Promotions are an effective way to increase customer loyalty and spread the word about special pricing, rewards programs, and other incentives to buy. Today's customers are the most important target market for businesses, as they have an established relationship and access to data that makes direct marketing possible. Promotions can not only draw attention, but also influence the direction of attention to the components of communication. Studies by von Restorff (193) have shown that a single element can be more easily remembered if it is prominently featured in a communication.
This means that a promotion will be more likely to be recalled than the rest of the communication. In general, communication material that is not part of the promotion may be less remembered than if no material were promoted (see Gardner, 198). Calkins (189) reported similar findings when using color to manipulate the salience of numbers in a list. Simon and Feigenbaum (1962) and Wallace (196) discussed the underlying process. It can be hypothesized that a promotion will diminish the recall of the communication when the content of the communication is not related to the promotion. Consumer promotions are strategies used by companies to win more customers or build brand loyalty among current customers.
Common customer promotions include sales tactics that make customers feel like they're getting a good deal or special value. These promotions usually occur over a specific period of time or are temporary, although many brands also offer special promotions to first-time customers. The type of consumer promotion chosen depends on the structure of the business and how its target audience will respond. Research has established that branded items used to promote a brand can greatly influence shopper habits. Many customers recognize that they maintain brand loyalty only because promotional products remind them of the brand.
Marketers have taken advantage of this trend in marketing to drive sales, and customers argue that they would switch products just to receive a promotional item. Studies on the impact of promotions on consumer brand attitudes have generally not found any negative effects. A second consequence that would not be desirable from the perspective of the developer is that consumers can associate the brand with a low price and infer that it is of low quality. The benefits that induced the promotion response may lead to scripts that differ so much in content that some have no interruptions. A related problem is whether or not promotion scripts are entered every time a coupon or other offer is viewed. However, marketers can still attract attention with the right sales promotion tips, especially when those offers are personalized.
Equally important, script research suggests ways in which communication strategies can be developed to maximize the impact of promotional incentives. Understanding this process is important not only for designing effective promotions, but also for minimizing any potential negative effects from other communication elements. Discounts can be limited to a specific point in the customer journey, such as your first online order or a seasonal or holiday promotion. It is also important to analyze category trends to promote the most popular products at times when customers want them most. This is a useful tool for delivering compelling promotions that drive sales, profits, and ultimately customer satisfaction. Increased attention to price due to a promotion may not affect brand attitudes if consumers do not use price for brand evaluation.
In addition, offering personalized and relevant promotions can make customers feel important and cared for, increasing customer satisfaction. The goals of promotion are to raise awareness, make people try products, provide information, keep customers loyal, increase product use, identify potential customers, and even teach customers about potential services. Promotions need to be held often enough to make consumers feel like they're getting a bargain price for a great product they wouldn't have purchased at regular price. The model recognizes that consumer response to promotions can follow a path that includes attitudinal formation.
