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Sales Promotion

In: Retailing in the 21st Century

Author

Listed:
  • Karen Gedenk

    (University of Cologne)

  • Scott A. Neslin

    (Tuck School of Business at Dartmouth)

  • Kusum L. Ailawadi

    (Tuck School of Business at Dartmouth)

Abstract

Sales promotions are a marketing tool for manufacturers as well as for retailers. Manufacturers use them to increase sales to retailers (trade promotions) and consumers (consumer promotions). Our focus will be on retailer promotions, which are used by retailers to increase sales to consumers. Typical examples of retailer promotions are temporary price reductions (TPRs), features, and displays. Sales promotions have an important role in the marketing programs of retailers. A large percentage of retailer sales is made on promotion, as illustrated by the numbers in Figure 1. Also, retailer promotions address consumers at the point of sale. Thus, while advertising in classic media is becoming less effective, communication through promotions reaches the consumer at the place and time where most purchase decisions are made. The Point of Purchase Advertising Institute (POPAI) finds in a study from 1999 that the in-store decision rate of consumers in Germany, for example, is 55 %, meaning that more than half of all purchase decisions are made in stores, as opposed to before the shopping trip.

Suggested Citation

  • Karen Gedenk & Scott A. Neslin & Kusum L. Ailawadi, 2010. "Sales Promotion," Springer Books, in: Manfred Krafft & Murali K. Mantrala (ed.), Retailing in the 21st Century, pages 393-407, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-72003-4_24
    DOI: 10.1007/978-3-540-72003-4_24
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    Cited by:

    1. Vafainia, Saeid & Breugelmans, Els & Bijmolt, Tammo, 2019. "Calling Customers to Take Action: The Impact of Incentive and Customer Characteristics on Direct Mailing Effectiveness," Journal of Interactive Marketing, Elsevier, vol. 45(C), pages 62-80.

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