The Impact of Promotional Strategies Sales and Profit

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.

Somerset Furniture Supply Chain Strategy

Introduction

Organizations use the supply chain approaches to have control over the operations and reduce the costs, as much as possible. Supply chain strategy is often intertwined with the supply chain management but supply chain strategy is broader than the other which should be managed well in order to compete in the market. The implemented strategy is a kind of process that evaluates the cost and benefit that an organization can gain through its operation. Most of the business strategies are formulated with an aim to effective compete and at the same time, achieve the organizational goals. This idea is true with the implementation of supply chain strategy because it includes the analytic and decision making processes.

How to Prepare Supply Chain?

Actually, there are no specific steps regarding the development of a comprehensive supply chain strategy that can be effective in an organization. Every enterprise is uniquely founded and their environments are differs among the others. This is a challenge that the organization should identify. Before the development, the organization should first assess the existing supply chain management or the factors that might affect the creation of the effective supply chain strategy (Rosenfeld, et al., 2000).

Commonly, the organization goes back into the basics of business. Through the identification of the essential offers (products or services), when to offer (timing, seasonal), and where to offer (market, retail) the organization can draw its own competitive plan of supply chain. Having a business strategy is a representation of the overview of the business’s future, and having a supply chain strategy can be mirrored through the actual operations. In the end, the supply chain can meet the objectives of the organization. The supply chain strategy is important towards the operations and execution of the activities. In the continuous practice, the efficiencies are maximized and remain competitive in the market. Having a supply chain strategy creates a strong relationship between the suppliers and customers. And an organization should remember that a well executed supply chain strategy creates a value for the organization’s advantage.

Strategies on Strategies

The organization should firstly look on the obvious and existing process that lies within their supply chain. All of the processes involved in the organization can effectively contribute in the successful creation of the supply chain strategy (UPS, 2005).

Performance Management – this is the process on controlling and execution or implementation of the appropriate processed that allows the organization to realize their goals. A well managed performance works with the organization and became the foundation of the supply chain strategy that is being supported and reinforced.

Cost-Benefit Evaluation Process – can be done periodically or annually depending on how complex the supply chain strategy is. This is the investigation regarding on what strategies, practices or methods, products, technologies, etc. can be implemented in the strategy. Within this process, the organization can also look on the new opportunities that can further position the organization towards its success.

Keeping Communication with the Partners – the supply chain strategy is basically deals with many different entities that can be both internally and externally. It very crucial for the organization to align the supply chain strategy along with the business strategy and both ideas are important to achieve the goals of the organization and foster the long-term success. By keeping the communication with the partners and customers creates an impact in rapid pace in realizing the goals because there is consistency in the process and communication.

Failures

Having the strategy is not an assurance that the organization is strong enough to achieve the success. Most of the businesses fail because of the poor implementation of the strategy. The execution is the most important that contributes in the strategy’s success or failure and not on its strategic planning, changes and development. If a strategy is not delivered according to its commitments and decisions are not comprehensively done, the alignment of the supply chain strategy with the business strategy is meaningless. If the people created the strategy, there should be commitment and responsibilities to eliminate the consequences or challenges that can be the cause of its failure.

Conclusion

Developing an effective supply chain strategy does not end there, there should also include the appropriate efforts and approach to deliver its value. A supply chain strategy is the focus of the organization towards the suppliers and customers and maintaining the good relationship towards the operational excellence of the organization. It might involve risks, but the organization should bring the emphasis on the supply chain strategy to guide the organization, at least, to gain competitive advantage.

Works Cited:

Rosenfeld, S.A., Liston, C.D., Kingslow, M.E., & Forman, E.R., (2000) Clusters in Rural Areas: Auto Supply Chains in Tennessee and Houseboat Manufacturers in Kentucky, Accessed 02 Aug 2010, from http://www.rural.org/publications/Rosenfeld00-11.pdf

UPS, (2005) Supply Chain Strategy: The Importance of Aligning Your Strategies, United Parcel Service of America, Inc., Accessed 02 Aug 2010, from http://www.ups-scs.com/solutions/white_papers/wp_supply_chain.pdf

The Role of Tourism in Rural Development System

Introduction

Development is the most desirable option available for every country. The aim for development is not necessary mean to change everything but to enhance the elements and factors that contribute the progress of the community. There should be a system that can guide the process of development. In this paper, the discussion of the rural development will be criticized under the influence of tourism. Among the other developing countries, Nigeria aims the same and through the observation coming from the other countries that successfully manages the development, the suggestions or recommendations on the role of tourism can be drawn.

The Characteristics of Rural Development

The development is identified to be characterized with six features. First is the capacity-building that considers as the foundation of the development programs that facilitates the planning and ability to implement the proposed plans. Here, leaders need the essential knowledge and organizational skills to act according to their roles and responsibilities. Second is the empowerment that supports the capacity-building. This requires the participation of the residents living in the rural areas in order to build the decisions generated by the government. Third is collaboration that is considered as one of the most important aspect in times when the problems exceeds in the rural development agenda. The nature of collaboration involves the activities and interests with other organizations and move for the cooperative relationships. All the collaborative efforts of the organizations attempt to create the appropriate action towards the holistic growth.

Fourth is the expansion of the activities. As the communities or rural areas continuous to progress, it is important that there are regional development opportunities available for the people. The examples are fostering the local entrepreneurship that will complement in the economic development, integration of the small firms with various associations such as trading organizations, strengthening the government structures and many others. Fifth is opening the access to information that can be available for the universities, government, and non-government organizations. The valuable information can be effectively deployed through the use of broadband technology. And sixth characteristic is to be comprehensive but nit categorical. This means that the policy imposed should not focus on one certain area because development should target the all the rural areas and to be comprehensive even in continuous evolution and reorganization.

Tourism

The system of rural development is associated with the objectives and policies formulated by the governments. Obviously, when policies are not clearly formulated, the international standards are then used for the good practice. In other countries like UK, the national objectives for the rural development centers in three aspects: (a) the economic and social regeneration, (b) social justice for all; and (c) enhancing the value of countryside. We can say, that the policies and objectives involved in rural development and generation of a system differs in every country, so much to the developed and developing countries, because of the status and present situations.

Tourism is already recognized as a powerful force towards the change in the economy of both developed and developing countries. The growth in tourism can answer the problems in employment and expected to increase the growth for total employment. Tourism is also considered to be the potential answer for many of the rural areas as well as helping to preserve the local jobs, creates new jobs, and diversifies the employment. In tourism industry, the enterprises identified that might contribute such good solution in employment problems of rural areas are the hotels, restaurants and cafes, transport and travel, and recreational, cultural and sporting activities. In the analysis of the contribution of tourism, it is noticeable that the characteristics in rural development can be satisfied. In the comparison with the Poverty Reduction Strategy of Zambia, the sector of tourism is expected to affect both national and regional areas because of the encouragement the government made in terms of investment.

Conclusion

In order for a country to gain the development on its rural areas, they must strengthen the factors that might contribute to the total development. Tourism is viewed as one of the possible solutions available. The possibility to break the problems in rural areas is to emphasize the creation of new jobs and focus in the sustainability. Since, tourism can deliver both of the elements, the principles for the development in rural areas is a great significance for the future of Nigeria. Furthermore, the government should recognize the other tourism activities that can deliver the same benefit for the rural areas but will not destroy the natural environment.

References:

FOA, (2007) National and International Rural Development Policies, Handbook on Rural Households’ Livelihood and Well-Being [Online] Available at: http://www.fao.org/fileadmin/templates/ess/pages/rural/files/1.8_Chapter_II_National_and_International_Rural_Development_Policies.pdf [Accessed 11 August 2010].

Pigg, K., & Bradshaw, T., (2006) Catalytic Community Development, Rural Sociological Society, No. 6 [Online] Available at: http://ruralsociology.org/StaticContent/Features/brief6.pdf [Accessed 11 August 2010]

Udovč, A., & Perpar, A., (2006) Role of Rural Tourism for Development of Rural Areas, Journal of Central European Agriculture, 8(2): 223-228 [Online] Available at: http://www.agr.hr/jcea/issues/jcea8-2/pdf/jcea82-13.pdf [Accessed 11 August 2010].

Managerial Economics

Introduction

In an organization, it is right to give the right compensation for the performance of the employees. The compensation is not a reward or incentive but the obligation of the organization to give such credit in the efforts exerted by the individuals. For the past years, the employment is centered in different issues and concerns. As an example, the employment issue is focused in the increase of compensation or allowances and perks. The common people who demanded for the increase are the managers because they consider the stressful environment in their workplace. In this paper, however, we will discuss the negative effects that may arise as a result of increasing manager’s allowances and perks.

Manager’s Roles and Responsibilities

In the investigation of the increase of allowances and perks, it is important to firstly recognize the roles and responsibilities of the managers in different environment. The manager’s performance can be the most important factor in the success of a department because of the manager’s ability to weigh the facts, judge, create decisions, and strategic solutions. Within the global competition, the managers are expected to work even in a complex workplace. The managers can work domestically or in international workplace wherein both offer the challenges and risks.

The competition within or outside the country were influenced by the wide globalization. The effects of the rapid change can be the main reason for the manager to generate the strategic approach possible for the organization (Skordoulis, and Dawson, 2007). Managers’, however, do not influence the decision of the people above their position but prepare the possible options in which the superiors can choose. The contribution of the managers is also recognized through their approach in managing, controlling, and strengthening the employer-employee relationship and customer-organization relationship. Aside from those, the managers are often sent into different business affairs that might be consider as leisure and business travel. The organization is the one that provides the needs and allowances of the managers. However, due to growing number of stress, pressures, and other challenges that the managers receive in their position, the increase in allowances and perks are proposed.

Allowances and Perks

Allowances (e.g. travel allowances) and perks (e.g. bonuses, reimbursements) are allowed in every organization as long as all the expenses are made for the business transactions and/or with the knowledge of the superiors. The manager’s performance can be the reference of the organizational leaders to allow them participates in the meetings, business travels like convention, and others. Same is true when it arrives in giving the bonuses or to increase their compensation, the performance of the managers is the basis. The reimbursement, on the other hand, can be obtained from the medical or health concerns, gas, or other expenses but with a condition that it should be related with the business matters. The increase in the business needs of the organizations creates an impact in the allowances and perks that the organization provides (Gilbert, Geisler, & Morris, 1995).

Since all the expenses that can be appear in the account of the managers are subjected into the organizational funds, there are limitations that the manager should acknowledge. However, because of the conflict of interests coming from both parties, the managers are demanding that there should be an increase in their allowances and perks to provide the appropriate services and performance that the organization wants. There are instances that the organizations also cover the education of the manager’s children or support the family of the manager just to provide to gain the loyalty and job commitment. The negative effects in the organization may result to the sudden drop of profit. There are uncertainties and economic downturn that may affect the organization and they might discontinue the program on allowances and perks or affect the retirement and other benefits if there is an increase of demands coming from the managers. Also, the other managers might not experience the same treatment because the allowances and perks that should be allocated for the new managers are already saturated (Gupta, 2009).

Conclusion

It is not wrong to demand for the increase in the allowances and perks, as long as the managers are doing the right thing and providing the performance for the organizations. The effects will only carried by the organization if there is a sudden demand coming from the managers. The increase in allowances and perks will give more drawbacks if the managers do not use the privilege in the right way.

References:

Gilbert, D.T., Geisler, R.B., & Morris, K.A., (1995) When Comparisons Arise, Journal of Personality and Social Psychology, 69(2) [Online] Available at: http://www.wjh.harvard.edu/~dtg/Gilbert%20et%20al%20%28COMPARISONS%29.pdf [Accessed 10 August 2010].

Gupta, V.K., (2009) Demand Relating to Perks Prerequisites and other Allowances: Perspectives of Mr. Vikas Kumar Gupta, Member, Wage Revision Committee for Wage Revision on Behalf of TTAs [Online] Available at: http://www.snatta.org/main_demands/perks.doc [Accessed 10 August 2010].

Skordoulis, R., & Dawson, P., (2007) Reflective Decisions: The Use of Socratic Dialogue in Managing Organizational Change, Management Decision, 45(6): 992