Brand Awareness v/s Promotional Cost- Which is Better?

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Brand Awareness

Good Brand Awareness means an ability of the brand to be recognized widely by customers. It is important to note that trust by consumers is the key that makes any brand popular. So, before going into the Brand Awareness campaign, the organization needs to look into all Pros and Cons.  Brands give a loyal fan base to the company; it is true, as it is easier for customers to recommend products to others. Unless and until they have a specific name the recommendation cannot be complete. A brand’s success defines the complete goals an organization wants to achieve. The cons are only hindrances in the success path of any organization that cannot be ignored by an organization.

First and foremost con is cost factors; cost budget does not exaggerate because of designing cost or publicity expenses but because of copyright,  trademark and other legal formalities that can be very costly for an organization. Involvement of a public relation agency can be very fruitful to an organization as the responsibility of the PR agency is not only to promote the brand but also manage and review it from time to time. In cases when there is no action plan or the PR agency turns out to be ineffective then it can lead to total loss of money and effort.

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On the other hand advertisement or Promotional Cost involves pushing the sale service to convince a customer to buy a particular product. To grab your customer attention, often many entrepreneurs use some of the promotional services like brochure printing, poster printing and more. But, such kind of promotion has its Pros and Cons too. It is recommended only in those cases where the price of the product is quite low when compared to the average market price of the product.

However, there is no guarantee that the loss-leading company could be able to retain its customers. In the process of being a loss leader, they might be able to clear its inventory for new stock to arrive. This might give a positive image to the customers but there could be a situation where customers might be disappointed with the offer in general as old stocks may run out. There could be a possibility that these products are not appealing that could degrade the entire image of the company. Giving out reward points on purchases might give recognition to the customer and may provide valuable information about the client in their database. This can further help the company to understand their behavior which is necessary for MIS reports.

However, the catch is if the loyalty program is not balanced then it can harm the profit because it will not give an option to buy a new product or a new line of product that is available with the company. Since only customer information and their purchase pattern is not a true indicator of behavior, therefore investing funds in maintaining databases can be a fruitless decision. Another approach in this sector is the discount facility that can last for few days or a limited period of time that is available on a seasonal basis or to remove obsolete products, could ensure high customer retention coupled with the strengthening of the relationship. However, the company can run into losses because of the offers and customers are sometimes picky.

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