10 Trends Of The Market That Have Showed Influence Of Promotional Strategy Of Companies

In 1987 Douglas Haley identified 10 trends of the market that have showed influence of promotional strategy of companies. Some of those trends are valid till now.

1. Promotion Proliferation:

There are many forms and combinations of sales promotions techniques that are being used nowadays.

Their relative importance might change over time but the fact is that they are growing both in terms of the money spent on them and in variety, that includes uses of new media and new forms of communications. For example the Big Bazaar’s “Naya Lao Purana Le Jao is a very interesting scheme where people can bring in any old scarp from home sell it against their weight and get discount coupons in lieu of that. Now they can purchase anything new and redeem those discount coupons.

2. Scanned data:

Nowadays we possess incredible amount of very valuable information obtained via scanners (RFID) in the retailing stores. The industry has the technology to track the purchases, however in our country CRM is not up to the mark. The industry hasn’t really discovered the ways to use this data very efficiently. This definitely presents a real challenge for future research.

3. Decreasing response time:

This is relevant both for the consumers and for the companies. With the improving communication channels and the increase of the speed of communication process consumers are responding faster to the promotional offers, if they are interested. The same principle holds for the competitors’ response – companies tend to react faster to the promotional offers of their rival, decreasing therefore the amount of return on the initial promotional offer of competitor.

4. On-line promotions:

This is a new challenge in the world of promotions. While writing about the sales promotion nowadays, one can’t ignore the issue of increasing sales promotional activities online. This is very important and valuable component of dot.com operations. Coupons and other type of promotions have very important role in driving traffic to the website and in overall company’s operations.

Submitted by : Dr. Damian, Category : Market, Tag : Company