Promotional strategy is a technique utilized by companies for advertising, promoting and selling their products or services. A company selects its promotional strategy based on several important business factors – such as the type of the product, the budget for marketing, target audience, and a lot more. Without increasing product awareness radically, increasing sales will be a very difficult feat. An effective and creative promotional strategy is what ensures a company of more revenue as compared to the average competitor’s marketing spends.
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Promotional Strategy Types
Promotional strategies are chiefly classified under two main categories, referred to as Push and Pull.
- Push strategy
In the push promotional strategy, promotional activities are done by the company for its distributors, wholesalers as well as retailers. A promotional activity directed towards them is done so that they get a reason to push a product to the customers. Trade fairs, bonuses, wholesaler discounts etc. are all instances of push promotional strategies. The demand is created or pushed by the distribution channel to the consumers. These activities are obviously not perceivable by customers. In return, the shopkeeper who is pushing a product to a client is earning more margin on selling that particular brand and this is how he makes a profit.
- Pull Strategy
Promotional pull strategies are those marketing moves that are chiefly performed for the customers. Digital campaigns, ads, and even discounts in stores and malls etc. are all different examples of the pull strategy. Because demand has been created among consumers, the sales increase even on the retail stores as well as e-commerce sites. And these strategies or advertising measures are usually visible to the customers and are also looked at as creating brand awareness. When a consumer goes to the market to buy a specific product from a brand, then this pull marketing strategy has worked for that brand.
Promotional Strategy Steps
The process for driving promotion for a service or product can be identified as the following-
- Identifying an objective behind the promotion: The product or service should be of quantifiable amount with regards to sales, revenue, and promoting brand awareness.
- Evaluating channels for promotion : this step involves the evaluation of the marketing channels utilized for the purpose of promotion, such as, social media, events, TV, radio etc.
- Formulate a budget for marketing: figuring out the amount of investment that’s required to execute a promotional strategy which is required to be allocated channel wise as that would also keep a track of the investments.
- Executing promotional activities : creating advertisement campaigns, scheduling these ads and overseeing that the promotional activities for the same are conducted without disruptions.
- Monitor and evaluate these activities – promotional activities need to be monitored for evaluation and possibility of further enhancement.
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