Current promotions have matured from classic discounts to complex and multi-level systems of practical tools to stimulate demand and sales.
There are two types of promotions: trade and consumer.
Trading promotion stimulates the sale of goods through the direct activation of trading activities. This type of promotion can include different kinds of discounts, bonuses, gifts, and loyalty programs.
Consumer promotion, also known as consumer marketing, includes all the advertising activities of the brand, marketing research on the competitive environment, and purchasing preferences.
Both types of promotions are often used simultaneously for maximum effect: trade promo provides better conditions for stimulating purchases, and consumer promotions inform and encourages buyers to participate.
There are two types of promotions:
trade and consumer.
Among the key attributes of an effective promotional campaign are:
- The number of customers involved in viewing and participating in the promotional campaign. Promotions are a significant driver to increase the interest in the brand and its products both among the brand’s existing customers and new buyers. Increased brand awareness leads to a higher number of returning customers purchasing more products and services from the brand.
- Balancing of discounts. Too large and frequent deals can be unprofitable for the company. Well-thought-out discounts promote increased sales volume and average bill amount, which leads to increased profits.
- Effective communication. The company’s existing and prospective customers should be well informed about the ongoing promotions, discounts, and future promotions through the maximum number of relevant channels.
- Timeliness. It is advisable to hold promotions during festive and pre-holiday periods and during periods when there is a reduced demand for brand products. In addition, the promotions should not be too long or frequent: an excellent promotional campaign encourages the buyer to make a purchase here and now.
- Technical implementation. The effectiveness of promos in online channels depends mainly on successful technical implementation, which is especially important when conducting campaigns simultaneously in several sales channels.
“Black Friday” is one of the most known and wildly popular promotional campaigns worldwide and traditionally held by brands and retailers in late November, in anticipation of the start of the annual New Year and Christmas sales. According to Adobe Analytics, spending on online purchases on Black Friday in 2020 increased by almost 22% – a new record, as the COVID-19 pandemic forced people away from brick-and-mortar stores to online shopping. In the U.S., for example, consumers spent $9 billion during Black Friday in 2020.
Spending on online purchases on Black Friday
in 2020 increased by almost 22% – a new record
Though many manufactures still remain skeptical about promotional campaigns, considering the provision of discounts as a reduction in profits and advertising budgets as an extra cost; practice shows that well-planned campaigns result not only in higher profits but also can increase the customer base, attracting new customers and reinforcing the loyalty of the existing ones.
Syntes, an international company, develops a next-generation MDM (Master Data Management) and PIM (Product Information Management) cloud platform and provides brands and manufacturers with services for creating, managing and automating D2C (Direct-to-Customer) sales and marketing channels. Syntes solutions and services are used by the world’s leading brands and manufacturers of consumer and business products such as Razer, Scarlett, Pantone, X-Rite, AVerMedia and others. Syntes is a registered trademark of Syntes, Inc.
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