An Examination of Sales Promotion Programs Essay

The company must factor in that each of their customers has lifetime value, a greater value than a small gain made on first sales. With competition in their sector, more penetration pricing would be appropriate. The penetrating pricing strategy would only make sense to retain customers; the pricing strategy must realize lifetime value, (University of Phoenix, 2011).

The promotionPromotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The pace and creativity of some promotional activities are almost alien to normal business activities.The cost associated with promotion or advertising goods and services often represents a size-able proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective.

The entire purpose of promoting products is to create awareness, persuade and inform customers about your product or service while identifying key features compared with competitive products. There are many benefits of performing successful promotion such as increasing sales and acquiring a greater market share, showing your products features and exposing competitive product’s flaws, teaching the market benefits of your product, explaining different usage of your product, conveying your brand image of your organisation and promoting new and improved features of your products.

Higher value can attract more customers or increase the profit margin for the value add benefit.

Does lower cost equate to getting a better value or does the quality of what you receive have better value? This is the customer’s subjective evaluation of benefits relative to costs to determine the worth of a firm's product offering relative to other product offerings (Ferrell & Hartline, 2014). Numerous people have purchased all-inclusive vacation packages offered via Groupon.

Promotion Decision- Retailer’s use and or all five promotions tools- advertising, personal selling, sales promotion, public relations

Amanda Brown was employed in September 2016 by retail organization JCPenney to conduct marketing research where she would examine opportunities for enhancement to the retailer’s current seasonal pricing and discounts. In particular, I conducted research (1) to discover customer satisfaction with promotions and discounts and (2) to investigate JCPenney customer’s most preferred method for being informed of upcoming promotions. The purpose of the research is to provide JCPenney managers with insights about how satisfied customers are with the promotions, and a valid understanding of how they can build awareness through identifying customer’s most preferred methods of notification for upcoming promotions. In addition, I conducted research to gain a deeper understanding of the influence seasonal promotions and discounts had toward the customer’s decision to shop at JCPenney.

Undoubtedly, due to fierce competition discounts and promotions on products and services helps the company to thrive and make them a global leader in the market. In this case, whether it help corporations to impact the market is matter of discussion. However, this essay will examine both pros and cons of the argument before reaching to a reasonable conclusion.

Promotions, marketing, and advertisements are typically created to acquire and retain consumers and to sell large quantities of a product. Every consumer may have a different perception of the same marketing tactic. This paper will discuss a promotion that was experiences personally, to what extent it changed or influenced my behavior, if the decision to purchase or not purchase would have been made either way, if it would have been different in some way, and what the seller could have done differently so that I would have done what they wanted.

Some promotions will invoke a call for action amongst customers. There will be instances when promotions will make potential customers to make important decisions. For instance, SlingTV has their promotional sale that only lasts for one day in September. The pressure from SlingTV will make consumers jump onto the sale as quick as possible. This tactic will motivate future consumers to be aware of the deals that SlingTV may have to offer. However, this maneuver may have given new customers a very small window of opportunity. But at the same time, the date of the promotion was posted on the independence day of several Latin American countries. This tactic could invoke respect from potential customers. In addition, this maneuver demonstrates how the television provider has knowledge of their target audience. This gives them major credibility in the minds of potential customers. But at the same time, the one day sign up availability makes SlingTV look desperate for potential customers. However, the promotion can be interpreted differently by the audience they’re reaching. In addition, SlingTV may garner respect from their potential customers since the offer is free. Some individuals may be hesitant towards switching to a new television service. This promotion gives new customers the option to test and potentially keep SlingTV as their main

Sales promotion is the marketing activities providing extra value to the sales force, distributors or ultimate customers and stimulate immediate sales. Sales promotion consists of short-term incentives to encourage purchase or sales of a product. Apple Company uses this way to target toward the final buyers through sales promotion which is more effective than other competitors such as Samsung, Sony, LG and Oppo. The strategies they used to target market do not affect the sales volume of iPhone 6 Plus. They offered customers the offer by giving the customer the combination of promotion when buying iPhone 6 Plus and iWatch. In addition, Apple Company uses the cross-product promotion with a free earphone and charger as well. Apple Company also uses the market research to know whether the customers satisfy or dissatisfy the product, IPhone 6

However, due to the rising competition and growing innovative efforts, a pricing strategy may need to be revised at some point to assure customer affordability and maintain customer loyalty. Quality is firmly identified with return. Low quality items and benefit decreases consumer loyalty and prompts to regular returns, while great items and administration can fulfill the client and lessen the quantity of profits. In the meantime, top notch items and administration merit high offering costs in light of the fact that higher costs flag better quality (Li, Xu, & Li,

Banana Republic uses some forms of sales promotion to encourage customers to come in and buy their product. They started their most extensive marketing campaign in 1998, where they had tv spots, magazine inserts ads, and outdoor kiosks. In 2000 they opened their flagship store, an original store in California which included personal shoppers, valet parking and even places to charge your phone. They have many online sales and similar instore sales, especially on Black Friday. Currently that is the company 's way of getting customer attention and promoting their sales along with their customer support and high quality products. Banana Republic encourages shoppers to join their email list and even sign up for a BananaCard. It is a credit card one can use to get points from anywhere with a visa card and after so many points you get more coupons to use. Because Banana Republic is owned by Gap another benefit to the card is that the rewards are applicable in any Gap owned stores (Gap, Old Navy, Banana Republic).

It is also generally short-lived; one off incentives intended to provide consumers with that last push to buy. This is the last traditional component of the marketing communication mix that is discussed as part of the marketing communication process. Sales promotion simply refers to purchase incentives that you provide your customer with. These can assume a number of forms including offering free goods or services, coupons and vouchers, gifts and prizes, discounts, money-off, competitions, samples, financial incentives, charitable promotions and any other value-add over and above your standard product or

What is the one thing that all for-profit companies have in common? They must generate sales of their products or services to survive. In order to accomplish this, most companies have a team of sales representatives driving themselves and each other to win the confidence of clients. But just like every sports team needs a coach, every sales team needs a strong and knowledgeable Sales Manager to be successful.