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SPECIAL PROMOTIONS Question 4: The correct answer is e) All of the above. "Special promotions exist to raise sales dramatically right? We did everything the company said to do and we lost money from the promotion. How is that even possible?" - Client D First of all, if a promotion seems complex to you, like walking through a maze to receive a reward, then it is mind boggling to the consumer. Only the most die hard coupon shoppers and promotion fanatics will participate in outlandish events. Sales margins are not raised by creating more awareness of your brand. Do not confuse consumer awareness with brand loyalty or hard sales. You may generate excitement and interest momentarily, and even attract new shoppers to browse your products. Again, the bottom line determines success. If your company has to produce mammoth efforts, beyond their normal investment of time and money, to get a temporary image lift from misguided promotions, then that effort has been wasted. Think back to how many car dealer or retail store promotions in which you wanted to participate. More than likely you did so on a whim or happened to be at the location so you spent a few minutes satisfying your impulse. This is exactly what happens to others. Promotion merely for promotion's sake is not productive. How you tie promotion in to an overall plan requires long-term planning and analysis. You cannot make decisions regarding incentives as a "last ditch effort" to save a sales season. I have learned of many business which end up in the promotion cycle right before they go bankrupt. It seems like a quick and easy fix to a lingering structural deficiency. It isn't. Simple promotions aligned with your marketing strategy will help solidify client/consumer relationships but cannot be used as a substitute developmental tool. Think small, refrain from gimmicks, and ask yourself at every stage, would I want to be approached like this? Or participate in this promotion? If the answer is no, then stop what you are doing and regroup. One last note. The comment about getting sued is not a flip answer. Do some research into how many ill-conceived stunts and promotions ended up getting corporations sued. People get injured and have their egos bruised all the time. Don't place your company in harm's way due to thoughtless planning. Wacky ideas can lead to courtroom settlements. |