What are the pros and cons of point of sales advertising?
PROS: relatively cheap, increased customer attention, can be combined with other techniques (eg: discounts)
CONS: difficult to convince retailers to give your brand that amount of space, has to be kept exceptionally clean and tidy- taking up time and effort
What are the pros and cons of free gifts?
PROS: encourages customers to buy more since they get a free product with their purchase, increases customer retention if they enjoy the product and if it's something the customer values
CONS: they are free and therefore additional costs for the business, if the gift isn't valued by the customer it is unlikely to encourage them to purchase the product
What the pros and cons of loyalty schemes?
PROS: effective in retaining customers as they receive offers or discounts if customers purchase a certain number of products, can develop high levels of customer loyalty
CONS: these schemes suit products that people buy regularly but are offered within crowded markets where customers have many options of which to buy, difficult to create a scheme that stands out
CONS: can be expensive, doesn't engage customers in the same way as other methods of promotion
What are pros and cons of discounts?
PROS: makes the price more attractive by offering a reduction of the price usually to a short period of time, mostly suited to attracting new customers though may also encourage repeat in purchase
CONS: as soon as discount is over customers may switch to different competitors, short-term method
What are the pros and cons of competitions?
PROS: more likely to encourage an impulsive purchase, can develop brand loyalty
CONS: may be ineffective if consumers aren't persuaded by the final prize, expensive
What are pros and cons of BOGOF?
PROS: makes price more attractive, shifts excess stock, can encourage customers to buy more than they need (more revenue)
CONS: half of the revenue is being made and therefore may be unable to cover costs
What is the difference between sales promotion and advertisement?
advertisement relates more to getting customers to know about the business and draw them to explore it
sales promotion are mostly used to get the customers to buy the products and to increase retention