Sales promotion as a marketing tool

A strong brand could offer value-added satisfaction to both customers and the company itself Aaker, ; Cobb-Walgren et al. A company with strong brand equity enhances consumer awareness, loyalty, as well as marketing and advertising programs effectiveness Aaker, ; Aaker and Biel, That is to say, improved brand equity leads to lower price elasticity, greater competitiveness, profits and market value Aaker and Biel, ; Agres and Dubitsky, ; Graeff, ; Upshaw, For instance, to build a good relationship with existing customers, every time people purchasing tickets for the Impericon Music Festival, they sent free In-pack gift like stickers, snacks, etc.

However, it seems hard to tell if certain sales promotion is price oriented or not as the boundary is blurred sometimes. Results indicated that price-oriented promotions led to a lower internal reference price during the mental budgeting process Fill , while non price promotions did not affect internal reference price.

Mental budget is consisted of a psychological allocation of the prices of products and services categories e. However, people will resist spending in one category while their mental budget for that category is exhausted Fill Sales Promotions Impact on Customer Loyalty Behaviour Day stated that the combination of repeat buying from one service provider or brand coupled with the customers' psychological association with the provider is called customer loyalty.

Oliver defined brand loyalty as a commitment and intention deeply held by customers to purchase a preferred product or service repeatedly and consistently in the future, apart from situational influences and marketing efforts that lead to switching behavior potentially. For instance, when it comes to Boxing Day, most of the brands will reduce the prices of their products for attracting customers come and purchase. Sales promotion technique is an important tool in creating loyalty, this is true since sales promotion does not only bring the product to the attention of the buyers but also provide incentives to encourage purchase.

Nonmonetary sales promotions are more customer franchise building brand loyalty. Tesco developed its club card partially for collecting customer data and therefore could provide better services, products that match their interests and preferences will lead to higher customer satisfaction. For instance, Tesco sent customized quarterly magazines based on different identified customer categories. The contents and of the magazine will be related to their interests e.

Next, the two orientations of sales promotions - value-adding and value-increasing sales promotions - have been analysed for how they could help the company meeting their long-term e. Lastly, the essay identified the concepts of customer loyalty and the way non-monetary sales promotion would help the firm to meet longer-term objectives by shaping, or change customer behaviour and therefore build higher customer loyalty and retention.

Shimp, A. Mission looks at setting objectives for advertising. The objectives could be to inform, persuade, remind or reinforce. Objective has to follow the marketing strategy set by the company. Money or budget decision for advertising should look at stage of product life cycle, market share and consumer base, competition, advertising frequency and product substitutability. Once the message is decided the next step is finalizing the media for delivering the message.

The choice of depends on reach of media, frequency of transmission and potential impact on customer. Based on this choice of media types are made from newspaper, television, direct mail, radio, magazine and the internet.

After which timing of broadcast of the message is essential as to grab attention of the target audience. There are two types of research communication effect research and sales effect research.

Promotion is an incentive tool used to drive up short term sales. Promotion can be launched directed at consumer or trade. The focus of advertising to create reason for purchase the focus of promotion is to create an incentive to buy.

These help in introducing a new product, encourage trials, etc. Advertisements 5 Cash refund offers or rebates — Here the manufacturer gives a certain percentage of refund as part of the deal for buying a product. The refund is not given while making a purchase but received when the buyer submits a proof-of-purchase to the manufacturer. For example, sales people at malls and retail stores demonstrate perfumes, cosmetic products, small electronic items, etc.

For example, buy one get one free, book a flat with no EMI for first year, etc. The company also gives out gifts like wallets, calendars, diaries, etc.

For example, new cola, flavoured packaged water, etc. Contest asks consumers to submit entries that may win the deal communicated from a panel of judges. These can be quiz contest, beauty contest, etc. Sometimes consumers get a chance to take part in games like bingo numbers, letters, etc.

When the sales promotion strategies are targeted to the end consumers, it is referred to as consumer sales promotion. The main motive of consumer-oriented promotion is to increase sales directly by attracting new customers and wooing existing ones.

When the promotion activities are strategized keeping in mind the dealers, distributors, or agents, it is called trade sales promotion. In this type of sales promotion, offers are provided within the trade channels with an aim to woo retailers, wholesalers, agents, or distributors.

A product can be promoted for a limited time using innumerable tactics. Here are a few examples of sales promotion tactics that exist —. Black Friday sale is a seasonal sale which occurs only once a year.