An Evaluation of the Effectiveness of Premiums Promotion, Limited- Time Discount and Loyalty Card Promotion—Based on Product Life Cycle

Only available on StudyMode
  • Download(s) : 161
  • Published : November 13, 2012
Open Document
Text Preview
CELE Project 2012

Qing Lu
2111573
10 weeks

Business
M.Sc. International Business

Permission given to use this project
Word Count: 2824

An Evaluation of the Effectiveness of Premiums Promotion, Limited- time Discount and Loyalty Card Promotion—Based on Product Life Cycle

31 August 2012

Abstract
In recent years, sales promotion tactics are extensively used to achieve different marketing targets. The aim of this project is to analyze the effectiveness of premiums promotion, limited-time discount and loyalty card promotion according to the marketing targets in the first three phases of product life cycle, which can help companies maximize the effects of sales promotion. The specific marketing targets in the first three stages of product life cycle are discussed and the effective sales promotion tactics are analyzed, based on a rich literature about sales promotion. The potential risks in the implementation process need to be taken into account and the possible solutions are proposed to help companies reduce the unnecessary losses. This may be of interest to marketers, which intend to enhance the competitiveness of companies.

CONTENTS
Introduction ……………………………………….………………………………………………………………….…1 1. Features and Marketing Targets of Product Life Cycle…….……………………………….……2 1.1 Introduction stage………..………..…………………………………………………………………2 1.2 Growth stage…………………………………………..……….……………………………………….2 1.3 Maturity stage….…………………..…………….………….…………….………………………….3 2. Analysis of the Effective Sales Promotion Tactics…………………………….……………………4 2.1 Premiums promotion for new product awareness…………….………………………4 2.2 Limited-time promotion for quick boost to sales……………………………………….5 2.3 Loyalty card for customer loyalty…………………………………………………….…………5 3. Limitations and Possible Solutions………….…………………………………………………………….8 3.1 Risks of premiums promotion…………………….…………………………………………..…8 3.2 Risks of limited-time discount………………….………………………………………………8 3.3 Risks of loyalty card promotion…………………….………………………………………….8 3.4 Possible solutions……….…………………………………..…………………………….…………9 Conclusion ………………………………….…………….……………………………………………………………11 List of references

Introduction
As the competitive pressure on market increases, the studies on product life cycle are paid more and more attention by marketers in recent years. On one hand, product life cycle can direct companies to set the clear marketing target in each phase. On the other hand, it can help marketers select the effective sales promotion tactics to achieve each marketing target. The selection of sales promotion strategies in each stage of product life cycle seems to be of considerable importance in achieving different marketing targets. The study by Yeshin (2006) suggests that premiums promotion, limited-time discount and loyalty card promotion play marked roles in the first three stages of product. Moreover, it appears to be necessary for marketers to set the marketing targets in different stages of product life cycle, to select the effective means of sales promotion, and to be aware of possible solutions for dealing with potential risks. As Kotler and Armstrong (2001) point out, companies can induce customers to know, to use and to be loyal for their products by the effective means of sales promotion, even if customers may have different buying habits, product preference and purchase motivation. The purpose of this paper is to analyze the effectiveness of premiums promotion, limited-time promotion and loyalty card promotion according to the three marketing targets in the first three phases of product life cycles, which tends to help companies expand new product awareness, increase market share and maintain customer loyalty.  Features and marketing targets of the first three stages of product life cycle will first be presented. The reasons for the effectiveness of the three marketing tactics mentioned above will then be analyzed, with a focus on the three corresponding...
tracking img