Sales Promotion and Its Effectiveness in a Longer Term

Topics: Marketing, Sales promotion, Value added Pages: 8 (2411 words) Published: October 24, 2011

Marketing Communications is an activity which is always ‘audience-centered’ and organisations or people who are thinking of Marketing Communications should always give the first and foremost preference to the audience (Fill, 2006) There are theoretical frameworks and models which persuades individuals, managers to create and present the brand to end consumers (Rossiter & Bellman, 2005). With new insights, tools, opportunities and ever increasing challenges, marketing communications mix is changing in this 21st century. (Smith & Taylor, 2004). Some of the promotional mix includes advertising, sales promotion, personal selling, direct marketing, sponsorship, exhibitions, packaging, point-of-sale, merchandising, publicity, public relations, word of mouth etc.

Marketing Communications Strategies and Objectives:

Generally, there are many applications to build a marketing communications plan with no single approach, but there are elements and components like SOSTAC which helps to create a plan within major sectors like marketing / marketing, corporate communications. SOSTAC cane be described in a graphical manner:

|S |Situation Analysis |Where are we now? | |O |Objectives |Where do we want to go? | |S |Strategy |How do we get there? | |T |Tactics |The details of strategy. | |A |Action |Implementation | |C |Control |Measurement, monitoring, reviewing and modifying. |

Source – Smith & Taylor, (2004)

A Contemporary perspective of IMC’s strategies:

Increased competition and with supply exceeding demand; there is an alteration in power towards distribution channels which has taken place now (Kitchen & Burgmann, 2010). So, a long term relationship with the customers is very important for any business in today’s marketplace. In a world like this now strategies like relation with the intermediaries are interdependent but not integrated to create customer oriented communication messages within the related distribution channels. Also, to provide the manufacturer the possibility to create and develop customer-specific products (Pickton and Broderick, 2005; Schultz and Schultz, 2003; Schultz, 1993c).

To determine communicational objectives there are different theories which are categorised depending on different communications models. Different models in this process has different stages. Discussed below are a) Cognitive stage – Customer awareness stage towards the product. b) Affective stage – Gathering information and opinions about the product. c) Behavioural – Purchasing situation or taking action depending on the first two stages But the best known model is AIDA ( Attention, Interest, Desire, Attention) where it reflects a clearer picture about the different stages and shows the different phases of a product until its consumed (Rowley, 1998).

Sales Promotion – Contribution, Objectives, Roles:

Sales Promotion can be defined as a temporary or short term period offer like incentives provided by marketers to prospective customers and intermediares (Raju, 1995). It constitutes different marketing approaches tactically to add value to an offering. Its objectives are to accelerate sales and collect information by data mining techniques. Its attributes to add value to future sales are strong, thereby complementing it to a macroeconomic need and focussing on short term financial performance (Fill, 2009). There...
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