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Sales promotion theory
Effects of sales promotions 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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Over the previous couple of decades, modern business has been evolving rapidly and the retail industry has been no exception. Whereas previously the customers received retail ads and offers from disconnected sources, today retailers are operating a combination of all available retail marketing methods to reach the customer.
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 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
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.
the significant players in retail businesses are Big bazaar, The Tata Groups (Croma), Vishal Retail Group, Reliance Retail, Kirana stores &sabka Bazaar and so
Introduction India is the world’s second most populated country with over 1.2 billion people. Since its independence from British rule in 1947, the country has been more or less a stable democracy. Until 1991, Indian governments imposed economic austerity and its markets were comparatively closed to the world. Economic reforms in 1991 brought about a change which made India an attractive and huge market for multinational corporations from all over the world (Joshi 8). Retail industry within a globalized world is one of the most thriving and profitable sectors.
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
Promotion: this is to tell the customers that the products or services that is available by advertising will encourage the customers to buy the products or services by offering promotions. Sales: this provides that the goods and services are suitable to customers that they need or want. This area of department involves making sales. This function helps Sainsbury's to achieve the objectives. The way they manage to do this is by increase their sales so that it increases its market share or market segment.
Even the slowdown in current global economies could not bring retail sector down as retailers keep seeking for opportunities overseas to avoid challenging economic condition, which make this sector becoming more globalised and competitive. As an heir of an industrial components retailer, I also believe there are bountiful opportunities to grow in this emerging industry. But without deeply and truly understanding in every aspect of retailing, one could not survive in the battle. For this reason, I would like to pursue my education further by studying Master in retail management to obtain knowledge in retailing and hopefully become successful in the field.
Companies use promotional strategies to gain customers and sales. Colgate-Palmolive use different strategies to help increase their sales. While many companies have decreased advertising spending Colgate-Palmolive is one company that has increased advertising spending (Neff & York, 2008). This paper will discuss the current promotional strategies of Colgate-Palmolive. This paper will also discuss the integrated marketing communications (IMC) and make recommendations for the strategies used.
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.
Sales promotion can increase the sales in the short term and sale promotion can increase awareness of the brand among consumers.
The nature of the business of retailing puts retailers at a assumed risk of incurring costs because products are bought with the assumption that consumers will purchase. Additionally there are external factors that may also pose risks such as natural disasters, theft, spoilage and fire. In other circumstances retailers also extends financial credit to customers in the form of credit sales which facilitates the smooth transition from retailers to the marketplace. Retailers are in constant contact with customers which gives them the opportunity to research and study buyer’s behaviour. This involves collecting information about changes in customer preferences, perception and shifts in the demand curve. Through advertising within their stores retailers are able to exhibit and introduce existing and new products to the marketplace. Ultimately retailers are in the business of selling products to customers to achieve their goals of generating
Some of the potential negative effects of sales promotions are an increase in price sensitivity, a decrease in brand loyalty, and brand equity erosion. Brand loyalty and brand equity are closely related. According to Palazón-Vidal and Delgado Ballester (2005), nonmonetary promotions, such as premiums, take the focus away from the price. “When promotion experience is linked to enjoyment kind of feelings, thoughts, and benefits, more favorable and positive brand associations are linked to the brand” [2] Frequent use of price promotions causes consumers to infer lower product quality and is related to low brand equity. The reason for low brand equity is that price promotions lead consumers to think primarily about the deals and not about the utility provided by the brand. However, non-monetary promotions can be used to build brand knowledge rather than erosion of brand image, since in this case, price is not the guiding factor. When it comes to monetary promotions such as discounts and clearance, it may lead to undermining brand equity of brands. For example, brands like Michael Kors and Coach have many Outlet stores and and are available in discount stores across the country. This has led to dilution of their brand image. Other brands like say, Louis Vuitton which are not known to have any promotional or discount
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.