Effects of Sales Promotion on Brand Loyalty, a Case Study...

CHAPTER ONE INTRODUCTION 1.0 Background to the Study Every firm aims to make profit. It is generally agreed that one of the keys to making profit is boosting sales. To boost sales, a substantial number of consumers must choose one’s product over and above that of its competitors on a substantial number of occasions. One of the surest way of ensuring this happens is to cultivate brand loyalty to one’s product or service. Brand loyal consumers are more likely to choose their preferred products and/or service over its competition on a consistent basis. Considering the fact that consumers tend to be finicky with their choices, producers of rival brands tend to be uncompromising with product quality while being relentless with their†¦show more content†¦Sales promotion includes a wide assortment of tools designed to stimulate earlier or stronger market response. The sales promotion tools include coupons, contests, fairs and trade shows, exhibitions, demonstrations, premium, gifts, rebates, low interest financing and trade allowance. The present market situation shows that there is rapid growth of sales promotion though several factors have contributed to it, particularly in consumer markets. First, inside the company, products or sales managers face greater pressures to increase their current sales and top managers now accepts promotion as an effective sales tool. Secondly, externally, the company faces more competition and competing brands are less differentiated competitors are using more sales promotion mix and consumers have become more deal oriented. Sales promotion is very important at the growth stage of a product because at this stage there would have been competitors and in order to encourage both old and new users to buy sales promotion is introduced. It could be in different forms such as discount or price reduction, buy two get one free or a price is attached to a particular quantity of the product bought. Promotion marketing has traditionally been used to address specific tactical objectives. In today’s competitive market, sales promotion places an emphasis on integration of promotional activities with marketing objectives andShow MoreRelatedThe Influence of Sale Promotion on Customers Patronage7109 Words   |  29 PagesHowever, sales promotion is the array of method or techniques that marketers use to stimulate or improve immediate purchase. In most cases, sales promotion is used in conjunction with other promotional tools especially advertising and personal selling to achieve desire result. But unlike advertising and personal selling, sales promotion comprises a wide variety of technical promotional tools of short term incentives designed to stimulate a target market response. In other words, sales promotion