Business Management (Marketing) - Investigative Study Assignment Title : ? Explain the role of Sales Promotion as both a strategic tool and a tactical tool in the marketing communications mix. In...

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Business Management (Marketing) - Investigative Study


Assignment Title :



?



Explain the role of Sales Promotion as both a strategic tool and a tactical tool in the marketing communications mix.



In approaching this Investigative Study, students might wish to consider:


a) What Sales Promotion is and involves
b) The differences between strategic and tactical
c) How the role is applied within marketing communications


Suggested Initial Reading



a) Shimp, T.A., (2010), Advertising, Promotion and other aspects of Integrated Marketing Communications, 8th Edition, South-Western Cengage Learning
b) Belch, G. And Belch, M., (2011), Advertising & Promotion: An Integrated Marketing Communications Perspective, 9th Edition, McGraw-Hill

Report requirement:



  1. Investigative Study Report, 4500 words (+/-10%).


?

  1. Reflective Report , 500 words (+/- 10%).



-Bibliography about 20 (Need quoted to the Investigative Study Report).
-Harvard style Referencing.
-TurnitinUK overall Similarity Index 18% or below (Internet Source, Publication, Student Paper, this three type each one cannot be over 18%), Academic bad practice and Plagiarism


Due Date :



29


Aug



2013




Investigative Study – Key Elements

-Broad outline of content
-Self- managed analytical piece of work
-Draws on Marketing theoretical models & perspectives
-Emphasise: this is a Literature based study. Therefore

‘secondary’

research, and no ‘primary’ research is required
-Importance of ‘log’, as work progresses, for PDP

The Reflective Report

– Key Elements







Single submission only (no draft)





-In general, a reflective report means you have to reflect (think deeply) about some aspects of your learning experience and write a personal reflective essay about this. Reflective reports also called learning journals.
Reflective Report: (Attached a example from our tutor)

  • This should be based on your reflective log. A copy of your Log Book on its own is not sufficient.

  • Also, it is not a summary (abstract) of your main Investigative Report.

  • You should keep a record of what you have done and then write your report based on this.


There are two parts to this report:

  • Firstly, looking at what you have done, and

  • Secondly, Personal Development Plan, a plan of what you intend to do in the future


These two aspects should be linked. For example, if you found that you had difficulty in referencing correctly, then you go on to indicate what action you intend to take to remedy this.
Answered Same DayDec 23, 2021

Answer To: Business Management (Marketing) - Investigative Study Assignment Title : ? Explain the role of Sales...

David answered on Dec 23 2021
100 Votes
P a g e | 1
Student Name
Student ID number
Unit name / number
Lecturer Name
Assignment title
Sales Promotion as a strategic and a tactical tool in
the marketing communications mix
Word Count 4990 words
Dated 24-08-2013
P a g e | 2
Executive summary

With changing market scenario, market strategies are also getting changed; earlier
promotion word was treated as synonym to advertisement but it is no more valid;
instead marketers are adopting mix of various strategies to reach the target
segment in optimum possible way. In recent years there has been drastic increase
in the use of sales promotion strategies by the marketer. This report aimed at
analyzing and evaluating the strategic and tactical role of sales promotion. This
strategy can help companies in adopting both long term and short term objectives
through appropriate strategic adoption.
P a g e | 3
Table of Contents
Executive summary ................................................................................................. 2
Introduction .......................
...................................................................................... 5
Marketing communication ...................................................................................... 6
Marketing communication mix ............................................................................... 7
Tools of marketing communication ........................................................................ 7
Sales promotion ...................................................................................................... 9
Scope of sales promotion ...................................................................................... 10
Function and advantage of sales promotion ...........................................................11
Coordination of different promotional activities ...............................................11
Acceleration tool for stimulating sales ............................................................. 12
Promoting in-house brands ............................................................................... 12
Incentives to intermediaries .............................................................................. 12
Rationale behind increasing use of sales promotion ............................................. 13
Types of sales promotion ...................................................................................... 14
Trade sales promotion ....................................................................................... 15
Tools for trade promotion ............................................................................. 16
Consumer sales promotion ................................................................................ 17
Consumer promotion tools ............................................................................ 18
Pros of sales promotion strategy ........................................................................... 19
Differences between strategic and tactical ............................................................ 20
Sales promotion as a tactical and strategic tool .................................................... 20
Strategizing sales promotion ................................................................................. 22
P a g e | 4
Offensive strategies ........................................................................................... 22
Defensive strategies .......................................................................................... 23
Relationship between advertisement and sales promotion ................................... 24
Factors impacting sales promotion decision ......................................................... 26
Evaluating sales promotion ................................................................................... 27
Problems in implementing sales promotion strategy ............................................ 27
Conclusion ............................................................................................................ 29
Bibliography ......................................................................................................... 30
P a g e | 5
Introduction

Availability of large number of brands in the market has increased competition in
the market; it has become very difficult for organizations to loyalty from the
customers; beside these companies are trying to integrate various elements of
marketing to provide best offers to the customers which they can’t deny.
Integrated marketing communication is the major marketing strategy adopted by
the markets to establish a relationship with their customer; it helps companies in
communicating with their customer with the help of various tools and strategies.
It requires proper planning and execution for achieving desired outcome from the
communication strategy implemented.
This report has been written with the objective of understanding the role of sales
promotion in communicating with the customer; sales promotion is being widely
used in the market now days; so this paper will focus on understanding the role of
sales promotion in detail. This report includes in-depth information on sales
promotion, its role, objective, scope, function, advantages, disadvantages,
strategies and applicability. Sales promotion is both a strategic and a tactical tool
used by the marketers to achieve organizational goals. This report will help the
readers in understanding concept of sales promotion and its real life applicability
in detail.
P a g e | 6
Marketing communication

It is the process of communication between the brand and its customer; various
tools and strategies are being adopted by organizations to communicate
successfully with their desired target segment. It can also be regarded as the
promotional strategy of the company. Earlier companies use to adopt single
communication strategies to communicate with their customer segment; however,
after 20
th
century scenario has changes drastically with the advancement of
integrated marketing communication strategy in which organizations integrate
several promotional tools to create an optimum offer for the customer (Ferrell
C.O., 2008).
Major reason behind using such approach is increasing competition in the market,
which is causing difficulty for the brand to reach to its target segment. Beside this,
organizations are also finding it difficult to remain in the mind of their target
segment; for this reason they try to capture customer attention from various
perspectives so that they can get a share of their mind which will help in
increasing the sales of the product through reinforcement approach. It is also
regarded as a strategic approach as it helps in ensuring that all the channels
around target segment are unified through same message (Yong, et al., n.d.). It is
a mix of strategic, tactical, innovate and creative approach. It helps in achieving
several goals of an organization.
P a g e | 7
Marketing communication mix

Large multinational organizations such as Procter and Gamble, HUL, Johnson and
Johnson does not use a single marketing strategy; instead they are adopting
different promotional tools such as TV commercials, magazines, hoardings
advertisement, word of mouth, social networking, sales promotion and much
more (Dahlen, et al., 2010); though they use variety of ways to reach a single
customer market with a unified message. In simple terms it can be regarded as
mix of advertising, personal selling, sales promotion, public relations, and direct
marketing in different combination and forms to achieve desired marketing
objective of the company.
Tools of marketing communication

There are different marketing mix tools that are being adopted by the firms, which
are as follow;
P a g e | 8
Below is a brief description of the same;
 Advertisement is most widely used marketing communication strategy as
it helps in targeting mass segment at a time; however it is also very costly;
advertisement is paid promotion which helps in conducting non personal
presentation of the offering. For example, TV commercials on FMCG
products such as detergent, food, chips, chocolates etc (A. Shimp, 2008).
 Personal selling approach is being adopted by marketers to sell products to
specific niche market segment; it can be regarded as one to one selling
through interaction; customization of products also takes place in such
selling, for example, jewelry.
Advertising
Personal
selling
Sales
promotion
Public
relations
Direct
marketing
Events and
experience
P a g e | 9
 Sales promotions are short term incentives being offered to customers with
the objective of increasing revenue, for example, 10 percent discount on
the first week of every month at Wal-Mart (Holm, 2006).
 Public relation is also a method of communicating with the customers
through mass media but the approach is indirect; however, this can be both
positive and negative due to low control of the company on the message
delivered to the customer.
 Direct marketing is the strategy of communicating with the customer,
using various direct tools such as emails, telephonic conversation to
communicate the company message (Zubcsek & Sarvary, 2009).
 Sometimes, organizations also sponsor various events and programs to
gain customer attention and it is regarded as event and experience
communication strategy.
Sales promotion

In recent years, the concepts of sales promotion have gained huge popularity; it is
regarded as a major marketing communication strategy that is being widely used
by various marketers to increase their total sales in the market. Due to increasing
competition, trend of sales promotion is common in the market as every company
is offering price discounts to gain customer attention and increase sales. In simple
terms sales promotion can be regarded as marketing communication strategy
P a g e | 10
adopted by the company to increase market demand for a limited period of time.
This involves offering various incentives to the customer for buying more from
the company. For example, buying three shirts getting one free; 10 percent
discounts on all grocery items till 10
th
of the month etc.
According to Kotler, sales promotion is one of the major marketing strategy and
major ingredient of communication as it helps in combing various short term
incentives for a specific group of customer segment. Beside this, author also
claims that this strategy helps in increasing overall sales of the product for a
specific period of time (Armstrong, et al.,...
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