Sales promotion research pdf




















The female Teh Botol sosro, which is produced by PT. Sinar Sosro, is the first packaged ready-to-drink tea brand in Indonesia that has been developed and maintained for decades. The number of competitors makes Sosro bottled tea still exist fighting The number of competitors makes Sosro bottled tea still exist fighting in the soft drink market.

This study aims to analyze the effect of packaging on partial repurchase intention, branding on partial repurchase intention, sales promotion on partial repurchase intention, and packaging, branding and sales promotion on simultaneous repurchase intention. While the sample is respondents who buy bottled tea Sosro. Thus, the respondents who will be observed are respondents.

Before being analyzed further, the data quality test and classical assumption test were first carried out. The results showed that packaging had an effect on partial repurchase intention, branding had an effect on partial repurchase intention, sales promotion had an effect on partial repurchase intention, and packaging, branding, sales promotion had an effect on simultaneous repurchase intention in bottled tea products.

Astri Kartini. Sensory Marketing. The issue of sensory marketing is a relatively new concept in managerial science. Due to the competitive environment of the global market, companies are confronted with the constant need to find effective approaches that will allow them Due to the competitive environment of the global market, companies are confronted with the constant need to find effective approaches that will allow them to maintain a competitive advantage in the fight for the customer.

One such approach is the application of sensory marketing tools to brand-building processes. The aim of the chapter is to bring the issue of sensory marketing closer to the general professional public.

The chapter also focuses on the pointing out the fact that only by taking into account the specifics related to sensory marketing, the process of building a brand becomes holistic and sustainable. The theoretical framework describes the basic foundations of the issue. The empirical part presents a description of the selected experiment from a series of five experimental investigations performed to verify the theoretical assumptions in practice.

From the point of view of the findings, it can be stated that targeted stimulations of the senses have a significant impact on the overall experience of individuals. Through the synthesis of theoretical and practical knowledge, it was possible to compile a model for the application of knowledge to business practice. The marketing mix: a conceptual framework for teaching public relations and other corporate communication. Where is the Art?

While Marcel Duchamp changed the status of the mass-produced, banal object by placing it in an art gallery, Bijl modifies the status of space itself in his "Transformation" While Marcel Duchamp changed the status of the mass-produced, banal object by placing it in an art gallery, Bijl modifies the status of space itself in his "Transformation" installations, turning galleries into a Garden Center , a Casino , or a Secondhand Cars dealership -at least until we realize if we do that we have been tricked and that the space is still a functioning art venue, at which point the plethora of objects and the surrounding environment, which mutually reinforce each other in creating the illusion, become the work of art.

Bijl tackles a vast array of subjects through his interventions, ranging from entertainment and fashion to illness, politics, utopias, and ideals, as well as a considerable emotional spectrum, veering from melancholy, dread, and boredom to hilarity".

The experiences of the work that was carried out with SMEs located in different places of the state of Puebla in Mexico covered two stages: the first stage coincides with the beginning of the confinement, while the second stage covers the period where the total closure of the businesses took place.

It is considered that from the time the pandemic started, the SMEs had to reinvent themselves through the implementation of new strategies and tools which focuses on the field of marketing.

Specifically, the cases that were analyzed have to do with a process of change and adaptation of companies that emigrated from traditional commerce to the use and incorporation of unknown processes. It also allowed them to stay afloat with their sales during the pandemic. For some companies, it is a reality that for the first time, they applied marketing tools that were totally new at that time.

This transformation allowed them to continue despite the circumstances and uncertainty. The benefits achieved are shown in the results, and it revolves around how the use of the tools and strategies was implemented for each business.

This ranges from those who made use of social networks such as WhatsApp and Facebook to those who implemented new forms of payment by electronic means, or the use of free market shipping, as well as those who decided on electronic commerce. Finally, it shows how the owners broke paradigms by accepting the implementation of the changes. It has therefore been demonstrated that the reinvention of SMEs is possible even in times of pandemic.

What a Hassle! Actual purchasing is only one stageof the process and not all decision processes lead to a purchase. Also not all consumer decisions will include all the stages but will depend on the degree of complexity and risk involved. There are however about four types of buying behaviors that consumers exhibit; these include a routine response which needs very little search and used when purchasing frequently purchased item, limited decisions which is used when purchasing low priced brands in a familiar product category, extensive decision which has a high degree of economic, performance and psychological risk which demands lot of time in seeking information and deciding and impulse buying which is spontaneous and needs no conscious planning.

This study focuses on the effects of sales promotion on consumer buying behavior. The ultimate objective of every business is to increase the sale of goods that it deals in.

Several methods can be adopted for the achievement of this goal; some direct while others indirect. Sales promotion is one of them. According to Kotler , Sales Promotion is a key ingredient in marketing campaigns and consists of a diverse collection of incentive tools, mostly short term designed to stimulate quicker or greater purchase particular products or services by consumers.

Sales promotions programmes are those activities other than stimulate consumer purchase. It is normally considered as a tool consisting of short term incentives to encourage the purchase or sale of a product or service Examples of sales promotion are found everywhere e.

In the aisle display in the local supermarket that tempts impulse buyers with a wall of coke cartons, an executive who buys a new Compaq laptop computer gets a free carrying case. Sales promotion includes a wide variety of promotion tools designed to stimulate earlier or stronger market response Kotler Oriflame has branches in over 62 countries and has approximately 3. It launched its operations in Kenya in the year with its headquarters in Nairobi though it has over 50 branches all over the country.

So far the company is using some sales promotion techniques like the free samples where they give the sales consultants free samples of assorted creams also free trial sales promotion tool where they have most of their products on display in their TSS office where potential customers can sample for free.

The study seeks to find out the effects of these sales promotion tools, bearing the given demerits above, and also to see if Oriflame can implement better sales promotion techniques especially directly to consumers. The company sells its products through an independent sales force outside the traditional retail environment and it has worked in the 62 countries that it is operating in. In order to achieve this feat, they need to understand consumer buying behavior to help them evaluate their service offerings.

Consumers go through a cycle of decision making processes before making a purchase decision which define their behavior in the consumption of the products they purchase from these companies. The consumer buying process is a complex matter as many internal and external factors impact on the buying decision of the consumer Aderemi, The consumer makes a purchase decision by examining alternatives before making the purchase. Sometimes, the purchase may differ from the purchase decision reached earlier.

There is always a post purchase evaluation by the consumers after purchasing and consumption of the service. Specific factors that may lead to altered consumer buying behavior are size and composition of the evoked set of alternatives, perceived risk, brand loyalty and attribution of dissatisfaction. The consumer determines whether he was satisfied or not with the services rendered.

This actually will be an important information reference point to the consumer in determining their behavior in the next purchase Kotler, Oriflame employs the use of some sales promotion tools like; free trial, where they invite prospect customers to try the products without cost.

This method is ideal for products like fragrances and make-ups since the results are immediate, but this technique is not very effective for items like; acne fighting products or skin repair products which usually takes longer period for the results to be seen.

Another tool is the use of free samples of assorted creams and fragrances, which is a technique only directed to the sales consultants who have accounts to purchase the products and sell at a profit to the customers. And even if they use sales promotion tools to the consultants they should strategize them in a way that it will be effective on the general sales.

This study, therefore, sought to determine the effects of sales promotion on consumer buying behavior at Oriflame Natural Cosmetic Products Company Ltd in Mombasa. Specific objectives 1. To establish sales promotional tools used by Oriflamme. To identify sales promotion strategies practiced by Oriflamme.

To find out the factors that promotes or impairs the effectiveness of sales promotion. What are the sales promotional tools used by Oriflame? What are the sales promotions strategies practiced by Oriflame?

What are the factors that promote or impair the effectiveness of sales promotion? The company can also use this research to know the merits and demerits of each promotional technique and unify these in order to achieve their goals. The study was carried out at Oriflame main office in Coast Region Headquarters which is located along Nkrumah road at TSS building 1st floor to study the effects of sales promotion in relation to consumer buying behavior.

This is because the researcher had seven other units to handle, a full time job, family and social commitments. This limitation was, however, overcome by proper planning. The lecturers were also very supportive and understanding and this made it easier to manage everything.

However, the researcher assured the respondents of the confidentiality of the information that they provided. The researcher also obtained permission from the management of Oriflame to undertake the research in the organization. The main sections included therein are: theoretical framework, conceptual framework, critique of existing literature relevant to the study, summary and research gaps.

There are several theories which support the concept of reward as a motivator. The conditions of sales promotion are classical and operant conditioning. Whereas classical conditioning is largely associated with advertising, operant conditioning is seen as an explanation for consumer behavior in relation to sales promotion.

Operant conditioning suggests the response of the individual is likely to be affected by positive reinforcement reward. Negative reinforcement punishment the affect is likely to cease when the reinforcements are taken away.

The law states that the consequences of behavior now will govern the consequences of that behavior in the future. In other words once a buying pattern is achieved it will continue into the future. John Watson, US psychologist and founding father of American behaviouralism, introduced the concept of shaping, chaining, and priming. Shaping breaks the desired behaviors in a series of stages and the parts are learnt in sequence. Priming: De Pelsmacker states, priming suggests that a short exposure to a particular stimulus can evoke an increased drive to consume more of a product.

So this all theories offer reasons why we can motivate people to buy more by offering incentives although the continuation of these behaviors is open to doubt. Pull Theory The Pull Theory is about trying to market directly to customers to increase their demand for your product. Advertising and tie-ins with other products or services is the key to this strategy. The theory goes that if you increase the demand for your product by consumers, they will in turn demand the product from retailers, retailers will demand more of your product from wholesalers and wholesalers will demand more products from you.

This is a way to increase your sales without decreasing the sale value of your merchandise. Most of the costs are in advertising, so using a tie-in with a related product or service can disperse this cost across both companies. Push Theory Using the Push Theory, you can increase sales by creating incentives to wholesalers or retailers to sell more of your product.

In this method you would offer discounts to wholesalers or retailers who buy your product in bulk. This leaves them with more of your merchandise on hand and drives them to sell more of your product. Giving them the discount "pushes" them to buy more of your product at a lower price to increase the amount of money they make. In turn they must "push" your products to customers because they will make a better return on them than on similar products supplied to them by your competitors.

The "push" is used to get more products into the hands of retailers and wholesalers while advertising and product tie-ins with other products are used as a "pull" to get more people to want to buy the product. Promotion is a marketing effort by any organization in trying to communicate to its customers.

According to Kotler , a good promotional strategy should encompass sales promotion, public relations, advertising and personal selling in order to communicate with their present and potential consumers.

Promotion is responsible for moving the demand curve upward and to the right by utilizing some or all of the elements of the promotional mix. Consumer sales promotional methods are directed towards consumers and they include coupons, contests, bonuses, vacations, shopping, gifts, free products and services, and free samples. Trade sales promotion methods focus on wholesalers, retailers and sales person.

This includes sales contests, free merchandise, demonstrations, point-of purchase and displays Pride and Ferrel, Several authors have identified different categories of consumer- oriented sales promotion. According to the International Chamber of Commerce, International Code of sales promotion practices, consumer —oriented sales promotion encompasses the following tools: Free samples: These are distributed to attract consumers to try out a new product and thereby create new customers Kotler, Some businessmen distribute samples among selected persons in order to popularize the product common examples - shampoo, washing powder etc.

Sampling which by definition includes any method used to deliver an actual or trial size product to consumers. Sampling is generally considered the most effective way of generating trial, though it is the most expensive Bonus offer or points: This is a reward given to the existing customers Smith and Schultz, This tool will help increase the sales of the product among the existing customers itself.

A toothbrush with grams of toothpaste might be some examples of this tool. A certain retail shops will have a scheme which will require the customer to be a member of the shop and to acquire membership card for the same. And every time the customer makes a purchase bonus points are added to the card and at the end of the year gifts are given for the points earned.

Exchange schemes: According to Belch , it refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement. Price-off offer: Under this offer, products are sold at a price lower than the original price.

This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market. Price- off is a reduction in a brands regular price Kotler, Coupons: A coupon is a promotional devise that provides cent-offs savings to consumers upon redeeming the coupon Kotler and Keller, Coupons can be disseminated to consumers through newspapers, sales point, and radio stations among others.

The organization could organize a raffle, competition or decide to reward loyal customers with coupons to get more of their products or any other product the organization will decide. Coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount.

Premium is also another technique identified by the International Chamber of Commerce as a standard sales promotion technique. A premium is an offer of merchandise or services either free or at a low price that is used as an extra incentive for buyers Belch et al, The three types of premium offers identified are free in the mail premiums, in and on pack premiums and self - liquidating premiums. Refunds and Rebates also refer to the practice by which manufacturers give cash discounts or reimbursements to consumers who submit proofs of purchase.

Mostly the two sales promotional techniques provides users a delayed rather than an immediate value since the consumer has to wait to receive the reimbursement after consuming the service or products.

This is evident in the Contest and Sweepstakes offer consumers the chance to win cash, merchandise or travel prizes. A contest is a promotion technique where consumers compete for prizes or money Adcock, Halborg and Ross, Fairs and Exhibitions: Fairs and exhibitions may be organized at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products.

Apart from this small stalls are also placed in popular locations where the products are sold in smaller quantity to attract more customers. To induce the customer to buy a particular product scratch and win scheme is also offered. Under this scheme a customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there. Bonus Pack is extra quantities of a product that a company offers to consumers at the regular price by providing larger containers or extra units Cravens, Bonus packs results in a lower cost per unit for consumers and provides extra value as well as more products for the amount of money paid.

This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market.

The company promotes the product through a reseller who in turn promotes it to yet another reseller or the final consumer. Typical tactics employed in push strategy are: allowances, buy-back guarantees, free trials, contests, specialty advertising items, discounts, displays, and premiums.

Pull strategy attempts to get consumers to "pull" the product from the manufacturer through the marketing channel. The company focuses its marketing communications efforts on consumers in the hope that it stimulates interest and demand for the product at the end-user level. This strategy is often employed if distributors are reluctant to carry a product because it gets as many consumers as possible to go to retail outlets and request the product, thus pulling it through the channel Schiffman and Kanuk, Combination strategy: This strategy requires both of the above strategies working together.

The "push" is used to get more products into the hands of retailers and wholesalers while advertising and product tie-ins with other products are used as a "pull" to get more people to want to buy the product Schiffman and Kanuk, It always offers an incentive to buy a product or service Smith and Schultz, Sales promotion efforts are directed at final consumers and designed to motivate, persuade and remind them of the goods and receives that are offered.

There are therefore several reasons why firms are compelled to roll out sales promotional packages for its customers and potential customers. Customers have become more price sensitive because of the increasing cost of living.

The economic recession is likely to fuel this trend further, as consumers and dealers become more sensitive towards prices. Price offs or discounts for example discourage brand switching by users and new product launch by competitors Smith and Schultz, Smith et al, however attributes the rationale for price offs to what they called trial.

For instance, consumers have become expectant of the purchase incentives and always look out for firms who will offer such benefits.

Services and products standardization in the global market has also given rise to the increasing use of sales promotion in reaching out to its consumers and potential consumers. Brands and services especially in the telecom industry have been perceived by consumers to be more or less similar within a given price range due to firms inability to really differentiate its products.

As a result of these perceptions of similarity among brands, firms have no option than to compete with other competitors on the basis of the extra benefit offered through sales promotion. Pressure from competitors and increased competition has also given rise to the need for sales promotion in recent times. The increased competition has left companies to differentiate their services and product on price and not the other features of the service or product. For instance if competitors offer price reduction, contest or other incentives, a firm may feel obliged to also come out with its own sales promotion for consumers to benefit from the service lest they face out of the competition.

Adcock et al, assesses that when a purchase decision is made, the purchase decision can be affected by unanticipated situational factors. Some of these factors according to them could be directly associated with the purchase, for instance the outlet where the purchase is to be made, the quality to be bought, when and how to pay.

Most instances, firms remove the need to make this decision by either including the essentials in the form of sales promotion tools like coupons, discounts, rebates and samples. The additional benefit whether in cash or in kind offered to consumers through sales promotion is highly likely to influence their purchase behavior or decision Ngolanya, Some consumers are loyal to a single brand in a category and buy only that brand.

These on-and off-deal consumers fall into two general categories, loyalists and switchers. Loyalists are consumers whose purchase patterns reflect that they buy the same brand over and over when no brands are on deal when the category is off promotion. Switchers are the consumers who even when all brands in a category are off promotion nonetheless switch among different brands.

Kotler refers that consumers have varying degrees of loyalty to specific brands stores, and other entities. Aderemi stated that Brand switching means that a consumer is induced to purchase a brand other than the one that would have been purchased had the promotion not been available. According to them even if the product or service is of good quality and the competitor present better products or services and better support services for the product among others, sales promotion will lead to little result Sam and Buabeng, Again they argue that, if the product or service is generic, sales promotion is not likely to make much impact on brand loyalty and brand equity.

Sales promotion connects the consumer with the company by prompting them for some actions. The consumer develops the brand loyalty over a period of repetitive buying, thus one can make a reasonable speculation that sales promotion has a direct influence on consumer buying behavior Sam and Buabeng, A business cannot survive if its products do not sell in the market. Thus, sales promotion has to be undertaken to increase sales.

From these literatures, sales promotion can help you provide information to potential customers that aid them in making a decision.

This can be beneficial for products or services that are complicated or are unfamiliar to consumers. This implies that, consumers would only choose a product that offers the best price Aderemi, This therefore can influence their decision to purchase a particular service or product from a company. Sales promotion attracts new buyers; the new buyers are encouraged to buy the product by the extra benefits offered by the organization in buying the product.



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