Marketing managers concern that Word-of-Mouth (WOM) can affect the efficiency of sales promotion policy. Sales promotion might also amplify the strength of WOM which further complicates ...decision-making. In this study, we deploy an agent-based simulation optimization framework to find an efficient sales promotion plan in the presence of WOM for launching re-purchasable products. In this model, consumers' purchase decisions are influenced by price history, availability and satisfaction of the consumers, and positive/negative WOM. We show that taking WOM on board while determining the promotion plan can significantly increase the net present value. However, amplifying WOM might damage the firm's profit for some product categories.
Strategic Advertising Management is made up of five parts. The first part acts as an overview of advertising and promotion, and asks what is advertising and promotion? It looks at advertising across ...cultural borders. The next part is about planning considerations. The third part looks at developing a strategic plan. It talks about selecting the target audience, understanding their decision-making processes, determining the best position, developing a communication strategy, the media strategy, and digital media. Part Four is about how to make the strategy work. It looks at creative tactics and execution. The last part covers integrating advertising and promotion.
With the popularity of the Internet and smartphones, many stores are launching mobile APPs to make shopping more convenient for consumers. A new business model, Online to Offline (O2O), is becoming ...more popular in different businesses. More consumers are using APPs to buy things in physical stores. Therefore, based on the Value-based Adoption Model (VAM), the study aims to investigate the factors that influence the APP-adoption intention of consumers. Specifically, the current study attempts to investigate the relationships between promotional benefits, technicality, value perception, and adoption intention among mobile APP users. With a sample of 200 participants who are using McDonald's mobile APP in Vietnam, this study conducted a quantitative research method, using regression analysis for hypothesis testing. The findings show that the benefits of sales promotion (savings, quality, convenience, and value expression) from the providers and the APP's technicality have a significant influence on consumers' APP-value perception and APP adoption intention. Besides, value perception has a positive influence on consumers' intention to adopt mobile APPs. The findings provide implications for practitioners to develop and apply new mobile APPs from the perspective of improving consumers' value cognition.
•The use of Frontier analysis to understand sales performance helps organizations better understand where to invest limited marketing communication resources.•Paid and earned media positively ...influence firm sales performance.•An excessive percent of store traffic driven by sales promotion activities negatively affects firm sales performance.•Benchmarking similar firms based on sales performance of exemplar firms can provide a roadmap for weaker performers to reallocate marketing communications investments.
Firms deploy an array of marketing communications (marcom) tools to influence sales performance, yet critics lament that such efforts can be incredibly inefficient. This research focuses on the impact of a range of marcom inputs on sales performance. It uses a multi-media data set assembled from four industry sources to examine the joint impact of paid media, earned media, and sales promotion activity. It does so through two Frontier methodologies (Stochastic Frontier (SFA) and Data Envelopment Analysis (DEA)) to benchmark sales performance. All firms within a single industry are compared to these sales performance benchmarks to generate a sales performance gap metric that pinpoints the most effective marcom activities. The results show that paid and earned media positively influence sales performance, however, excessive sales promotion activity has a negative effect. Several scenario analyses provide actionable strategic insights for managers to more efficiently allocate marketing communications efforts.
Purpose: This study aims at exploring and understanding the effect of four independent variables related to dairy retail marketing and distribution (deep freezers, promotions, company support and ...distributor-retailer relationship) and one moderating variable Covid-19 lockdown on sales of dairy product during the Covid 19 pandemic situation. Research design and methodology: Personal interviews and door-to-door surveys and promotional tools were designed to publicise and collect data from the retailers. The sale data before, during and after promotion activity were all recorded and evaluated to draw an inferential conclusion. Factor analysis and multiple regression methods were adopted to analyses the data collected. Results: The research shows that four out of the five factors studied was found having significant impact on dairy retail sales. The highest impact on sales was contributed by promotions, secondly by the deep freezer impact followed by distributor-retailer relationship during the study period and lastly but not the least due to influence of Covid-19 lockdown. Conclusions: The study contributes to the body of knowledge in cold chain distribution process through utilization of right mix of tools and tactics for effective marketing and distribution of dairy products in developing countries especially during a pandemic situation. KCI Citation Count: 0
Obesity rates are increasing worldwide, with an alarming number of associated co-morbidities and deaths. Evolutionary psychology explains this development with an inherent preference for fatty and ...sweet foods. Recent evidence shows that consumers with a low socioeconomic status are more prone to being obese, but also that consumers with few resources respond more to scarcity signals. Based on this background, this paper investigates whether overweight individuals with a low income respond more to scarcity signaling in terms of sales promotions than others.
To this end, a large-scale online survey was conducted across four food product categories in the setting of an online supermarket. Results show that overweight or obese individuals with low income levels responded more strongly to scarcity signaling. The findings inform researchers in terms of explaining different responses to sales promotions and support practitioners in aligning sales promotions to target group-specific behavior.
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•We run a large-scale shopping simulation to compare premiums and price cuts.•Premiums generate smaller purchase effects than equivalent price cuts.•Still, a premium’s cost advantage ...may offset its smaller purchase effects.•Especially private labels benefit more from premiums than from price cuts.•Functional relatedness to the category hardly affects premium effectiveness.
As an alternative to promotional price cuts, retailers and manufacturers often rely on non-price promotion techniques, such as premium promotions, where consumers receive a free gift with the purchase of a product. We compare the effectiveness of premiums to that of price cuts, and study moderators of this comparative premium effectiveness. We use data from a large online shopping simulation study with more than 2,000 participants to model consumers’ purchase decisions in response to premiums and price cuts. Results indicate that the impact of premiums on purchase behavior is systematically lower than that of equivalent price cuts. However, a premium’s smaller sales impact may be offset by a cost advantage. This is especially true for private label brands where the premium’s purchase effects do not differ too much from those of a price cut. We calculate how large the cost advantage has to be for a premium to be more profitable than a price cut, and show that premiums entail risks as well as opportunities, for both manufacturers and retailers.
This article presents a meta-analysis aiming to assess the short- and long-term effects of sales promotions on consumer behavior. We found 221 studies addressing this relationship. Our final sample ...provided 139 observations. First, the results revealed a significant relationship between sales promotion and both purchase intentions and sales volume. Second, we identified significant and positive connections with brand loyalty, perceptions of quality, consumer attitudes, and switching costs for consumers. Third, we noted that the sample type, the number of promoted products and sample size partially moderated the relationship between sales promotion and short/long-term effects.
The importance of sales and its promotion is constantly increasing. Technological progress contributes to the constant development of marketing activities of companies and the introduction of ...innovations. It is necessary to attract customers and establish a long-term relationship with them. Along with changes in consumer tastes and new preferences, it is necessary for companies to correctly select sales promotion tools and use them effectively. Sales promotion tools can influence consumer buying behavior and loyalty. Companies today focus on existing and new customers. Smart leaders try to focus their business not only on short-term success but also on long-term results. Relationship marketing influences customer loyalty. Organizations are pooling their efforts to achieve this goal in terms of products, pricing, distribution, incentives, and services. In relationship marketing, special attention is paid to loyal buyers. The task of finding and retaining a client becomes increasingly individual. In the face of competition, it is important to know and constantly study your client. Not only to discover its advantages, to guess the hidden desires, but also to understand the reasons why the company is losing its customers. The study of these issues is important in modern conditions. The author discusses the opinions, definitions, and views of various researchers regarding the mentioned problem, and then draws conclusions and offers some recommendations
