The goals of advertising, Sales Activation and Awareness Building, are valuable in both the short and long-term.
Sales Activation generates short-term sales uplifts:
- Targets people looking to purchase on the spot.
- Aims to trigger a purchase impulse.
- Does not build long-term growth and loyalty towards a company’s product/service.
Awareness Building promotes long-term sales growth:
- Targets people who do not yet feel the need to purchase a product/service
- Educates consumers about a company, product or service.
- Strengthens loyalty to a company, reducing the consumer’s price sensitivity to the product/service.
To maximize profit, a company should dedicate 40% of its advertising budget to the short-term sales activation strategy and 60% to the long-term strategy for building and maintaining awareness.
Source: “The Long and the Short of it” by Les Binet; Peter Field; reported by JCDecauxOne World
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