Using Sales Promotion to Help Restore a BrandIn our Sales Promotion tutorial, we note how this method of marketing promotion can be used to meet five objectives - build awareness, create interest, offer product information, stimulate demand and reinforce a brand. What is not mentioned is how sales promotion can also be an essential component in helping to resurrect a damaged brand.

When companies face negative publicity, it is almost guaranteed they will lose customers and, in some cases, a lot of customers. To recover from the damage, a company will turn to its marketing department to rebuild the brand’s image. In such situations, marketers may try to improve things with advertising, for instance, a television ad or full-page advertisement in a newspaper saying the company is sorry.  However, many companies facing negative publicity find the best way to get customers back is to entice them with sales promotions. Promotions such as free product, promotional pricing and premiums (i.e., special give-away items) offer incentives to buy again that are not easily available with other forms of promotion.

Deciding where to direct promotional funds is a decision that often takes a great deal of analysis and discussion since making the wrong decision can prove to be wasteful. To prevent wasteful spending, many marketers direct promotional spending at what they view as being the most efficient for reaching a large portion of their target market. This often means marketers will steer clear when it comes to promoting at small activities, such as special events, that appeal to a relatively small sub-culture. For marketers, such events either do not attract the target market they are accustom to or these events attract very few participants.

Last September we noted how ad blocking technology is complicating online advertising. However, despite issues with ad blockers, online advertising remains a huge business and thousands of marketers continue to consider this a critical component of their overall promotional strategy.

When advertising online, marketers primarily have two options for placing ads. First they can manage advertising placement themselves by negotiating directly with specific websites. For instance, a clothing retailer could make a deal with a fashion magazine website and agree to pay the website for displaying their ad. To get the ad to appear, the website will insert computer code that loads the ad from some other location managed by the retailer.