Sales Promotion

Sales promotion – a missed opportunity for services marketers? by Ken Peattie

and Sue Peattie, International Journal of Service Industry Management, Vol.
6 No. 1, 1995, pp. 22
Sales promotion effectiveness: the impact of consumer differences at an
ethnic-group level, by Simon Kwok and Mark Uncles, Journal of Product &
Brand Management, 14/3 (2005) 170–186
Concepts and strategy guidelines for designing value enhancing sales
promotions by Srini S. Srinivasan and Rolph E. Anderson, Journal Of Product
& Brand Management, Vol. 7 NO. 5 1998, pp. 410-420 © MCB UNIVERSITY
PRESS, 1061-0421
Sales promotion as strategic communication: The case for Singapore by Chun
Wah Lee, Journal Of Product & Brand Management, Vol. 11 No. 2 2002, pp
103-114 © MCB UNIVERSITY PRESS, 1061-0421
 Literature Review
The boundaries defining sales promotions are
neither clearly drawn nor used consistently, but a
relatively workable definition of sales promotions
is “marketing activities usually specific to a time
period, place or customer group, which encourage
a direct response from consumers or marketing
inter-mediaries, through the offer of additional
benefits” (Peattie and Peattie, 1994).
Literature Review cont….
In principle, cultural differences at national and
ethnic-group levels can impact many aspects of
consumer behavior, from service expectations to
consumer innovativeness (Steenkamp et al., 1999;
Bridges et al., 1996).
An understanding of where these differences do and
do not have an impact can assist in making
marketing decisions, such as whether to pursue
standardised or localised branding, pricing,
advertising and promotion strategies (Fletcher and
Brown, 1999).
Literature Review cont….

One promotional element attracting intense

scrutiny is sales promotion which consists
of a diverse collection of mostly short-term
incentives designed to motivate consumers
or the trade to purchase a product
immediately and/or in larger quantities by
lowering the price or adding value (Lamb et
al., 1996, p. 573).
Literature Review cont….

Some of the major promotion tools used

are sample, coupons, rebates, premiums,
contests, prizes, among others. Studies have
indicated that sales promotion are a
valuable form of communication within the
larger advertising media (Abraham and
Lodish, 1990; Blatberg and Neslin,
1990;Farris and Quelch, 1987)
Data collection
Qualitative
Explanation (Idea)
Sales promotions are unique in their ability to respond in quick,
focused, and flexible ways to motivate consumer or trade or counter attack
the sales promotion activities of competitors. These flexible, rapid-response,
market targeting characteristics of sales promotions are particularly well-suited
promotional tools for this technological age of worldwide
communication, rapid innovations in technology, and intense competition. In
earlier days of less fierce competition, The idea behind this
strategy was to create a long-term competitive advantage that would help the
brands to create and maintain loyal consumers.
Concepts and strategy guidelines for designing value enhancing sales promotions
by Srini S. Srinivasan and Rolph E. Anderson,
Journal Of Product & Brand Management, Vol. 7 NO. 5 1998, pp. 410-420
© MCB UNIVERSITY PRESS, 1061-0421
Data collection…cont

Qualitative
Information-Illustrated
Are sales promotions profitable?
To illustrate, let usconsider coupon promotions. When issuing coupons for a
brand, if the face value of coupons is too low, consumers may not redeem the
coupons. As the face value is raised, however, more and more consumers are
likely to redeem the coupons.

Concepts and strategy guidelines for designing value enhancing sales promotions
by Srini S. Srinivasan and Rolph E. Anderson,
Journal Of Product & Brand Management, Vol. 7 NO. 5 1998, pp. 410-420
© MCB UNIVERSITY PRESS, 1061-0421
Data Collection…Cont

Quantitative
SAMPLE
The authors found before them, rather than any form of carefully designed research
methodology. This does not make the results any less interesting. The data vacuum
which surrounds promotional competitions makes it impossible to comment on the
representative ness of the total sample, or the services subset.
From this total sample, a subset made up of the 188 competitions which were sponsored by
service providers was extracted for analysis.

Means Author used the sample in their research methodology

Sales promotion – a missed opportunity for services marketers?

by Ken Peattie and Sue Peattie, International Journal of Service Industry Management,
Vol. 6 No. 1, 1995, pp. 22
Data Collection…Cont

Quantitative
Survey
Sales promotion competitions for services – the survey; The authors
recognized that access to such information networks could provide an
opportunity to explore the nature and extent of competition usage as a
marketing tool. Tapping into one of the largest of the competitors’
information networks provided an opportunity to gather and analyse
details of 2,646 different UK sales promotion competitions over a three-
year period.

Sales promotion – a missed opportunity for services marketers?

by Ken Peattie and Sue Peattie, International Journal of Service Industry Management,
Vol. 6 No. 1, 1995, pp. 22
Data Collection…Cont

Quantitative
Figure
Cross-referencing consumers’ competitiveness against their
relationship with the service produces a picture of the
opportunities which using a sales promotion competition
presents by Promoting to the competitive consumer figure
Means The Author used Figure as their data as research
methodology
Sales promotion – a missed opportunity for services marketers?
by Ken Peattie and Sue Peattie, International Journal of Service Industry Management,
Vol. 6 No. 1, 1995, pp. 22
Data Collection…Cont

Quantitative
Experimental Design
A quasi-experimental design is used to test a series of hypotheses based on a
sample of Anglo-Australians and Chinese-Australians. The main experiment is
informed by the results of two pretests.

Sales promotion effectiveness: the impact of consumer differences at an ethnic-group level,

by Simon Kwok and Mark Uncles,
Journal of Product & Brand Management, 14/3 (2005) 170–186
Data Collection…Cont
Quantitative
Analysis
Descriptive analysis –Questionnaire
Some 250 questionnaires were completed by Anglo-Australians or Chinese-
Australians (with an equal split between the two groups). Almost half of the
sample was born overseas with Hong Kong (16 per cent), China (8 per cent)
and Indonesia (5 per cent) being the most common countries of birth.
CVSCALE analysis
Responses to the CVSCALE are used to determine the relative cultural values of
both ethnic groups on the five cultural dimensions. first the reliability and
validity of the CVSCALE is tested.

Sales promotion effectiveness: the impact of consumer differences at an ethnic-group level,

by Simon Kwok and Mark Uncles,
Journal of Product & Brand Management, 14/3 (2005) 170–186
Key Finding
Significant Level
First, there are significant differences in consumer cultural
values at an ethnic-group level. Second, despite these
differences, ethnicity does not have a significant impact on
responses to sales promotions. Third, the expected
congruency effects between products and promotion types
are not
found
Sales promotion effectiveness: the impact of consumer differences at an ethnic-group level,
by Simon Kwok and Mark Uncles,
Journal of Product & Brand Management, 14/3 (2005) 170–186
Key Finding
The key findings and contributions of the study are summarised for
three main areas:
1 consumer cultural values and ethnicity;
2 culture at the ethnic-group level and sales promotion; and
3 culture at this level and the congruency framework.

Sales promotion effectiveness: the impact of consumer differences at an ethnic-group level,

by Simon Kwok and Mark Uncles,
Journal of Product & Brand Management, 14/3 (2005) 170–186
Key Finding…..cont
This article aims to help redress the balance by examining
the use of one sales promotion tool which represents a
growing phenomenon in many services markets, the
promotional competition. Competitions represent an
increasingly widespread and significant, but (in terms of the
academic literature) scarcely noticed, marketing
phenomenon

Sales promotion – a missed opportunity for services marketers?

by Ken Peattie and Sue Peattie, International Journal of Service Industry Management,
Vol. 6 No. 1, 1995, pp. 22
Key Finding…..cont
The result show that brand managers use trade and consumer sales
promotion more extensively than media advertising but do not consider
sales promotion to be more effective in meeting objective.
As shown the sample of brand managers reports significantly higher use
of trade and consumer sales promotion than for media advertising. At
the some time there is no significant difference in managers perceptions
of the effectiveness of advertising, trade promotion and consumer sales
promotions.
The findings provide tentative support for the proposed framework

Sales promotion as strategic communication: The case for Singapore by Chun Wah Lee,
Journal Of Product & Brand Management, Vol. 11 No. 2 2002, pp 103-114
© MCB UNIVERSITY PRESS, 1061-0421
Limitation and Implications
Sales promotion as strategic communication: The case for
Singapore by Chun Wah Lee has some limitations. It focuses
solely on the management of sales promotions as a value
added communicative component in Singapore supermarket
industries.
A number of interesting implication and question emerge from
the current findings.

Sales promotion as strategic communication: The case for Singapore by Chun Wah Lee,
Journal Of Product & Brand Management, Vol. 11 No. 2 2002, pp 103-114
© MCB UNIVERSITY PRESS, 1061-0421
Limitation and Implications..cont
In journal “Sales promotion effectiveness: the impact of consumer
differences at an ethnic-group level” by Simon Kwok and Mark
Uncles showed some of the detailed results match those reported
in previous studies, but there are important differences too.
There is a need to be aware of differing cultural values at an
ethnic-group level. Notwithstanding this inference, the second
finding suggests that there continues to be scope for using
standardised strategies when promoting to different ethnic
groups. Finally, considerable caution should be exercised when
planning promotion strategies around hoped-for congruency
effects.
Limitation and Implications..cont
Srinivasan and Anderson show how sales promotions can be
seen as part of a marketing strategy rather than as tactical
or panic measures. But to achieve this managers need to
acknowledge how significant sales promotions are to
sustaining brand position and market share. For many
brands, sales promotions are the difference between success
and oblivion.

Concepts and strategy guidelines for designing value enhancing sales promotions
by Srini S. Srinivasan and Rolph E. Anderson,
Journal Of Product & Brand Management, Vol. 7 NO. 5 1998, pp. 410-420
© MCB UNIVERSITY PRESS, 1061-0421
Conclusion
In these research, are discussion about sales promotion
included 4 journal article related with these discussion
The main conclusions which can be drawn the impact sales
promotion to the marketer and consumer. Beside that the
importance of sales promotion and it strategy
understanding that most control and monitoring systems
designed for evaluating other company expenditures
cannot fully capture the impact of sales promotions,
marketing managers must nevertheless use whatever data
are currently available to help justify and evaluate sales
promotions.
Thank You