Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Influences of sales promotion
Review of literature of sales promotion
Review of literature of sales promotion
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Influences of sales promotion
In the efforts of advertising, creating good public relations, and the carrying out of its own personal selling efforts, companies add sometimes activities as supplement. These activities are called sales promotions and in a B2B setting it is called trade promotions. Sales promotions are kind of temporary things, some kinds of incentives urging customers to act quickly. We will mostly get interested in the B2C setting, i.e. sales promotions, in the setting of Burkina Faso, using three types of sales promotion: sample, contests, and loyalty programs. Then we will see if the infrastructure for sales promotions exist in all the countries.
In Burkina Faso, like in many other countries, companies are using many sales promotions to get customers buy more of their products. One of these sales promotions is samples. This type of promotion in new in the country. Usually, we have mobile sellers (people who do not sell at a shop, but go to the customers), and they go from house to house. Other sellers go from bar to bar or club to club, or just any place they know they will find customers. They sell products like toothpaste, kitchen ware, clothes. What makes them popular is that “buy two get one extra”. When they get to houses, people are always buying more and more and they get the extra. This extra is a sample of the product bought, but before you get it, you must buy the product. This sample sales promotion is really popular in the country.
Contests sales promotions are also very popular in Burkina Faso. October is the beginning of the school year in the country, making September to October the moment of good business for book stores. Of course, there are many ones, so contest sales promotions are used by some of them to attract cust...
... middle of paper ...
...line, it is already expired so they do not get the benefit. This is a kind of customer behavior. As a whole, there are things that need to be improved for better sales promotions in countries.
As a conclusion, there are sales promotions used by companies in each country. For Burkina Faso, the most popular ones are sample, contest, and loyalty programs. The companies that know how to use them really attract many costumers and they of course get high sales. This is inspiring some other companies which are trying to get into the trend. However, in all countries all required infrastructure do not exist for sales promotions, therefore new environments need to me created for it. But maybe some of the companies are creative enough, trying to adapt the existing infrastructures to their plans and programs.
Works Cited
Workbook of Principles of Business Administration
When I shop at the Shiseido Cosmetics store, I am more likely to consume more because they will give me a VIP card if I spent over certain amount of money. I rather buy more even though I don’t need it because I want to become their VIP customer. After I receive my card, I can tell my friends to come here because I am a VIP customer, and we get more free samples in here. When people talk the product to their friends and family, they are helping the company to advertise for free. The company does not offer additional discount, but the customer wants to be look good for their consumer status, so they spread the word around. Hence, social incentive is effective in the long
Chegg focus the most on social media marketing than traditional marketing. Nevertheless, they have promotional campaign on campuses that is called Chegg kiosk on campus bookstores: set boos to introduce saving textbook costs and flexible time access tutoring system. However, there are not enough kiosk stations to raise Chegg’s name recognition to their target. Chegg is good at publicity of their brand partners’ product to connect with their textbook which are related to a college life. For instance, Red Bull, American Express, Microsoft, and Ratemyprofessor are brand partners with Chegg. When students receive the Chegg box of their order, there are surprise samples of a can of Red Bull and a detergent sample pack by Tide. Chegg doesn’t’
Current trade deal promotions are destroying our margins, retailers take advantage of these promotions because is profitable for them. For example, every year during the 6 week “back to school season”, if we launch a trade promotion for two weeks, retailers will buy inventory that covers all 6 weeks of the seasons, and they will extend the discounts to the client to increase their volume but eroding our brand equity, they will get a 5% increase in their margin and we’ll get a 15% reduction (Exhibit A, trade promotion). In a “best case” scenario, the retailer and the client are benefitted, but more often than not, only they retailer gets the benefit as they don’t pass the savings to the consumer.
The provisions for suppliers of products is to require them to provide proportionally equal assistance to all competing resellers of their products (Dufresne 1972). An example would be an instance in Lakeland, Florida consisting of ‘free’ offers of an established brand’s toothbrush with the corresponding brand’s toothpaste (Dufrense 1972). However, the 1971 ‘free’ guide only allows for situations in which the offer is proper, and if no sale has been made prior (Dufrense 1972). The 1971 ‘free’ guide addresses that when a new product or service is being introduced, it must be at the same price for which it was promoted for (Dufrense 1972). This means it would not be permissible in this instance to sell the toothbrush or toothpaste for any cost other than ‘free’ because when the supplier decided to sell the toothbrush when it came out as new as ‘free,’ The Lakeland example addresses how the supplier would then be required to offer the special promotion to all drug stores, grocery stores, and other miscellaneous shops in which are competing in and around Lakeland promoting the brand to be sold (Dufrense
Consumers respond to the "Buy One Get One Half Off" (or BOGO 1.5) sales promotion because it gives an impression of savings and serves as an incentive for the consumer to get two items for one and a half price. Perhaps, rational consumers evaluate their choices and act systematically to achieve their objectives. Marginal changes are incremental changes to the existing plan of action. The rational consumer can precede a better decision when thinking of the margin. They only act if marginal benefit exceeds the marginal cost. If acting on the promotions, the consumers will receive a better value by purchasing the products. On the other hand, if the consumers choose to forego the deals then the promotion does not support consumers' objectives. By accepting the promotion, she can achieve a consumer surplus/ net savings of 50 percent of one shampoo. Perhaps, her marginal benefit outweighed the marginal cost so it alters her consuming plan to suit her objectives.
The ultimate goal of B2C marketing is to convert shoppers into buyers as aggressively and consistently as possible. B2C companies employ more merchandising activities like coupons, displays, store fronts (both real and Internet) and offers to entice the target market to buy. B2C marketing campaigns are concerned with the transaction, are shorter in duration and need to capture the customer’s interest immediately. These campaigns often offer special deals, discounts, or vouchers that can be used both online and in the store. For example, the goal of an email campaign for a B2C company is to get consumers to buy the product immediately. The email will take the consumer to a landing page on the web site that is designed to sell the product and make purchasing very easy by integrating the shopping cart and checkout page into the flow of the transaction. Any more than a couple of clicks and the customer is likely to abandon the shopping cart.
Krishnamurthy, S. (2004). A comparative analysis of eBay and Amazon [PDF file]. Retrieved from http://faculty.washington.edu/sandeep/d/amazonebay.pdf
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.
Wrong distribution channel and Pre-pricing policy: The placement of product and distribution to mass stores was not a correct strategy. Data shows that the velocity of Single pack was more in food store and convenience stores as more consumers but their gums from these store and not mass stores. Also, the pre-pricing policy would result in decreasing margin for the retailers and convenience and food store would not like to suffer the loss forcing the company to sell most of the quantity through mass stores.
Marketing is a very broad term, which encompasses all the activities that help businesses in identifying their customers and needs of their target market, utilising all the communication resources in order to target their target market, eventually persuading them to purchase the organisations products and services. It is much broader than the concept of selling, as selling just includes techniques of direct communication used to persuade the customers to buy the products and services of an organisation. In fact, sales are the integral part of marketing. Marketing also helps organisations to utilise all resources in an efficient way to gain customer satisfaction, which will eventually help in the growth of the company. While, on one hand, marketers tend to focus on the needs and preferences of the customers, they also need to keep a close eye on their competitors (Gillespie, 2010). Companies always look to beat down their competition with providing better products and/or services, or by providing less-expensive goods to the customers than their competitors, in order to achieve or maintain the leading position in the industry. The core focus of this paper is to identify and discuss the core aspects how managers could maintain the marketing activities of the organisation in the global context.
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.
In the united sates’ book retailing industry is an advanced industry and borders group have acknowledged little or no growth in recent years. Books epitomize borders main product type in terms of sales. Instead of opening new book superstores, borders group believe that there is bigger short-term chance in improving the efficiency of existing superstores. Snowballing their market share in electronic books and in improving Internet based sales outlets. Precisely borders could see hypothetical transforming their existing superstores by dropping the space that presently used for material books and rearranging that space for which is not books, product that would be convincing for borders customers plus greater subdivisions devoted to electronic book readers, an improved educational toys and games sections for kids and larger cafes and increased gifts and stationery assistances. In my opinion for borders Internet based vending will eventually increase in popularity and at the same time market share as a supply method for material book, music and movie market. I believe that in store sales of material book...
The global economy has enabled customers to enjoy a buyer’s market where the company with the most competitive price possible for a product or service receives orders from customers around the world. The burgeoning world ...
We see advertisements all around us. They are on television, in magazines, on the Internet, and plastered up on large billboards everywhere. Ads are nothing new. Many individuals have noticed them all of their lives and have just come to accept them. Advertisers use many subliminal techniques to get the advertisements to work on consumers. Many people don’t realize how effective ads really are. One example is an advertisement for High Definition Television from Samsung. It appears in an issue of Entertainment Weekly, a very popular magazine concerning movies, music, books, and other various media. The magazine would appeal to almost anyone, from a fifteen-year-old movie addict to a sixty-five-year-old soap opera lover. Therefore the ad for the Samsung television will interest a wide array of people. This ad contains many attracting features and uses its words cunningly in order to make its product sound much more exciting and much better than any television would ever be.