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2022-10-19 5:00 pm

Promo Campaign Definition


A sales promotion campaign (or a promotion) is a type of marketing campaign that supports marketing or sales goals and gives an incentive to customers to meet these objectives.

In other words, promotion marketing is communication utilized by marketers to increase brand awareness, boost sales and build long-term positive relationships. By offering an attractive and usually time-limited incentive, promotions help spark customers’ interest and increase their desire to buy specific products. 

Promotion is the fourth element of McCarthy’s marketing mix (which also includes the product, price, and distribution), making it a key component of any marketing strategy. Based on his definition, a promo campaign is a way of communicating the product value to the end customer. It can be done in a variety of ways, including advertising, public relations, personal selling, and direct marketing.

Voucherify supports the following promo campaign types:

For a more detailed rundown of over 30 promo campaign types, check out this article from our blog

What objectives can be achieved with promo campaigns?

  • Acquisitions of new customers with a range of welcome offers.
  • Stimulation of product demand and increase in off-season sales. 
  • Increase in customer loyalty and brand awareness.
  • Competitor’s differentiation.
  • Leveraging advocacy with referral marketing. 

Most marketing experts agree that promo campaigns should not be used to build long-term brand loyalty as their biggest advantage is attracting short-term price-driven consumers. 

How to run your first promotional campaign?

  • Identify the promotion goal – promo campaigns help businesses of all sizes realize a range of varied goals. Before you set out with your promotion strategy, you should analyze your current needs and select the promotion type accordingly. 
  • Understand demographics and preferences – a promo campaign can only be effective when targeted. By knowing more about your audience, you can adjust the offer better to suit their needs and preferences. A segment-specific promo campaign targeted at a specific group often brings greater profits than an open-for-all offer. 
  • Choose the product and incentive – once you understand your goals and target group, you may start tweaking the incentive. When selecting the incentive type and product, it is vital to consider your estimated costs and margins to cover the expenses associated with the promo campaign. Running a promo campaign for a product with a high-margin substitute may lead to so-called cannibalism, which results in scoring lower margins than pre-promotion.
  • Find a way to communicate – without proper communication in place, even the best offer will be skipped by customers. Define how you want to each your customers and with what message. 
  • Set the budget – define how much budget you can and should spend on the campaign. Remember about predicted ROI, tax calculations, vital expenses, and the development cost of putting it all together. Always go for a solution that will minimize the costs of development and maintenance. The campaign budget should be adjusted to the market size, the size of your target group, and your competitor’s moves.

Learn more: The ultimate campaign checklist

Are you wasting time and money on digital promotions?

It’s time for a change.