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Sales Campaigns today – challenges and success factors

Written by S. Sreenivasan

Paper category

Term Paper

Subject

Business Administration>Marketing & Sales

Year

2021

Abstract

Term Paper: A sales strategy is a plan that outlines how an organization will perform its sales function, with the goal of selling products, services, or both, and increasing profits through organic growth (Kuosa, 2017). Defining the customer base and understanding the added value that an organization can bring to target customers is an important part of the sales strategy (Kuosa, 2017). In addition, due to the importance of the sales organization in managing customer relationships, it is important to consider sales strategies. Traditionally, the role of marketing has shifted to the development of sales and customer relationships (Kuosa, 2017). The evolution of sales strategies over the past few decades reflects changes in the relationship between suppliers and customers. Due to globalization and market development, customers' bargaining power and bargaining space have been increased. Therefore, customers can now choose their suppliers more freely (Kuosa, 2017). In the past ten years or more, customers’ purchase methods were different from before, and at that time, they showed greater interest in customization (Cummins, 2008). Today's customers are more interested in the content provided by the product and therefore respond faster to new products. Until now, many brands have used increasingly innovative methods to meet customer needs, especially those who want to be different from the market (Cummins, 2008). Marketing incentives mainly include short-term and mainly short-term strategies, such as short-term discounts and free samples, and promises to lower prices that affect consumers' purchasing decisions when trying to purchase products (Cummins, 2008). In terms of impact, customers outside the order of the promotion make a purchase decision immediately, rather than a longer decision-making process (Cummins, 2008). Among all the basic elements, the most important to the marketing mix is ​​promotion. This is to motivate consumers to buy products faster, rather than to promote public information (Cummins, 2008). Promotion is a specific goal for customers in a specific market, the purpose is to persuade them to directly change their product behavior (Nyazi, 2008). Creative and retail promotion activities can be divided into three categories, which are carried out by manufacturers, sellers and retailers (Niazi, 2008). Manufacturers often use consumer promotions such as coupons, samples, contests, sweepstakes, and prize packages to encourage actual consumer purchases. Manufacturers use trade promotions such as commodity subsidies and refunds to encourage marketing intermediaries or channel members to stock and promote their products (Niazi, 2008). Sales promotion should be considered in a broader sense, not just price promotion. Hansen & Sia (2015) pointed out that TheOnline world, mobile devices and social media have changed the retail consumer experience, allowing shoppers to learn and buy anytime, anywhere. According to a Deloitte report (Hansen & Sia, 2015), consumers are gradually using different platforms in their buying habits. More than 20% of consumers follow products on social media, 75% of consumers browse and study online before visiting a physical store, and 56% of consumers use smartphones for shopping-related searches, even in stores. Some shoppers "showrooms", that is, they often use the store as a showroom at a lower price before buying online (Hansen & Sia, 2015). Another Forrester3 report found that consumers' preference for multi-channel shopping has increased accordingly. According to this report, 71% of consumers plan to display in-store inventory digitally, while 50% of consumers want to shop online and pick up in-store. However, only one-third of stores have some simple "omni-channel" (an automated multi-channel sales and marketing method) capabilities that can combine online and offline platforms to interact and serve consumers (Hansen & Sia , 2015). Omni-channel marketing is based on a customer-centric approach, including the overall consumer experience. No matter what platform is used, the customer's purchase process is consistent and straightforward (Payne, Peltier & Barger, 2017). Omni-channel management is described as “collaborative management of various available channels and consumer touch points in a way that optimizes cross-channel customer experience and channel efficiency” (Payne, Peltier & Barger, 2017). The most important connection is with the brand, not the platform. Mobile applications have brought earth-shaking changes to the retail industry, blurring traditional cross-channel boundaries. Omni-channel IMC is not just a tactical mechanism, it is a key strategic component to achieve platform and message continuity throughout the enterprise (Payne, Peltier & Barger, 2017). Multi-channels are becoming more and more important for all companies in all industries. In this new customer era, customers manage more information than companies, and they compare the products and services they buy (Domínguez, 2018). Omnichannel companies improve customer satisfaction by providing the right products at the right prices and delivering them through the right fulfillment channels (Domínguez, 2018). In addition, these companies have a deeper data science understanding of shopper needs and product supply to improve gross margins (Dominguez, 2018). In addition, major suppliers believe that omni-channel expansion execution is the most valuable for realizing their business plans. Read Less