Key branding principles behind sales promotions

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Question - do sales promotions improve or damage perceptions of a brand?

Answer - they can do both. At worst, promoting for promoting's sake can suggest that the brand is cheap and therefore undermine a premium brand significantly. On the other hand, promotions do increase the visibility of the brand and therefore its perceived presence in the market, and well-judged quality promotions that indicate a deep understanding of the customer can be very powerful in building the reputation of the brand overall

Key points

Promotions are potentially the most damaging communication medium for your brand. All brands are about building a relationship with focus customer segments based on trust & intimacy. Promotions tend to be about sandbagging non-focus segments into immediate purchases, with the inevitable result that a lot of loyal customers get hit too - & resentful, if they see non-customers receiving incentives to purchase which, as loyal customers, they are not entitled to.

There are some brands whose values are all about sandbagging for opportunistic bargain seekers. These need to keep promoting as if their commercial lives depend on it (they do).

In general, successful branding is about long term relationships, not short term sales, so promotions should be about building & enriching the brand, showing gratitude to loyal customers within a brand's focus customer segment, & providing the occasional reminder that you are still interested in their custom & value your relationship with them.

In this respect, customised promotions, which demonstrate an understanding of the customer as an individual, can be very effective.

Also, perceived brand value is increasingly related to how much a brand is seen everywhere the customer looks. Sales promotions will ususually generate increased visibility of both communications materials and of the product or service itself, so in this respect they can help signal the brand as a significant player in the market.

Measurement

In branding terms, measure the impact of promotions on your brand profile, not on your sales.

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