How Promotion Objectives Determine which Marketing Methods or Strategies Used
Promotion is a marketing mix element that plays the function of persuading, influencing and persuading a consumer to make a decision. In the retail industry, the choice of promotional strategy that is adopted by any company is greatly determined by the type of product, its value and time of usage. Some promotional strategies aim to develop a primary demand for particular product while others aim towards creation of selective demand (Fox & Raj, 2006). These promotional strategies are used by retail stores to either hold their current market or expand it depending with the goals and objectives of the promotion which may be: product differentiation, sales increase or provision of information.
Companies in the retail industry use different channels for communication during their promotions. Cost is a major determinant for the choice of channel used in communication with other considerations being suitability of the channel and its effectiveness (Perreault, Cannon, & McCarthy, 2010). Advertising media is commonly used in the industry with Newspapers adverts making a large percentage of all communications. Newspapers reach many people and its effectiveness is due to the ability of readers to refer back when using them. Other media used include: Television which is second to newspapers but a leader when it comes to advertising nationally. It has a great impact on potential customers though it comes at a high cost which keeps out medium and small retailers. The radio is the third largest channel of communication. It is mostly used because it is flexible, low cost and targets a selected audience. However, it has several disadvantages as its message has a s...
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...focus more on their existing customers by developing them through reminder advertising and frequent shopper programs in order to retain them. This has led to the stimulation of customer desires to make a purchase by conviction (Fox & Raj, 2006).
Different customers react differently to different promotion strategies thus the different stores should know when to use a particular promotion tool and at what time. The key focus should be to who is the message intended for and how can they best obtain it. Having the correct message for the correct market in the right time is important towards generating customer response.
References
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Promotion is advertising to potential customers in and effort to create an awareness of your business. It is reasonable to believe that without the ability to advertise a company would have a difficult time generating new customers.
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
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Promotion. Finally comes promotion - informing the customer on the qualities and advantages of the product so that the potential buyer learns about the product, prefers it to those of the competitors, and has an opportunity to buy it at some place.
Observation – In this competitive world, retailers needs to ensure that quality services are delivered to retain the customers and improve the services as per the customer convenience, accordingly strategy must be developed. To attract more customer retail sector must be well organized as there is personal interaction and physical aspects involved that affects customer perception and if customer are happy they are satisfied with services. To sustain in this global economy, retailers have to develop new strategies. Retailers must know to persuade
The nature of the business of retailing puts retailers at a assumed risk of incurring costs because products are bought with the assumption that consumers will purchase. Additionally there are external factors that may also pose risks such as natural disasters, theft, spoilage and fire. In other circumstances retailers also extends financial credit to customers in the form of credit sales which facilitates the smooth transition from retailers to the marketplace. Retailers are in constant contact with customers which gives them the opportunity to research and study buyer’s behaviour. This involves collecting information about changes in customer preferences, perception and shifts in the demand curve. Through advertising within their stores retailers are able to exhibit and introduce existing and new products to the marketplace. Ultimately retailers are in the business of selling products to customers to achieve their goals of generating
Kotler, P., & Keller, K. (2012). Marketing management (14th ed., Global ed.). Boston, [Mass.: Pearson.
Philip Kotler; Kevin Lane Keller (2009): “Marketing Management”, 13th edition, Pearson Prentice Hall, pg 61-62