Other Promotion Strategies

OTHER PROMOTION STRATEGIES

The International Chamber of Commerce (ICC) defines sales promotion as, "Marketing devices and techniques which are used to make goods and services more attractive by providing some additional benefit, whether in cash or in kind, or the expectation of such a benefit " (Boddewyn & Leardi, 1989, p. 365).

Smith (1998) described that there are three main categories of sales promotion which are consumer promotions (premiums, gifts, competitions and prizes, e.g. on the back of breakfast cereal boxes), trade promotions (point-of-sale materials, free pens and special terms, diaries, competition prizes), sales force promotions including incentive and motivation schemes.

Sales promotions are comparatively easy to apply,

Basically in the long run the sales promotion is positive for top line performance but it is negative for bottom line performance and firm’s value. This proves the fact that impact of sales promotion on the value of the firm is not in the long run, but in the short run it has positive impact on the profitability of the firm.

Consumer Promotion

Consumer promotion is a category of sales promotion including free samples, wining contests, different price packs, and sweep stakes. Sales promotion is projected to increase the sales of final ultimate consumers of the product (Kotler and Armstrong, 2002).The kinds of sales promotion are based on some sort of benefit whereas some are very communicative in type (Kotler et al. 1999: Tellis 1998).

Price

Moore et al (2003) also described that positive perception of consumers about a particular brand is an indicator of status, quality and prestige; i.e. factors other than price. Brand Loyalty

Schiffman and Kanuk (2004) have stated brand loyalty as one of the desired outputs of learning of the consumers. It is the probability of positive behaviours and attitude towards a brand, thus it could result in positive word of mouth and repeat purchase (Rawly and Dawes, 1999). Quester and Lim (2003) also explained the two major types of brand loyalty. Behavioural loyalty explains the repeat buying behaviours of the consumers, whereas attitudinal loyalty is the favourable behaviour of the consumers towards a specific product (Dikempe et al., 1997).

According to previous researches consumer promotion of any product leaves an impact on the acquiring behaviours of the consumers for a particular product or brand that the consumer will not buy otherwise (Alvarez and Casielles, 2005). However another study conducted by Dawes (2004) have revealed the fact that purchasing a particular product or service which is on promotion can reduce the chances of succeeding buying of that particular