An Evaluation of the Effectiveness of Premiums Promotion, Limited- Time Discount and Loyalty Card Promotion—Based on Product Life Cycle
CELE Project 2012
Qing Lu
2111573
10 weeks
Business
M.Sc. International Business
Permission given to use this project
Word Count: 2824
An Evaluation of the Effectiveness of Premiums Promotion, Limited- time Discount and Loyalty Card Promotion—Based on Product Life Cycle
31 August 2012
Abstract
In recent years, sales promotion tactics are extensively used to achieve different marketing targets. The aim of this project is to analyze the effectiveness of premiums promotion, limited-time discount and loyalty card promotion according to the marketing targets in the first three phases of product life cycle, which can help companies maximize the effects of sales promotion. The specific marketing targets in the first three stages of product life cycle are discussed and the effective sales promotion tactics are analyzed, based on a rich literature about sales promotion. The potential risks in the implementation process need to be taken into account and the possible solutions are proposed to help companies reduce the unnecessary losses. This may be of interest to marketers, which intend to enhance the competitiveness of companies.
CONTENTS
Introduction ……………………………………….………………………………………………………………….…1
1. Features and Marketing Targets of Product Life Cycle…….……………………………….……2
1.1 Introduction stage………..………..…………………………………………………………………2
1.2 Growth stage…………………………………………..……….……………………………………….2
1.3 Maturity stage….…………………..…………….………….…………….………………………….3
2. Analysis of the Effective Sales Promotion Tactics…………………………….……………………4 2.1 Premiums promotion for new product awareness…………….………………………4 2.2 Limited-time promotion for quick boost to sales……………………………………….5 2.3 Loyalty card for customer loyalty…………………………………………………….…………5
3. Limitations and Possible Solutions………….…………………………………………………………….8 3.1 Risks of premiums promotion…………………….…………………………………………..…8 3.2 Risks of limited-time discount………………….………………………………………………8
Qing Lu
2111573
10 weeks
Business
M.Sc. International Business
Permission given to use this project
Word Count: 2824
An Evaluation of the Effectiveness of Premiums Promotion, Limited- time Discount and Loyalty Card Promotion—Based on Product Life Cycle
31 August 2012
Abstract
In recent years, sales promotion tactics are extensively used to achieve different marketing targets. The aim of this project is to analyze the effectiveness of premiums promotion, limited-time discount and loyalty card promotion according to the marketing targets in the first three phases of product life cycle, which can help companies maximize the effects of sales promotion. The specific marketing targets in the first three stages of product life cycle are discussed and the effective sales promotion tactics are analyzed, based on a rich literature about sales promotion. The potential risks in the implementation process need to be taken into account and the possible solutions are proposed to help companies reduce the unnecessary losses. This may be of interest to marketers, which intend to enhance the competitiveness of companies.
CONTENTS
Introduction ……………………………………….………………………………………………………………….…1
1. Features and Marketing Targets of Product Life Cycle…….……………………………….……2
1.1 Introduction stage………..………..…………………………………………………………………2
1.2 Growth stage…………………………………………..……….……………………………………….2
1.3 Maturity stage….…………………..…………….………….…………….………………………….3
2. Analysis of the Effective Sales Promotion Tactics…………………………….……………………4 2.1 Premiums promotion for new product awareness…………….………………………4 2.2 Limited-time promotion for quick boost to sales……………………………………….5 2.3 Loyalty card for customer loyalty…………………………………………………….…………5
3. Limitations and Possible Solutions………….…………………………………………………………….8 3.1 Risks of premiums promotion…………………….…………………………………………..…8 3.2 Risks of limited-time discount………………….………………………………………………8
References: Ace, C. (2002) Effective Promotional Planning for e-Business. Oxford: Butterworth-Heinemann Devlin, J., Ennew, C.,McKechnie, S., and Smith, A. (2007) ‘A study of time limited price promotions’. Journal of Product & Brand Management 16 (4), 280 – 285 Gaffney, S Humby, C., Hunt, T., and Phillips, T. (2007) Scoring Points: How Tesco Continues to Win Customer Loyalty. London: Kogan Page Hendershot-Hurd, K Janotta, S. (2012) Loyalty Cards in the Apparel Retail Industry. Munich: Grin Verlag Kolb, B Kotler, P. and Armstrong, G. (2001) Principles of Marketing. Upper Saddle River: Prentice Hall Lancaster, G Liljenwall, R. (2004) The Power of Point-of-Purchase Advertising: Marketing At Retail. Washington, DC: Point-Of-Purchase Advertising International Pride, W Reid, R., D. and Bojanic, D., C. (2010) Hospitality Marketing Management. Hoboken: John Wiley & Sons Yeshin, T