Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are consumer franchisebuilding (CFB) promotions.24 Consumer sales promotion efforts cannot make consumers loyal to a brand that is of little value or does not provide them with a specific benefit. But they can make consumers aware of a brand and, by communicating its specific features and benefits, contribute to the development of a favorable brand image. Consumer franchise-building promotions are designed to build long-term brand prefer
Exhibit 16-7 This promotion agency ad stresses the importance of using trade promotions to build brand equity ence and help the company achieve the ultimate goal of full-price purchases that do not depend on a promotional offer.
For years, franchise or image building was viewed as the exclusive realm of advertising, and sales promotion was used only to generate short-term sales increases. But now marketers are recognizing the image-building potential of sales promotion and paying attention to its CFB value. Surveys have found that nearly 90 percent of senior marketing executives believe consumer promotions can help build brand equity while nearly 60 percent think trade promotions can contribute.25 Marketers recognize that the value of sales promotion extends well beyond quick-fix tactics such as price-off deals. Most sales promotion agencies recognize the importance of developing consumer and trade promotions that can help build brand equity. For example, Exhibit 16-7 shows an ad for Ryan Partnership that stresses how the agency develops trade promotions that help build brand equity.
Companies can use sales promotion techniques in a number of ways to contribute to franchise building. Rather than using a one-time offer, many companies are developing frequency programs that encourage repeat purchases and long-term patronage. Many credit cards have loyalty programs where consumers earn bonus points every time they use their card to charge a purchase. These points can then be redeemed for various items. Most airlines and many hotel chains offer frequent-flyer or guest programs to encourage repeat patronage. Many retail stores have also begun using frequency programs to build loyalty and encourage repeat purchases.26
Companies can also use sales promotion to contribute to franchise building by developing an offer consistent with the image of the brand. An example of a successful consumer brand-building promotion is the Search for 2000 Uses Sweepstakes promotion for WD-40, shown in Exhibit 16-8. The WD-40 Company positions its brand as the leading multipurpose problem solver that cleans, protects, penetrates, lubricates, and displaces moisture like no other product on earth. The marketing strategy for WD-40 is to continually promote the myriad of uses for the product. The Search for 2000 Uses Sweepstakes, which was launched to coincide with the new millennium, asked consumers to suggest their use for WD-40 in order to be entered for a chance to win various prizes such as WD-40 can radios, T-shirts, and baseball caps and a grand prize of $10,000 in company stock. The sweepstakes
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