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  • Essay / A communications framework for evaluating sales promotion...

    1.0 IntroductionSales promotion was largely viewed in the past as a tactical marketing tool, primarily intended to provide short-term incentives to encourage consumers to buy/sell a product or service. However, with the advent of loyalty programs and other sales promotion techniques aimed at building brand loyalty and therefore repeat purchases, sales promotion practitioners have attempted to reposition their discipline due to the environment increased and intense competition that many organizations face. Managers must therefore fundamentally understand and evaluate the impact of their promotional strategies. A communication paradigm has four levels:1. Ability to attract consumer attention2. Level of difficulty of interpretation3. Its ability to persuade (describe specific benefits or characteristics)4. Promotional impact causing purchase intention. The conceptual framework discussed in the article provides sequences with a brand by creating awareness, communicating key benefits, promoting trial and therefore, hopefully, sustained purchase. And if the consumer becomes satisfied with the product or service, repeat purchases and brand loyalty can be established (Gardener, Elizabeth, Trivedi and Minakshi. Journal of Advertising Research, May/June 98, Vol.38 Issue 3, p67 , 5p). The four main types of sales promotion strategies that we will analyze are: bonus packs, shelf coupons, stand-alone insert (FSI) coupons and on-pack promotion.2.0 Defining Sales Promotion StrategyThe Association of Promotion Marketing Agencies (APMA) introduced the following definition of promotion management: "the planning and execution of strategic and tactical marketing for a brand using a comprehensive mix of business and communications designed to work together to influence behavior in ways that generate sales and strengthen brand image.” Sales promotion strategies are actually a subsidiary of the overall integrated marketing communications (IMC) mix. Despite the central role played by sales promotion, research carried out in this area does not seem to lead to simplistic conclusions. Thus, although promotional impact has always been a topic of great interest to both managers and researchers, there is a somewhat disconcerting disparity in research findings (Gardener et al. 1998). Some research has found that consumer satisfaction with a promoted brand leads to an increase in repeat purchases even after the promotion is withdrawn (e.g., Rothschild & Gaidis, 1981), while other research findings Research suggests that consumers revert to pre-promotion behavior (e.g., Bawa and Shoemaker, 1987). 3.0 Framework for Evaluating Promotions The article presents a framework that was designed to help managers evaluate the effectiveness of their promotional strategies. There are four main promotional methods that companies use to demonstrate the use of the framework.