Impact of Promotion Strategies for Business Organizations

This research analyzes the impact of promotion strategies on business organizations, focusing on the changing trends, performance implications, and challenges faced. A case study on Samsung is conducted to provide insights and recommendations.

IMPACT OF PROMOTION
STRATEGIES FOR
BUSINESS
ORGANISATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
Background..................................................................................................................................3
Rationale......................................................................................................................................3
Aim..............................................................................................................................................3
Achieving Aim.............................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Theme 1: Concept of promotional strategies...............................................................................4
Theme 2: Changing trends in the promotional strategies............................................................5
Theme-3 Impact on the performance of the business organisation.............................................6
Theme-4 Different challenges that change in promotional strategies has brought upon the
organisation..................................................................................................................................7
CONCLUSION And RECOMMENDATION................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Title: To analyse the impact of promotion strategies on the business organizations.
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.
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.
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.
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 And RECOMMENDATION
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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