Marketing the Holidays to Customers

The National Retail Foundation forecasted that sales will rise by 3.9 percent for this year's holiday season, which is low compared to the 5-percent increase in 2011. This means that businesses have to be prepared to face tougher competition.

As such, many retailers are starting their holiday marketing earlier than usual. According to a survey conducted by Experian Marketing Services, about 49 percent of marketers are planning to launch their holiday marketing campaigns before the end of October.

So, how are businesses marketing the holidays to consumers?

Price Matching

Last year, Target and Best Buy offered to match their competitors' online prices throughout the holiday shopping season, and they have now made their price-match guarantee permanent.

This strategy has been effective in attracting consumers, because it gives them the assurance that they will be getting the lowest prices possible.

However, in order to benefit from Target and Best Buy's price-match policies, shoppers need to provide proof of lower prices within a week of their purchases.

Buy Online, Pick Up in Store

Shopping online enables consumers to select from a wider selection of products and compare deals more easily, but it does not allow them to inspect products and get the items they purchase immediately.

To combine the benefits of online shopping and in-store shopping, some retailers are offering the "buy online, pick up in store" option. Toys R Us is ramping up its customer service by ensuring that products purchased online will be ready for pickup within an hour.

Layaway

In the past, layaway was considered a waste of administrative resources by most businesses, but now, many major retailers are using it as part of their holiday marketing campaigns.

Walmart, Kmart and Toys R Us are all trying to one-up each other by making their layaway programs more appealing. Kmart introduced its layaway program in early September, allowing its customers to reserve the products they wish to buy without having to pay a fee.

Hot Toy Lists

Toys are one of the types of items that are widely purchased during the holiday shopping period.

To increase sales and provide ideas for unsure gift-givers, many retailers are sending hot toy lists to their customers.

Toys R Us launched its toy promotion way ahead of the holiday season, offering cash back rewards and an extended return policy for purchases that were made before the end of October.

Discounts and Coupons

Retailers are also trying to woo customers by offering discounts and coupons to those who do their holiday shopping early.

For instance, Bon Ton customers can use special coupons to get 50 percent off a $100 item and an additional 25 percent off selected items if they make their purchases in late October.

Starting holiday marketing campaigns early give retailers an edge over their competitors, but marketing too soon may not produce the desired results.

While it may be a little late to start marketing for the holidays, it is way too early to promote Valentine's Day gifts.