Topic > A communications framework for evaluating sales promotion...

1.0 Introduction In the past, sales promotion was widely considered a tactical marketing tool, primarily concerned with providing short-term incentives to encourage consumers to purchase /sale of a product or service. However, with the advent of loyalty programs and other sales promotion techniques aimed at brand loyalty and therefore repeat purchases, sales promotion professionals have attempted to reposition their discipline due to the growing, intense and competitive challenge that many organizations face. Managers must therefore fundamentally understand and evaluate the impact of their promotional strategies. A communication paradigm has four levels:1. Ability to attract consumers' attention2. Interpretation difficulty level3. Its persuasive ability (describing specific benefits or characteristics)4. Promotional impact that determines purchase intention. The conceptual framework discussed in the article delivers sequences with a brand creating awareness, communicating key benefits, promoting trial and then, optimistically, a supported purchase. And if the consumer becomes satisfied with the product or service, repeat purchases and brand loyalty can be established (Gardener, Elizabeth, Trivedi and Minakshi. Journal of advertising Research, May/June 98, vol.38 number 3, p67, 5p) . The four main types of sales promotion strategies we will look at are: bonus packs, on-shelf coupons, free-standing insert (FSI) coupons, and on-pack promotion. 2.0 Definition of Sales Promotion StrategyThe Association of Promotional Marketing Agencies (APMA) introduced the following definition of promotion management: "the planning and execution of strategic and tactical marketing for a brand using the entire mix of activities and communications designed to work in concert to influence behavior so as to increase sales and strengthen brand image. Sales promotion strategies are actually a subsidiary of the overall integrated marketing communications (IMC) mix. Despite the central role played by sales promotions, however, research in this area appears to offer few oversimplified conclusions. Therefore, although promotional impact has always been a topic of great interest to both managers and researchers, there has been a somewhat disconcerting disparity in research findings (Gardener, et al. 1998). Some research has found that consumer satisfaction with a promoted brand leads to increased repeat purchases even after the promotion is withdrawn (e.g., Rothschild and Gaidis, 1981), while other research findings suggest that consumers return to pre-promotion behavior (e.g., Bawa & Shoemaker, 1987). 3.0 Framework for Evaluating Promotions The article presents a framework that is designed to assist managers in evaluating the effectiveness of their promotion strategies. There are four main promotional methods that companies use to demonstrate use of the framework.