Article Review of Sales Promotion

Topics: Marketing, Sales promotion, Research Pages: 6 (1684 words) Published: December 15, 2010
An Article Review on” Sales promotion- a missed opportunity for services marketers?” Introduction
The research article which our group selected is available on International Journal of Service Industry Management, Vol 6 No.1.1995.pp.22-39. The article is written by two authors, Ken Peattle, Cardiff Business School, Cardiff, Wales and Sue Peattle, University of Glamorgan Business School, Treforest, Wales. The research paper is reviewed in two parts. The first part summarizes the overall contents of the research paper. The second part assesses the article based on different parameters. PART I

The objectives of the study section expand the problem statement and describe in more detail the initiation of the study. Accordingly, the objectives of this study are summarized hear under. General objective of the study

To help redress the balance between the use of above-the-line mass media advertising and below-the-line sales promotion in the service industry. Specific objective of the study
To describe the nature and extent of competition usage as a marketing tool. •To examine the use of competition as a sales promotion techniques in the service industry. Literature review
The growth of sales promotion, service, sales promotion and competitions, competitions and consumer behavior and the consumer as a competitor are the sub topics that were reviewed in this section. Regarding the growth of sales promotion; the definition of sales promotion and the reasons for the current intensification of sales promotion in UK are stated. The second sub topic converse (services, sales promotion and competition) the application of sales promotion specifically in the service industry and the factors to be considered in determining the suitability of value-increasing (e.g. price deals, coupon, refund offers etc.) or value-adding (e.g. free gift, competition and the like) sales promotions for service providers. Continuing with this, the third subtopic associate the value adding sales promotion specifically competition with consumer behavior in terms of why it is attractive to the consumer, the aim of the service providers in using competition and the types of consumers that are targeted. Methodology

The competition data were obtained from the largest competitors’ information network in UK containing a total of 2646 different UK sales promotion competitions over a three year period. Of these a subset of 188 competitions which were sponsored by service providers was extracted for analysis. The sample consisted only of competitions which were available on a national or regional basis and were associated with promoting a product or service, as opposed to being all or part of the product or service itself. Analysis and interpretation

The competitors` information network has encoded and analyzed the competition data by using Minitab. Using this data the authors has analyzed a sample of 188 competitions to determine & describe the extent of usage of competition by the service sector, the service sectors involved in the competition promotion, the nature of competitions used, the prizes involved (their value & number), the roles competitions play and they have used a marketing integration level of competitions to measure the effectiveness of competition in the service industry. Hypothesis

We can deduce from the availed information that the hypothesis were; •The sales promotion tool, competition, represents a growing phenomenon in the service industry. Results found
Services account for fractionally more than 7 percent (188 out of 2646 competitions) of all competitions in the survey, which leaves them rather under- represented, when considered in light of its importance in the total economy. •Financial services are the largest sector in usage of competitions as sales promotion techniques. Travel and tourism showed the 2nd widespread use of competitions throughout a range of sectors including tour...
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