Carrying out a big promotion can be very rewarding for a business. Not only does it allow you to let go of old stocks, but it is a great venue to attract more customers and get people be familiar with your brand. But does it always follow a good return of investment?
In this podcast, David Counsell and David Pritchard have a talk about promotional activities and how planning can make or break your grand event. Sure, everyone is thinking about the final sales that the company will get but only a few consider all the factors of hidden costs and possible loss in revenues. So before you hang the red tags and pull open your doors for the big sale, have a listen and jot down the steps that will help you plan it out accordingly.
In this episode
02:49 In this podcast, we will talk about promotions
03:36 These are the questions you should be asking yourself when you want to do promotional activities
31:27 Are you confused with marketing and advertising from promotions?
04:11 Promotion means you are physically doing something to attract customers to your business
05:12 Rolling out promotions also include measuring
06:21 How can you qualify your promotional activity to be successful?
06:43 Also, what customers are you intending to attract?
07:09 Consider the number of customers that you will attract.
07:44 Also, you need to measure how many repeat transactions will you be getting from each customer.
08:09 Did you know that funeral directors are among the top 20 advertisers in Australia and in other countries? What can we learn from this?
09:12 Given that there is a finite supply of customers to them, they are looking at the market share.
10:09 Decisions about funeral services have a very tight amount of time
11:15 People decide on funeral services not because of the price but their value for money
13:40 For funeral service, their website should talk to the people organizing it
16:03 Is promotion a good way to attract customers?
16:08 What is the cost of having a promotion?
17:13 You need to factor all the costs before doing a promotions.
17:20 A store in UK run a promotion in January, a massive clear out
18:36 The first day was fantastic, with the people lining up
18:55 They had security to control the people
19:10 They are selling furniture that will be delivered in 3 weeks time
19:51 But they seemed to have stretch themselves too wide that they needed to refund money because of long lead time
19:55 They also cheapen their brand and haven’t made any profit in the coming months because of that loss
21:07 They also pushed their staff with the workload
21:40 Do you know that in doing a promotions, there are hidden costs
21:55 Have you tried to sit down and prepare a budget for a promotion?
22:13 People normally don’t factor in the cost of staff
23:15 But the most hidden cost is time
23:45 These are not alarm belles to not do a promotion, just be prepared
24:23 Do you need to train your staff?
25:00 Their time for the training multiplied with the number of staff is also cost
25:41 So, you need to measure the cost, the benefits, and know how you should manage them to assess if that will be a successful promotion
27:11 If you have any questions for us, get in touch with us
27:35 You can visit our facebook page at www.facebook.com/davidversusdavid
27:47 Visit our website for the rest of our previous episodes at www.davidversusdavid.com
27:51 Subscribe and leave us glowing 5-star reviews in iTunes
28:15 You can also like pur personal websites: David Counsell’s www.infernopromotions.com.au and David Pritchard’s www.d10solutions.com.au
28:31 Advertising and marketing is like a jigsaw puzzle that you need all the pieces and their interactions to see the big picture
29:43 Also, David Counsell’s other podcast is about to hit 10 000 downloads. Look us up in iTunes, Insider Marketing Secret
29:55 Or visit our link here: www.infernopromotions.com.au/latest-news
30:31 Thank you once again to all who participated in the International David Day. Let’s do that again every March 1