Promotion According to Kettler (1988), promotion can be viewed as an essential motivational factor for making purchase, changing the sense of customers on price or product by adding extra benefits. Li (2001) claimed that promotion is an activity that encourage consumers to buy products or services. The purpose is to increase the sales volume in a
(2010) also shows that there are rarely any permanent effects of sales promotions on the volume of sales. Their findings proved that sales promotion does not change the structure of sales over the long run. They suggest that the diminishing impact of sales promotion may be because of choice of brand, quantity which is purchased and category incidence such as energy crisis. Masese (2009) are of the opinion that when a consumer is exposed to a sales promotion offer majority of the time, the consumer has already purchased and practiced a particular brand so the impact of learning form the that purchase is minimal and is easily balanced by a simultaneous and similar competitive offering. Therefore the immediate effects of sales promotion are small.
One encounters them mostly while watching television, reading magazines and newspapers, surfing the internet, and on the radio or even simply while walking down the street (Sharma and Sharma, 2009). Advertising has thus, a stimulating influence on the purchasing behaviour of the consumers. Advertising are most effective on products that have intrinsic qualities. These qualities are not known at the time of purchase and it takes one to discover this upon using the product. Also, when there is a substantial chance of differentiating a product, it best suits to advertise on that product.
of Consumer Behaviour: 1. Influenced by various factors: The various factors that influence the consumer behaviour are as follows: a) Marketing factors such as product design, price, promotion, packaging, positioning and distribution. b) Personal factors such as age, gender, education and income level. c) Psychological factors such as buying motives, perception of the product and attitudes towards the product. d) Situational factors such as physical surroundings at the time of purchase, social surroundings and time factor.
(Del Vecchio et al. (2006) proposed that that sales promotion can increase or decrease the post-promotion brand preferences, depending upon characteristics of the sales promotion and the promoted product.MontanerandPina(2008)also found product category moderates the relationship between the price promotion and the consumers’ evaluation of brands. Sivakumar (1996) suggested that high-priced brands get benefit frominfrequent,largepricecuts, while low-pricedbrands get benefit more from frequent, small price cuts. Raghubir and Corfman (1995) argued that the effect ofprice promotions on brand evaluations by the customers dependsupon the frequency of price promotions. They found that a brand that is promoted more frequently was perceived to offerpoorerquality as compare to other brands in the industry.
This means that to qualify as sales promotion, someone must be offered something which is featured rather than just being an aspect of trade. Strategic role of sales promotion Because sales promotion is essentially used as a tactical device, it often amounts to a series of unconnected gimmicks to lacking any coherence. Contrary to this advertising has been always considered as a strategic process of building brand value over the longer term. Compare this against sales promotion which is commonly used to help the company retain a tactical advantage. One of the most difficult marketing decisions facing companies is how much to spend on promotional John Wanamaker, the departmental - store magazine, said, "I know that half of my advertising is wasted but I don 't know
First, it is intended to provide vital marketing information to the prospective buyers. The second objective is to encourage and persuade the potential buyers through convincing measures. Thirdly, sales promotion is meant to act as an authoritative tool of rivalry. The goal of sales promotions is as follows: 1. Introducing new goods or services: Sales promotion is often used to encourage potential shoppers to try new products and services.
Investors funnel money into the economy by paying for advertising, meanwhile, customers are constantly purchasing these advertised products. Their spending increases the volume of sales and therefore more money goes into the economy and more job opportunities become available for workers and talented people such as photographers, musicians and producers. According to Ms. Khin Aye Cho in the article entitled “advertisements: the pros and cons “advertisement increase the interest for products and so the request for these products increases, therefore extra workers are needed to produce goods and accordingly more jobs are created. Assume that there is a product that you don’t know well, or that you don’t have enough information about to go and purchase it. If the advertisement for this product is done correctly then it will make you desire to purchase the product.
Chapter 1: Introduction Many studies have shown that the price and sales promotions have significant impact on the consumer brand choice, purchase time and purchase quantity decision (Gupta, Journal of Marketing Research, 1988). Sales promotion consists of short-term incentives to encourage purchase or sales of a product or services (Kotler, Armstrong, Agnihotri, & Haque, 2013). Short-term inducement can be cashed discount, bonus, schemes, coupons, exchange offer,etc. Sale promotion is one of the key elements in the marketing mix for many consumer products worldwide that has been used in order to stimulate consumer purchases (Esfahani & Jafarzadeh, 2012). Marketers are shifting their attention to sales promotion rather than other promotional tools such as advertisement.
Goods should be distributed to some of the popular athletes so they can influence the buying decision of their fan base. Brand promotion can also help to make a loyal customer base. Mass Marketing campaigns are needed in order to ensure that product is well known and its reputation is also good. Brand promotion should be based upon the best products that the company sells. These products need to be cost effective as it would be necessary to attract customers.