Sales promotion (eg, coupons, contests, free offers) are aligned to the consumers worldwide to a large and growing part of the marketing budget. Presents a framework that examines the effect of managerially controllable measures – specifically, design and communication, a sales promotion – to increase the incentive for the various segments of consumers to buy a product. Promotion have three different aspects: an economic aspect that offers both positive and negative incentives to p … Read more »

Sales promotion (eg, coupons, contests, free offers) are aligned to the consumers worldwide to a large and growing part of the marketing budget. Presents a framework that examines the effect of managerially controllable measures – specifically, design and communication, a sales promotion – to increase the incentive for the various segments of consumers to buy a product. Promotion have three different aspects: an economic aspect, which are both positive and negative incentives to buy a brand, an informative aspect that consumers use purchasing decisions, and an affective aspect of how consumers feel influenced their purchases transaction, both positive and negative. As a promotional offer is designed and communicated determines both its significance and its emotional appeal, which then increases or decreases the attractiveness of the offer, the economic incentives it offers. Companies ‘promotional strategies should seek to maximize the positive informational and emotional aspects, as they reduce the need for a large economic incentive and thereby the actions’ profitability.
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from
Priya Raghubir,
Jeffrey J. Inman,
Hans Grande
Source: California Management Review
21 pages.
Release Date: 1 August 2004. Prod #: CMR289-PDF-ENG
Three Faces of Consumer Promotions HBR case solution

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