How Promotion Objectives Determine which Marketing Methods or Strategies Used
Promotion is a marketing mix element that plays the function of persuading, influencing and persuading a consumer to make a decision. In the retail industry, the choice of promotional strategy that is adopted by any company is greatly determined by the type of product, its value and time of usage. Some promotional strategies aim to develop a primary demand for particular product while others aim towards creation of selective demand (Fox & Raj, 2006). These promotional strategies are used by retail stores to either hold their current market or expand it depending with the goals and objectives of the promotion which may be: product differentiation, sales increase or provision of information.
Companies in the retail industry use different channels for communication during their promotions. Cost is a major determinant for the choice of channel used in communication with other considerations being suitability of the channel and its effectiveness (Perreault, Cannon, & McCarthy, 2010). Advertising media is commonly used in the industry with Newspapers adverts making a large percentage of all communications. Newspapers reach many people and its effectiveness is due to the ability of readers to refer back when using them. Other media used include: Television which is second to newspapers but a leader when it comes to advertising nationally. It has a great impact on potential customers though it comes at a high cost which keeps out medium and small retailers. The radio is the third largest channel of communication. It is mostly used because it is flexible, low cost and targets a selected audience. However, it has several disadvantages as its message has a s...
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...focus more on their existing customers by developing them through reminder advertising and frequent shopper programs in order to retain them. This has led to the stimulation of customer desires to make a purchase by conviction (Fox & Raj, 2006).
Different customers react differently to different promotion strategies thus the different stores should know when to use a particular promotion tool and at what time. The key focus should be to who is the message intended for and how can they best obtain it. Having the correct message for the correct market in the right time is important towards generating customer response.
References
Fox, J. & Raj, S. (2006). “Retail Competition.” Retailing in the 21st Century: Current and Future Trends. Berlin: Springer.
Perreault, W.D, Cannon, J.P., McCarthy, E.J. (2010). Essentials of Marketing, 12th ed. New York: Mc Graw-Hill.
Promotion is advertising to potential customers in and effort to create an awareness of your business. It is reasonable to believe that without the ability to advertise a company would have a difficult time generating new customers.
Pelton, L. E., Strutton, D. & Lumpkin, J. R. 2002, Marketing channels: a relationship management approach. McGraw-Hill Irwin: Boston, p. 387.
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.
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
Over the last decade, product marketing and ways through which communication takes place between manufacturers and consumers has changed tremendously (Belch & Belch 2004). Due to the technological revolutions and the rise of innovations such as the mobile phones and the internet, control over information has shifted apparently from the manufacturer's hands to the hands of consumers (Belch & Belch 2004). The market environment has also changed due to globalization of marketing strategies, loss of confidence in media advertising, increased reliance on targeted communication methods, and media fragmentation and so on (Belch & Belch 2004).
..., 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.
...omotion. Both the sales strategy and the sales promotion give a retailer the tools to evaluate their business and provide a well thought out plan for a retailer to follow. Consumer needs are fulfilled and a retailers financial goals met as well by applying different strategic plans in place to meet the individual needs of the given market.
Promotion refers to informing the customer that such product exists; pointing out the advantages of the product over those offered by the competition, and letting the customer know where to buy the product. Furthermore, promotion might include ads placed in the magazines, public transportation, TV ads, online marketing, and direct marketing, using the e-mail, or Facebook targeted ads.
With the development of global economy, the profits of enterprises are facing tougher competition and adjustment. Then the traditional sales model was not competitive any more compared with other new alternative promotion tactics. In general, the promotion will increase the overall product sales by stimulating the purchasing intention of customers and influencing customers’ behavior. For instance, a large portion of the early entrants in the market could not survive without promotion. For those enterprises that hold certain market shares by mature products, they still need promote to gain great development and larger share of the market even more profits. Furthermore, there are various forms of promotion. But coupon became
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
There are a variety of approaches the retailers can stimulate problem recognition and motivate customers to visit their stores to buy their merchandise, for example, through internet mail, advertising and promotion, road show, visual merchandising, salespersons to stimulate customers need recognition and organizing morning market or midnight sales to motivate the customers to visit the stores to buy their
It is important to ensure that the products are always well received in the market. Effective promotion can ensure customers to try and keep the interest of users of products produced or regular users on being satisfied with the quality of the product. The success of promotion can be judge from the quantity of sales.
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:
consume more than they normally would. They are deals or sales that help the customer save money on a product but also give the company more business. I live in a few different places so I will talk about Pakistan as my country today. In Pakistan, the internet boom is in its prime. However, a large population is still unconnected. Cell phones are in every hand but Wi-Fi isn’t available everywhere. These things matter a lot when it comes to sales promotion content. Pakistan is still a developing country so we can’t expect it to be at the peak of modern times. I will proceed to identify and provide examples of three sales promotion
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.