The Concept of Sales Promotion

5496 Words Jan 9th, 2018 22 Pages
This can be realized by increasing the sales volume. In order to achieve this goal, businesses may employ various different methods some of which are direct while others are indirect (Rizvi,Nazi & Malik,2011). Sales promotion is one of these methods and it is roughly defined as a diverse collection of effective incentive tools that are mainly used in the short term in order to stimulate a quicker as well as greater purchase of specific products or services by customers as noted by Kotler (1998). Advertisement expenditure grew by 4% between 2004 and 2005 in Singapore (Ang,2007). In this paper, we propose a research aimed at investigating the effectiveness of promotion activities in increasing sales at 7-Eleven stores in Singapore.
Problem statement
The concept of sales promotion is often employed in grocery retailing and therefore takes up a considerable share of financial resources that retailers spend on their marketing initiatives (Persson,1995,p.5).The popularity of sale promotion application has of late became a source of inquiry by both retailers and product manufacturers. Despite the huge sums of money spend annually on sales and promotions, the economics and dynamics of sales promotions are poorly understood. As a result, there is a significantly huge knowledge gap to be filled.…

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