Consumer Shows in the Promotion Mix

Abstract

Consumer shows present a unique promotional opportunity by presenting a forum for attracting consumers with a specific interest in the products featured at the show. In this study we examine auto show attendees' perceived differences and similarities between attendance at an automobile consumer show and the traditional showroom visits made by automobile shoppers. Results of the study indicate that the promotional value of the show had a modest but positive impact on vehicle buying and leasing, a considerable positive influence on brand and model selection, but little influence on choice of dealer. We discovered that attendees perceive sales personnel they met at the show to be more knowledgeable, trustworthy and friendly than those they met at a dealership (even though the sales personnel at the show work at dealerships). Finally, we found that among the group from which most incremental purchases would be expected-those who came to the show with negative intentions but who then purchased a vehicle-the show is viewed more as a substitute for entertainment than for other shopping activities. The promotional implications of these results are then explored.     

Conference report: Second conference on political marketing: Judge institute of management studies,university of Cambridge 27–29 March 1996

Sales promotion activity continues to grow in terms of the number, scale and variety of promotional techniques being used by companies in their marketing communication campaigns. Research among marketing academics has yet to catch up with this reality and sales promotion continues to suffer from relative neglect compared to advertising;from a tendency for all promotional tools to be tarred with a rational economic brush; and from being labelled as a set of “tactical” took that lack the strategic brand‐building possibilities offered by advertising. This article builds upon earlier research examining the communication potential of competitions, to test empirically whether the potential marketing communications benefits claimed for competitions are actually recognised and pursued by marketing practitioners.     

Product Placement Versus Conventional Advertising: The Impact on Brand Choice of Integrating Promotional Stimuli into Movies

ABSTRACT

Despite the increasingly favorable environment enjoyed by product placement, the question of whether this technique produces stronger behavioral effects than conventional advertising remains largely unexplored. Based on the transportation-imagery model, we hypothesized that, among users of well-established products, promotional stimuli produce stronger effects on brand choice when integrated into movies than when presented as independent ads, while among nonusers, no differences are expected. Our hypotheses were confirmed in a field experiment that compared the effects of a Coca-Cola placement within the movie Ways to Live Forever with the same Coca-Cola stimulus shown as a usual commercial.     

Promotional Framing of Green Products: Mediating Role of Sale Proneness

Abstract

The impact of sales promotion in boosting short-term sales is well established in the literature. While there are ample studies on the impact of sales promotion on conventional products in western countries, there is very scant research on the effect of promotions on green products and almost nonexistence research in emerging economies. This research addresses this gap by doing a comparative assessment of economically equivalent bonus pack sales promotion and price discount sales promotions on green versus non-green products through two experiments designed as a 2 (green product motivation: hedonic vs. utilitarian) × 2 (promotional frame: price discount vs. bonus pack) × 2 (discount level: low vs. high) between-subjects study, and 2 ( product types: green, non-green/control) × 2(promotional frame: price discount, bonus pack) between-subjects study. This research further examines the mediating role of sale proneness in the purchase process. The findings of this research indicate that buyers' preferences for promotion are quite varied for the purchase of green versus non-green products, and the price discount increases sale proneness which exerts a negative impact on product purchase willingness. Accordingly, this study has some theoretical and practical implications.     

Strategic and organisational determinants of sophistication in deployed sales force automation systems within three industry sectors in the UK

Abstract

This paper investigates strategic and organisational context determinants of the sophistication of adopted sales force automation (SFA) systems in three UK industries: financial services, pharmaceuticals, and building/construction. Sophistication of adopted systems is associated with the organisation placing greater emphasis on information orientation, which is itself driven by an increased integration of IT and sales coupled with increased organisational slack. Increased integration of IT and sales is itself driven by increased strategic importance of sales coupled with increased use of internal communication networks. Importantly, a firm's marketing orientation, although also driven by the strategic importance of sales, has no impact on either information orientation or SFA sophistication. We discuss the implications of our findings to aid understanding of SFA implementation failure.     

Effective Public Relations. Cutlip,Scott M., and Allen H. Center. 5th Edition. Englewood Cliffs,New Jersey: Prentice-Hall, 1978

Abstract

ADSPLIT is a computer-based, interactive, marketing model which optimally allocates a specified corporate promotional budget among individual brands competing for limited resources. The model requires either (a) regression-based response function coefficients based on historical data, or (b) judgments on what sales should be for different values of price and advertising expenditure for the brands, which the program then uses to estimate the function parameters. The advertising-sales response function is modeled through a flexible form that allows both concave and S-shaped relationships, while sales are related to price through a constant elasticity (Cobb-Douglas) function. The model uses the estimated or input functions to compute the optimal budget allocation for the brands, given an upper bound for the total promotional expenditures and upper- and lower-budget bounds for every brand, using nonlinear optimization heuristics. Optimal prices for the brands are also computed.     

Does Sleep Really Matter? Examining Sleep among Salespeople as Boundary Role Personnel for Key Job Factors

ABSTRACT

Purpose: Sleep deprivation among employees has become commonplace in the workforce. In the United States, the number of hours individuals sleep per night has declined by an hour and a half per night since the 1960s. As of 2005, seventy-four percent of individuals were getting less than eight hours of sleep per night on weekdays. There are negative ramifications to the organization when employees are sleep deprived such as lost productivity, increased accident rate, and increased absenteeism.

Originality/Value/Contribution of the paper: Although prior research has investigated the impact that sleep deprivation has on unique job positions (e.g., shift workers, transportation), no research has investigated how sleep impacts business-to-business sales employees. Due to the responsibilities of business-to-business sales employees, this type of position should not just be lumped in with other organizational employees. For example, business-to-business sales employees are boundary spanning employees that are responsible for generating revenue for the organization. These sales employees are also more likely to be physically, socially, and psychologically separated from the organization since they frequently work outside of the office. Because of these distinctive roles, this study examines if differences based on sleep duration exist for business-to-business sales employees for two individual and five organizational factors. The two individual factors consisted of grit and happiness while the five organizational factors consisted of perceived organizational support, perceived supervisory support, job satisfaction, organizational commitment, and turnover intentions.

Methodology/Approach: Data was collected from 320 business-to-business sales employees using a cross industry survey. The survey was conducted using a Qualtrics panel. Sleep duration was broken into two groups with one group consisting of business-to-business sales employees who sleep, on average, seven or more hours per night and the other group consisting of business-to-business sales employees who sleep, on average, six or less hours per night. The sleep duration groups were determined based on prior research that found adults should regularly sleep seven or more hours per night in order to support optimal health. There were one hundred thirty-four respondents who slept six hours or less and one hundred eighty-six respondents who slept seven or more hours, on average, per night.

Findings: The research question developed was answered by examining the differences between means for the two individual constructs and the five key organizational constructs. Differences in sleep duration for six of the seven sales constructs. There were significant differences between those that slept seven or more hours per night from those that slept six or less for grit, perceived organizational support, perceived supervisory support, job satisfaction, organizational commitment, and turnover intentions. Results found that business-to-business sales employees that slept seven or more hours per night exhibited more grit than those that slept six or less hours per night. In addition, business-to-business sales employees that slept six or less hours per night had higher perceptions of both organizational and supervisory support than those that slept seven or more hours per night. Furthermore, business-to-business sales employees that slept six or less hours per night displayed higher job satisfaction and organizational commitment than sales employees that slept seven or more hours per night. Finally, business-to-business sales employees that slept seven or more hours per night indicated higher levels of turnover intentions than sales employees that slept six or less hours per night. There were no significant differences between the two sleep groups for sales employee happiness. Although some of these results may appear to be counterintuitive, conservation of resources theory can be used to explain these findings.

Research Implications: This exploratory study showcases the importance of good sleep among business-to-business sales employees. This study draws on the conservation of resources theory literature to explain the counterintuitive findings. This theory posits that individuals will retain and guard against resource depletion. Additionally, as resources become depleted, other resources are valued to a greater extent. In this study, the resource being depleted is the condition of sleep. When business-to-business sales employees experience a lower average amount of sleep per night (i.e., six hours or less), they perceive higher levels of support, job satisfaction, and organizational commitment than business-to-business sales employees who experience a higher average amount of sleep per night (i.e., seven hours or more). Although this study provides a good initial examination of how sleep impacts sales organizations, this study also highlights the need for additional business-to-business sales employee sleep research. This is the first study that has examined how sleep duration impacts business-to-business sales employees.

Practical Implications: This study is important to sales research because it highlights the impact that poor sleep of business-to-business sales employees has on the organization. For sales organizations, we provide guidance on ways a sales organization can help promote healthy sleep for their business-to-business sales employees. Some examples of guidance provided can be categorized into four primary categories. These categories include (1) proper sleep education, (2) sales management training, (3) creating a sleep friendly workplace environment, and (4) creating specific workplace policies to minimize sleep disturbances such as setting reasonable work hours and sleep accommodating travel schedules.     

Perceived Impact of Promotional Support: Issues and Scale

Abstract

The purpose of this study is to come up with a scale for a new construct, perceived impact of promotional support (PIPS) and link it with sales performance through the mediators, sales effort and salesmanship skills. This paper involved three studies. In study 1, the authors came up with a new scale and in study 2 they tested it on a student sample. In study 3, they tested the scale on a sample of pharma salespersons (n?=?202) and also tested the conceptual model. The paper employed standard scale development procedures, tested the model with SEM and showed that the new scale was reliable and valid. Further, PIPS was found to impact sales performance through salesmanship skills. While PIPS impacted sales effort, the latter surprisingly did not affect sales performance. For the practitioner, our work suggests that promotional support is critical, not just for motivating salespersons to put in more effort, but also to enhance their salesmanship skills, which in turn improves their performance. Moreover, it demonstrates the positive effect of sales effort on salesmanship skills.     

The Foodservice Supplier's Sales Environment

ABSTRACT

This study is designed to assist small meat processors seeking to expand their sales volume. The analysis pertains to a procurement survey of 191 restaurants. Fifty-one different variables are analyzed by means of cross-tabulations among different restaurant groups. For example, three restaurant annual sales groupings (under $500,000, $500,000 to $2,000,000, and over $2,000,000) are used to examine which of these fifty-one restaurant variables significantly differ by group. Other cross-tabulations are also presented regarding dinner ticket price levels, management structure, and chain affiliation, respectively. Many significant differences are found to exist in terms of food quality, delivery methods, product types, and more. Small meat processors will be able to develop more effective sales growth strategies through gaining an understanding of such differences. This study should be of value to small food manufacturers interested in direct marketing to restaurants. For example, based on the general findings of this study, small food manufacturers should place greater emphasis on product quality rather than price when selling their products to larger restaurants since supply quality is of greater importance than cost to these restaurants.     

Targeting Miss Daisy: Using age and gender to target unethical sales tactics

Marketers often advocate the use of targeted promotional strategies because they are presumed more effective. However, common targeting variables (gender and age) can also serve to stereotype some consumers (female or older) as more vulnerable to sales pressure. The current research shows that this can cause sales agents to target these stigmatized groups with inferior products. In contrast, encouraging sales agents to empathize with target customers was effective in reducing the targeting of these groups with substandard items. Implications are discussed.     

Analyzing the Impact of Promotions on Manufacturer and Retailer Performance

Abstract

Promotional strategies used by manufacturers (or retailers) influence not only their own outcomes, but also the outcomes of retailers (or manufacturers). As cooperation of both the parties is needed for successful implementation of promotional strategies, the promotions used by either party should provide outcomes that are positive for the other party. The authors propose a framework for examining (1) the effect of promotional strategies on both manufacturer and retailer profitability and (2) which of two promotional strategies (retail price cut or coupon promotion) yields greater total profitability to achieve an exogenously given sales level. The proposed framework also helps in identifying conditions when conflict is likely to occur between manufacturer and retailer, and suggests a cooperative strategy to resolve the conflict.     

The Differential Impact of Price-Related Consumer Promotions on Loyal versus Non-Loyal Users of the Brand

Abstract

Consumer goods manufacturers regularly spend millions of dollars annually on sales promotions such as couponing, rebates, sweepstakes, and other premium offers. Although the impact of advertising on consumer purchase behavior has been documented in the marketing literature, the impact of promotions on purchase behavior has received relatively little attention. The purpose of this research is to investigate the relationship between brand loyalty, purchase involvement, product experience, and their impact on the efficacy of consumer promotions. The results show that sales promotions have applications beyond their traditional role as short-term promotional tools. Managerial implications as well as suggestions for future research are discussed.     

Multi-Attribute Dimensions of Service Quality in the Fast Food Restaurant Industry

Abstract

As the fast food restaurant industry grows in the Western industrialized world, it has also become increasingly competitive. In such an environment, marketers are concerned about how to increase or maintain market share through better service quality and effective segmentation strategies. This paper reports a two-phase exploratory study conducted to determine the dimensions of service quality in the fast food industry, from the consumer's perspective. Factor analysis revealed 10 dimensions made up of 57 different attributes. The 10 dimensions were able to discriminate among three groups of fast food patrons, namely: frequent, less frequent, and more frequent patrons. Managerial implications of these findings, for market segmentation, targeting, positioning, and promotional strategies are discussed.     

The Impact of Coupons on Service Quality Evaluations,Risk, and Purchase Intentions

Abstract

To attract customers, restaurants will often use coupons. This research examined the impact of a promotional coupon on service quality expectations, perceived purchase risk and purchase intentions. It was found that the use of coupons does increase purchase intentions and reduce perceived purchase risk. However, coupons were found to negatively influence service quality expectations. Implications of these findings for restaurant managers are discussed.     

An experimental analysis of the impact of a behaviour modification programme on salespersons' effort and performance behaviours

This study adapts a radical behaviourist ‐perspective in the study of the sales manager‐salesperson interaction, and analyses the impact of a behaviour modification programme on both the effort and performance behaviours of salespeople. To this end, a field experiment was conducted with the co‐operation of an industrial sales organization. Subjects were randomly assigned to control and experimental groups and a number of effort and performance indicators were measured via self‐report procedures. The treatment consisted of manipulations to the sales manager‐salesperson interaction in order to improve monitoring systems, introduce more structured feedback mechanisms, and make reinforcement more contingent upon actual behaviours. Results indicate that a number of effort indicator variables and performance outcomes showed significant increases for the experimental group relative to the control group.     

Two Studies on Using Specialty Advertising in Retail Sales Contests

Two studies were conducted to assess the impact of specialty advertising as a promotional tool in retail sales contests. In both cases, specialty advertising was directed toward the retail sales force rather than the consumer. It was felt that s~ecialtv advertisine could perform a reinforcement and reminder role as well as a mot: vating role for encouraging retail salespeople to participate in a contest. In the first study with Chick-fil-A, specialty advertising had an overall positive impact on employee performance. Total sales vol- ume increased in three of the four stores studied, while it increased in only two of the four stores that did not receive specialty advertis- ing. And while sales volume as a whole increased during the contest period, the largest percentage of increase occurred in those stores where specialty advertising was used. In the second study, the FanFair study, the effectiveness of spe- cialty advertising was very apparent. In both markets where special- ty advertising was used, Dallas and Phoenix, sales increases in graphics-the contest'objective-far exceeded total store sales. In the market where specialty advertising was not used, Milwaukee, sales of graphics were down much more than total store sales. Specialty advertising was found to be particularly cost effective in the Dallas market, where profitability far exceeded the cost of the specialties.     

A Content Analysis of Retail Web-Sites

Abstract

A content analysis is presented of Web-sites maintained by the top 100 U.S. retailers. The prevalence of Web-based retailing, sales, merchandise presentation, sales promotion, corporate communication and customer service are examined. Results indicate that while 64 of the top 100 retailers have established Websites, few are using the electronic retail sites for sales, corporate communication or customer service. This study establishes a foundation for theory building and empirical examinations of Web-based retailing. Future directions for research in this area are suggested.     

Custom Publishing

Abstract

The field of “custom communications” is a growing multi-billion dollar market. Custom publishing of magazines and books is a significant segment of the pie, proving the continuing value of print for creating stronger bonds with customers. This article describes a variety of applications for custom publishing in marketing products and services, with important implications for the promotional products industry. The author, who has ghost-written a book for a small advertising agency, focuses on the high potential for specialized magazines and well-written books that target an audience accurately. Included is cogent advice to promotional products professionals on how to go about creating an effective custom publication.