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Review of literature on sales promotion
Review of literature on sales promotion
Concept of sales promotion
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Sales Promotions and Infrastructure
Sales promotions are an example of ways to entice a consumer to consume quicker or 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
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Coupons are pieces of paper or even electronic images that get you a certain amount of money off a product or they give you a product free if you buy more than you were expecting to buy. An example would be a coupon which says you can get a 10 PKR off a loaf of bread which is 30 PKR. So you take the coupon with you to the store and while checking out, you give it to the cashier and he takes 10 PKR off of your bread for you. Another example would be when you have an option to buy 1 paper towel roll for 50 PKR and if there is a sales promotion like buy one get one free, you can get 2 paper towel rolls for 50 PKR. The second sales promotion tactic used in Pakistan is a premium. A premium is when you get something for free on the side for buying a certain product or with a minimal additional charge you get something extra with your purchase. This is prevalent in Pakistan because it …show more content…
It’s a really good tactic here to get people to come back and shop when they know they can eventually get free stuff or lower prices. An example would be that for every 10 PKR you spend in a shop, you get 1 point. On the accumulation of 100 points you can get a 300 PKR value gift. Things like these increase loyalty and make customers stay along longer.
I think if Pakistan had a more connected and online presence when it comes to the general public, the sales promotional tactics would be slightly different. For example, because the majority of people aren’t connected in Pakistan, sales promotions like online coupons, rebates and contests would be harder to distribute largely through mass communication. Certain infrastructures do facilitate certain sales promotions but most can be done through the simplest method possible. Coupons can be on paper, rebates can be given back to the store for benefits, and samples are always possible.
We can see that sales promotions really do influence the spending of customers.
Struggling with your household budget since prices keep going up and up? How can you continue to purchase the products your family consumes? An increasing number of families are depending on coupons to extend their budget by, using them to purchase products well below retail price. Couponing does require commitment and dedication to accumulate coupons, organize them, and plan shopping trips.
The average American spends $151 a week on groceries; adding up to $604 a month which is taken out of the hard earned pay check of the household. It is not a mystery why shoppers would want to use coupons to attempt to bring down this cost. Efficient shoppers understand the value of spending the time to meticulously plan each trip to the grocery store to fit in as many coupons as possible. Joanie Demer quit her job in order to spend her time maximizing the benefits from couponing. When couponing, the best way to save is doubling up the coupons to utilize the voucher to its fullest extent; extreme couponers will hoard several copies of a newspaper or magazine in order to stock up on the coupons so they can double up and have enough for the overstock they need to hold over until the next sale on that product. Jamie VanSicker gathered 185 copies of the Sunday paper in order to save big on the deals at her local grocery store, sadly to find out the paper didn’t have any coupons to clip. Religiously sticking to couponing may not be the healthiest choice, there are not many coupons are available for meat or produce, but the saving are worth the products given up. Couponing can create a few problems but overall takes the stress off the women when they know they have saved usually at least $15 off their total bill.
The promotional used by McDonalds is sale promotion. The sale promotions such as buy one happy meal get a free deal, prize and the other things. These strategies are usually used to attract more and more customers patronize because of those free stuff.
Also, the rewards program is based off a point system and when one has earned a certain amount of points they send them a gift card to spend however they wish. Though, what the consumers don’t know is that by applying for their free rewards program, they are collecting data and constructing analysis to make them into loyal consumers.
Winn could nothing or implement a rewards program that rewards the employee with more than cash rewards; employee recognition program namely employee of the month with a paid day off or a gift card. As part of the employee focused plan, the company should allow employees’ input on how to become more customer focused, efficient, and effective organization. This would greatly improve employees’ satisfaction and help the company achieve its overall goal of providing quality customer service.
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
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.
Consumers are motivated to spend more when there are incentives presented in the form of discounts and special promotions. Their satisfaction in spending less to buy a desired item indicates how incentives work by influencing an individual’s decision making ability. The fact that the item was on a discount enabled the individual to buy it as the reduction in the price of the item was a strong economic incentive. The concept of incentive is present in everyday life situations as it basically impacts the actions of every individual. Incentives are efficient tools used to manipulate the human behaviour in order to achieve desired outcomes.
Rebate Management Solution will help eliminating unnecessary costs, improving processes, insuring compliance, minimizing risks, and enhancing overall company performance.
The Loyalty Aid points program is a noble way of getting everyone to take part in helping those in need or disability. It is also a unique and discreet approach to involve not only consumers but also retailer and enterprise owners to donate for the cha...
Pakistan has a serious need of establishment of laws to serve justice and equality and shoukd demote racism so that we all can live in peace. This can also be a plus point for the government as the poor would be relied on them and will co-operate with them in every aspect.
They do not buy anything for reasons that they do not have money or they need that money for something else. In fact these shoppers can be at a store for hours and not purchase a single item. I can say that I am a window shopper most of the time. I can look around for hours and not buy anything at all. I basically look at things that I want to buy for when I do have the money for it. I’ve noticed a lot of people do the same thing, they join friends to the mall to just hang out and they end up window watching, walking in and out of
consumers will buy impulsively when they see them in the store. It is with this strategy