Frequency marketing is an advertising strategy that aims to encourage regular customers and those who buy products in considerable amounts. The company encourages consumers with discounts and material gifts, but prizes may vary depending on the organization. Sales promotion is a system of planned advertising events united by striving to reach the marketing goal. These two notions are similar and different simultaneously, and it is essential to look at the purposes of each tool.
Frequency marketing is a strategy that lures customers to buy goods or services in a particular company with the help of encouraging prizes. It ensures clients’ retention and might guarantee a stable audience base. It is similar to sales promotion in attracting customers to buy and expecting people to become brand-loyal. Both strategies are motivated by increasing sales and making people interested in offered goods and services. However, there are some differences; frequency marketing strives to encourage existing customers, while sales promotion is directed to new buyers. Moreover, the sales promotion strategy does not provide customers with bonuses for regular customers, for example, accumulative system cards with rewards.
Overall, frequency marketing and sales promotion strategies might be similar in facilitating customers to buy products and services offered by companies. Indeed, the goal of the frequency marketing tool is to make customers buy more goods to receive rewards and make them hope to get more prizes; in turn, the company which uses this tool hopes that these buyers will become regular clients. It is not the prime concern of sales promotion, which strives to boost sales for a short period.
Nascar and Tide
A good promotion strategy might provide the brand with tremendous success. It is regular that companies seek to promote their goods and services in the same niche. For instance, the organization selling toys might promote its products through collaboration with the agency of events and celebrations for children. However, the case with Nascar racing and Tide laundry brand is flourishing, despite having various product aims. Indeed, it is interesting to look at the promotion strategy of Tide, the brand of washing powder that became a sponsor for Nascar racing.
It may seem that these two organizations do not correspond in their purpose; however, interaction with Nascar changed the way Tide came to stand for excellent performance on the laundry issues. Nascar is one of the most prominent American sports; it involves racing cars that participate in oval tracks competitions up to 200 miles per hour (Elsbach & Cable, 2018). At the beginning of the 90s, Nascar and Tide collaborated on creating a joint project branded with the Tide logo. The orange and yellow designs of cars became legendary and received the name of Tide Ride (Pryson, 2016). The race lasted from 1987 to 2006; in this period, Toyota Camry with Tide design became very famous. Many famous racers participated in Tide Ride, for instance, Darrell Waltrip, Ricky Rudd, and others. Matt Kenneth, the sportsman, reported that Tide had a rich racing history (Pryson, 2016). Because of this marketing strategy and with the help of talented drivers shown in Nascar, Tide facilitated its prominence, and this collaboration helped the brand be worldwide famous.
Today, many people are fans of Tide Ride cars; people strive to buy rare and limited toy versions of these legendary vehicles. It is seen how the collaboration between different companies might promote the product. Nascar is a good association for Tide, as this racing sport is popular in America and involves many celebrity drivers (Elsbach & Cable, 2018). It is efficient because many people are fond of sports cars, and this method is a perfect way to increase sales in the brand.
References
Elsbach, K. D., & Cable, D. M. (2018). Explaining stakeholder identification with moderate prestige collectives: A study of NASCAR fans. Organization Studies, 40(9), 1279–1305. Web.
Pryson, M. (2016). Classic Tide car returning to NASCAR at Darlington. Autoweek. Web.