To identify the various types of sales promotion applied to the Mauritian supermarkets/hypermarkets.

To analyze the knowing of sales advertising among the Mauritian consumers.

To evaluate the several types of buying behavior that arises because of sales promotion.

To examine the effect of various kinds of sales promotion such as for example coupon, free sample, buy-one-get-one-free, bonus pack, price tag discount on the investing in behavior of customers in the Mauritian supermarkets.

2.0 Introduction

This chapter offers a review of past literatures on product sales promotion and different types of sales promotion, such as coupons, free trial, buy-one-get-one-free, bonus pack and price discount.

It also relates buyer response towards sales promotional tools in the Mauritian supermarkets.

2.1 Sales advertising defined

Sales promotion is a primary inducement or incentive to the sales force, the distributor https://kiteessay.com/custom-writing-service or the consumer with the principal objective of creating an instantaneous sale. (Schultz and Robinson, 1882).

Quelch (1989) defines revenue promotion as short-term incentives targeted at the trade (trade offers), or at end consumers (consumers promotions). Sales promotion is among the four ingredients of the promotion blend. The additional three are personal offering, publicity and marketing. According to Quelch, sales special offers differ both in purpose and nature from marketing. Sales promotions are typically seen as an easily executed method of boosting short-term sales whereas advertising sometimes appears as building brand photograph.

Shimp (2003) stated that sales promotion refers to any incentive utilized by a producer to induce the trade (wholesalers, retailers, or other channel members) and customers to buy a brand and encourage the sales force to aggressively offer it. Retailers also use promotional incentives to motivate desired behaviors from consumers. Sales promotion is considerably more short-term oriented and capable of influencing behavior.

The targets of any promotional strategy are to increase product sales; maintain or improve industry show; create or improve company recognition; create a favorable climate for future revenue; inform and educate the marketplace; create a competitive benefit, relative to opponents products or market placement; improve promotional proficiency. (Rowley, 1998).

2.2 Types of sales promotion

According to Smith (1998), there are three main categories of sales promotion:

Customer promotions (Premiums, presents and prizes)

Trade promotions (Special conditions, point-of-sale materials and no cost pens, diaries, and competitive prizes amongst others)

Sales force offers (Incentive and motivation schemes)

Tellis (1998) brings additional that, in practice, there two types of revenue promotion: Monetary and Non-monetary sales promotions. Monetary campaigns are for instance, shelf-price discounts, vouchers and sampling. They have a tendency to provide fairly immediate benefits to the consumer and they are transactional in character. Alternatively, non-monetary sales marketing promotions include free gifts, contests and sweepstakes for example. It tends to involve delayed rewards and are more relationship-based.

2.3 Supermarkets and Hypermarkets defined

A supermarket is comparatively large, low priced, low margin, high-volume personal service operation design and style to serve the consumer’s general demands for meals, laundry and household repair goods (Kotler and Armstrong, 2001). The area included in a supermarket can be about 400 – 2500 square meters. Examples of supermarkets in Mauritius are Winners, Spar, Way and Dream Price, Value Max and Lolo supermarket amongst others.

Hypermarkets are bigger than supermarkets and offer a big assortment of routinely purchased food products, non-food items and products and services which meet the consumers’ total have. Hypermarkets can have at least 50,000 square feet of selling and may handle more than 40,000 products. These outlets usually are on the outskirt of towns or places and so are complemented with 30 to 50 shops, specialized in various products. The hypermarkets and combination of shops consequently offer clients a one-stop shopping. For instance in Mauritius, Shoprite, Jumbo, Super U and Intermart are categorized as hypermarkets.

2.4 Supermarkets and Hypermarkets of Mauritius

It is without doubt that during the past decades considerable changes have been occurring in the Mauritian retail marketplace. Unprecedented growth in fresh retail formats, adjustments in competition, buyers, technology and takeovers happen to be occurring throughout nearly every part of the Mauritian retail sector and several types of retail establishments have already been appearing from corner outlets to hypermarkets. There were major developments in the retail sector of Mauritius. For instance, the arrival of Desire Price, Value Max and Lolo supermarket in different location of Mauritius have got intensify the level of competition.

2.5 Buyer response towards sales promotions

Promotions arouse two reactions in persons. Firstly, it is an increase in consumption, that’s, more quantity of a product is acquired. Secondly, it’s the storage of the merchandise for the future, that is, the consumer functions in anticipating his buys.

Promotions have been displayed to affect consumers straight in many ways, leading to:

Brand switching

Brand loyalty

Purchase acceleration

Stockpiling

Product trial

2.5.1 Brand switching

According to Gupta (1993), it is possible that consumers who usually do not buy a brand would want to acquire it because they are attracted by the product sales promotion. But, Brandweek (1994) found that some people who change brand due to a promotion, change back again to their favourite brand because of a promotion change back again to their favourite company when buying that category of product later.

2.5.2 Brand loyalty

Brand loyalty is an important concept in understanding client buying behavior. It really is "a deeply held dedication to re-purchase or re-patronise a recommended product/service consistently in the future testmyprep, thereby creating repetitive same brand purchasing, despite situational influences and marketing how to write an essay introduction efforts getting the potential to cause switching habit" (Oliver, 1999)

2.5.3 Purchase acceleration

Two aspects of purchase acceleration should be considered: Increased quantity and Reduced interpurchase period (Neslin, Quelich, Henderson 1982). However, you will find a very important question about how these two aspects will influence one another as a result of stockpiling effect. Pay for acceleration is normally predominantly exhibited in elevated purchase quantities rather than shortened interpurchase period (Gupta, 1988)

2.5.4 Stockpiling

Research has discovered that promotions have a poor effect on brand equity (Jedidi et al., 1999), boost variability and volatility in revenue and thus increase inventory management challenges, increase consumer value sensitivity which leads to increased purchases made on offers, and produce stockpiling behavior (buying in every volumes that reduces long-term sales volume).

2.5.5 Product trial

Peter and Olson (1996) put forward that trial ability refers to the amount to which a product can be tried on a restricted basis or split into small quantities for an economical trial. Banks (2003) wrote that with sales promotion, makes have a chance to quickly affect consumer decision and behavior by adding value through an on-pack offer, by attaining incremental display or by encouraging trial via sampling and/or discount coupons.

According to the trial and do it again style mentioned by Thomas (1993), it really is generally assumed that of all potential buyers in confirmed time period, only those people who are aware of the brand new product could potentially try it (trial), and only those who try it could potentially buy it again (do it again).

2.6 Product sales promotional tools

2.6.1 Coupons

Coupons are often understood by the buyer and highly valuable for trial purchase (Make, 2003). Relating to Blackwell et al. (2001), a manufacturer might utilize coupon incentives to inspire consumers to try a new flavored item at a discounted price, instead of purchasing the same flavor they normally perform at full price. Cheong (1993) discovered that supermarket coupons boost the number of things bought without increasing the total amount spent.

2.6.2 Price reduction

It is well-known that price reduction produces a short-term volume gain for the company being promoted. After studying the effects of price reduction on the revenue of 25 products in four countries, Ehrenberg et al. (1994) identified that short-term peaks in revenue were due mostly t purchases made by occasional users of a manufacturer rather than by clients. Also, after taking good thing about the price reduction, consumers mostly go back to their favorite brands in their portfolio rather than buy the promoted brand at a high price.

2.6.3 Free sample

Free sample is definitely another important promotional tool often used by marketers. Marketers often mail no cost samples of products to consumers to ensure that they can try the products for themselves, instead of just hear about the products (Kardes, 1999). But, Gilbert and Jackaria (2002) discovered that a free of charge sample as a promotional tool often had no significance on consumers’ reported buying behavior.

2.6.4Benefit pack and Buy-one-get-one-free

Lee (1963) mentioned that factory bonus pack is employed to increase buyer trial of the brand. Since more of the product is included at no extra expense, consumers can be persuaded to buy the product if indeed they feel it represents a package that produces the best value for their money. Regarding to Gilbert and Jackaria (2002), packs with "Buy-one-get-one-free" may not increase brand consciousness before trial purchase as the customer will only come across the merchandise once in the retail outlet (unlike samples or deals), however, it the advertising is noticeable, it will facilitate brand recognition and company recall for future buys. Since an additional amount is given free of charge, consumers may be persuaded to buy the merchandise if indeed they feel it represents a fair deal that provides value for money.

2.6.5 In-store display

In-store display may be the product featuring and display in-store (Pramataris, 2001). Display promotions could be an important part of an integrated marketing communication programme. Great display material contributes to better attention, especially for brands driven by reputation consciousness. Percy et al. (2001) advised that display should be consistent with consumer promotion and advertising, eith the same look and feel, to be able to increase recognition at the idea of purchase.

2.7 Summary

Due to substantial profitability, many shops have entered the retail industry in Mauritius. The arrival of supermarkets and hypermarkets appears to continue to emerge and exist, nonetheless they are however facing increased competition. Distance is no more a trouble in Mauritius since many persons have their own transfer facility and the neighborhood transport service is really as well more efficient in comparison with long ago.

One main evaluation in the literature is certainly that little research has been completed on the marketing equipment in Mauritius. As such, this provides room for a thorough research to be carried out on various kinds sales promotional tools adopted inside our supermarkets/hypermarkets; and the responded behavior of the consumers towards the various tools utilized.

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