. Some conditions may work against the ultimate goals of the brand and may adversely affect overall brand loyalty. However, the marketing manager can do several things to minimize their impacts.
There are several conditions when the use of sales promotions may work to decrease brand loyalty at the expense of short-term gains in sales volume. Consumer products that exhibit unclear or difficult-to-distinguish differentiators often lead consumers to consider other factors before purchase. Often price becomes the mitigating factor and the use of sales promotions is a key driver to capturing loyalty. Realizing this, the marketing manager needs to be aware of the frequency with which sales promotions are used as well as anticipate the optimal times to do so. The marketing manager must also use sales promotional tactics that reinforce the overall brand positioning that is sought. For instance, in the case of tanning cream, a brand could use an incentive program (trip to the beach) that may help drive sales versus a simple cost reduction that may have residual effects. While both may drive sales, the incentive could work to reinforce many of the brand's key values, as well as stress key product differentiators. From a promotional standpoint, the effort would drive short-term sales, yet would also work to raise awareness for the product in the minds of consumers, and hopefully would communicate a deeper message. Another factor is overall timing. In this case, the seasonal demands of this product will vary and this could be used to the manager's advantage. Different times of the year could be used to achieve sales gains. In any case, the manager must be cognizant of frequency and not rely on these types to efforts too much.
Another aspect of sales promotion that may not be considered as heavily is the support of a brand's complete 'supply chain' relative to sales promotional efforts. The manager would be mistaken to consider an aggressive price promotion without similar support or enticements to the retailer or wholesaler/distributor. Both of these segments are critical to helping the brand achieve in-store awareness and ready supply. As part of any sales promotion, I believe that the manager much consider the needs of these groups and provide integrative support in some manner. For example, if Frito Lay decided upon an aggressive promotion of chips, it needs to provide complimentary enticements within it distribution channels to get everyone to play along. Although any one of several tactics could be used, all would work to help entice the retailer and wholesaler to participate. I feel that while brands clearly position themselves in the minds of consumers, they are similarly situated among their trading partners as well. These 'team members' also influence what the consumer sees and experiences in-store. The manager must consider these factors and deliver promotional programs that provide integrated support. Doing so effects may increase the likelihood of preferential product placement or favorable consideration relative to slotting fees.
If conducted effectively, some types of sales promotions can be used to increase brand loyalty. A perfect example of this is with a new product introduction. Case in point is a scenario in which Proctor and Gamble introduces a new skin cream. To introduce the product to its target consumers, the brand manager could decide to run a sales promotion that offers a major price discount for a limited time. This would work to drive consumers to purchase the product on a trial basis and sample it. After sampling, if the consumer was satisfied with the product's performance, they may consider additional purchases, regardless of 'normal' price. By pursuing an activity that promoted trial on behalf of the consumer, the brand could increase its awareness and its loyalty within its target market.
