The Long term Impact of Advertising

The Long term Impact of Advertising:

Strategies are builds to reap the benefits for longer period of time; same is true in sales promotion strategies. Let us see impact of advertising effort and study the impact over a longer time period e.g. 4-6 months or even a few years after a advertising  campaign. 

The result showed that consumer promotions for leading brands of established packaged products had no after-effects on the brand’s sales or repeat buying loyalty. The extra sales of a brand while promoted came virtually all from the brand’s existing long-term customer base for which the experience of buying the promoted brand was nothing new.

It is found that although the short term effects of promotions are strong; these promotions rarely exhibit long term effects. It is observed that each sales component generally lacked a permanent effect and the effect of promotion was short lived and increase in promotions affected consumers’ stockpiling decisions in the long run. They found that the combined short and long-term elasticity of promotions was zero. The stockpiling induced by a promotion was essentially offset by reduced demand in the long term. Thus increased sales were more a result of sales borrowed from the future than increased  consumption.