Retailer Promtion
Sales promotion takes an important part in a retail store overall marketing strategy. Few retailer experts asserted that sales promotions are constitutive for a success and are the only way to drive the business.
Sales promotion is determined by the American Marketing Association (AMA) as "media and non-media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality." It should be added that sales promotion stimulates consumer purchasing of the good, increases effectiveness of sales and makes the product more valuable for a given period of time. It includes informing, persuading through advertising, and publicity to remind the market about the good. Usual parts of sales promotion are price-cuts, coupons, games, sweepstakes, in-store displays, premiums, and features.
Displays are defined as in-store advertising that draws your attention to a particular brand, gives greater visibility to a certain good comparing to rival goods. They can boost sales significantly.
Features are retailer ads spread through the mail, newspapers, or door to door that inform consumers about current price cut or availability of the good at a low price.
Price-cut is a temporary decrease in a regular price of a product or service so to obtain or increase sales. Retailers and the public refer to this price cut as a price discount, a discount or a sale.
Discounts are one of the most important components of a retailer business strategy. As was mentioned by Tom Hartley in Business First of Buffalo, sales remain “the fuel that drives the retail engine”.
Goals of Price-Cuts
There are several reasons for a retailer to establish a discount. First of all it leads to price discrimination between informed and uninformed consumers, or switchers and loyals. Then one of the main reasons is to decrease the possibility of purchasing rivals’ goods and to reduce cost of carrying stocks. Moreover,
Sales promotion is determined by the American Marketing Association (AMA) as "media and non-media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality." It should be added that sales promotion stimulates consumer purchasing of the good, increases effectiveness of sales and makes the product more valuable for a given period of time. It includes informing, persuading through advertising, and publicity to remind the market about the good. Usual parts of sales promotion are price-cuts, coupons, games, sweepstakes, in-store displays, premiums, and features.
Displays are defined as in-store advertising that draws your attention to a particular brand, gives greater visibility to a certain good comparing to rival goods. They can boost sales significantly.
Features are retailer ads spread through the mail, newspapers, or door to door that inform consumers about current price cut or availability of the good at a low price.
Price-cut is a temporary decrease in a regular price of a product or service so to obtain or increase sales. Retailers and the public refer to this price cut as a price discount, a discount or a sale.
Discounts are one of the most important components of a retailer business strategy. As was mentioned by Tom Hartley in Business First of Buffalo, sales remain “the fuel that drives the retail engine”.
Goals of Price-Cuts
There are several reasons for a retailer to establish a discount. First of all it leads to price discrimination between informed and uninformed consumers, or switchers and loyals. Then one of the main reasons is to decrease the possibility of purchasing rivals’ goods and to reduce cost of carrying stocks. Moreover,
References: for business, Encyclopedia of business, Sales promotion- http://www.referenceforbusiness.com/small/Qu-Sm/Sales-Promotion.html Blattberg, Robert C –Sales promotion, Ch.12 – retailer promotion Omar, Ogengi – Retail Marketing Survey - http://www.gorod.lv/novosti/123194-56_delayut_pokupki_pod_vliyaniem_skidok Graph 1 -p 240 Tellis, Gerard J., Advertising and sales promotion strategy Graph 2- p 245