Sales Promotion and Direct Marketing Essay Example

  • Category:
    Marketing
  • Document type:
    Essay
  • Level:
    High School
  • Page:
    1
  • Words:
    402

Business 3

Reasons for introducing sales promotion and direct marketing

Sales promotion involves activities, materials and techniques used to supplement the various advertising and marketing efforts. Johnson (2004) describes that sales promotion helps marketers to coordinate advertising and personal selling effort. Stuart (2005) gives that examples of sales promotions include special display, coupons, promotional discounts and gifts. There are various reasons that would make a marketer introduce sales promotion such as increased competition. Competition in the market may lead to the introduction of sales promotion in any organization. This is because the activities carried out in the process facilitate development of new strategies for beating competitors. The second reason is to gain market share. An organization that aims at increasing market share may use gives to attract more customers. The third reason is to penetrate a new market or even in existing businesses. Wernick (1999) describes that sales promotion is also used to effectively eliminate old items in stock for example through free gifts.

Direct marketing on the other hand is a form of advertising that involves communication with targeted group of consumers. Kaiser and Song (2009, pp. 292-300) show that information about products reaches consumers through various channels of advertising such as news papers, TV or radio. Petley (2002) puts it that others include using fliers, promotional letters or street advertising. This process helps marketers to build a profitable customer relationship and therefore enabling business to attain set objectives. The reasons for using direct marketing one are to generate new business leads and sales. Another reason is to boost sales from the existing customers. Third, direct marketing re establishes a business relationship with dormant customers in the market therefore influencing them to purchase goods. It also increases customer loyalty (O’guinn 2008, p. 625).

References

Johnson, D 2004, Advertising today, Chicago, Science Research Associates.

Kaiser, U & Song, M 2009, Do media consumers really dislike advertising? An empirical evaluation of the role of advertising in print media markets, International Journal of Industrial Organization vol. 27, no. 2, pp. 292–301.

O’guinn, T 2008, Advertising and integrated brand promotion, Oxford shire: Oxford University Press, p. 625.

Petley, J 2002, Advertising, North Mankato, Minnesota: Smart Apple Media.

Stuart, M 2005, Resale price maintenance and the character of resistance in the conservative party, Canadian Journal of History, vol. 40, no. 2, pp. 259-289.

Wernick, A 1999, Promotional culture, Advertising, ideology and symbolic expression, London: Sage Publications Ltd.