Sales Promotion: Does It Enhance Brand Loyalty?

Through advertising and public relations help create healthy awareness for brands and their offerings, there is always the need for upcoming or new brands that ordinarily are unable to compete alongside established brands to deploy strategic marketing tools to reach their target consumers.

This need birthed a strategy that offers instant extra value and reward to the consumer, to elicit instant brand recognition and patronage in return. This strategy — sales promotion — has evolved today into a stratagem deployed even by established brands for varied reasons.

It is the process of persuading a potential customer to buy the product; it is any initiative undertaken by an organisation to promote an increase in sales, usage or trial of a brand offering. It includes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity and get a reward in return.

Some sales promotions are aimed at consumers. Others are targeted at intermediaries such as retailers and wholesalers. A “push” promotional strategy makes use of a company’s sales force and trade promotion activities to create consumer demand for a product. Using this strategy, the producer promotes the product to wholesalers, the wholesalers promote it to retailers and the retailers promote it to consumers.

A good example of a push strategy is when a company promotes its products via retailers through personal selling and trade promotions, which offer subsidies to encourage retailers to sell higher volumes.

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In conclusion, sales promo, though viable in its own right, is a strategy worth exploring, but as a tool to enhance brand loyalty, it remains an insignificant tactic.