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1. Aims and objectives
To increase the efficiency of all marketing functions within the business improvement in the company we will use marketing research.
The marketing process begins with a study of the needs and desires of the consumer. At the stage of product development, study is needed to test the product. The studies provide a basis for making decisions on issues such as pricing, organization and sales promotion.
The main aim is to identify and evaluate the effectiveness of the Promotion mix strategy that Sainsbury used in East ham branch during recession and post recession in UK.
• To evaluate whether the promotional strategies used by the Sainsbury’s address the factors that influenced the customer’s purchase decision making at different stages of implementation
• To understand the promotional mix strategies that the Sainsbury’s adopted during the early recession period (2008-2009, when the company made profits) and whether any changes were made afterwards (2009-2010, while the company is struggling with sales)
• To apprehend the degree to which recession has affected the purchase preference or choice regarding the place, brand and product during recession period.
• To understand the different factors that has influenced their purchase behaviour of the customer from location point of view ( East ham branch in our case)
• To understand the different factors that has influenced decision making process
• To understand if the above factors are different from the period before recession
• To identify the factors that might help the Sainsbury’s to attract more customers by tweaking their combined marketing efforts rather than just focusing on the promotional strategies and suggest recommendations.
• To identify the impact Sainsbury basic range had on the customers.
2. Rationale for choosing the topic
Relevance of the research topic. The increasing use of business principles and techniques of marketing leads to ensure that businesses are experiencing increasing demand for information about their products and persuade consumers to prefer its products. These issues are addressed in one of the elements of marketing – the promotion of goods.
Despite the wide range of facts, opinions and research on the topics mentioned in academic papers and educational literature, the study of sales promotion is not enough well understood by many managers, and does not reflect the peculiarities of certain industries or certain economic situations in organisations, do not consider the organizational aspects of the many ways to promote. Also still remain open questions of classification of methods of promotion, particularly marketing policy issues during the recession and many others.
The emergence of negative trends in the results of the company, and recession, requires a reassessment of the effectiveness of traditional methods of promotion, identifying opportunities for new resources in the complex promotion, optimization of all methods used.
Therefore, in my view in-depth study of promotional mix of products in the enterprise taking into account the peculiarities of functioning, and identification of areas of traditional and new ways to promote its products, is an important task.
3. Theoretical background
Promotion of goods and services is an integral part of the marketing mix, which combines the methods and techniques of impact on customers and other actors in the marketing. It is known that the marketing mix consists of four elements:
– Goods (product),
– Price (price),
– Channels of goods distribution (place),
– Promotion (promotion).
Marketing mix as the term was introduced by H. Borden. The marketing mix, by definition, is an integral part of operational marketing, which means that issues sales promotion should be dealt with consistently and daily.
The English word promotion means moving forward. The literature on marketing, there are two interpretations of progress: according to some authors it comes to promoting products to customers and supporters of this treatment, most other authors have put into this concept meaning “to move the buyer” to take action. Of the publications devoted to the promotion of goods and services must be concluded that the component of the marketing mix – promotion – specifically dealing with marketing communications.
Lets take a closer look at each of the above components.
1. One of the major components of the marketing mix is the Product, or the assortment policy. It depends on the direction of cash flows, evaluation and prediction. The range may vary according to three approaches: vertical, horizontal and integrated. Vertical change in range is the beginning of output, previously purchased from other producers, as well as promoting it in its own trading network. Horizontal change represents expansion and entering new markets within the existing co-operatives. An integrated approach is an extension of range in both the vertical and horizontal directions.
2. Price is the most important economic tool of the marketing mix, it has a direct impact on the character of enterprise profitability. After all, for determining the price of any product key indicators of the possibility of its realization is the demand for similar products, the sensitivity of purchasing power, competitiveness, and the level of costs related to its production and sales. It is therefore very important activity of marketing services company is an informed choice of effective pricing strategy aimed at developing a common policy, or differentiated, high or low, stable or unstable, preferential or discriminatory pricing, and policies that provide all sorts of allowances and discounts.
3. The implementation of product promotion, or Promotion, includes advertising, a public advocate information, direct marketing and internet marketing. All of these strategies aim to promote products by promoting the activities of sellers, intermediaries and, of course, buyers. They are to conduct various activities, contests, lotteries, providing all kinds of gifts, discounts, credit facilities, etc. Their aim is not only an increase in sales and image building for new products, but also the promotion and consolidation of the image of a brand.