These are the Best Practices in Promotional Advertisement
Promotional advertisement refers to offering Additional incentives for making a purchase. Thus, the marketer may offer incentives like coupons, temporary price reductions or promotional gifts and giveaways to attract the target customers. Through offering promotional merchandize, the businessperson hopes to increase not only immediate sales but also achieve customer loyalty.
Customers will often come back to the shop to purchase more because they know there is an incentive for every purchase. Therefore, the store will attain more sales, while securing a royal customer base. For promotional advertising to work effectively, the incentives should be regular. Besides, there are high chances that the sales will begin to decline after the promotion ends. Therefore, promotional advertising may not be an effective approach, especially for startups and medium businesses. Here are some of the reasons why promotional advertising is not an effective approach in business.
Adds to the Overall cost of Production
The overall cost of production is already high. Introducing cost of acquiring promotional merchandise only increases the cost of getting the products to the market. Therefore, the business owner will have to increase the selling price to earn profits.
Short Term Orientation
Promotional advertisements run for a short period. Although the short terms promotional advertisements may yield positive results, this may not be the case past the promotional window. Thus, promotional advertisement may not be a sustainable approach for your business.
In-Hand Advertisement is the Best Option
When it comes to building a loyal customer base, in-hand advertisement is the best alternative for your business. In-hand advertising can be compared to placing your brand name to the hands of your target customer. Therefore, the target audience interacts with your brand name often, which increases the chances of remembering your name when they are ready to purchase.