fusion point research Marketing Research Reports

Marketing to Promotions Leaders in Retail

Understanding Their Role

Promotions are essential marketing tactics for retailers. They can be used to accomplish a variety of objectives such as increasing sales, attracting new customers and driving brand awareness. Some of the most popular forms of promotions include:

 

  • Coupons – provide money off the purchase price of a product and are offered via websites, publications, products on the shelf, direct mail or printed on the register tape. Coupons vary in type and may require purchasing more than one product, or a specific type of product.1
  • Premiums (Gifts) – included when a customer purchases a particular product, or a certain volume or dollar amount of a product or similar products.2
  • Loyalty Cards – cards issued by a store that provide customers with discounts when used to purchase products with the card-issuing retailer. Loyalty cards provide incentives for customers to buy additional items and the data gained from loyalty card use is vital to providing retailers with market research information.3
  • Store Discounts or Price Reductions – Offering discounts on a storewide or selected item basis. Price reductions are the most widely used retail tactic to drive store traffic.4
  • Bonus Packs – promotions that offer an additional product at the same price of the regular item or as a “buy one get one free” offer.5
  • Daily Deal Offers – time-limited discounted products offered on websites such as Groupon.com.6 7

 

Rolling out a successful promotion takes coordination, the correct tools, right message, timing, and most importantly the right personnel to oversee the promotion or campaign. A successful promotion requires a variety of functions including advertising (in-house or agency), the point of sale (POS) materials, social media and email messages, employee training and communicating information retail branches.8 9

“Rolling out a successful promotion takes coordination, the correct tools, right message, timing, and most importantly the right personnel to oversee the promotion or campaign.”

1 Marks, Tod. “Use Coupons to Save Big.” Consumer Reports Money Adviser 10, no. 6 (2013): 7. EBSCOhost(87756609).

2 Taylor, Ritchie. “The Ins and Outs of Contests and Promotions.” Franchising World 44, no. 9 (2012): 51 – 53. EBSCOhost(80157473).

3 See, as examples from Pharmacy Retail: www.cvs.com/extracare or www.walgreens.com/balancerewards/balance-rewards.jsp or www.riteaid.com/wellness-with-plenti

4 Ray, Souray and Charles A. Wood. “Multicomponent Systems Pricing: Rational Inattention and Downward Rigidities.” Journal of Marketing . 2012.

5 Chen, Haipeng (Allan), Howard Marmorstein, Michael Tsiros, and Akshay R Rao. “When More Is Less: The Impact of Base Value Neglect on Consumer Preferences for Bonus Packs over Price Discounts.” Journal of Marketing 76, no. 4 (2012): 64 – 77. EBSCOhost(77491817).

6 Moran, Gwen. “Sealing the Deal-Seekers.” Entrepreneur 40, no. 6 (2012): 77. EBSCOhost(75367116).

7 Bertini, Marco, Luc Wathieu, Betsy Page Sigman, Michael I. Norton, Gideon Lask, and Al Bhakta. “Do Social Deal Sites Really Work?” Harvard Business Review 90, no. 5 (2012): 139 – 143. EBSCOhost(74458935).

8 Berman, Barry, and Joel R. Evans. Retail Management: A Strategic Approach 12th Ed. Edited by Pearson Education, Inc., Prentice Hall. 2013.

9 Jetta, Kurt. “Understanding the Deal-Sensitive 0-T-C Consumer.” Chain Drug Review 35, no. 7 (2013): 34. EBSCOhost(87360852).

 

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Copyright © 2016 Fusion Point Research, Inc.

Promotions are shorter-term marketing communications tactics designed to get a “lift” in results like sales or in-store traffic.
fusion point research Marketing Research Reports
Promotions are shorter-term marketing communications tactics designed to get a “lift” in results like sales or in-store traffic.
  • – provide money off the purchase price of a product and are offered via websites, publications, products on the shelf, direct mail or printed on the register tape. Coupons vary in type and may require purchasing more than one product, or a specific type of product.
  • – included when a customer purchases a particular product, or a certain volume or dollar amount of a product or similar products.
  • – cards issued by a store that provide customers with discounts when used to purchase products with the card-issuing retailer. Loyalty cards provide incentives for customers to buy additional items and the data gained from loyalty card use is vital to providing retailers with market research information.
  • – Offering discounts on a storewide or selected item basis. Price reductions are the most widely used retail tactic to drive store traffic.
  • – promotions that offer an additional product at the same price of the regular item or as a “buy one get one free” offer.
  • – time-limited discounted products offered on websites such as Groupon.com.