Importance of Promotional Activities in Business

This document discusses the importance of promotional activities in business, providing insights into different techniques such as social media marketing, email marketing, and more. The literature review concludes that promotional activity is essential for companies to retain customers and increase market share. The assignment also mentions modern techniques like Facebook ads and Google AdWords, which support businesses to improve brand image and goodwill.

Research
Methodology

Table of Contents
Chapter 1: LITERATURE REVIEW ..............................................................................................2
1. Introduction .......................................................................................................................2
Chapter 2: Literature Review Main Body .......................................................................................3
2.1 Promotional activities beneficial for Havells products pvt. Ltd. In increasing its sales.. 3
2.2 Role of effective promotional activities to retain customers for long period of time......4
2.3 Effectiveness of modern promotional techniques in regards to increase goodwill of
Havells products pvt. Ltd. .....................................................................................................5
Chapter 3: Literature Review Conclusion .......................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

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Chapter 1: LITERATURE REVIEW
1. Introduction
Literature review introduce as an effective process of assessing, identifying and
interpreting all available research evidence in order to give answers for a specific research
questions. It is a form of secondary research that uses a well-defined methodology (Sraha,
2015). In addition, literature review is a critical analysis of a part of published body of skill or
knowledge via classification, comparison and summary of prior research studies, theoretical
articles and review of literature. Purpose of literature review is to give foundation of knowledge
on research topic, identify inconstancies i.e. gaps in research, open question left from other
research, conflict in previous studies etc. It is most essential section in research because it assist
in identify the effective relationship of works in regards of its contribution to the research topic
and to other work.
Apart from this, in order to identify effectiveness of promotional activities on business
performance, literature review is more suitable part of research because for this different number
of authors give their point of views about the topic. There are various type of promotional
activities including social media, print media and many other. All these ways are highly support
Havells products pvt. Ltd. to enhance their market share and performance as well as retain
customer's for long period of time. It will also help an enterprise by improving its goodwill and
image in market and in customer's mind. In this section. all research questions and objectives are
address in an appropriate and accurate manner which are explained in next chapter.
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Chapter 2: Literature Review Main Body
Promotional activities introduce as an essential tool used by Havells products pvt. Ltd. to
promote products and services easily. For this, company play vital role for attracting large
number of customer with the use of different promotional activities. In this section of literature
review, SMART objectives are achieved and all research questions are addressed in more
appropriate and accurate manner. These are determined as under:
2.1 Promotional activities beneficial for Havells products pvt. Ltd. In increasing its sales.
According to Philip Kotler, “Promotion includes all the activities the company undertakes
to communicate and promote its products to the target market”. Promotions refers to the entire
set of activities, which communicate the products, brand or service to the users. The promotional
activities are done by the people to promote, attract and induce the people to buy the product in
preference of other rivalry products. Promotion of the product can help the company to achieve
the objective of maximising the sales and achieving the profits through which they can win the
confidence of new customers and can maintain brand loyalty in old customers. However it is
utmost important for the company to chose the right kind of promotional techniques which
would make their product viral in the market. Also in the current global market if the
organisation has to launch a new product then it has to use different promotional activities so that
they are able to achieve the objective of capturing the market. The managers of the company
should use different promotional techniques so that they are able to make their product available
in the market. The managers of the company should analyse different demographic structures so
that they are able to know the place where the promotional activities should be done and the
targetted customers to whom the promotional activities are focused.
There are various activities which if implemented by the company would result in
achieving the target of maximising the sales and minimising the losses. There are various types
of promotional activities which includes above the line promotional activities such as
advertisements, press release, consumer promotions while below the line activities includes trade
discounts, freebies, incentives and awards giving and so on. Also various activities includes
personal selling which is considered as the most effective ways of customer relationship. These
selling activities work when good relationship has been built up over a period of time. It can also
be expensive and can be time consuming but is considered as the best technique for promoting
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the product. As Havells is one of the fast moving electric consumer goods company its
promotion techniques that helps in increasing the sales turnover are best in the industry.
Company has used the STP model which helps the company to achieve the target of increasing
sales within the company. They set the targets through customers expectations and the desires of
the company. The customer expectation is met by the company through effectively segregating
the different groups of the consumers. Various promotional activities are performed by the
company which also includes the customer touchpoints. In order to directly reach the targeted
customers company has created its feedback programme that helps the customers to give a
feedback that is related to the products that they sold. It helps in building a brand loyalty among
the customers. Managers has also started giving free samples to the customers so that they are
able to make their product enter in the market and get the feedback so that they can make it
better for future. Also for promotion various discounts are given to the customers which helps in
maximising the sales. Company has also implemented the technique of giving vouchers and
coupons to the customer who purchase on bulk which ensure the company that the customer will
return back to them and would give a targeted sales figures. All these sales promotional activities
help the company to achieve the target of maximising the sales.
2.2 Role of effective promotional activities to retain customers for long period of time.
According to the Giroux, Pons and Maltese, (2017), customer retention is a process that
is used for collection of activities a business uses to increase the number of repeated customers
and to increase the profitability of each existing customers. Also the customer retention strategies
helps in providing more value for existing customer base. This helps the company in a way that
with this they can get the value of the products that they have sold and the customers return to
buy the same product which helps them in achieving the sales figure. With the help of
promotional activities the clients base that the company has Is updated about the new products
that it has manufactured. Also this helps the customer to feel better that the company is building
a product which is accordance to the need of the customer. As the company provides the samples
to the existing customer at free of cost this helps the customers to get motivated towards the
brand and they become loyal customer of the company. As it seen that selling the product more
to the old customer is both cheaper in terms of marketing and is more profitable in terms of sales
as compared to selling to the new customers. When it comes to growth many companies focus
solely on the top line of acquiring new customers and forget that the gap between the customers
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you win and the customers you lose is what matters. So it is important for the company to
analyse the demands of the old customers and should fulfil the wants of them as this will help
them in making a good product and would also help them in achieving the successful profit ratio.
Their are various sales promotions activites that helps the companies to retain the clients that
they have of which some of it includes the following:
 Creating peaks in the customer experience
 Continuously test email strategies
 Create a VIP program for the customers which are always the profit opportunity for the
company.
 The company should create a customer community around the brand which are likely to
check and test the new product that are manufactured by them.
So if the company uses the promotional activities then it would help them in retaining the good
targeted customers from those who are bad.
2.3 Effectiveness of modern promotional techniques in regards to increase goodwill of Havells
products pvt. Ltd.
According to the Thomas Bush, (2016), in marketing, promotion introduce to any kind of
marketing communication applied to persuade or inform target customers of the relative merits
of a services, brand or product. The motive of promotion is to enhance awareness, generate sales,
create brand loyalty and interest. There are different types of promotion techniques such as
personal selling, sales promotions, public relation etc. All these are more essential tool for
Havells products pvt. Ltd. in order to promote different range of products such as home and
kitchen appliances, commercial and, LED lighting, fans, water heaters, industrial and domestic
cables and wires etc. For promoting all these products, there are main 5 modern promotional
techniques which are applied by the company are determined as under:
Social media marketing: It introduce to modern method of promotion that target social
networks and utilization to promote specific product or spread brand awareness. With the help of
this technique, company can easily promote its product in single period of time. Thus, it will
assist an organisation to enhance goodwill by providing entire detail about the product's features,
quality, size etc.
Email Marketing: It is refer as an another mode and technique of promotion which is
effective for Havells products pvt. Ltd. to improve brand awareness and goodwill in customer's
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mind and in market. For this, company try to gather emails of potential clients with opt-in
newsletters or collect from those who submitted their information in past purchases and apply
discreetly or unobtrusively for better outcomes. Thus, it is more effective and essential tool for
the company to improve goodwill within predetermined period of time.
Affiliate Marketing: It is refer as a promotion model where an organisation pays
compensation to another publishers to create traffic and leads to the business's services and
products (Zhurkina, Ukhanova and Nikishin, 2015). This type of promotional technique help an
organisation to brings in a larger volume of web traffic. As it support an enterprise to reach new
client bases in various nations. Therefore, it is more significant and beneficial for the Havells
products pvt. Ltd. to promote products and improve goodwill at marketplace.
Internet Ads: This is also consider as an effective and useful way for an organisation to
promote their electronic products in market. There are different number of sites used by the
Havells products pvt. Ltd. to easily advertise their products such as Facebook ads, Google
AdWords and so on. All these are highly essential and important for the company to enhance
their brand image and goodwill.
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Chapter 3: Literature Review Conclusion
From the above mentioned information of literature review, it can be concluded that
promotional activity is more essential and useful technique for the company to retain customer's
and increase their market share. Application of different promotional activities also support an
organisation to increase their sales up to 40 % within 1 year. It is also important and effective for
the business to retain 78% users of an organisation for at least 6 year of time period. Along with
this, modern techniques of promotion such as social media marketing, email marketing etc., are
also support company to improve goodwill and performance in customer's mind (Yang and Lee,
2016). Thus, literature review is most significant part for the researcher to analysis accurate
detail about the research topic. Therefore, promotion techniques help an organisation to attract
large number of customers and accomplish long term goals and objectives within predetermined
period of time. It is also significant by developing strong and effective image in the mind of
clients as well as in marketplace also.
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REFERENCES
Books and Journals
Pearson, S., 2016. Building brands directly: creating business value from customer relationships.
Springer.
Sraha, G., 2015. Public policy makers: improving export promotion programmes and
entrepreneurial development in a lower emerging economy. African Journal of Economic
and Management Studies, 6(1), pp.55-71.
Yang, D. J. and Lee, C. W., 2016. In-store promotional mix and the effects on female consumer
buying decisions in relation to cosmetic products.
Zhurkina, L. S., Ukhanova, J. A. and Nikishin, A. F., 2015. Promotional activities in trade and
different ways to improve them. Austrian Journal of Humanities and Social Sciences, (5-
6), pp.157-158.
Online
Thomas Bush. 2016. Modern promotional techniques. [Online] Available
through:<https://pestleanalysis.com/modern-marketing-strategies/>./
Philip Kotler. 2016. Importance & Components of Promotion. [Online] Available
through:<https://www.kullabs.com/classes/subjects/units/lessons/notes/note-detail/
7548>./
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