Sales Promotion Schemes and its Effects on the Business

Background of the Study

Sales promotion is a marketing strategy which intends to persuade customers to
purchase the product or service. Since the consumer’s tastes changes every time,
those who are into business should think of a way for their business or product to
become appealing to the customers.
 Background of the Study

Sales promotion is the process of persuading a potential customer to buy the

product. It is any initiative undertaken by an organization to promote an increase in
sales, usage or trial of a product or service (i.e. initiatives that are not covered by the
other elements of the marketing communications or promotions mix). Precisely because
sales promotions must provide incentives—whether to the distribution channel, the
company's own sales people, or to the consumer—they cost money by definition and
must produce additional volume to pay for the expenditures. A grand sale that clears out
the inventory but, with added advertising costs factored in, reduces margin too is—a
failure. Sales promotions therefore must be carefully calibrated to achieve the purpose.
Holding promotions too frequently will habituate customers to buy only when promotions
are in effect. Avoiding promotions altogether will let competitors draw customers away.
Alas, business never fails but to challenge the participant.
Since the consumer’s tastes changes every time, to prevent the loss of a
business, different marketing strategies should be necessary.
It is those promotional activities other than personal selling, advertising and
publicity to stimulate consumer purchasing and dealers effectiveness such as displays,
shows and exhibitions, demonstration, coupons, contests, samples, premiums, trade
allowance, point of purchasing displays, price cent- off pack and dealer allowance and
other known routine selling efforts that are usually of short term activities.
 Background of the Study

Sales promotion is an indirect form of marketing promotion intended to stimulate

quick action. It became an essential motivating factor in the area of marketing in any
organization.
The researchers intend to identify the level of depending on sales promotion and
its importance to the business.
Sales promotion is a marketing strategy which intends to persuade customers to
purchase the product or service.
 This study aims to determine the impact of the “Effects of Unlimited Rice promo to

the Business”.

Specifically, this study aims to answer the following:

1. What is the demographic profile of the respondents in terms of:

1.1 Age

1.2 Gender

1.3 Civil Status

1.4

2. How does unlimited promo changes the perception of the customers?

3. Can unlimited rice promo leads to business loss?

4.