ISL 353E - Marketing Fall Semester 2021/2022

TERM PROJECT of Group 22

“ Impact of promotional activities and marketing efforts of mall
management on consumer behavior at shopping malls”

1st Part- Literature Review

Group Members

Eylül ŞİNİK 070170309

Fatih Şahin MANAV 070180299
Gülbeyaz KAHRAMAN 070180264
Işın AKPINAR 070190209
Uğur SAMANLIOĞLU 070180229
 INDEX
Introduction…………………………………………………………………………….

Literature Review

Definitions and Concepts of Promotions and Promotional Goals……………

Sales Promotions……………………………………………………………………

Consumer Sales Promotion………………………………………………………

Promotional Pricing……………………………………………………………

Promotion Decision………………………………………………………….

Price Policy…………………………………………………….

Introduction
 Shopping malls are usually buildings or online platforms that host 50-100 retail
stores. There are many kinds of shops, from supermarkets to pharmacies, in shopping malls,
which can also be on online platforms. In shopping malls that are created to meet the needs of
people, there is a competition to attract customers among the shops inside and between
different shopping centers. There are many marketing tactics to be a winner in this
competition. These tactics, which we can define as increasing promotions and making
marketing activities more active, can be listed as defining and concepts of promotions and
promotional goals, sales promotions, consumer sales promotion, price policy, promotional
decision, promotional pricing.

Literature Review
Definitions and Concepts of Promotions and Promotional Goals

Marketing is a set of activities aimed at generating profit by identifying, producing,

simulating, and gratifying the needs and/or wants of a specific market group.The most
important aspect of marketing is correctly and successfully communicating the product to the
target audience, and this 4p is used to develop strategies in this area. The goal of the
promotion is to accurately communicate the items to the target audience, to increase customer
interest in this product, and to distinguish it from rival products.Therefore, promotion is the
most crucial aspect of marketing.

Promotional Marketing's Objectives

1. New product or service promotion

2. Creating a brand image

3. Educating customers

4. Demonstrating superiority over the competition

5. Converting prospective shoppers into paying customers

First of all, you should determine your promotional marketing goals because you
should determine your strategies according to these goals. If you are launching a new
product, you should develop a strategy about the place it will take in the market since you
offer a new service against existing products. Creating a brand image is different. In this
regard, you can understand that a product type is associated with a brand. For example, when
you think of coffee, Starbucks comes to mind. Informing customers is another targeted issue.
Informing people about products and brand policy is very important to win that customer and
make them loyal to your brand. At the same time, a long-term promotional marketing strategy
should be determined to stay ahead of competitors due to the competitive environment
brought by the market. Our final promotional marketing goal is to turn potential buyers into a
real customer base. This can be achieved by promoting the brand product in an encouraging
way and through effective advertisements.

Sales Promotions

Sales promotions are a form of marketing communication approach that is used to

boost revenue by providing incentives or additional value to distributors, sales staff, or
customers for a limited time. Sales promotion activities include non-recurring sales efforts
such as special discounts, exhibitions, demonstrations, and other non-routine selling
initiatives. As an alternate incentive to buy, these tools can be directed towards customers,
merchants, or other distribution partners, as well as the manufacturer's own sales staff.

Companies use a number of media to communicate about sales promotions, including

posters, coupons, direct mail pieces, and billboards; radio and television commercials; and
digital media like as text messaging, email, websites, and social media, among others.
The two types of sales promotions are consumer and trade sales promotions. A
consumer sales campaign is targeted at the person who will buy the product, but a trade
promotion is targeted at business customers and can result in quick sales.

Consumer Sales Promotion Techniques

● Coupons
● Buy One Get One Free (BOGOF)
● Price Discounts
● Free Samples
● Contests and Sweepstakes
● Seasonal Tie-Ins
● Segment-Specific Promotions

Promotional Pricing

Companies can use a variety of pricing techniques to encourage purchases. Promotion

pricing strategy aims to create a sense of scarcity by reducing the price of a product or service
for a while. In this way, it gains value in the eyes of the consumer. In this way, revenues
increase in the short term, cash flow improves and customer loyalty can be established. If
promotional pricing is overused in such a short-term contribution to brands, customers
become accustomed to underpricing, known as "price steering". Customers can even stock up
during promotional periods. According to Indounas the effect of promotion on price
sensitivity affects pricing, but the choice of distribution channel reveals the image that a firm
sends, complementing the product's price.

Retailers, airlines, gyms, restaurants, and service providers all use promotional pricing as a
marketing approach. B2B enterprises employ a range of promotional pricing as well.
Promotional pricing is used by brands to:
When releasing a new product or service, attract the consumer:
● Prize devoted consumers.
● Boost consumer traffic.
● Motivate customers to return.
● Remove any superfluous stock.

However, when promotional pricing is abused, it devalues a brand. Most marketers

utilize mass discount strategies, which unintentionally add to the noise in a market crowded
with rival promotions.

Marketers should evaluate the viability of a discount and the duration of the offer
before setting a promotional price to avoid devaluing their brand. First, let's take a look at the
business type. Is the discount compatible with the brand location? or is there a capacity in the
business world to handle the rise of our brand? Next, we need to pay attention to branding.
A wrong discount plan can harm a brand's image, and mathematical calculations are essential
for a successful promotional pricing strategy.

Promotion Decision

There are five promotional tools that retailers use to reach consumers. Retailers may
choose to use one or more of these tools. These promotional tools are:

Advertising: can be done in newspapers and magazines, on television, and on the Internet.
Newspaper supplements and catalogs can also be included in the advertising strategy.

Personal selling: Store salespeople meet customers, assist them in line with their needs, and
stay in touch.

Sales promotions: In-store displays, display items, sales, and loyalty programs are shown as
stasis promotions.

Public relations (PR): Activities such as special events, opening new stores, blogs,
newsletters, store-specific newspapers, and public service.

Direct marketing: Informing customers during the sale and presenting various opportunities
through the website and mobile applications.

Price Policy
 Pricing policy for retailers should be based on the target market and positioning,
product and service, competition, and economic factors. Although high-profit margin and
high volume are desired by all retailers, unfortunately, it is not a constant situation for both to
occur at the same time. Generally, pricing is done on either high-profit low volume or low-
profit high volume.

Retailers should establish a pricing policy that takes sales and price promotions into
account. Some retailers do not use price promotion but instead focus on product and service
quality while competing.

They charge high prices on a daily basis, along with frequent sales and promotions for
other products, to attract customers to the store, creating an affordable brand image and
attracting customers to the store where they can sell other goods at full price. This is how
they follow the low-high pricing path. During the economic downturn, this led to a reduction
in high-low pricing as retailers increased promotions to attract bargain-loving shoppers to
their stores in demand for affordable items. Which pricing is best for retailers; depends on the
overall marketing strategy, the pricing of the competitors, and the economic environment.

Mall organizations employ two sorts of promotional activities: group promotional

activities and local promotional activities. The first category, group-wide sales promotions,
has grown more common and refers to a basic promotional basis that is duplicated across the
group, with customizing often limited to institutional variances (e.g. location, opening hours,
etc.). As a result, they utilize a mass-marketing approach, often seeking to appeal to either a
wide market (generally demographic or lifestyle-based) or a common (in each mall's
catchment region) specialized target group for a limited period of time, such as parents and
children during school vacations.

REFERENCES

Parsons, A.G. and Ballantine, P.W. (2004), "Market dominance, promotions, and shopping
mall group performance", International Journal of Retail & Distribution Management, Vol.
32 No. 10, pp. 458-463. https://doi.org/10.1108/09590550410558590

https://sendpulse.com/support/glossary/promotional-marketing
https://books.google.com/books?
hl=tr&lr=&id=_DmvDwAAQBAJ&oi=fnd&pg=PA1&dq=Marketing+Management+&ots=u
43-iignYj&sig=mU-LnOaCYWF_h0je8FFUO51f9h4

https://www.sheerid.com/business/resources/promotional_pricing/
Indounas, K. (2006, March 6). Making effective pricing decisions. Business Horizons.
Retrieved November 8, 2021, from
https://www.sciencedirect.com/science/article/abs/pii/S0007681306000231.

Reading: Sales Promotions | Principles of Marketing (lumenlearning.com)

Armstrong G., Kotler P., 1988, Principles of Marketing, Pearson

https://sendpulse.com/support/glossary/promotional-marketing

https://books.google.com/books?
hl=tr&lr=&id=_DmvDwAAQBAJ&oi=fnd&pg=PA1&dq=Marketing+Management+&ots=u
43-iignYj&sig=mU-LnOaCYWF_h0je8FFUO51f9h4