Introduction
For businesses to succeed and have their goods and services purchased by their target audiences, it is essential to understand the concept of promotion and use it correctly. Promotions are a set of specially selected and designed activities that communicate the service, product, or brand to potential customers and highlight the advantages of making such purchases. The primary idea behind promotions is to make target audiences aware of the offered goods and increase their preference for them over competitors. This paper will explore this concept in more detail, outline its benefits for companies and consumers, and compare and contrast how two different organizations use promotions.
Overview
To begin with, it is necessary to provide additional definitions of the identified activities. According to Walters (2023), “business promotion is a broad marketing term that includes all methods companies use to promote visibility for products, services, events, and brands” (2). There are several key strategies and approaches that most firms use to create and leverage this special type of conversation between businesses and consumers.
For example, sales promotions include coupons, contests, giveaways, discounts, and complimentary services (Walters, 2023). Other promotional methods include personal selling (such as customer service and sales), public relations (including sponsored charity events), and online and traditional advertising. These offerings attract a broad client base and build trust, gratitude, and loyalty.
Additionally, they allow organizations to introduce their potential customers to their products or services at a lower or no cost and, if satisfied, continue purchasing them. This fact demonstrates how promotions add value to both companies and their clients. Thus, if a firm adheres to transparency and sincerity in advertising a product and chooses appropriate, ethical methods, people begin to value it more. Similarly, organizations that attract a new client base after spending resources on promotion will do their best to retain these buyers. If performed correctly, promotions create a situation in which both parties win, profit, and start or maintain long-term, mutually beneficial relationships.
Critical Thinking Conversation
Overall, promotions help maintain this unique type of conversation and connection between a firm and its clients. Interestingly, such activities can have various effects on consumer behavior, either prompting them to buy more or leading to negative attitudes toward the brand or specific goods and services. As noticed by Khan et al. (2019), “buy one get one free, price discounts and coupons are positively related with consumer buying behavior, whereas, free samples and bonus packs are not significantly related with the dependent variable” (p. 38). Therefore, it is recommended that businesses carefully review their chosen promotion methods to avoid wasting resources.
The two corporations analyzed in this paper are Fossil and Rolex. The former is a watch brand owned by the Fossil Group, and the latter is a worldwide-famous and successful manufacturer and designer of expensive watches that highlight their owners’ status. When reviewing the average prices of Fossil and Rolex watches, it becomes evident that Fossil’s target clients are generally middle-income, while Rolex’s customer base is predominantly wealthy.
Rolex is considered a luxury brand, which is why it aims to serve consumers with high incomes and, in many cases, certain social statuses (“The Secret of Rolex’s Winning Marketing Strategy,” 2023). As for their promotion strategies, Fossil mainly focuses on attracting customers through sales, coupons, and discounts for registering, as well as organizing or sponsoring interesting events (Fossil, 2024). At the same time, Rolex is more involved in collaborating with major celebrities who promote the brand or investing in important sports events (“The Secret of Rolex’s Winning Marketing Strategy,” 2023). The key similarity between the corporations’ promotion approaches is that they actively use social media to spread awareness of their products.
Debrief
The research shows that Fossil and Rolex have a strong understanding of their target audiences and can tailor promotional options to their needs and unique characteristics. Thus, Rolex’s intended consumers are affluent and value prestige, which is why discounts, sales, and coupons cannot positively affect their buying behavior. Instead, they can be attracted by the brand after learning that it sponsors many sports games.
Additionally, corporations with high brand recognition and respect do not have to invest in extra marketing options. On the contrary, for Fossil, it is essential to raise awareness of its brand and products and earn clients’ trust, so it offers sales and discounts. As a result, it is critical to consider the target market before selecting a promotion strategy and to know the needs and opportunities of the customer base.
Conclusion
To conclude, promotions play an integral role in increasing the number of loyal and new clients. They can create a unique connection between the business and buyers, improving trust and commitment. Promotions add value to consumers and organizations, allowing for mutual benefit. Firms need to choose strategies that positively affect their intended audience, motivating them to purchase the firm’s goods or services.
References
Fossil. (2024). Men’s watches.
Khan, M., Tanveer, A., & Zubair, S. S. (2019). Impact of sales promotion on consumer buying behavior: A case of modern trade, Pakistan. Governance and Management Review, 4(1), 38-53.
The secret of Rolex’s winning marketing strategy. (2023). Glenmont Consulting.
Walters, C. (2023). A guide to business promotion. CopyPress.