Why are promotions important?

The most important purpose of a promotion is to differentiate a company from its competitors. No company will need to run promotions if there is no competition. You need to stay ahead of your competitors so that customers continue to do business with you. Marketing and promotion strategies are closely linked.

Marketing includes all aspects of developing, promoting and selling products or services to customers. Promotion is a key element in communicating the benefits of products once they are researched and developed. Effective marketing and promotion strategies drive long-term success, customer development and profitability. The role of promotions is an integral part of the marketing mix.

In general, promotions tend to focus on how to attract consumers' attention and motivate them to take action or make a purchase through e-commerce or other channels. There are many ways that marketers can promote a product or service, but this requires strategic research into the target audience and where to find it. Advertising and promotion are essential components of a successful business. Its effects include brand establishment, growth within its target market segment, discovery of new secondary markets, development of customer loyalty and antitrust.

Companies without marketing strategies can save money, but they operate at a clear disadvantage. Another disadvantage of promotions is that, unlike advertising, they almost never have a long-term positive effect on established brands. New product promotions can be quite productive because they encourage consumers to try an unknown product. But the likelihood that consumers who buy a brand established in promotion will buy it next time is almost the same as their likelihood of doing so, even if no promotion has taken place.

In fact, promotions for established brands generally attract current users who would buy the product anyway or brand changers that bounce between brands on sale. The exhibition “Identifying Mutually Beneficial Markets” shows how Jewel food stores could have nearly doubled their profits from a particular promotional event (here called the XYZ event) by adding one more week of presentation and exhibition. For example, the data can provide market-by-market estimates of the promotional response and support from retailers who can provide information to allocate promotional funds and make necessary tactical changes. The combination of traditional advertising, personal selling, sales promotion, public relations, social media, and e-commerce used to promote a product is called a promotional mix.

Working with a promotion fulfillment provider can help you develop a strong action plan for both promotion development and optimizing consumer engagement. Therefore, if a company reduces unproductive advertising between pulses or interrupts ineffective promotions, it risks that retailers will interpret the measure as a lack of support and thus reduce distribution. The media you select and the messages you formulate are key to creating effective advocacy strategies that achieve these communication objectives. The promotional strategy is designed to inform, persuade or remind the target audience about those products.

Promotion is an attempt by marketers to inform, persuade or remind consumers and B2B users to influence their opinion or get a response. While refunds, sweepstakes, and content have proven to be highly effective promotion tactics, special attention must be paid to legal aspects to ensure they comply with federal, state and local regulations. Suspending a money-losing promotion not only stops a manufacturer's losses, but also sends a de-escalation signal that, if the competition pays attention to it (and the odds are higher if the manufacturer's brand is a market leader), ends up further improving profits. The other side is de-escalation, a cycle in which competitors refrain from undermining each other's profits through promotions.

The unique combination of advertising, personal selling, sales promotion, public relations, social media, and e-commerce used to promote a product is called a promotional mix. Following the concept of IMC, marketing managers carefully elaborate the roles that will be played by the various promotional elements in the marketing mix. In addition, brands can use the rebate redemption process to collect customer data and participate in future marketing initiatives, making rebates an ideal promotion to build long-term loyalty. The importance of promotion and advertising is that they make potential consumers aware of your company and the benefits of doing business with you.

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Esther Woodcock
Esther Woodcock

Esther has been in Marketing field for 15 years