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Impact of Promotion Strategies for Business Organisations

University: University College London

  • Unit No: 10
  • Level: High school
  • Pages: 11 / Words 2640
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 280
Question :

This sample will let you know about:

  • What are business organisations?
  • Explain promotion strategies.
  • Discuss the Concept of promotional strategies.
Answer :
Organization Selected : N/A

INTRODUCTION

Background

The changing market trends and the rising awareness amongst the consumers have forced the companies to increase their promotional strategies. The competition has become more enhanced and the companies are regularly trying to outgrow their existing markets by trying to attract more and more customers to the existing base (Fernandes, 2019). This change in market trends has made the companies increasingly adopt better promotional strategies so that the products of the company can be marketed in a better manner. This rise in the promotional strategies that are being used have impacted the business organizations where it has become tough to compete with daily change in the marketing strategies. Further, the innovation level of the marketing strategies that are being adopted and the increased use of social media in the past decade has completely changed the marketing scenario in the companies. This has led to the increased costs for the companies but has also simplified the marketing in relation to certain aspects (Blachetta and Kleinaltenkamp, 2018). It has become necessary to consider the implications of this radical shift in the marketing and promotional strategies on the companies that are adopting and these and how they are being affected. The research that has been proposed will evaluate what are the positive or negative impact of such promotional activities on the companies. Need Assignment Samples?Talk to our Experts!

Rationale

The reason behind selecting the proposed research topic is that in the past decade, the brands have evolved regularly and the current research will highlight how the promotional activities that are being adopted by the organization impact their operations and how different associated aspects get affected (Ungerman, Dedkova and Gurinova, 2018). The proposed research will further highlight the different challenges that arise in the implementation of such promotional activities by the organizations and how maximum utilization of such strategies can be drawn for the organizational purpose.

Aim

To analyse the impact of promotion strategies on the consumer electronic organizations. A case study on Samsung.

Objectives:

  • To ascertain the changing trends in the promotional strategies.
  • To identify their impact on the performance of the business organizations.
  • To evaluate the different challenges or benefits that such change in promotional strategies has brought upon the organizations.
  • To recommend proper strategies for the challenges identified.

Achieving Aim

In order to achieve the aim that has hence been developed, it is necessary to conduct a proper research. Currently, the research will be conducted on the promotional strategies that are adopted by the Samsung and how it affects the overall operation of the business operations. The research will be done by developing a proper research methodology involving qualitative research where data will be collected through both primary and secondary sources of data collection. The research will select a sample of the employees working in marketing department of Samsung for conducting the primary research and secondary research will be conducted in the manner of literature review. This will help in analysing the issue critically and develop correct solutions for the intended research.

LITERATURE REVIEW

Theme 1: Concept of promotional strategies

As per the view of (Smith and Wong., (2019) promotion can be defined as the overall set of activities that helps to communicate brand, product or services to consumer. The main goal of the promotion is to create awareness in people about product or services in business market. Promotion strategy refers as the plan or tactics which are implemented for marketing plan in order to enhance demand of product. These strategies play vital role in organization because it helps company to put pressure on their competitors through promotion activities. Researchers further illustrated in their article that promotional strategy not only helps to increase awareness of people about product or brand but it also supports company to build trust on product or on brand among public. Additionally, these promotional strategies leads long term success in company when it is well-designed. These strategies ensure profitability in business by providing accurate information and enhance brand awareness. It also boosts customer traffic by offering feedbacks facility and as a result establishing trust of customers regarding the products and their services. It is highly assisting in building sales and profit margin on product or services. There are various trends of promotional strategies which are used by organizations to promote product or enhance brand publicity in global market.

Theme 2: Changing trends in the promotional strategies

The Ungerman, Dedkova and Gurinova, (2018) in their research paper have reviewed that,initially various companies used radio, billboards, banners and pamphlets as promotional media which supported company in making people aware about products or services in market. The authors have discussed the days when business didn't have any software which can use for promotion of product. This media also was popular in early time which was used on wide scale through organization. Later on, marketing automation was another promotional strategy which was highly used by business. Generally marketing automation is the experiment of using software for automating promotion task. It generates high profitability such as enhanced sales productivity while reducing marketing operating expense. It introduces digital platform for company where they can easily improve product publicity in minimum time. Various business works on marketing automation to take excessive advantage by influencing customer engagement. Business offers' multichannel program which includes On-boarding Emails, Social Media and SMS etc. to consumer. Overall programs are part of promotional strategy which supports business to improve customer engagement. Apart from this, these program helps company to update customers about product or brand. Marketer uses social media to schedule branded messages. These messages can support company to influence customer’s at the most opportune time. SMS is also included in multichannel marketing where company can use follow-up messages, gather order acknowledgements etc. Additionally, company offers special offers or mobile ads through SMS. Ask for assignment help from our experts!

As illustrated in another research paper by Bakator and Petrović, (2016) currently artificial intelligence is the latest promotional strategy which is used by various organization to promote their products and builds good relationship with customers. By the help of AI gets various software applications i.e. predictive research, Chatbot, passive user interface and personalized recommendation. It helps organization to create customer segmentation. It helps to reach customer by offering wide variety touch point services. Experimental strategy also consider as promotional strategy which is utilized by marketer to engage public from real world events.

However, some Blachetta and Kleinaltenkamp, (2018) suggests other promotional strategy which is also used by some business. Experimental strategies are used by company, and they even develop official page of company for customers. Organization boosts customer engagement by offering like, subscribe and rating star facility. It not only influences customer attendance but also strong brand image in digital market. This strategy is best for promotion because marketer doesn't have to pay high cost for advertisement. Additionally, it also generates higher sales by creating loyalty of customer on company. Executive brand is the latest promotional strategy which is used by most of the business. This strategy requires high maintenance on a day to day basis. To promote itself, brand uses online presence, using quotes etc. that attracts public towards company. Even some organization also highlights charity efforts which influence customer attendance on brand. Overall trends have goal to influence brand image and generates high sale of product in company.

However, the Choi and Park, (2016), have criticised the above point in their research paper, where they have discussed some drawbacks as well, such as, it creates tough competition among business because various firms starts to use these strategies. Various companies’ use digital media on wide scale rather than offline media like radio and billboards. Researchers express on this fact according to them it is not good for marketing perspective. According to them there are various customer segmentation in which some customer segmentation doesn't have contact from digital media. In that situation company can't to contact with them as result sales can be affected. To remove this issue organization should maintain both platform i.e. offline platform and digital platform. It helps business to reach each type of customers and improves brand publicity in global market.

According to Chong, and et.al., (2017) promotional strategy plays significant role in business performance. It leads business in market as leader and create business position in global market. Promotion strategy also known as marketing strategy which enhance business sales and supports to generate high revenue within company.

Theme-3 Impact on the performance of the business organizations

Promotional strategy act as helping hand of company because it creates a scenario of company in front of public which is used as advertising tool. This tool assist organization to enhance awareness about brand among the people. Additionally, it builds trust of public on product which is promoted by company. It generates sales revenue as result financial performance improves of business. Some authors illustrate through articles is that marketing strategy not only promote promotion but also pricing, distribution and product standardization etc. directly impact on sales and potential customers and financial performance of company. These strategy helps marketer to identify effective communication vehicle which concludes advertising, sales promotion and personal selling. Overall vehicles gives financial profitability within business. Even these tactics prevent other organizations to gaining market segments which is secured by individual organization. Apart from this, it attracts new customer and retain existing customers. Thus, it helps company to maintain sustainable growth in business market. Even some researcher illustrates an example of Samsung company which uses promotional strategy to improve brand image. Samsung uses artificial intelligence and experimental strategy which are the latest strategies. Organization gets beneficial outcomes within company i.e. economical infrastructure improves due to high selling scale. Additionally, organization enables to create brand positioning in global market.

All the same, the Fernandes, (2019), have judged the above point in their articles, where they have discussed some demerits such as it enhances cost of product as well because AI strategy requires high expenses to introduce new technology. Another it requires experts in company to well-designed software's. It requires high maintenance regular basis which is not possible to keep an whole time on software's. 

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Theme-4 Different challenges that change in promotional strategies has brought upon the organizations

As per the view of Haroun, (2016) various businesses gets various challenges by adapting new trends of promotional strategies. Cost elevation is a big challenges for company because marketer requires funds to promote channel so that product promotes on wide scale. Here finance management act as obstacle for marketer because they have role to save extra expenditure and save for further process. Marketer gets negative impact when doesn't get appropriate funds for adaption new promotion strategy. Another challenge is R&D department which also require fund investment to innovate promotion strategy. Organization gets challenge when marketer and sales department doesn't interact to each other in simple one way communication. It becomes complicate for marketer to assemble overall promotional activity by own. Another is recruitment which is become challenge for company when doesn't get suitable employee who can match with marketer skills.

Some Ho, and et.al., (2019) have discussed through their research paper is that a good marketer should have ability to interact with customer and makes them loyal for company to build trust on them. Sometimes wrong selection of employee for promotion department creates challenge for company. They unable to conduct promotional strategy for product promotion that directly impact on sales of product. Promotional strategy is a source of create brand image among public but when some issues occur in the products, as result reduces sustainability of brand in global market as well. Sometimes highly promotions of products discloses information about product property which is beneficial for competitors because they easily copy product and introduce same product in market. It directly gives impact on sale revenue and distract customers as well.

CONCLUSION 

It has been concluded that promotional strategies and their significance. It can be concluded promotional strategy impacts on organization and also has been summarized its aspect on business performance. Various challenges which organization faced while adapting new trends of promotional strategy has been concluded in research. Even it also has been summarized that extensive use of promotional strategies leads negative impact on product promotion, as result organization performance also affect. There are some recommendation for Samsung company such as:

  • Organization should keep balance both type promotion strategies such as digital media and offline media, that helps company to cover each type of customers even they belong from rural area or urban area.
  • Organization should use promotional cost infrastructure that supports Samsung to understand that how much fund should invest on promotion strategy. Additionally, it will reduce conflicts between finance department and promotion department for funds.
  • Recruitment strategy is also good option for Samsung company because when marketer is eligible then enable to well-designed promotional strategy. When marketer is not good then can't communicate promotional strategy in global market. So, it is the best option for company they recruit those employees who have such kind skills which matches with marketer position. Recruitment of talented employees for promotion can reduce turnover of employee as result company performance improve.
  • Partnership with online service firms is beneficial strategy because it will reduce cost o promotion because they don't have to pay high tax to adapt new promotion strategy, that automatically saves funds. These funds' organization can utilize for other marketing activity. So, company should adapt this strategy within company.
  • Strategic partnership with software developers is another strategy which can lead effectiveness in promotion strategy. Samsung doesn't have to pay high funds on R&D department because software developer will provide software facilities for promotions. These funds' organization can use for further activities. Thus, Samsung can enhance economical infrastructure within company.
  • Organization doesn't use extensive promotional strategy for product publicity because it becomes easy for competitors to copy product and introduce on same scale. Therefore, organization should keep limited promotion strategy and shares in limited places.
  • Organization shouldn't use high promotional techniques because it requires high maintenance daily basis. So, it can distract employee's selling behaviour at workplace. So, organization should use limited resources for promotion.
  • Organization should promote sustainable product such as free from harmful rays or affordable product. Additionally, uses some motivational quotes that helps Samsung to builds trust among public about brand or product. Apart from this, it puts pressure on competitors like, Microsoft, MI, Nokia and Apple.
  • To boost engagement of customer should adapt customer relationship management strategy. It is beneficial strategy that helps company to retain exiting customers within company and attracts new customers. This strategy reduces cost of promotion strategy because Samsung don't have to pay high cost for adapting promotional strategy. They can directly communicate customers through their official page and can aware about new product. CRM helps company to build trust on brand and their products and influences buying behaviour of customers for Samsung's product within company. So, organization should implement this strategy within company.

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