Because of the twin concerns of consumers? reluctance to spend and the short selling season, marketers are resorting to rolling out more promotions that offer hefty incentives. According to this New York Times story, for retailers (and product manufacturers) this means building demand through both heavy advertising and sales promotions. As we observe in our Sales Promotion tutorial, sales promotion involves special short-term techniques for getting customers to engage in some activity. While there are several different objectives of sales promotion, the main goal for holiday season promotions is clearly to increase sales.
As we see in this story, the methods being utilized to build demand are varied and include deal-of-the-day promotions or ?flash sales,? where a product may carry an extremely low price for a short period. To promote their sales promotions, retailers will be spending heavily on advertising.
A key take-away from this story is seeing how crucial it is that two methods of promotion, advertising and sales promotion, work together to meet marketing objectives.
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