Price Promotion Model

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Allender and Richards explain that retail price promotions involve essential decisions that must be wisely thought out and executed in order to increase sales of the projected product and overall profits. Their two hypotheses, which are later confirmed correct, concern the relationship between the depth and the frequency of discounts in terms of brand loyalty at the retail level which are: weaker brands are marketed with a larger discount to attract a stronger brand’s loyal customers and because the likelihood of this occurring is low, the retailer will promote the stronger brand more often. The authors also mention the work of Raju, Srinivasan and Lal who developed a theoretical model that outlines how variations in the depth and frequency…show more content…
They list the purpose and goals of price-promotions and then compare these to what companies are currently conducting to show these goals being achieved. Their results suggest a need to improve business intelligence in retail organizations and manufacturing companies to increase price promotion decision making that is based on observations. The authors note how Reibstein, Day, and Wind (2009) observed an increasingly large gap between marketing executives and academic marketers, making it clear the need for the marketing academic community to work on pertinent business problems. The authors note the importance for more research, specifically into the differences between the price-promotion decision-making of traditional and nontraditional retailers. The article is mostly relatable to academic researchers and retail organizations on the management level searching to increase their intelligence of how to properly promote their…show more content…
The authors also note that trainers with human performance technology skills may contribute considerably to strategy development and execution, eventually contributing to organizational success. An important take-away from this article is that human technology performance technology improved retail sales performance in a company in the Chinese telecom industry. The results emphasize the benefits of assimilating HPT along-side marketing strategies, as well as the significance of establishing partnerships between training staff and marketing professionals. Fu mentions his earlier work with Jones, Bridging research and practice: How sales training can contribute to new product launch success, which also helps with performance improvement in the retail industry. This study faced constraints of time and resources and therefore only focused on causes that were key and under their control to ensure feasibility, which limited what they were able to review. The article is very easy to understand for any eye, but it’s directed that retail sales on a management level. This article is applicable to the retail industry because most well-planned marketing strategies fail because of poor execution, which the authors mention is very serious for organizational performance. This case provides

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