Today’s topic: Let’s talk about the promotions mix: Sales Promotions.
Sales promotions: give something away or have a very good, low sales price on your product.
The advantage of this kind of advertising is that you attract attention and can achieve a quick response, but the disadvantage is that you can destroy your brand equity and disturb positioning (too many companies in any industry doing sales promotions encourages brand Disloyalty and brand switching. Think cell phones. ) So, sales promotions are really only a short term solutions to help drive quick revenues. Remember, you can’t claim your product is superior when incentives are always offered or the perception by consumers will be that your product must not be very good if it’s always being given away for free.
Incentive to encourage sale or trial
Contests, 2 for 1 deals, price specials, premiums, etc.
This is a short term strategy that encourages consumers to Buy Now!