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Article
Publication date: 8 August 2009

Miguel I. Gómez and Vithala R. Rao

Trade promotions are manufacturer incentives directed to retailers rather than to consumers, aiming at influencing retailer's sales, prices and merchandising practices. Although…

1875

Abstract

Purpose

Trade promotions are manufacturer incentives directed to retailers rather than to consumers, aiming at influencing retailer's sales, prices and merchandising practices. Although they are a growing element in the promotional mix of food manufacturers worldwide, trade promotions often raise concerns about their impacts on performance and coordination in the food supply chain, which in turn affect retail food prices. This paper aims to measure the influence of market power on the outcomes of trade promotions negotiated between food manufacturers and supermarkets.

Design/methodology/approach

The paper employs Rangan's conceptual model to develop hypotheses about the links between three dimensions of market power (size, brand and institutional power) and trade promotion budgets and their allocation between discount‐ and performance‐based types. The paper employs trade promotion data collected from 36 supermarkets in the USA to statistically test these links.

Findings

The results suggest that brand, size, and institutional power of food manufacturers and retailers affect trade promotion budgets and their allocation among discount‐ and performance‐based types. Food manufacturers have relatively more control over their trade promotion budgets whereas retailers may have more influence on the allocation decisions.

Originality/value

The findings can help food manufacturers and retailers identify institutional, brand and size variables that may help them leverage trade promotion negotiations. The results are relevant to policymakers, in particular for the study of antitrust and performance issues in the food distribution system.

Details

British Food Journal, vol. 111 no. 8
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 28 January 2013

Amit Poddar and Naveen Donthu

The purpose of this paper is to propose a virtual forward-buying model that allows for forward buying but reduces the channel cost with no major behavioral change on the part of…

1179

Abstract

Purpose

The purpose of this paper is to propose a virtual forward-buying model that allows for forward buying but reduces the channel cost with no major behavioral change on the part of manufacturers and retailers.

Design/methodology/approach

Using simulations, the authors compare the proposed virtual forward-buying model with the traditional forward-buying and everyday-low-price approaches.

Findings

The authors find that the proposed model leads to lower overall channel costs that are shared equitably between both the manufacturer and the retailer.

Research limitations/implications

No primary or secondary is used, a situation that is usually very difficult to find in this area.

Practical implications

The paper presents a new method to improve trade promotion efficiencies that does not require a drastic change of habits for either the manufacturer or the retailer; allows the practice of forward buying to continue; and leads to channel cost reductions for both parties.

Originality/value

The paper presents research in an area that is under-researched due to lack of data.

Details

Journal of Business & Industrial Marketing, vol. 28 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 February 1990

Gordon Wills, Sherril H. Kennedy, John Cheese and Angela Rushton

To achieve a full understanding of the role ofmarketing from plan to profit requires a knowledgeof the basic building blocks. This textbookintroduces the key concepts in the art…

16054

Abstract

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

Details

Management Decision, vol. 28 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 6 November 2017

Daniel M. Quaye, Kwame Ntim Sekyere and George Acheampong

Many nations now engage in economic promotion of their countries in foreign countries. One major aspect of this activity is export promotions. This paper aims to understand the…

Abstract

Purpose

Many nations now engage in economic promotion of their countries in foreign countries. One major aspect of this activity is export promotions. This paper aims to understand the relationship between export promotional activity participation and export performance by Ghanaian manufacturing firms.

Design/methodology/approach

The list of manufacturing exporters was obtained from the Ghana Export Promotion Authority, and the convenience and snowballing approach was used to reach and administer research instrument. The relationship between export promotion and performance was estimated using a multiple regression.

Findings

The results of this study indicate that exporters should implement specific export promotion programmes if they want to enhance export performance and become successful. The findings of this study show that the programmes that have a strong positive relationship with export performance are trade fairs, foreign offices and tax and financial incentives.

Originality/value

The results of this study contribute to the international entrepreneurship literature in several ways. First, findings from this study contribute to the limited literature on exports in developing countries such as Ghana. Again, the study framework provides assistance to assess and monitor emerging trends in export promotion strategies. Also, export promotion, as a whole, provides a framework in which firms formulate strategies, allocates resources and seeks opportunities in a coordinated way. Finally, in the international marketplace, firms need to maintain their competitive edge, and it is important to operate efficiently and effectively using an appropriate export promotional strategy.

Details

Review of International Business and Strategy, vol. 27 no. 4
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 22 September 2021

Danny Claro, Valter Afonso Vieira, Raj Agnihotri and Rafael Serer

As manufacturers and retailers aim to increase return on marketing investments, value- vs experience-related trade promotions gain attention. These two trade promotions become…

Abstract

Purpose

As manufacturers and retailers aim to increase return on marketing investments, value- vs experience-related trade promotions gain attention. These two trade promotions become complicated in the presence of different retail format strategies (generalist vs specialist) and channel structures (direct to retailer vs distributors). Building on trade promotion literature, this study aims to show the main effect of value-related and experience-related trade promotions on retailers’ sales and the moderating role of different retail strategies and channel structures.

Design/methodology/approach

The authors use unique panel data from 8 personal care brands with 1,920 observations to test the hypotheses. The authors investigate how consumer goods manufacturer sells products using different channels structures and retail strategies. Estimated panel regressions provide the empirical evidence and robustness analyzes provide extra confidence to the findings.

Findings

Results reveal higher retail sales when the manufacturer invests in value-related trade promotions rather than experience-related trade promotions. The results also demonstrate how the manufacturer successfully invests in trade promotion by adequately accounting for channel structure and retail strategy. While temporary price reduction’s positive effect on retail sales is enhanced in generalist retailers (e.g. supermarket stores), shelf display’s positive impact is enhanced in specialist retailers (drug stores).

Research limitations/implications

The authors used unique panel data accounting for 15 months, limiting the findings. The results supported the investment allocation decisions in each period. However, future research may evaluate the effectiveness over a longer period and thoroughly address each investment’s seasonal effects.

Practical implications

The authors unveil how retailers achieve higher sales with value-related trade promotions when compared to experience-related trade promotions. The authors also shed light on the way manufacturers design their relationships with generalist and specialist retailers by working in direct and indirect channels. Trade promotions yield better results when the direct channel structure couples with a retailer’s generalist strategy.

Originality/value

The empirical findings help manufacturers achieve success in trade promotions by developing an equitable evaluation to contrast value- and experience-related promotions accounting for generalist and specialist retail strategies and direct and indirect channels.

Details

European Journal of Marketing, vol. 55 no. 12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 February 1987

Robert J. Kopp and Stephen A. Greyser

Consumer packaged goods is an industry long known for its reliance on “pull” marketing strategies, that is, clever brand positioning supported by heavy advertising and couponing…

1339

Abstract

Consumer packaged goods is an industry long known for its reliance on “pull” marketing strategies, that is, clever brand positioning supported by heavy advertising and couponing. As many product categories have become mature in the 1980's, managers find themselves increasingly concerned with improving the productivity of “push” programs — trade deals and personal selling efforts aimed at retailers and wholesalers. This article reports the results of an in‐depth, descriptive study of “push” marketing techniques among packaged goods companies. Discussed are: (a) specific “push” programs initiated on both the marketing (brand management) and sales force sides of the business, and (b) organizational moves to enhance integration and coordination between the Sales and Marketing groups. A concluding section urges packaged goods marketers to regard the “push” and “pull” components as twin building blocks of a companywide marketing strategy.

Details

Journal of Consumer Marketing, vol. 4 no. 2
Type: Research Article
ISSN: 0736-3761

Article
Publication date: 1 January 1986

P. Rajan Varadarajan

The use of various forms of cooperative sales promotions such as intracompany and intercompany multibrand promotions is on the ascendance, particularly among manufacturers and…

Abstract

The use of various forms of cooperative sales promotions such as intracompany and intercompany multibrand promotions is on the ascendance, particularly among manufacturers and marketers of frequently purchased packaged consumer products. This article provides an overview of various forms of cooperative sales promotions, objectives that firms strive to realize through cooperative sales promotions, and other issues. In addition, from the standpoint of improving marketing productivity, the need for greater focus on the consumer franchise building potential of various sales promotion tools is highlighted.

Details

Journal of Consumer Marketing, vol. 3 no. 1
Type: Research Article
ISSN: 0736-3761

Article
Publication date: 1 November 2000

George S. Low and Jakki J. Mohr

Brand managers in packaged goods firms are under pressure to increase or maintain high sales promotion spending at the expense of media advertising. This study investigates the…

30134

Abstract

Brand managers in packaged goods firms are under pressure to increase or maintain high sales promotion spending at the expense of media advertising. This study investigates the antecedents and outcomes of brand managers’ advertising and sales promotion budget allocations by adopting a bounded rationality perspective. Based on survey data collected from 165 brand managers in the USA, higher advertising (vs sales promotion) allocations are associated with: single, relatively high priced brands in the early phases of the product life cycle; and more experienced brand managers who are subject to less retail influence. Also, brands with higher budget allocations to advertising, relative to sales promotion, tend to have more favorable consumer attitudes, stronger brand equity, and higher market share increases and profits. Managerial implications and areas for future study are discussed.

Details

Journal of Product & Brand Management, vol. 9 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 October 1998

F.H. Rolf Seringhaus and Philip J. Rosson

This paper brings together two significant export management issues: international trade fairs and export promotion. Trade fairs play a market development and expansion role while…

3733

Abstract

This paper brings together two significant export management issues: international trade fairs and export promotion. Trade fairs play a market development and expansion role while export support is aimed at building foreign market capability. This study examines companies at international trade fairs exhibiting on government stands and their own, independent stands. Discriminant analysis shows that the two groups of exhibitors differ in company strategy and trade fair performance. As well, staff training activities and visitor attraction are analysed, with the latter showing a clear relationship with performance. Implications for exporters and export promotion agencies are discussed and research directions given.

Details

International Marketing Review, vol. 15 no. 5
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 1 April 1996

Anthony Lucas

Argues that only by sharply improving the effectiveness of trade promotion can manufacturers hope to influence base sales volumes. Discusses managers’ concentration on promotion

3217

Abstract

Argues that only by sharply improving the effectiveness of trade promotion can manufacturers hope to influence base sales volumes. Discusses managers’ concentration on promotion at the expense of product innovation and brand franchise development. Provides a list of initiatives to improve performance.

Details

Journal of Consumer Marketing, vol. 13 no. 2
Type: Research Article
ISSN: 0736-3761

Keywords

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