A few weeks ago we discussed how the state of television advertising is not what some marketers may think. The general belief among many is that television advertising is losing significant ground to other forms of advertising, such as digital ad options. In large part, this view is assumed based on the proliferation of TV program viewing options (e.g., on tablets, on DVR, on content services such as Netflix). Yet, even though viewing options are becoming much more fragmented, in reality, television advertising remains an attractive choice for many advertisers and still garners over 38% of all global ad spending.
In 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.