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Transcript
DQ 1
To evaluate a sales promotion technique one needs to first determine what the goal of the
sales promotion is. Only when one first understands the goal of a sales promotion can one then
evaluate whether the sales promotion techniques. A sales promotion can be targeted to achieve
market share, to entice new customers, to sell unwanted stock, and many other things. The first
step after determining the goal is to investigate whether that goal was achieved. If it was, then
the sales promotion was clearly effective and the organization met its goals.
Another method to evaluate a sales promotion technique is to determine if the technique
properly targets the desired consumer. If it does not, then it will not succeed in its goal. Add to
this the idea that a sales promotion has to not just target the desired consumer but must also
cause the specific consumer to respond positively. If the sales promotion technique obtains a
positive result then it is a good technique. Another important factor to consider is whether the
sales promotion maintains the company’s current market position and respect. There are times
that a sales promotion can harm an organization’s status in the market. The sales promotion an
organization selects, therefore, must be one that not only achieves specific goals and is positively
taken by consumers but one that also is in line with the organization’s image in the marketplace.
An organization that has too many sales promotions, for example, may be seen as offering lowquality goods consumers do not want or as being too over-priced normally. Conversely, an
organization that rarely offers sales promotions can, when it does offer a sales promotion, greatly
benefit as consumers see it as very “special deal” that they can finally afford to purchase. These
are several of the criteria I would consider in evaluating a sales promotion technique.
Response to RESPONSE FOR DQ 1: hum.... being that I am in sales, and I know the
techniques we use, I'd have to say marketing promotions, outside of sales makes me wonder
what's up? Recently the company I work for heavily discounted a few software sales items. The
reason they decided to do discount is because we wanted market share and the CFO and the
Marketing VP thought discounting would be a good way to obtain market share. They even
thought that much of a discount would cause the hospital CFO's to jump so much on the deal,
they would not go through the normal process of due diligence. We found, in today's world,
hospital CFO's still Proform the due diligence despite the deep discount. Personally, whenever I
see a deal too good, the first question I ask is why? I never purchase a big ticket item without
understanding why the sale and what's missing
The writer above provides a good point about a sales promotion. Many consumers
approach them with distrust, especially when the promotion seems “too good to be true”. This is
an important point to consider but there are other issues one can use to evaluate a sales
promotion and this response does not discuss those. It focuses on one specific experience but
needs to consider elements outside that area to provide a more complete answer. The sales
promotion discussed here is also very specific to one industry and sales promotions in different
industries are often received in different ways by the market and consumers.
Response to RESPONSE FOR DQ 2: I know that there are many sales techniques and I have
seen many of them being in retail for so many years. I think some companies like Wal-Mart at
least in the past have not put as much into sales techniques because low prices is part of their
culture. The interesting thing about Wal-Mart is that they take the discount from the vendor in
high volumes then they can pass the savings on to the consumer. I think through the years WalMart has gotten lazy on their sales, but recently they fired their 2 marketing companies and
hired 2 new ones because they just were not doing a good job in my opinion.
Now Kohl's which I currently work for, they bring in the merchandise, most of it exclusive brands
to Kohl's. When the ticket comes in the price is higher than most people would like to spend, but
some do, but usually immediately after the merchandise comes through the door it goes on a
sale. We have promotions all the time and they are very effective, most customers have learned
to wait and purchase the item when it goes on sale. What is usually not understood about a
sales promotion is that the items being featured may be slow sales generating items so they
take a little off and try to move it.
This provides an interesting review of sales promotions but does not provide any means
to evaluate a sales promotion. The reasons provided for why a sales promotion takes place and
the different types of sales promotions taken by discount retailers is good information. This
information, however, does not provide any means to evaluate the sales promotion. It is true that
many do not understand that sales promotions at many retailers are used to move slow selling
items, but many persons do know this. There is a reason the least popular colors and sizes are
often the only ones left on sale and many recognize this is because most others do not want them.
This provides a reason why sales promotions are conducted, but does not offer a way to evaluate
a sales promotion.
DQ 2
The greatest driving force behind direct marketing is the relatively low cost of the process
in comparison to traditional forms of marketing. Particularly with targeted Internet
advertisements, e-mails, and mailed cards or information many consumers can be reached at a
fraction of the cost that a marketer would have to pay otherwise. In addition, the ability to focus
on specific consumers who are believed to be more receptive to the marketing message is a great
improvement over a marketing action that may or may not be effective if delivered to a wide
audience. A third driving force is the availability of multiple technologies that can be used to
cost-effectively target very specific customers. E-mail and instant messages, for example, often
require consumers to sign up for the marketing information. This factor helps marketers again
benefit from eager consumers who clearly want to hear their marketing messages. In short, better
targeted marketing and a greater likelihood or positive consumer response also drives direct
marketing growth.
Direct marketing can often be seen as junk mail, but, if done appropriately, is not. Junk
mail does no work to target its message to parties who may be interested in the message. Junk
mail is sent to every possible person, without any determination of a person’s interests,
demographics, or other factors that help determine whether that person is likely or unlikely to be
interested in the message the marketer is sending him or her. The result is that junk mail is far
more likely than direct marketing to be ignored or tossed out. Direct marketing provides
messages consumers want to hear but junk mail is often seen as an intrusion into a person’s life
and is, therefore, rarely welcomed. Junk mail, as it lacks much of the preparation direct
marketing employs, is, however, less expensive to use than direct marketing.
RESPONSE TO ANOTHER FROM WHAT THEY WROTE FOR DQ 2 Differences between
Junk mail and direct marketing. LOL some would say the differences are in the eye of the
beholder In my industry we use direct marketing a lot. We call it market segmentation, but I think
it is all the same. Direct marketing is when the consumer has expressed an interest in the type
of product, and those people who make the product then send information directly to those
individuals who what to purchase that type of product. An example, our inside sales team
speaks with a hospital and the inside sales person discovers this hospital has certain topics on
their list of things to accomplish. With their permission, our company will randomly send
information based on the hospitals interest. Junk mail is when each mail piece is sent to
everyone in a region or area. An example, all mail received advertising air conditioning repairs,
just because it is assumed the address is residential and the person in the home has an air
conditioner. This type of advertisement is intended to remind the customer that he or she has air
conditioning maintenance on the list and needs someone to fulfill the need.
This writer provides a good explanation of both direct marketing and junk mail. The
description about the use of both effectively describes them and makes them easy to understand
as separate. The writer also effectively describes the fact that to many consumers the two are the
same. This is an issue that may affect the acceptance of direct marketing for many and it is an
important one for those who engage in direct marketing to consider. To avoid negative
comparisons between the two it may be a good idea for those who conduct direct marketing to
remove anything that may make their marketing appear to be junk mail.
RESPONSE TO ANOTHER FROM WHAT THEY WROTE FOR DQ 2: The driving forces to the
growth of direct marketing is gaining the interest of the consumer through quality products that
they either need or want. In many cases the more appealing the item the more the want.
I buy allot of health supplements for my workouts and fitness lifestyle, as I purchase my
products the company gaines my information. Then when sales on items occur that matches my
choices for previous purchases the company sends marketing campaigns in the form of
coupons or savings codes to my by either mail, e-mail or in the case of the local GNC they call.
Junk mail is random marketing sales campaigns sent out in bulk, it usually happens when your
information is sold to other companies or they just randomly got it.
This writer effectively describes the differences between direct marketing and junk mail.
The explanation of a driving force, however, is more a reason of why direct marketing is
different from junk mail, not a reason why marketers use direct marketing. Gaining the interest
of a consumer is what all marketing is meant to do. I cannot, therefore, be a driving force behind
direct marketing campaigns. The fact that direct marketing often arises out of direct interaction
between the consumer and the organization where the consumer provides contact information,
however, is an important part of direct marketing that junk mail does not have.