Do sales promotions really work?

Edward Garner discusses the value of sales promotion in brand building. His work is focused on deep price cut promotions and he asks 'do they work?' He examines some marketing objectives which sales promotions should meet:- (1) to gain new buyers for the brand, he concludes that it depends on the length of the reference period, over a short period promotions can generate many new buyers but over a long period it is difficult to obtain new buyers, (2) the objective of building loyalty to the brand is examined and the author demonstrates that little loyalty or brand building takes place, in fact deep cut price promotions could have the opposite effect by educating shoppers to value the offer more than the brand.

Do Sales Promotions Really Work?

Edward GarnerTNSofres

In this article I'm concentrating on sales promotions involving deep price cuts. These can follow various mechanics such as:

  • Temporary price reduction or simple price cut (4.85 down to 2.39).
  • Multibuys...