An Impact of Tools of Promotion and Situational Factors’ on Consumer Buying Behaviour

Anita  Verma

An Impact of Tools of Promotion and Situational Factors’ on Consumer Buying Behaviour

Understanding the Impact of Promotional Tools and Situational Factors on Indian Consumer Buying Behavior

by Anita Verma*,

- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540

Volume 1, Issue No. 1, Jan 2011, Pages 1 - 6 (6)

Published by: Ignited Minds Journals

ABSTRACT

Companies expend huge amounts of funds as budgets for sales promotion oriented activities. The objective is to promote the produces more attractively and valuably. The goal is to offer the merchandise more attractive and valuable in the eyes of the consumers. A free of cost sample, giving a discount, physical, social environment personated an important part in the advancement of purchasing behavior of consumer and sales promotion. As per the new need of the present era as the knowledge regarding the association between promotional tools and consumers helps in framing the marketing strategies to attract potential customers and converting them active customers which would lead to higher sales promotions are very important these days to motivate Indian buying pattern.

KEYWORD

tools of promotion, situational factors, consumer buying behaviour, sales promotion, merchandise, free of cost sample, discount, physical environment, social environment, purchasing behavior, marketing strategies, potential customers, active customers, sales promotions, Indian buying pattern

INTRODUCTION

In the contemporary period, purchasers depend on the material granted by marketers to buy items. It is an effectual instrument that aids in the assessment of descriptions, and amenities expected to obtain if the merchandise is bought. prearrangement through which purchasers buy items transformed considerably. Diminishing trading outlays, managing with the opposition in the marketplace are challenges confronted by marketers. Companies disburse enormous quantities of funds as budgets for sales promotion focused on activities. The detached is to promote the produces additionally nicely and gainfully. The purpose is to propose the merchandise strikingly and also which is appreciated in the minds of purchasers. A cost-free sample, discount, physical, social environment personified is a significant portion in the progression of buying behavior of purchaser and sales promotion. As per the new necessity of the contemporary time as the information concerning the connotation between promotional tools and purchasers aids in enclosing the marketing approaches to appeal potential customers and adapting to become vigorous customers which would trailblazer to advanced sales promotions are very significant these days to motivate Indian buying habits. Thus, Sales Promotion is an instrument exercised to offer purchasers to buy an item with the benefit offered by the trader. A considerate and planned tender of sales promotion devices is noteworthy to grasp the instruments which touch the rivalry with competitor's strategies relating to distributing free sample, rebates, etc.

LITERATURE REVIEW:

A study of past literature is as summarised below: Chandon, Wan sinks, and Laurent (2000) contemplated it to be striking for exceptionally apt purchasers for reason afar decent quantity of stashes. (Block & Totten, 1994)stated that it included plentiful kind of vending stimuli and technique allied to antiquated critical sales effects. Bawa & Shoemaker, 1987; Krishnamurthy& Raj, 1991; Guadagni& Little, 1983, 1998; Gupta, 1988; Lattin&Bucklin, 1989; Luna & Kim, 2009; it can entice buyers for the usage of funds, generate the expenditure and purchase the merchandise. The price cutback is specified by the purchaser and devices of promotion consisting of a free sample, instituted to reassure purchasers to purchase additional than thought out by them (Gilbert, 1999). Sampling is a technique of philanthropic quantities of items to purchasers deprived of price and buying the product (Pramataris et al.,

2001).

According to (Blattberg and Neslin, 1990) it has a straight impression on the purchaser's buying behavior, is a deed focus on encouraging event. It represents abundant kinds of vending incentives that intend to harvest the crucial sales belongings Totten and Block (1994). There is an association amongst time consumed and societal friends (Nicholls et al., 2002). Amount lessening is a renowned instrument contribution of a lessening in the purchase price, acknowledged on the product or point of purchase presentation (Fill, 2002). Sales promotion displays stimulus on numerous trait of purchaser’s obtaining traditions like brand assortment, (Nijs, Dekimpe, Steenkamps and Hanssens, 2001); clients ’ compassion to value (Bridges, Briesch and Yim, 2006).

OBJECTIVES OF SALES PROMOTION:

1. To introduce in the market new products through the persuasion of customers. 2. To attract the customers by giving gifts, discounts on purchases. 3. To increase sales in the depression period. 4. To create goodwill among past and potential purchasers. 5. To create a public image among past and potential purchasers.

REASONS FOR INCREASING USAGE OF SALES PROMOTIONAL ACTIVITIES: 1. BRAND PROPAGATION:

There is a trend towards increased usage of branding to highlight products from other competing products. More and marketers are increasingly using Sales promotion for distinguishing brands and creating a brand image in eyes of purchasers.

2. PRESSURES OF TRADE:

Due to the growth of supermarkets and a large number of retailers, there is competitiveness among traders to come up with more and more sales promotional activities.

3. RECISSIONARY TENDENCIES:

Even during the recession, the consumers can be continuously offered Sales promotion so that sales activities are not altogether pretentious during such periods as discounts, rebates, etc. The adoption of such activities keeps the sales stable.

4. QUICKER RETURNS:

As soon as Sales promotional activities are undertaken it shows immediate results in terms of boosting up sales and provides immediate profits.

5. COMPETENT STAFF:

In several companies, competent staff is assigned duties to promote sales, who are required to implement the latest techniques to make an edge in the market.

6. ATTITUDINAL CHANGES:

Traders are increasingly realizing that more and more traders are now switching to Sales promotion and hiring MBAs in marketing with the assignment of duties relating to drafting unique sales promotion campaigns.

OBJECTIVES OF PAPER:

1. To analyze sales promotion as an instrument for marketers. 2. To study the challenges of sales promotion. 3. To examine the benefits of sales promotion. 4. To evaluate the sales promotional activities of marketers.

DEVICES OF SALES PROMOTIONAL ACTIVITIES

Free Samples:

A free sample entails a benefit to consumers no amount is to be expedited for such an item given for trial bt the traders to get the product familiarized among purchasers.

Discounts/Allowances/Rebates/Price Offs:

Price promotion does manipulate new product tests (Brand week, 1994), Percy et al (2001) reported customers

to pay attention to price-off promotions. Coupons Discount:

Coupons entitle to a specific saving on purchasing a product.

Premium or Gift:

It may entail giving gift /free of cost/with pack premium /reusable bottle/free in mail premium. Toothbrush free with toothpaste, conditioner free with shampoo,50 gm free with 250 gm pack, etc Quantity Dealings: Trader’s draft packages like extra/free at the same price .purchaser acquires a bigger magnitude of items at no extra cost.

Public Relations:

It entails undertaking those programs by which the public image improves for example Independence Day or

Diwali wishes etc. Fairs and Exhibitions:

Arranging trade fairs, exhibitions add to the promotional activities by the traders. Display of products: Traders are adopting window displays, stylishly decorating stores as persuasive activities to attract purchasers.

CONCLUSION:

This paper is important as all companies aim to minimize costs and maximize profits. The future course of action is recognizing sales promotion tactics that are relevant to the management of consumers.

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Corresponding Author Anita Verma*

Senior Lecturer, Department of Commerce