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Impact of Enterprise Strategies on Buyer Behaviour

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Added on  2019/12/03

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The assignment discusses the techniques of sales development employed by businesses for their overall growth. It highlights the importance of considering various factors that influence buyer behavior, such as internal merchandising and promotional tools, to attract target markets and products tailored to customer needs. The study also emphasizes the role of market segmentation in increasing sales and the importance of sales development in today's competitive market.

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Sales development
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Table of Contents
INTRODUCTION................................................................................................................................3
TASK A ELEMENTS OF PRODUCTS IN BUSINESS......................................................................3
1.1,1.2 Key components of products and how product mix contributes to sales and profit.......3
1.3 How market segmentation contributes in maximising sales.................................................5
TASK B EXTERNAL SALES DEVELOPMENT TECHNIQUES.....................................................6
2.1 Factors affecting buyer behaviour.........................................................................................6
2.2 Advertising media that can be used for sales development situations..................................7
2.3 Use of external merchandising for maximising sales volume..............................................7
TASK 3 INTERNAL SALES PROMOTION AND MERCHANDISING..........................................8
3.1 Influence of design and layout on consumer spending.........................................................8
3.2 Effectiveness of internal merchandising materials...............................................................9
TASK D ROLE OF STAFF IN MAXIMISING SALES....................................................................10
4.1 Evaluation of personal selling techniques...........................................................................10
4.2 Influence of operational design on sales revenue................................................................11
4.3 key principles to be included in sales training programme.................................................12
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................14
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INTRODUCTION
Sales development is linked with the ways employed by organization in order to enhance its
sales volume in the market. Further, in the modern era companies operate in high competitive
market and due to this reason it has become little bit difficult to survive in the market for longer
period of time (Porter, 2014). Apart from this, substitute of products are easily present in the market
due to which every company has employed effective ways with the aim to target its customers by
offering them best product. In short, target market prefers to purchase commodity which can
provide them value for money experience. Further, various components of products and services are
present which encourages target market to buy the commodity and it directly has positive impact on
the entire firm in terms of rise in sales volume along with profitability.
Apart from this every organization segments its market by considering various criteria and
through this it is possible to maximise sales volume (Armstrong and et. al., 2014). Segmentation of
market assist in better understanding of actual requirement of the customers and in turn encourages
target market to be brand loyal towards company. On the other hand, promotional tools are most
commonly employed in the modern era where advertisement and other form of media provides base
to company in enhancing sales and customers can easily acquire knowledge and information
regarding product range offered by company. Moreover, personal selling techniques are also
regarded to be fruitful and it directly leads to rise in satisfaction level of the customers (Cross,
Belich and Rudelius, 2015). Key benefits present in the product are highlighted by company
through which it becomes quite easy to enhance sales volume and is profitable for business in every
possible manner. For conducting the present study organization chosen is Holiday Inn which
operates in hospitality sector and well known in the market for the range of products it offers to its
target market. Company offers wide range of services such as food, lodging, meetings, time shares
etc and is efficient enough in meeting with the requirement of target market. Various tasks have
been covered in the study which involves factors affecting buyer behaviour, how market
segmentation contributes in maximising sales etc.
TASK A ELEMENTS OF PRODUCTS IN BUSINESS
1.1,1.2 Key components of products and how product mix contributes to sales and profit
Different components of products are present which are offered by Holiday Inn to its
valuable customers and this allows business enterprise in satisfying need of its target market in
efficient manner (Fleck and Kraemer, 2014). Further, company operates in high competitive
environment due to which highlighting key components of products is must. Key components of
product offered by Holiday Inn are as follows:
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Core product: It is the benefit obtained by purchasing services of hospitality enterprise. Further, it
is considered to be one of the main element and is valuable for target market. Services offered by
Holiday Inn to its target market offers large number of benefits such as value for money
satisfaction, high quality etc. Apart from this services demanded by customers are present everytime
and this enhances overall satisfaction level of the target market (Geiger and Turley, 2005). It is
intangible in nature and supports organization in gaining competitive advantage. Further, company
like Holiday Inn has employed product differentiation as a strategy due to which it is possible for
business enterprise to enhance satisfaction level of its target market and this in turn acts as an
development tool for the entire company. Management is efficient enough in providing every type
of convenience to its customers in terms of wide options when they have to purchase commodity
and stores opened worldwide which allows customers to purchase services of Holiday Inn on
continuous basis.
Augmented product: It arise by themselves and by products of core and actual products. In short
with the help of augmented products more convenience is provided by management to its target
market (Hill and Hill, 2012). Holiday Inn offers different type of services to its target market and
before purchasing any commodity customers are having many kind of queries in their mind and to
resolve such queries full assistance is provided by enterprise. Further, time to time feedback is taken
by company in order to identify whether its target market is satisfied with the range of commodities
offered or not.
Actual product: It is regarded as the tangible, physical product. In case of Holiday Inn company
does not offers product and only large number of services are delivered to target market. Therefore,
the services offered to them only provide them remarkable experience and in turn it supports in
enhancing satisfaction level of target market. So, the concept of actual product is not applicable in
case of Holiday Inn (Kanagal, 2014).
Product mix
Holiday Inn delivered large number of services to its target market offers large number of
products to its target market and it is one of the basic reason behind rise in level of customer
satisfaction. Further, organization is being able to strengthen its customers base and it is acting as an
development tool for the entity. Products mix involves all the range of services offered by
organization for sale. Further, it takes into consideration one line products or several (Shank and
Lyberger, 2014). Every service offered by Holiday Inn is effective and it involves lodging,
conventions, meetings etc which directly matches with the need and requirement of target market
and is effective enough in satisfying need of customers. Product mix relies on three main aspects
which are width, depth and consistency. Width of the product mix can be determined by the number
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and variety of product line offered by enterprise.
In short it highlights the diversification of organization activities. Holiday Inn range of
service involves food, lodging, meetings, timeshares etc. This directly assist enterprise in serving its
target market in better manner where different options are provided to customers and they can easily
purchase commodity which best suits with their requirement. Service line of organization involves
several items and this is the main reason behind success of company in the market (Sultan and
Rohm, 2005).
Time to time new services are added in the existing range by organization due to which
customers are having large number of options at the time when they take decision to purchase
commodities of Holiday Inn (Tonnis, 2007). Therefore, through this it can be said that width, depth
and consistency in services of Holiday Inn is effective due to which company is able to target its
customers in effective manner and it has enhanced overall performance of firm in the market.
1.3 How market segmentation contributes in maximising sales
Market segmentation is regarded as the process of dividing market which can be on the basis
of demography, geography or psychography. Further, it provides base to organization in targeting its
valuable customers in appropriate manner. Need and requirement of customers changes over a
period of time and due to this basic reason it is required for enterprise to segment its market as it
can act as source of attraction for its customers (Parker, 2013). Moreover, appropriate segmentation
of market assist enterprise in targeting customers as per their actual need and requirement. At
present Holiday Inn has segmented its market on the basis of demography and lifestyle where
products are offered to customers only after knowing their actual requirement. This allows company
to enhance its overall performance in the market and in turn acts as an development tool. Moreover,
selection of appropriate market segmentation strategy has assisted company in maximising sales
volume.
Through segmentation organization is able to focus on its target market and their actual
requirements are known easily. Further, organization introduces new service on continuous basis
and by segmenting market it becomes quite easy to decide the range of customers who can be
targeted in appropriate manner. In short without appropriate segmentation it is not at all possible for
enterprise to target its customers (Meenaghan, McLoughlin and McCormack, 2013). Segmentation
supports in effective advertising as same promotional activities are not at all effective for every type
of customers. Therefore, advertisements are designed in unique manner and through which
management is being able to enhance overall sales volume. It has also provided base to business
enterprise in understanding about customers trend which also changes over a period of time.
Further, product modification is possible and through this challenges present in business
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environment can be faced easily. On the other hand, every customer present in the market has some
sort of expectations from target management and due to this reason they are segmented so that
business can focus on their needs in appropriate manner (Jensen and et. al., 2015). Therefore, in
this way market segmentation has provided base to organization in maximising sales volume and in
turn has assisted to perform better in terms of rise in market share along with profitability.
TASK B EXTERNAL SALES DEVELOPMENT TECHNIQUES
2.1 Factors affecting buyer behaviour
Large number of factors are present which influences buyer behaviour and Holiday Inn
considers such range of factors so that need of its target market can be satisfied in efficient manner.
Such factors are: Cultural factors: Culture of buyer plays crucial role especially at the time when decision is
taken by customer regarding purchase of services. Further, individual is directly affected by
family, friends and overall cultural environment. Moreover, culture of every consumer
differs from one another and it may be possible that culture of individual may allow
customer to purchase any specific commodity or may prevent also (Solomon and et. al.,
2014). For instance culture of any individual may allow to consume non vegetarian items
but people of other culture may not consume such items. Therefore, purchase decision is
directly taken by target market keeping in view their culture. So, by offering products to
target market on the basis of their culture it has become possible for company to enhance its
sales volume and is providing large number of opportunities such as rise in satisfaction level
of customers etc. Social factors: This factor takes into consideration three categories such as family, social
role and status along with reference group. Before purchasing any commodity every
consumer takes feedback from friends, relative and purchase decision is directly influenced
by this (Ward and Sobek, 2014). Further, individual is directly influenced by group along
with the advice given by them in relation with purchase of commodity. Due to this reason
social factor is also regarded to be most important especially at the time when purchase
decision has to be taken. Moreover, family of consumer also influences at the time when any
commodity has to be purchased and advice of family members is taken into consideration so
that individual can purchase value for money products.
Personal factors: This factor also plays crucial role at the time when purchase decision is
taken. It involves lifestyle, value, age, hobbies etc of consumer (Yu and Kunz, 2014). For
instance young age people prefer to buy products which matches with their lifestyle but it is
not applicable in case if adults and other type of customers. Therefore, personal factor of
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consumer is also considered to be most crucial and it directly influences purchase behaviour
of target market.
2.2 Advertising media that can be used for sales development situations
In order to enhance sales volume Holiday Inn has employed different advertising tools
which assist organization in promoting its products in better manner and in turn acts as an
development tool. Further, it is well known fact that without effective advertising no company can
survive in market for longer period of time (Oliva and Watson, 2011). One of the most advertising
media source selected by Holiday Inn is social media where generally every target market has
access and they can gain full information and knowledge regarding product range of organization.
Apart from this firm has developed its own page on Facebook which is attractive enough in
targeting customers. Through this business is able to focus on actual needs and requirement of its
target market which is must in the present era. Further, better promotion is possible at global level
with the help of social media and this allows business enterprise to understand about the changing
need of customers in most effective manner.
Apart from this, advertising with the help of print media is also considered to be effective
such as newspaper etc and through this proper information is shared with the target market by
management with the motive to enhance sales volume (Tavares Thomé and et, al., 2012). In short
advertising is one of the major source of income of Holiday Inn and has assisted in enhancing
customer base which is one of the main objective of enterprise behind carrying out operations in the
market. Further, through advertising enterprise is able to enhance awareness in the market linked
with its product range and this has enhanced brand loyalty also. Moreover, it is well known fact that
without effective advertising strategy no organization can survive in market for longer period of
time. Due to this basic reason different advertising media are considered for overall growth and
development of business enterprise. This has allowed business to deal with the condition of rise in
competition level in the market and has supported in increasing market share (Thome, Sousa and
Carmo, 2014).
2.3 Use of external merchandising for maximising sales volume
External merchandising is regarded as the arrangement of commodities through physical
stores with the motive to maximise sales volume. Entire range of services which are offered by
Holiday Inn are represented with the help of different techniques such as brochures, menu card etc.
Apart from this, overall infrastructure of the company is quite effective through which it becomes to
enhance satisfaction level of target market. Overall infrastructure of enterprise is designed in
appropriate manner and it posses capability to attract customers to try services of enterprise
(Wacker and Lummus, 2012). Further, management is providing unique environment to its target
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market through its infrastructure and it is one of the major source of customer satisfaction. Overall
ambience along with layout of the Holiday inn hotels are effective enough in enhancing satisfaction
level of target market. Further, time to time feedback is taken from staff members so that
modifications are made in the existing service range of firm and this provides remarkable
experience to the customers in the field of hospitality. Moreover, services of company are highly
differentiated and due to this basic reason it becomes easy for enterprise to attract large number of
customers in the market. Apart from this organization is strongly focusing on expanding its
operations and main stress is on areas where demand for tourism services is quite high. At present
around 3414 locations are being served by enterprise and this has enhanced overall market presence
of firm in the market.
Infrastructure along with ambience of business are making a positive difference to local
communities and through this management is able to connect business to the local area (Honey,
Ford and Simintiras, 2003). In short customers need along with requirement are kept on the top and
it has assisted in accomplishment of desired aims along with objectives of the business. Due to all
these basic reason Holiday Inn is able to enhance its sales as majority of the customers prefer to buy
its services on continuous basis. Apart from this, time to time company takes feedback from its
target market in order to know whether any type of change is required in infrastructure along with
design and this supports in knowing the real importance of customers. On the other hand customers
who are brand loyal prefer to purchase commodities of enterprise due to its effective external
merchandising techniques. Further, it is also acting as source of targeting and is one of the main
reason behind rise in level of customer satisfaction (Hoyer and Maclnnis, 2012).
TASK 3 INTERNAL SALES PROMOTION AND MERCHANDISING
3.1 Influence of design and layout on consumer spending
Design along with layout has direct impact on consumer spending and decision linked with
purchase is also associated with this. Holiday Inn carries out its operations in the market with the
help of its hotels which are present worldwide and wide variety of services are present in the range
through which customers are provided many options. Infrastructure along with design of Holiday
Inn hotels are totally unique with the help of which convenience along with comfort is provided to
customers. Effective design developed by business enterprise has supported in providing full
knowledge along with information to the target market regarding service range (Johnston and
Marshall, 2013). Further, it has encouraged customers of Holiday Inn to spend more on services
offered by business enterprise. Moreover, skilled workforce has been employed by organization
which provides full assistance to customers and they can easily solve queries and other type of
doubts. This has encouraged customers of business to fall in love with brand and they are truly loyal
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towards products of organization.
In the modern era significance of design and layout of hotel has enhanced at faster pace and
due to this reason company like Holiday Inn is well appraised in the market for satisfying need of
its target market. The overall environment in which products are displayed by target market
enhances level of customer satisfaction and boosts sales volume (Andreasen and Kotler, 2008).
Further, it has also supported in effective positioning where customer perceive products of company
as high quality, differentiated etc. In short, effective layout along with design of company stores is
supporting company in delivering appropriate services to target market as per their actual
requirement. It is also one of the basic reason behind success and growth of entity in the
competitive market.
Design and layout of Holiday Inn influences purchase behaviour of the target market and
encourages them to purchase services of company on continuous basis. Apart from this company
considers important factor such as exterior layout of building, lightning, format through which
services are delivered (Ashill, Frederikson and Davies, 2003). Through all this customers are easily
able to search for most appropriate services which match with their requirement. Rise in spending
level of customers due to effective layout and design has lead to rise in profitability along with sales
volume of business and has provided large number of opportunities to business.
3.2 Effectiveness of internal merchandising materials
Internal merchandising is regarded as one of the most effective technique through which
Holiday Inn can easily enhance its overall performance in the market. Further, it takes into
consideration overall internal environment and layout of the building through which services are
offered to target market (Cravens and Piercy, 2008). Moreover, in the present era majority of the
hospitality companies are offered products with the help of its hotels and it has to be ensured by
management that its internal merchandising is effective through which customers can be easily
attracted.
Holiday Inn has built its entire internal environment in effective manner through which its
customers are able to take purchase decision easily. Moreover for targeting customers internal
merchandising material of Holiday Inn is quite effective which has supported in retaining large
number of customers. In short through this company is promoting entire range of its service and it is
having positive impact on the brand image of business (Yu and Kunz, 2014).
This is beneficial for company as awareness is increasing through this. Overall internal
layout of the hotel is effective where different painting along with other techniques are being
employed with the help of which customers are attracted towards the range of services. This is
directly assisting firm in gaining competitive advantage and challenges present in the business
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environment can be faced easily by Holiday Inn in the market. This also acts as an effective source
of attraction and boosts sales volume. Moreover, services such as lodging, accommodation along
with food are differentiated through internal merchandising and it has supported company in
gaining competitive advantage.
3.3 Evaluation of different promotional activities according to different scenarios
Promotional activities directly provides base to organization in enhancing sales volume and
it becomes easy to sustain in the market for longer period of time. Holiday Inn has employed
different promotional activities and it is considered as one of the most effective way to gain
competitive advantage. Discounts are provided on range of services to customers on continuous
basis and the kind of monetary benefits provided to target market encourages customers to
repurchase services (Tavares Thomé and et, al., 2012). Further, on occasions and other type of
festivals sales promotion schemes are introduced so that firm can better sell its services as
compared with other hospitality organizations in the market. First scenario can be occasion for
which effective promotional activity is short term sales promotion where coupons and other form of
additional benefits can be provided to target market with the aim to enhance profitability level and
overall sales volume. Further, for promoting services on continuous basis organization has
employed direct marketing which involves sending email, letters, phamplets to target market with
the aim to provide them important information linked with hospitality service.
This is also effective for business enterprise and can provide large number of opportunities
to the business such as rise in market share along with profitability. Services provided by Holiday
Inn in the market are having closely related substitutes and due to this basic reason employing
promotional tools is must for enterprise and through this customers can be encouraged to repurchase
the commodities for longer period of time. Apart from this publicity as an promotional method is
also undertaken by business where through print and broadcasting media information is shared with
target market and to enhance satisfaction level of target market becomes more easy for organization
(Honey, Ford and Simintiras, 2003). Further, time to time promotional activities of company are
modified by considering the overall condition present in the market and due to this reason sales
volume of enterprise is enhancing at faster pace every year. Moreover, gifts are provided by
company to its valuable customers timely especially to those who are brand loyal. Therefore, this
method is also effective for business and is having positive impact on the brand image of enterprise.
TASK D ROLE OF STAFF IN MAXIMISING SALES
4.1 Evaluation of personal selling techniques
Different personal selling techniques are present with the help of which organization can
enhance its sales volume and can sustain in the competitive market for longer period of time.
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Holiday Inn has employed different personal selling methods which are efficient enough in
enhancing organizational productivity. Internet selling is regarded as one of the most effective
technique where company has started to sell its products online through its website. Main advantage
of adopting this method to company is that it encourages customers to know what kind of services
is required and they can purchase it in quick period of time. Apart from this, it supports in building
brand image of the enterprise and enhances customer satisfaction (Andreasen and Kotler, 2008).
Therefore, internet selling is one of the effective method of personal selling employed by business
and it provides long term benefit to business. Sales calls is also one of the effective method of
personal selling where employees linked with sales department sets target on weekly or monthly
basis. Further, main stress is on determining the actual requirement of target market and offering
them products accordingly. Main focus is on targeting big industries and other type of individuals so
that sales volume can be enhanced. Through this crucial information is shared with the target
market and this assist in meeting with the desired aims and objectives of business.
Sending Email and letters to customers is also effective form of personal selling which has
been employed by Holiday Inn. Time to time information is shared with target market regarding the
product range and other type of offers provided to them (Hill and Hill, 2012). This encourages them
to respond quickly and in turn they purchase products which matches with their actual requirement.
Due to this basic reason this technique of personal selling is also considered to be most effective
and has favourable impact on brand image of organization. So, these are some of the most effective
personal selling techniques employed by business through which organization can gain competitive
advantage and can provide support to sustain in the competitive environment for longer period of
time.
4.2 Influence of operational design on sales revenue
Operational design is linked with the way in which overall operations can be carried out
company so as to enhance its sales revenue. For conducting different operations in effective manner
appropriate operational plan has been built through which company is being able to meet with the
requirement of its target market (Oliva and Watson, 2011). Main reason behind organizing each and
every operation is to enhance customer satisfaction and through this customers are attracted towards
range of commodities. Hospitality operations involve managing day to day activities with the aim to
maximize profitability along with sales volume. Company has developed unique design by
considering all its employees who are assigned different responsibilities for serving customers in
appropriate manner. Further, operational design of business changes as per change in customer
trends and other form of requirements.
Each and every unit of company is operated by responsible staff members and due to this
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reason business is able to built effective operational design. New technological systems have been
employed for serving customers such as for providing product knowledge etc. Further, cash
handling is done in proper manner where electronic systems have been installed to record key
transactions (Ward and Sobek, 2014). Apart from this company strongly focuses on safety and
security of its customers where it is ensured that sales representatives are handling all the activities
carefully, CCTV cameras have been installed so as to watch customers and overall internal
environment provided to target market is also safe. So, this is directly having positive impact on the
sales revenue of company where majority of the customers are satisfied with the ways employed by
organization in managing its key operations. On the other hand, firm strongly focuses on customer
service, refund schemes and visual merchandising as they are also linked with potential of
enterprise in earning revenue through sales. In short each and every operation carried out by
business enterprise is effective enough in enhancing sales revenue along with profitability. It is
supporting firm to grab the range of opportunities present in the business environment (Cravens and
Piercy, 2008).
4.3 key principles to be included in sales training programme
At the time of designing any sales training programme it is necessary for business to
consider various principles for its overall growth and development. Programme content is one of the
key principle which has to be undertaken as management has to decide what kind of information
will be shared with the sales team. Further, it must include the responsibilities assigned to
individuals along with the type of information which can be shared with the individuals who are
going to attend this training programme. Next principle is to determine the type of delivery options
as it is the first and foremost duty of management to ensure whether training will be given through
online method or offline (Selling on Value - The Three Principles of Value Selling., 2008). By
selecting the appropriate method of delivering information it is possible for company to share
appropriate and up to date information with the sales team. In short proper training can be provided
by selecting effective method. Selling to the highest decision maker can be one of the main
principle where sales team can target customers who takes quick decision and are easily influenced
by the strategies of enterprise.
CONCLUSION
After conducting the entire research it has become easy to understand the techniques of sales
development employed by business for its overall growth. Further, Holiday Inn considers all the
range of factors which influences buyer behaviour and this is one of the reason behind rise in
customer satisfaction level. Further, internal merchandising is supporting organization to attract its
target market and products are offered to them as per their actual needs and requirement. Apart from
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this promotional tools employed by business are enhancing sales volume of entity and in turn
company is being able to survive in the competitive market for longer period of time.
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REFERENCES
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