Sales Distribution Case Study

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Conceptualization attempts to visualize the causality of the research problem prior to understand this research in detail. In this research it is planned to explain the relationship between promotion mix and sales volume. 2.4.1 Sales Promotion Sales promotion is defined as a special offer or a part of marketing communication activities (Peattie, 1998; Alvarez and Casielles, 2005). Other studies defined sales promotion as an offer or incentive that induces manufacturers, and retailers, desired sales result (Gilbert and Jackaria, 2002). Sales promotion can also be referred to as any incentive used by manufacturers or retailers to provoke trade with other retailers or with other channel members, or with consumers to buy brands apart from encouraging…show more content…
Too much concentration on the US market and consumer perspectives had made the application of sales promotion in other regions insignificant (Huff and Alden, 1998). In addition to this, most of the studies done on sales promotion mainly concentrated on the use of monetary promotions (Garretson and Burton, 2003) where little research has been done on the non-monetary promotions aspect and with little focus on the Asiamarket in particular (De Run et al., 2010). Studies in Malaysia found that for retailers or manufacturers to encourage customers to patronize their stores, sales promotion would seem to be the most appropriate method or medium (Ndubisi and Chiew, 2005, 2006). Previous studies showed that when properly implemented sales promotion techniques would help retailers or manufacturers to encourage customers to patronize their stores and to try out the products and services being promoted, and in return would help the retailers and manufacturers to achieve their objectives (Alvarez and Casielles, 2005; De Run and Jee, 2008). Malaysian consumers’ behaviour and purchase patterns indicated that the most widely implemented and liked sales promotion techniques by retailers and manufacturers in Malaysia were coupon, price discount, free samples and bonus packs (De Run and Jee, 2008; De Run et al., 2010). Malaysian consumers are less likely to feel embarrassed to enjoy money-saving promotional offers (Ndubisi and Chiew, 2005). This mainly occurred because they see these promotional offers as a sign of opportunity to buy more and it is worth to buy. This was rather different compared to countries like Japan, where they see it as a sign of poverty or losing face even though they were categorized similarly as a collectivist country like Malaysia (Kashani and Quelch, 1990; Singelis and

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