Effectiveness of Promotion Schemes in Consumer Buying Behavior
ABSTRACT
One of the most difficult marketing decisions facing companies is how much to spend on promotional schemes. John Wanamaker for a departmental store magazine, said, "I know that half of my advertising is wasted but I don't know which half."
Thus it is not surprising that industries and companies vary considerably in how much they spend on promotion. Promotional expenditures might amount to 30-50% of sales in case in cosmetics industry and only 10-20% in the industrial equipment industry. Within a industry, a low and high spending companies can be found.
This project explores and extends the congruency framework by incorporating the impact of promotion schemes on consumer buying behavior.
INTRODUCTION TO PROMOTION SCHEMES
Promotional Scheming is simply the creation of plan to profit from a market. Stocks, Bond, Commodities, Forex markets can all be schemed. Scheme by definition means "A systematic plan of action".
Promotion schemes include incentive-offering and interest-creating activities which are generally short-term and long-term marketing events and include advertising, sales promotion, personal selling, publicity and direct marketing among others. The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firm’s customers.
Promotion is the final element in the marketing mix. After the nature of product is decided, its price fixed and the methods of distribution decided, the manufactures has to take effective steps in meeting the consumers in the markets. In the present consumer oriented markets it is the duty of manufacturers to know what is required by the consumer. It is also their duty to make the customers know where, when how and at what prices. The products would be available. Meaning of Promotion
The term promotion is the term and includes mainly three type of sales activity:
1. Mass impersonal selling methods (Advertising).
2. Face to face personal
One of the most difficult marketing decisions facing companies is how much to spend on promotional schemes. John Wanamaker for a departmental store magazine, said, "I know that half of my advertising is wasted but I don't know which half."
Thus it is not surprising that industries and companies vary considerably in how much they spend on promotion. Promotional expenditures might amount to 30-50% of sales in case in cosmetics industry and only 10-20% in the industrial equipment industry. Within a industry, a low and high spending companies can be found.
This project explores and extends the congruency framework by incorporating the impact of promotion schemes on consumer buying behavior.
INTRODUCTION TO PROMOTION SCHEMES
Promotional Scheming is simply the creation of plan to profit from a market. Stocks, Bond, Commodities, Forex markets can all be schemed. Scheme by definition means "A systematic plan of action".
Promotion schemes include incentive-offering and interest-creating activities which are generally short-term and long-term marketing events and include advertising, sales promotion, personal selling, publicity and direct marketing among others. The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firm’s customers.
Promotion is the final element in the marketing mix. After the nature of product is decided, its price fixed and the methods of distribution decided, the manufactures has to take effective steps in meeting the consumers in the markets. In the present consumer oriented markets it is the duty of manufacturers to know what is required by the consumer. It is also their duty to make the customers know where, when how and at what prices. The products would be available. Meaning of Promotion
The term promotion is the term and includes mainly three type of sales activity:
1. Mass impersonal selling methods (Advertising).
2. Face to face personal