The Art of Gaining and Retaining Customers - Is Sales Promotion the Key to Succesful Marketing?

Table of Contents

1 Introduction

1.1 Background

1.2 Problem formulation

1.3 Aim of the study

1.4 Limitations

1.5 Disposition

2 Marketing Concepts and the Customer

2.1 Sales Promotion

2.1.1 Purpose and Objectives

2.1.3 Tool box

2.2 Relationship Marketing

2.2.1 Relationship vs. Transactional Marketing

2.2.2 Benefits and Inadequacy

2.3 The Customer

2.3.1 Purchase decision-making process

2.3.2 Deal proneness

2.4 Former research

2.4.1 In general

2.4.2 Sales Promotion in Germany

2.5 The research model

3 Method

3.1 Research design

3.1.1 Approach

3.1.2 Strategy

3.1.3 Questionnaire

3.1.4 Sampling

3.2 Research quality

3.2.1 Reliability

3.2.2 Validity

4 Analysis of the empirical findings

4.1 Demographics

4.2 Effectiveness of promotion tools

4.2.1 Samples

4.2.2 Premiums

4.2.3 Coupons

4.2.4 Loyalty Cards

4.2.5 Sweepstakes

4.2.6 Customer’s preferences

4.3 Effects on the decision-making process

4.3.1 Problem/Need recognition

4.3.2 Information search

4.3.3 Evaluating alternatives

4.3.4 Making the decision

4.3.5 Post-purchase evaluation

5 Discussion

5.1 Consequences for companies

5.1.1 General attitudes

5.1.2 Attitudes towards promotion

5.2 Conclusions

5.2.1 Effectiveness and influences of sales promotion on the decision-making process

5.2.2 Is long-term customer relation appreciated?

5.2.3 Combining sales promotion and relationship marketing

5.2.4 Achievement of aims

5.3 Outlook

Study Objectives and Research Focus

This thesis examines the effectiveness of sales promotion tools in Germany and their impact on consumer purchase decision-making. The authors aim to understand whether these short-term marketing methods can be effectively linked with long-term relationship marketing strategies to enhance customer loyalty and optimize marketing expenditures.

• Effectiveness of various sales promotion tools (samples, coupons, premiums, loyalty cards, sweepstakes)
• Influence of sales promotion on consumer decision-making phases
• Relationship between consumer deal-proneness and marketing instrument performance
• Strategies for combining short-term promotions with long-term customer relationship building
• Analysis of consumer attitudes and preferences in the German retail market

Excerpt from the Book

Chapter Summary

1 Introduction: Provides background on market developments, defines the research problem, and outlines the study's aim and limitations.

2 Marketing Concepts and the Customer: Discusses the theoretical framework of sales promotion and relationship marketing, including consumer behavior models like deal-proneness.

3 Method: Details the research design, specifically the quantitative survey method, sampling strategy, and an evaluation of research reliability and validity.

4 Analysis of the empirical findings: Presents the primary data collected from 471 German respondents, analyzing the effectiveness of individual tools and their impact on the decision-making process.

5 Discussion: Interprets the findings, draws conclusions regarding marketing strategies for companies, and provides an outlook for future research.

Keywords

Sales Promotion, Relationship Marketing, Consumer Behavior, Purchase Decision-making, Deal-proneness, Samples, Coupons, Premiums, Loyalty Cards, Sweepstakes, Brand Loyalty, Market Saturation, Germany, Quantitative Research, Marketing Efficiency

Frequently Asked Questions

What is the core focus of this research?

The work focuses on analyzing the effectiveness of different sales promotion instruments in the German market and how these tools influence customer behavior at various stages of the purchase decision-making process.

What are the primary marketing tools investigated?

The research specifically covers five key tools: samples, coupons, premiums, loyalty cards, and sweepstakes.

What is the main research objective?

The main objective is to determine if sales promotion is an effective instrument for influencing decision-making and to investigate whether these short-term tools can be successfully integrated with long-term relationship marketing approaches.

Which methodology was used for the study?

The authors utilized a quantitative research approach, conducting an online self-administered survey in Germany, which resulted in 471 valid responses.

What does the main part of the paper cover?

The main body of the paper connects theoretical concepts with empirical findings, analyzing demographic data, the perceived effectiveness of specific tools, and the influence of these tools on the consumer's decision-making journey.

Which keywords define this study?

Key terms include Sales Promotion, Relationship Marketing, Consumer Behavior, Purchase Decision-making, and Deal-proneness.

How do German consumers perceive sweepstakes according to this study?

The study found that sweepstakes are generally ineffective at building brand awareness in Germany; most participants could not remember the organizing companies, and many viewed them merely as entertainment or a method to harvest personal data.

What is the conclusion regarding loyalty cards?

The authors conclude that while loyalty cards are a popular attempt to bind customers, their actual influence on store selection is limited, suggesting they require improvements to provide higher value and better integration to be truly effective.

Are samples considered effective?

Yes, the study concludes that samples are a highly recommendable tool, particularly for driving trial and interest in new products, as they effectively reduce the consumer's "fear factor" regarding the unknown.