19 Pages


WithMullin Roddy

There are 12 core promotional objectives that a promotion typically addresses: increasing volume, increasing trial, increasing repeat purchase, increasing loyalty, widening usage, creating interest, creating awareness, deflecting attention from price, gaining intermediary support and discriminating among users. It also includes restoring brand perceptions and deflecting attention from complaints after operational mishandling of customer accounts and retaining brand perception on service failure. Repeat purchase promotions overlap considerably with volume promotions, as existing customers are most likely to be prepared to bring forward their regular purchases and buy in bulk. Gaining display is a central objective for promotions run by manufacturers who sell via retailers, wholesalers, distributors or other intermediaries. The key phrase is 'add value'. 'Value promotions' essentially give an extra benefit. The logic of value promotions is clear to see. There is evidence that these contribute not only to short-term sales, but also to long-term brand value.