What is it? Incentive marketing – events, programs, promotions aimed at stimulating sales of products to which the buyer has lost interest. It is needed when goods and services are in zero demand.
How to conduct? Before launching dozens of promotions, loyalty programs, throwing out 50% discounts, it is necessary to understand why the demand for a product or service has fallen. Only based on the results of the analysis, you can begin to develop a marketing campaign.
The article explains:
What is Incentive line database Marketing?
Factors Affecting Consumer Demand
Advantages and Disadvantages of Incentive Marketing
13 Effective Incentive Marketing Techniques with Examples
Stages of developing incentive marketing programs
Additional measures within the framework of incentive marketing
Analyzing the effectiveness of incentive marketing campaigns
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
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What is Incentive Marketing?
As a rule, there is very tough competition in all existing traditional marketing channels. At the same time, incentive marketing can be confidently called one of the most effective tools for improving the state of demand, that is, consumer interest in the product.
For reference: stimulating marketing is a type of classic general marketing. The main objective of stimulating marketing is to find an opportunity to develop the audience's interest in the product in the absence of demand for a product or service. Thus, its goal is to eliminate the reasons for the absence of this attractiveness.
What is Incentive Marketing?
If compared with advertising, its goals can be very different, for example: increasing the popularity of a brand, familiarization with it, attracting traffic to the company's website, reaching a larger audience, etc. But incentive marketing is always aimed at increasing sales, and PR, by the way, can act as its component element.
Another difference between PR and stimulating marketing methods is that the former work for the long term (in terms of increasing brand awareness and audience loyalty), while the latter act as tools for quickly and short-term attracting attention to a product/service.
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The main goal of incentive marketing is to increase sales for a short period of time. In addition, there are a number of other tasks that this strategy is aimed at:
To create demand for a new product or service. Example: a company produces sour cream called "Smetanitsa". At the same time, it starts making yoghurts, and to make customers pay attention to them sooner, it comes up with a promotion called "The second jar is free".
Compete successfully in the market. The Yogurtnitsa company (a competitor of Smetannitsa) is seeing declining sales. Yogurtnitsa comes up with its own move: a prize draw (using barcodes) for customers who purchase the company's product.
Set up loyal customers. It is not necessary to do something only in response to competitors' promotions. You can launch incentive marketing, focusing on the needs of your business. A well-thought-out promotion will attract new customers and increase the loyalty of old ones.
This is interesting!
Recent research by Demand Metric has shown that 70% of people prefer to receive information about a company not through advertising. Expert materials on a blog or social networks inspire the most trust .
Get rid of leftovers. For example, a supermarket received too much Yogurtnitsa product and couldn't sell it all. Then you can drop the price a couple of days before the expiration date, so as not to lose any money at all. Sales are also practiced in cases when you need to free up warehouses (this is what clothing companies do when they plan to release new collections).
Attract new customers. For example, by giving a discount on the first order through the app (if there is one).
Increase off-season purchasing activity. Dairy products are less in demand during Lent. During this period, Yogurtnitsa comes up with attractive promotions. They are held so that those who do not fast buy more.
Earn the trust of dealers and distributors (after all, it is through them that the connection with the consumer is maintained). For example, "Yogurtnitsa" offers more favorable prices to large wholesalers.
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