Skip to main content

Brand Building Versus Transaction Building

brand building process
As just noted, in retail channels consumer-oriented sales promotions often become tools for short-term fixes to sales.  Circumstances frequently legitimately call for boosts to sales, and consumer-oriented sales promotions can be ideal for that purpose.  When overused, however, they can actually hinder a brand’s ability to build
equity among target markets.  Excessive use of some consumer-oriented sales promotion techniques can, for example, erode consumer confidence in brand quality.  If the brand must constantly be promoted, consumers may reason that brand quality may be poor.  Or consumers may delay purchasing a brand if they believe that a reduced price or other purchase incentive will soon be forthcoming – a reasonable assumption of a brand is overpromoted.
However, many marketers are now examining how consumer oriented sales promotion can be effectively used for long term goals.  Although not traditionally used for building brand equity, marketers for many successful brands believe that consumer-oriented sales promotions can do just that.  As such, the nature of sales promotion is changing to include careful long-term use with the goal of communicating value to brand loyal customers.  Thus, we may view sales promotion as having two sets of time goals.  One revolves seeks short-term increases in the number of transactions while the other builds long term brand loyal relationships with customers, often at the expense of short term sales.  

brand building strategy
This distinction is illustrated in Figure 2. As noted in earlier Web Notes, the “ultimate goal” of all promotional activities is to build sales in some way, which cannot happen without transactions.  As figure 2 shows, the paths toward sales differ depending on whether the sales promotion is intended to be transaction building or brand building.
1.  Transaction building sales promotion
2.  Brand building sales promotion.
the next article : brand building definition, brand building strategy, brand building process, personal brand building
Labels:

Popular posts from this blog

Developing a Personal Selling Plan

The development of a personal selling plan can be broken down into the seven steps shown in Figure 1. The steps are highlighted in the following subsections Personal selling objectives are demand or image oriented. Illustrations of each type of objective appear in Figure 2.
Read more

Scope and Importance of Sales Promotion

SaIes promotion involves the marketing activities, other than advertising, publicity, or personal selling, that stimulate consumer purchases and dealer efectiveness. Types of sales promotion described later in this section include samples, coupons,  special sales,Contests, trading  stamps, trade shows, and many additional activities in 1979
Read more

Characteristics of Personal Selling

Personal selling has a number of positive and negatise atributes, On the positive side, personal selling provides individual attention for each consumer and is able to pass along a lot of information. There is a dynamic, rather than passive, interaction between buyer and seller. This enables the firm to apply the concept of a buyer-seller dyad. which is a two- way flow of communication between both parties. This is not possible with advertising. Personal selling approaches can be flexible and adapted to the needs of specific consumers. For example. a real estate broker would use a different sales presentation for a couple looking for their first home than for a couple looking for their second home. The salesperson can use as much persuasion as necessary and balance it against the need for information. There is less waste with most forms of selling than with advertising. Personal selling centers on a more defined and concentrated target market. In addition. customers who walk int...
Read more