Egypt Ushers

Ushers & Events
Advertising vs. Promotion

As... marketers look for a quick fix to make their numbers in the short-term, they earmark a larger percentage of sales for promotion. This means that either advertising or profit suffers. As one might expect, short-term promotional tactics usually are conducted at the expense of the long-term advertising strategy, which is necessary to build and protect the brand.

While conceding that promotions can move lots of volume, and that promotion is a tremendous stimulus for short-term sales, there is very little apparent difference in brand loyalty no matter how the brands are broken out by their measured levels of consumer-recognized dealing. Promotions supposedly reward “loyal” buyers, but also encourage consumers to be “unfaithful” to other brands. They do not “woo” customers away from brands that are effectively supported.

With all this in mind, the best approach for most marketers is to have two budgets to build brands, and sales: (1) a strategic budget to build the franchise over the long-term, using advertising and a few selected, consumer-oriented promotions; and (2) a tactical budget, which would be for promotions tied in to pricing, and aimed at managing the amount of sales revenue at different price levels.

Coupons, premiums, sweepstakes, sampling , discounting, incentives, and other forms of consumer promotions stimulate short-term sales, but have little effect on the long-term brand loyalty. Those companies that “bite the bullet,” and somehow find the resources:

• to keep the trade appeased;

• to promote for short-term results, but

• to continue to come up with a higher advertising-to-sales ratio than others in their respective categories, earn a higher return on investment. They do so because customers regard their products more highly, associate them with quality, and are willing to pay more for them. This leaves a greater margin to play with, which, of course, makes “biting the bullet” less painful.