Introduction
In terms of gaining profit, the firms must learn the effective ways to create sales. Aside from building attractive services and products that can answer the needs of the people, there are essential ingredients that a firm needs to know to target their profitability. The marketing methods are already scattered even in the least expected places that promotes their products and services. For some reason, these advertisements are identified to be effective in helping the firm to achieve the assumed sales and profits.
Background and Problem Statement
All of us already seen the commercials, the huge billboards, the posters all over the wall, or experience a delayed in downloading some videos via net because of the advertisements. All of this are different in styles by have one main purpose and that is to promote. Promotion is one of the effective strategies that firms are using to influence the buyers. Typically, marketers are using the various promotional activities to introduce their product to the market and emphasize that their products or services are somehow important and must be include in the basic needs of the market. Despite from the growing numbers of marketing styles and strategies, how effective does the promotional strategies in terms of acquiring sales and realizing the profits?
Research Aim and Objectives
The main aim of the study is to investigate the impact of promotional strategies into the overall sales and profitability of the organization. In order to assess the information that might include in the paper, there are four objectives that need to be considered. First is to identify the marketing theories and models that are associated in the marketing strategies implemented in an organization. Second is to recognize the various promotional strategies and measure the effectiveness towards the consumers. Third is to identify the variances between the promotional costs and revenues. And fourth is to analyze the efforts given by the marketers to effectively promote their products and/or services.
Literature Review
Sales promotions are strategies that can be freely used by any organizations that are planning to push further the sales. Typically, the managers are challenged by their competitors and thus, they are bound to exceed the expectations of the superiors and beat the last performances. Therefore, the aim to increase the level of sales and revenues can be considered as a kind of strategy that can divert the attention of the market. Through the use of promotions, the organization can push the products through the help of the retailers and distributors by offering various kinds of promotions and personal selling efforts. The basic objective of the “push strategy” is to persuade retailers, wholesalers and distributors to carry your brand, give it shelf space, promote it by advertising, and ultimately 'push' it forward to the consumer. Typical push sales promotion strategies include; buy-back guarantees, free trials, contests, discounts, and specialty advertising items. Another method is the “pull of sales promotion strategy” that focuses more on the consumer instead of the reseller or distributor. This involves getting the consumer directly from the company itself. By targeting the marketing efforts directly on the consumers, firms can stimulate interest and demand for the product. Typical pull sales promotion strategies include; samples, coupons, cash refunds or rebates, loyalty programs and rewards, contests, sweepstakes, games, and point-of-purchase displays. Lastly, the combination of push and pull strategies are implemented in the marketing department. Both focuses on the distributor as well as the consumers that promise in an increase rate of return.
Methodology
The suggested method in the study is the use of the survey and interview. These two methods are combined to accurately measure the effectiveness of promotional activities to the people, to weigh the effective strategies used by the organizations and to create an analysis of its impact in achieving the sales and profits of the organization. In survey, the participants are the typical buyers and will answer through the use of the Likert Scale. In this way, the researcher can identify the reasons behind their buying behaviors and to understand if the promotions are effective to change their preferences. In the second phase, the managers of the organizations, retailers, merchandisers, and marketing managers are asked to determine the effective promotional strategies that they recently used to achieve the target sales.
References:
Julien, P-A., & Ramangalahy, C., (2003) Competitive Strategy and Performance of Exporting SMEs: An Empirical Investigation of the Impact of Their Export Information Search and Competencies, Journal of Entrepreneurship: Theory and Practice, Vol. 27
Nvaga, G.N., Closs, D.J., Rodriguez, A., & Calantone, R.J., (2007) The Impact of Demand Uncertainty and Configuration Capacity on Customer Service Performance in a Configure-to-order Environment, Journal of Business Logistics, Vol. 28
Winkler, A., (1999) Warp-Speed Branding: The Impact of Technology on Marketing, John Wiley & Sons.
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