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Sales promotion theory
effects of sales promotion on consumer behavior
importance of sales promotion
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The main aim of this research is to understand effects of sales promotion on consumer’s perception. Here in this research the major benefits of sales promotion, various sales promotion techniques and how influential these promotions are in the process of making buying decision are clearly analysed and explained. This research also try find effectiveness of various sales promotional methods with respect to Bigbazaar ,New Delhi. For the purpose of carrying out the evaluation literature review's & research methodology & presentation & assimilation has been done this study. The literature review part has helped to gain through knowledge and to establish a strong foundation and back ground for the subject. The study also analysed various research methodology and selected the most appropriate one suitable to collect the primary data. The suitability and acceptability various sales promotion programs and related factors were analysed in detail. Additionally Questionnaires were used to collect the first hand information from the consumers. And in conclusion an attempt was made to explain the benefits of sales promotion and its effects on sales when introduced and operated wisely.
CHAPTER-1
INTRODUCTION
Retail sector is one of the fastest growing sectors in India with major world players investing heavily in this sector. India has topped the A.T. Kearney's Global Retail Development Index for two consecutive years now which has attracted all big global leaders like Walmart, The Future Group, Reliance, and DLF in the retail sector.
Retail sales are directly linked to promotion strategies adopted by a company. Sales Promotion is considered as one of the most typical marketing technique to increase revenues and add value to a produ...
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Perhaps the most versatile of the marketing Ps is promotion. It covers all phases of communication between the seller and the potential customer. It is versatile because a change in budget, media or target audience can be made quickly. Promotions also can be effectively changed for specific market segment efforts. Major promotional concerns include the following:
For every organization, promotion is the way to let them attract more and more customers. That means it is a way which include lots of method to help the organization to create customer awareness and to get more profit.
The integrated marketing communications plan for PowerBoost High Performance has many dynamics in which it uses for its marketing techniques. For the concept of advertising, PowerBoost High Performance has enlisted the assistance of nationally recognized retail chains that specialize in the sales of performance auto parts for vehicles. In joining forces, PowerBoost High Performance is able to get the product out into the public eye, while the retail chains benefit from customers entering their stores to purchase this product, in addition to potentially other items for the stores as well. When it comes to sales promotions PowerBoost high Performance changed directions slightly with the approached used. The sales promotions will be conducted
Therefore, sales promotion is essential for this stages. The BMW group can encourage potential consumer to purchase their cars by involves offering short-term incentives. They need run different customer loyalty programs as one of the promotion strategies in major markets. For example, in North America, BMW offers repeat purchasers a USD500, USD1,000 or USD1,500 Loyalty Credit depending on the model of the vehicle (Dudovskiy, 2016). Other than that, the sales promotion is based on the personal selling, public relation and so on. Personal selling is the most traditional way, the staff will direct sell the good to consumers. After that, it includes provide a good customer service after customer purchase it, and directly build a good image for the company. Therefore, the recommendation can be considered sales
the significant players in retail businesses are Big bazaar, The Tata Groups (Croma), Vishal Retail Group, Reliance Retail, Kirana stores &sabka Bazaar and so
..., M. A., Kerr, G.E., & Powell, I. (2012). Advertising and promotion. An integrated marketing communication perspective. North Ryde, N.S.W.,Australia: McGraw-Hill Aust. Pty. Ltd.
Offline retailers can conduct various engaging activities with the customers to stimulate product interest, trial or purchase. Activities like contests regarding product features, benefits and technology. They can also improve point of purchase displays by using digital signage to inform customers about the product on a flat-panel screen. Store promotions should be targeted to the customer in order to increase the conversion ratio and thus, improve sales of the company. Discounts impact the way customers think and behave towards the
Marketing is integral and pervasive to every business level. Strategic promotion portrays the marketing exercises which influence the commercial, and promotional arrangements of the companies. Vital marketing exercises comprise three fundamental activities. To begin with, promoters help to establish organizations and start association towards business sectors and clients. Consequently, they help in assisting the associations in execution and promotion of key planning procedure. Secondly, promoters help to collate and analyze existing data and identify deviating patterns in the promotional activities, and evaluate the possible potential effects. Such analysis supports with vital decisions required for making commercial and promotional arrangements.
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
Since the mid ‘80s, the proportion of marketers’ promotional budgets allocated to both consumer and trade promotion has increased, while the proportion allocated to media advertising has declined. From our lecture slides [1], some reasons for this increased spending on sales promotion include:
Sales promotions offer customers an incentive to buy an item. Sale promotions are promotions such as coupons, percent off, rewards and rebates. Sales promotions can be an important part of building brand equity. Sales promotions can increase sales and attract new customers.
Promotion. Finally comes promotion - informing the customer on the qualities and advantages of the product so that the potential buyer learns about the product, prefers it to those of the competitors, and has an opportunity to buy it at some place.
12. Raman, K., and Naik, P.A., (2005), Integrated Marketing Communications in Retailing, [online] Available at: http://ramanassoc.com/yahoo_site_admin/assets/docs/IMC_in_Retailing.26100503.pdf, Accessed on: 1st April 2014
Two recommendations for promoting direct-sales through consumer and the business; One is to offer incentives to its customers and second is to motivate the business to promoting its products by advertisements, establishing sales competition for employees, participating in conventions, and by endorsing franchise of its products to retail stores.
Advertising is an information source to inform people about the products and new prices of the company which can help them to make informed choices. More recently, huge amount of money has been spent on advertising throughout the world. Different types of advertisement such as television, radio, magazine, newspaper, the internet, billboards and posters can influence consumer’s behavior positively or negatively as there are different arguments and opinions. This essay will focus on the purpose of the advertisement for the company, the positive effects and negative effects of advertisement on consumer behavior.