Concept
How should sales promotions address different types of consumers?
IntroductionToBusiness OP 8D04gAa / 12.8. Sales Promotion*
"The objectives of a promotion depend on the general behavior of target consumers, as described in Table 12.2. For example, marketers who are targeting loyal users of their product don’t want to change behavior. Instead, they want to reinforce existing behavior or increase product usage. Frequent-buyer programs that reward consumers for repeat purchases can be effective in strengthening brand loyalty. Other types of promotions are more effective with customers prone to brand switching or with those who are loyal to a competitor’s product. Cents-off coupons, free samples, or an eye-catching display in a store will often entice shoppers to try a different brand. Types of Consumers and Sales Promotion Goals: Loyal customers: People who buy your product most or all of the time. Desired results: Reinforce behavior, increase consumption, change purchase timing. Sales promotion examples: Loyalty marketing programs, such as frequent-buyer cards and frequent-shopper clubs; bonus packs that give loyal consumers an incentive to stock up or premiums offered in return for proof of purchase. Competitor’s customers: People who buy a competitor’s product most or all of the time. Desired results: Break loyalty, persuade to switch to your brand. Sales promotion examples: Sweepstakes, contests, or premiums that create interest in the product. Brand switchers: People who buy a variety of products in the category. Desired results: Persuade to buy your brand more often. Sales promotion examples: Sampling to introduce your product’s superior qualities compared to their brand. Price buyers: People who consistently buy the least expensive brand. Desired results: Appeal with low prices or supply added value that makes price less important. Sales promotion examples: Trade deals that help make the product more readily available than competing products; coupons, cents-off packages, refunds, or trade deals that reduce the price of the brand to match that of the brand that would have been purchased. The use of sales promotion for services products depends on the type of services. Consumer services, such as hairstyling, rely heavily on sales promotions (such as providing half off the price of a haircut for senior citizens on Mondays). Professional services, however, use very little sales promotion. Doctors, for example, do not often use coupons for performing an appendectomy, for example. In fact, service product companies must be careful not to utilize too many sales-promotion tactics because they can lower the credibility of the firm. Attorneys do not have a sale on providing services for divorce proceedings, for example."
Related Ideas
- What are the goals of promotion?IntroductionToBusiness OP 8D04gAa · 12.5. Promotion Strategy*
- How do advertising, personal selling, sales promotion, and public relations support marketing goals?IntroductionToBusiness OP 8D04gAa · Summary of Learning Outcomes
- What are reach, sales promotion, sales prospects, and social media?IntroductionToBusiness OP 8D04gAa · Summary of Learning Outcomes
- What elements make up the promotional mix?IntroductionToBusiness OP 8D04gAa · 12.5. Promotion Strategy*
- What is promotion and what are the key elements of a promotional mix?IntroductionToBusiness OP 8D04gAa · Summary of Learning Outcomes
- What workplace activities develop skills in marketing, distribution, and promotion?IntroductionToBusiness OP 8D04gAa · Preparing for Tomorrow's Workplace Skills
- How does relationship marketing build long-term customer loyalty?IntroductionToBusiness OP 8D04gAa · 11.2. Creating a Marketing Strategy*
- What pricing strategies can companies use for established products and services?IntroductionToBusiness OP 8D04gAa · 11.9. Pricing Strategies and Future Trends*