Use Promotions to Develop Relationships That Stick

"There are several reasons why smart marketers promote their products and seek short-term volume increases," claims senior marketing consultant and MarketingProfs seminar presenter Michael Goodman. And the reasons extend beyond a desire to immediately increase sales. There are a number of possible objectives for a promotion:

• Initial trial. The reality is that consumers constantly check what's available in the marketplace. Marketers may be willing to sell a trial product to attract new customers if they believe that "once the customer tries [it] they'll be back for more," says Goodman.
• Loyalty programs. In these days of seemingly never-ending new products on the market, the smart businesses reward their customers for repeat business. Loyalty programs range from airline frequent flyer programs to free coffee after 10 purchases. The cost is usually small in relation to the incremental sales provided.
• Awareness. Some promotions are designed to generate awareness of and familiarity with the brand. These often appear as relevant giveaways with a purchase, and may have the seller's name and logo emblazoned on the freebie. This way, the customer sees your name, even when they aren't using the product.

Source: MarketingProfs. Attend Promotions: Instant Gratification for Small Business Marketers, an online seminar, this Friday at 12pm ET.

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