Tools of the Trade: When Promotion Beats Advertising
By Desiree Grace
Sometimes you need a hammer, sometimes you need a mallet.
Sometimes you need a crowbar, and other times a pry bar is the right tool for
the job. This holds for the marketing trade. You need the right tools for the
job. In the case of good marketing, sometimes Sales Promotion is the best tool.
Sales Promotion is an incentive used to motivate
action. Your target could be end-users, the channel, aka distribution, or
it could be business buyers, like the MRO buyer or government procurement gal.
Whichever target market you choose, Sales Promotion is gaining in popularity
because it is easily measured and is a great way to stand out from the
competition. It can also increase the perceived value of your products and
services, as well as add value to your channel.
I like Sales Promotion because you can put together a
strategy and execute it quickly, as compared to traditional Advertising. Also,
you can undermine a competitor’s campaign. Here’s an example: You and your
benchmark competitor share shelf space at your favorite distributor. It just so
happens the distributor corporate team has decreed May as the month to focus on
your competition. You could host a May Distributor Appreciation Happy Hour and
an Inside Sales Contest to shift the focus away from your competition and
direct attention to you and your brand.
Examples of Sales Promotions include not just events and
contests. You could deploy other tactics like discounts, gift cards, gift with
purchase, samples, free trials, and other value-added activities. Rebates and
frequency programs work, too, especially to reward repeat buying. Other
behaviors to target include stimulating trial, maybe of a new product category
or a new product, or increasing purchase order quantity. It can be impactful to
reward larger-than-normal purchases under certain market conditions. (Tariffs,
for example.) This is where allowances
or incentives might motivate a buyer.
A word of caution, however: Don’t train your customers to
expect promotions. Constant use of promotions erodes your brand image and can
cannibalize future sales. Also, understand there is an expense to administering
some programs and that there may be legal restrictions. So, collaborate with your
internal teams to verify administrative and legal requirements BEFORE you
introduce your new and exciting promotion.
In case you need a primer on how Sales Promotion differs
from Advertising, we’ve included a handy comparison chart. If you need help
brainstorming promotions to gain the attention and interest of your target
market, contact River Heights Consulting. We have lots of creative and
effective ideas for our clients to make money and add value.
Desiree Grace is a trusted advisor, consultant, and mentor who’s been laying the foundation for success
in the electrical distribution and manufacturing industries for over 30 years. She currently lends her expertise to River Heights Consulting, where she tackles special projects and helps clients build stronger, more resilient businesses.
Desiree is known for her ability to blueprint brand strategies, reinforce revenue growth, and energize teams. She’s a master at aligning strategic plans with real-world execution, and she brings specialized know-how in helping global companies break ground in the North American market.
With a toolbelt of experience spanning Fortune 100s, nimble start-ups, and everything in between, Desiree helps B2B organizations nail down better market share, drive profits, and stay structurally sound in a competitive landscape.
A sought-after speaker and thought leader, she delivers insights on leadership, sales, industry trends, and team motivation. Connect with her at: www.linkedin.com/in/desireecgrace
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