Home / Consumer/End User Promotions
- Trial Promotions
- Load Promotions
- Loyalty Programs
- Referral Programs
- Collect to Win Games
- Scratch Off Promotions
- Direct Mail Traffic
- Rebate Insurance
- Weather Insurance
- Sports Promotions
- Pro Sports Licensed merchandise
- In/Near/On Pack Promotions
- Point of Sales Materials
Promotion is Less Risky than Discounts, Rebates or Free Goods
Promotion versus Discounts or Rebates or Free Goods
- Discounts and promotional allowances used repeatedly become ‘part of the price’, and appeal is lost. Hence, why many automobile companies have gone to a everyday price versus discounts or rebates
- A true incentive provides not only an inducement, but adds excitement, interest, drama and a sense of urgency.
- Discounts often mean ‘giving away’ the product and ‘doing this a new way’ each time develops into a vicious cycle.
- Discounts simply cannot generate the appeal and motivation as can merchandise or travel awards.
- A dealer or distributor accustomed to buying on the basis of discounts is vulnerable to your competitors’ inducements.
- Discounts are often passed on to the end-user at a lower retail price.
- Discounts can be easily matched by competitors
- Non-cash incentives represent minimal investment because the program funding is accrued basically from increased sales or purchases.
If cash/rebates/free goods/discounts are such a great motivators, why aren't they selling more or buying more?
It Pays to Promote During a Recessionary Period
In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that business-to-business Firms that Maintained or Increased their Promotion Expenditures during the 1981-1982 recession Averaged Significantly Higher Sales growth, both during the recession and for the following three years, than those that eliminated or decreased promoting. By 1985, sales of companies that were Aggressive Recession Promoting had Risen 256% over those that didn't keep up their promoting.
In addition, a series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that Promotion Aggressively during Recessions not only Increases Sales but Increases Profits. This fact has held true for all post-World War II recessions studied by The American Business Press starting in 1949.