Mobile Displays are up to 15 times more memorable than traditional static billboards.
Sales promotions result in an upward bump in sales during the promotion period. Because customers buy during sales promotions for reasons that may affect their purchases before and after the promotion, the company should evaluate the volume of sales for the sales promotion period plus an equal period before, and at least two equal periods after, the promotion. If the sales promotion lasts a day, the evaluation period should be at least four days, including one week before and one week after the promotion. This methodology catches possible dips before the promotion, if customers are waiting for the sale or special offer, as well as any continuing increase or decrease in sales volume after the promotion. *If the company wishes to evaluate brand awareness, it must include a customer survey in the evaluation.
To determine the increase in sales due to the sales promotion, the company must establish the level of sales that would have taken place without the promotion. Such a base level must avoid the effects of any variation in sales volume during the evaluation period. The best estimate is usually the average level of sales of the months prior to the evaluation period, adjusted for seasonal factors obtained from previous years. The company must compare this estimated level of sales to the actual sales that took place over the evaluation period to get the increase resulting from the sales promotion.
Sales promotions can generate increased profits. The volume of additional sales or leads must be large enough to generate profits greater than the cost of the sales promotion. This cost has several components. There are the costs of producing the promotional signs, coupons and publicity. There are additional costs for processing the coupons, discounts or other incentives. Finally, there are the costs of the promotion itself, such as a discount or rebate. The company must subtract these costs from the additional profits generated by the extra sales to get the true net additional profit that can be attributed to the sales promotion.
Sometimes sales promotions are good public-relations vehicles, and can generate interest and return customers. They may be able to add to consumer brand awareness at a lower cost than other promotional means. In this case, the goal is not additional profits but rather additional sales over the long term, as more consumers become familiar with the advantages of the particular brand. Customer surveys to determine brand familiarity before and after the sales promotion give an accurate evaluation of the immediate success of the promotion. In the longer term, though, the measure of success must be continued higher sales. Such sales increases should already appear following the sales promotion, and a continued evaluation of the level of sales will give a good indication of the success of the promotion as far as brand awareness is concerned.