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Sales Promotion

Sales promotions are short-term incentives used by marketers to encourage purchases and boost sales. They account for approximately 75% of marketing budgets according to packaging companies. Sales promotions attract and retain customers while building relationships with sellers. Online promotions now include e-coupons which are frequently used to compete in crowded markets and gain customers' attention. Businesses provide various online incentives like discounts, gifts, and free delivery to entice customers to their websites.

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0% found this document useful (0 votes)
51 views3 pages

Sales Promotion

Sales promotions are short-term incentives used by marketers to encourage purchases and boost sales. They account for approximately 75% of marketing budgets according to packaging companies. Sales promotions attract and retain customers while building relationships with sellers. Online promotions now include e-coupons which are frequently used to compete in crowded markets and gain customers' attention. Businesses provide various online incentives like discounts, gifts, and free delivery to entice customers to their websites.

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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Sales promotion

Consumers' buying intentions and choice to purchase a certain product are influenced by sales
promotions. (Neha & Manoj, 2013). Sales promotion is the use of a number of incentive techniques,
most of which are short-term, to encourage buyers and/or dealers to speed up the purchase process or
boost sales. (Kolter & Armstrong, 2010). One of the most important components of a marketer's
marketing mix and toolbox is sales promotion. According to packaging company statistics, sales
promotion accounts for approximately 75% of the marketing budget. (Neslin, 2002). This technique has
the capacity to attract and keep customers while also establishing a solid relationship with sellers. (Oly
Ndubisi & Tung Moi, 2006).

Online marketing has changed shopping, and e-coupons are now a frequently used method to compete
in a crowded market and attract customers' attention. (Chen, Guo & Gondwe, 2016; Oliver & Shor,
2003). Online sales promotion refers to actions that use a variety of incentives to entice target
customers to acquire a product or service. (Pathak, et al., 2010). Logos, banners, pop-up messages, e-
mail messages, and text-based connections to web sites are some of the promotional tools available
through online channels. These sorts of incentives have had a favorable impact on internet purchases.
(Gallagher et al., 2001; Thota, et al., 2010). To entice customers to their websites, online businesses
provide a variety of sales incentives, including free gifts, discounts, and free delivery. (Collins-Dodd &
Lindley, 2003; Thang & Tan, 2003).

The positive relationship

Kotler, P.J.,& Armstrong, G.M. Principle of Marketing, Global Ed. New York: Pearson, 2010.

Neslin, S.A, Sales Promotion.Cambridge, MA: Marketing Science Institute (MSI),2002.

Pathak, B., Garfinkel, R., Gopal, R.D., Venkatesan, R., & Yin, F. “Empirical Analysis of the Impact of
Recommender Systems on Sales, Journal of Management Information Systems, (27:2), 2010, pp. 159-
188

Gallagher, K., Foster, K.D., &Parsons, J.“The Medium Is Not the Message: Advertising Effectiveness and
Content Evaluation in Print and on the Web,” Journal of Advertising Research, (41:4), 2001, pp. 57-70

Thota, S.C., Song, J.H., & Larsen, V. “Do Animated Banner Ads Hurt Websites? The Moderating Roles of
Website Loyalty and Need for Cognition,” Academy of Marketing Studies Journal, (14:1), 2010, pp. 91-
116.

Collins-Dodd, C., & Lindley, T. (2003). Store Brand and Retail Differentiation: The Influence of Store
Image and Store Brand Attitude on Store Own Brand Perceptions. Journal of Retailing and Consumer
Services, 10(6), 345-352. http://dx.doi.org/10.1016/S0969-6989(02)00054-1

Thang, D. C. L., & Tan, B. L. B. (2003). Linking Consumer Perception to Preference of Retail Stores: An
Empirical Assessment of the Multi-attributes of Store Image. Journal of Retailing and Consumer Services,
10(4), 193-200. http://dx.doi.org/10.1016/S0969-6989(02)00006-1
Chen, L. Y., Guo, C. S., & Gondwe, T. (2016). The effects of E-cash coupons value and consumer
involvement on behavioral intentions. International Journal of Innovation Science Engineering
Technology, 3(5), 105-112.

Oliver, R. L., & Shor, M. (2003). Digital redemption of coupons: Satisfying and dissatisfying effects of
promotion codes. Journal of Product & Brand Management., 12(2), 121-134.

Oly Ndubisi, N., & Tung Moi, C. (2006). Awareness and usage of promotional tools by Malaysian
consumers: the case of low involvement products. Management research news, 29(1/2), 28-40.

Neha, S., & Manoj, V. (2013). Impact of sales promotion tools on consumer’s purchase decision towards
white good (refrigerator) at Durg and Bhilai Region of CG, India. Research Journal of Management
Sciences, ISSN, 2319, 1171. Vol. 2(7), 10-14, July (2013)

Scale of sales promotions

Monetary promotions Yoo et al. (2000)

MPR1 Brand X frequently offers price discounts

MPR2 Brand X often uses price discounts

MPR4 Brand X frequently offers e-coupon

MPR5 Brand X often use e-coupon

MPR6 Brand X uses e-coupon more frequently than shopping at stores (offline)

MPR7 Brand X frequently offers free-shipping

MPR8 Brand X often use free-shipping

MPR9 Brand X use free-shipping more frequently than shopping at stores

Non-monetary promotions Yoo et al. (2000)

NMPR1 Brand X frequently offers gifts

NMPR2 Brand X often uses gifts

NMPR3 NMPR3 Brand X uses gifts more frequently than shopping at stores (offline)

Yoo B, Donthu N, Lee S. An examination of selected marketing mix elements and brand equity. Journal of
the Academy of Marketing Science 2000;28(2):195–211.

W.B. Dodds, K.B. Monroe, D. Grewal, Effects of price, brand, and store information on buyers’ product
evaluations, J. Mark. Res. 28 (3) (1991) 307–319

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