Basic and fundamental analysis quickly indicates that the relationship is at an early engagement stage. The money company has the business, but has not convinced the customers that it really and truly cares enough. In these circumstances the use of sales promotion activities is highly suspect.
The development of relationships can be tracked by monitoring the characteristic discussed above. These characteristics are influenced by the way the supplier fulfils the promises that the buyer believes have been offered as a result of the supplier’s marketing and communication activities. In this context suppliers can create a series of bonds between their offering and the customers’ needs. The nature of the bonds can be described under four broad categories:
1. Competence. Delivering, on time, on specification, on price, as promised, every time.
2. Entry barriers. Creating and delivering against, a series of expectations that are of value to the customer and which the competition will have to replicate.
3. Exit barriers. Providing a series of support inputs that are of low cost but high perceived value. These inputs would be withdrawn if the customer changed suppliers.
4. Joint projects. Co-operative activities that require high levels of trust and communication between supplier and customer.
The mechanics of the sales promotion process can be viewed as a portfolio of some ten specific types of bonding activity, which are listed below as a reference point for action:
1. Immediate free offers. The free premium is available in on or near the package purchase (or the product packaging itself is the premium). Targeted at courtship, engagement, and wedlock customers who are moving apart.
2. Delayed free offers. The customer collects a certain number of proofs of purchase and sends in for the item on offer. Targeted at engagement, early wedlock, wedlock-moving apart customers.
3. Immediate price offers. Discounts off the declared price are available immediately at the time of purchase. Targeted at courtship, stable wedlock, engagement customers.
4. Delayed discounts. Forms of saving or discounts off the declared price which are not immediately available at the point of purchase. Over-riders are a good example. Stable wedlock, post honeymoon customers are the main targets.
5. Finance offers. Allow the customer to buy now and pay later. Specific targets are courtship, engagement, wedlock moving apart, groups of customers.
6. Competitions. Offer prizes for the successful exercise of mental or physical skill or judgment. Probably specifically at courtship and wedlock moving apart customers.
7. Games and draws. Games are based on simulated versions of those that people actually play, such as Bingo or Monopoly. Draws make available prizes by distribution or predetermined random chance or the chance selection of tokens or tickets. Usually aimed at engagement or wedlock customers.
8. Charitable offers. Joint ventures that reflect both a charity's need to raise funds and a company's profit requirements. The prime targets are likely to be wedlock stable.
9. Self-liquidators. The customer pays for all (or almost all) the cost of the premium ( the extra product or service) and its handling and postage. May be aimed at courtship accounts to trigger the purchase, or at engagement or wedlock customers.
10. Profit making promotions. Offers that add to, rather than use a company's marketing budget. Usually depend upon honeymoon customers who will perhaps act as an advertising hoarding for the supplier.
What will continue to be fascinating is the struggle for power between below the line and the advertising functions. Touché Ross's eighth annual survey into the profitability of the advertising industry indicates that the thrusts of the 1980s have cost the industry dearly. Ad agencies are limping into the 1990s lumbered with excessive borrowings, increased costs and declining profitability. Are their below the line coursings in better shape?
Undoubtedly the competition for budget allocations will be fierce, bitter and continues. The key is to ensure that the customer - whether in the courtship, engagement, wedlock or honeymoon stage - obtains the right deal from the supplier. Only then will the marketing contract have been delivered and fulfilled.
The development of relationships can be tracked by monitoring the characteristic discussed above. These characteristics are influenced by the way the supplier fulfils the promises that the buyer believes have been offered as a result of the supplier’s marketing and communication activities. In this context suppliers can create a series of bonds between their offering and the customers’ needs. The nature of the bonds can be described under four broad categories:
1. Competence. Delivering, on time, on specification, on price, as promised, every time.
2. Entry barriers. Creating and delivering against, a series of expectations that are of value to the customer and which the competition will have to replicate.
3. Exit barriers. Providing a series of support inputs that are of low cost but high perceived value. These inputs would be withdrawn if the customer changed suppliers.
4. Joint projects. Co-operative activities that require high levels of trust and communication between supplier and customer.
The mechanics of the sales promotion process can be viewed as a portfolio of some ten specific types of bonding activity, which are listed below as a reference point for action:
1. Immediate free offers. The free premium is available in on or near the package purchase (or the product packaging itself is the premium). Targeted at courtship, engagement, and wedlock customers who are moving apart.
2. Delayed free offers. The customer collects a certain number of proofs of purchase and sends in for the item on offer. Targeted at engagement, early wedlock, wedlock-moving apart customers.
3. Immediate price offers. Discounts off the declared price are available immediately at the time of purchase. Targeted at courtship, stable wedlock, engagement customers.
4. Delayed discounts. Forms of saving or discounts off the declared price which are not immediately available at the point of purchase. Over-riders are a good example. Stable wedlock, post honeymoon customers are the main targets.
5. Finance offers. Allow the customer to buy now and pay later. Specific targets are courtship, engagement, wedlock moving apart, groups of customers.
6. Competitions. Offer prizes for the successful exercise of mental or physical skill or judgment. Probably specifically at courtship and wedlock moving apart customers.
7. Games and draws. Games are based on simulated versions of those that people actually play, such as Bingo or Monopoly. Draws make available prizes by distribution or predetermined random chance or the chance selection of tokens or tickets. Usually aimed at engagement or wedlock customers.
8. Charitable offers. Joint ventures that reflect both a charity's need to raise funds and a company's profit requirements. The prime targets are likely to be wedlock stable.
9. Self-liquidators. The customer pays for all (or almost all) the cost of the premium ( the extra product or service) and its handling and postage. May be aimed at courtship accounts to trigger the purchase, or at engagement or wedlock customers.
10. Profit making promotions. Offers that add to, rather than use a company's marketing budget. Usually depend upon honeymoon customers who will perhaps act as an advertising hoarding for the supplier.
What will continue to be fascinating is the struggle for power between below the line and the advertising functions. Touché Ross's eighth annual survey into the profitability of the advertising industry indicates that the thrusts of the 1980s have cost the industry dearly. Ad agencies are limping into the 1990s lumbered with excessive borrowings, increased costs and declining profitability. Are their below the line coursings in better shape?
Undoubtedly the competition for budget allocations will be fierce, bitter and continues. The key is to ensure that the customer - whether in the courtship, engagement, wedlock or honeymoon stage - obtains the right deal from the supplier. Only then will the marketing contract have been delivered and fulfilled.
