Posted on : 2022-09-09 03:05:40
Article : Good evening, Friday Management TASK 207- Consumer promotions are the strategies businesses use to gain more customers or develop brand loyalty among current customers. The promotions could either be co-branding or brands cross promotion.
In fact, Cross-promotion is a set of actions aimed at promoting products from different brands with similar audiences that are not in competition. It helps promote products and services, generate leads, boost sales, and establish brand awareness. People have witnessed cross promotion ever since they have learned to read and recognise. The term might be new to us but the concept isn’t. A supermarket giving extra discounts for a specific bank’s credit cards, an online store offering free movie tickets of a specific movie on shopping with them, and a lounge giving an exclusive no-waitlist option for a specific credit card owner are all examples of cross promotion. Cross Promotion is a great way of tapping a target group of partners without investing much. A key guiding principle in cross-marketing is to create a win-win situation where both parties benefit from an expanded reach. Through this tactic, it’s not unusual to see rival brands come together if they see enough benefit in it.
The main benefits of cross-promotion are, an influx of new leads, increased brand awareness, increased sales, audience growth, lower advertising costs, improved reputation. To cross-promote, companies need to choose channels that their audience prefer. The right channels will generate the most profit, engagement, or achieve a specific goal. Different channels are suitable for different purposes. Cross-branding isn't the same thing as cross-marketing, as cross-marketing is when two brands collaborate using existing products to market their businesses together. The brands involved in cross-marketing don't create a new product that uses both brands, instead, they find ways to market their individual brands in a way that complements each other. An example of cross-marketing is when a television model and a sound system model from different brands are marketed together. Because they're complimentary products, it makes sense for the brands to collaborate.
Cross branding is most effective when it involves two brands of similar stature, meaning that even if they're in different industries that they have a similar amount of brand awareness and profits. In co-branding usually, the cobranded products will bring out a new product complementing each product’s needed strengths for other brand products. Successful cross-branding can be very effective for the brands involved, but there are risks too.
Consumer promotions are the strategies businesses use to gain more customers or develop brand loyalty among current customers. Common customer promotions involve sales tactics that make customers feel like they are getting a good deal or special value. Typically, consumer promotions occur during a specific period of time or are temporary, although many brands also offer special promotions to first-time customers. The consumer promotion the brand chooses depends on the business structure and how it anticipates target audience will respond.
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