Promoting on a budget?
Thursday August 2, 2018 at 12:02pm
Lauren Miles from Mando gives advice on how to create promotions with a strict budget.When there is little or no marketing budget, it doesn’t necessarily give reason to panic. With a restricted budget there are many great promotions to run. Even when creating a promotion under a strict budget there are many options to choose from, and importantly, still targeting customers effectively.Research and concepts from industry professionals indicate that in fact, even when budgets are tight, there is still the need to market to customers. Those who dare to push forward and promote are those who flourish, and by advertising and marketing (when competitors are also struggling with reduced budgets), you can increase market share, return on investment and uplift in sales. Businesses who cut the marketing budget tend to under-perform, paving the way for competitors keeping their marketing spend constant, to over achieve, gain new customers and market share from others losses. Research has shown that consumers like the reassurance of familiar and well-known brands, it provides a sense of comfort and a key aspect for brands to manage is the balance between eye-catching price cuts versus adding value through offering customers something unique and diverse, as added-value promotions are more cost-effective to run than you may realise.Money Back Guarantees and Try Me Free promotions are incredibly economical tools, in turn, giving the customer comfort and reassurance in the brand enabling them to claim their money back if not completely satisfied, removing the purchase barrier. Reducing the customer’s purchase risk advises your product is worth the asking price. Try Me Free promotions are proven to improve sales uplift, and are excellent for new product trials. Offering Taste Guarantees with new products encourages trial without fear, and if the customer doesn’t enjoy the product, they can return for a refund, and some restaurants for example KFC, will exchange for another meal of your choice. This in turn will increase brand trust, repeat purchase and enhance brand loyalty further down the line. The added bonus of a guarantee style promotion is the differentiation setting you apart from your competitors and most savvy shoppers will choose your product above everyone else’s; plus, these variations of promotions are cheaper to run than you think! These are extremely popular and effective promotions that feature in our top five promotional mechanics list, find out more in the link provided.Brands often use coupons as a means to retain brand loyalty when budgets are tight, and although studies have previously shown that customers prefer getting something extra for free as opposed to receiving a discount, shoppers still delight in receiving a coupon from a brand that doesn’t normally do offers, making the customer connect more emotionally with the brand, and frequently leading to increased basket spend especially if a minimum order amount applies. To read about the different sales promotion mechanics click the link provided.Attracting customers through value-added sales promotions can be a cost effective alternative to discounting your product. Discounting your product can lead the customer to have expectations and only buy your product when it is on offer, additionally with large discounts customers tend to be suspicious regarding quality and whether this has been compromised.Mando can help you get the most out of your budget and we can do this through a detailed analysis, building a comprehensive risk profile across a range of promotions in various industries and countries, to gauge its impact and performance. Mando will then discuss all relevant findings, draw estimations and further educate on how best to strengthen your promotion within your budget.Lauren is Senior Account and Marketing Executive at Mando. Mando (part of WPP) develop promotional rewards and incentives, which are born from science. We utilise data grounded with reasoning, combined with insight to help you deliver exactly what your consumers want, with a solution that is right for your brand. Using unique data and expertise we provide complete solutions including promotional risk management, prepaid incentives and brand partnerships, which continuously help create some of the world’s most memorable marketing campaigns.The post Promoting on a budget? appeared first on Promomarketing.]]>