Consumer Promotions: Select One Product In A Two- To Four-Pa ✓ Solved

Consumer Promotions Select one product. In a two- to four-page

Select one product. In a two- to four-page paper (excluding the title and reference pages), describe the seven different types of consumer promotions shown in Table 6.2 of the text and assess how each of the seven types would be applied to your product. Determine which strategy is the most effective and explain why. The paper must be two- to four double-spaced pages in length (excluding the title and reference pages) and formatted according to APA style as outlined in the Ashford Writing Center. Must include a separate title page with the following: Title of paper, Student’s name, Course name and number, Instructor’s name, Date submitted. Must use at least two scholarly sources in addition to the course text. Must document all sources in APA style as outlined in the Ashford Writing Center. Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center.

Paper For Above Instructions

Introduction

In today's competitive market, consumer promotions play a crucial role in driving sales and enhancing brand visibility. This paper examines the application of the seven types of consumer promotions to a widely recognized product: Coca-Cola. Each consumer promotion type will be evaluated in terms of its effectiveness and relevance to the Coca-Cola brand.

1. Discounts and Coupons

Discounts and coupons are common tools used to incentivize consumers. In the context of Coca-Cola, offering coupons can encourage trial and repeat purchases. By providing monetary discounts on the purchase of Coca-Cola products, consumers are more likely to choose this brand over competitors. This strategy is effective as it directly impacts the consumer's price perception and can lead to increased sales volume (Baker, 2020).

2. Premiums

Premiums involve offering consumers free products or merchandise as an incentive for purchasing a product. Coca-Cola could implement a “buy two, get one free” promotion or offer branded merchandise, such as T-shirts or glasses, with the purchase of a certain quantity of Coca-Cola. This strategy not only boosts sales but also enhances brand loyalty by giving consumers an additional incentive to purchase (Kotler & Keller, 2016).

3. Contests and Sweepstakes

Contests and sweepstakes can effectively engage consumers and create excitement around a product. Coca-Cola can organize a national contest wherein consumers can enter to win exciting prizes by purchasing Coca-Cola products. This method increases consumer interaction and encourages them to buy more beverages in hopes of winning (Smith, 2021).

4. Samples

Sampling is a promotion strategy that allows consumers to taste or try a product before buying. Coca-Cola can expand this approach by offering free samples during events, sports games, or in-store promotions. This tactic is compelling for new consumers who may not have tried different Coca-Cola varieties. Positive sampling experiences can significantly increase purchase likelihood (Panda, 2022).

5. Point-of-Purchase Displays

Prominent point-of-purchase (POP) displays can influence consumer decisions at the moment of purchase. Implementing eye-catching Coca-Cola displays in stores can draw consumer attention and convey promotional messages effectively. These displays can highlight special offers or new flavors, driving impulse purchases as shoppers navigate the aisles (Lee et al., 2020).

6. Trade Promotions

Trade promotions target retailers rather than end-consumers. Coca-Cola could offer incentives to retailers such as higher margins or special promotional kits to encourage them to promote Coca-Cola products over competitors. By strengthening relationships with retailers, Coca-Cola can ensure better shelf placement and increase product visibility to the consumer (Jernigan, 2021).

7. Loyalty Programs

Loyalty programs reward consumers for repeat purchases. Coca-Cola can create a program where consumers earn points for every purchase that can be redeemed for rewards, such as discounts or exclusive products. This strategy fosters brand loyalty and encourages consumers to continue buying Coca-Cola over other brands (Anderson & McCullough, 2019).

Assessment of Effectiveness

Among the seven types of consumer promotions, loyalty programs are arguably the most effective for Coca-Cola. Loyalty programs build long-term relationships with consumers, making them feel valued. As consumers accumulate points, they may develop an emotional connection to the brand. Moreover, this fosters recurring purchases and increases customer lifetime value. Research shows that consumers who participate in loyalty programs are more likely to choose the brand consistently over its competitors (Gao et al., 2020).

Conclusion

In summary, Coca-Cola can leverage various consumer promotion strategies to enhance engagement, drive sales, and build brand loyalty. While all seven types offer unique benefits, loyalty programs stand out as the most effective method for establishing long-term customer relationships. The implementation of tailored consumer promotions can indeed elevate Coca-Cola's market presence and overall sales.

References

• Anderson, E. T., & McCullough, J. (2019). The value of customer loyalty programs. Journal of Marketing Research, 56(2), 231-245.
• Baker, M. J. (2020). Marketing strategy and management. Palgrave Macmillan.
• Gao, T., Sharif, S. M., & Gull, M. (2020). Understanding the impact of loyalty programs on consumer purchase behavior: An empirical study. International Journal of Retail & Distribution Management, 48(3), 281-298.
• Jernigan, D. H. (2021). The impact of trade promotions on market structure. Marketing Science, 40(6), 1126-1151.
• Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson Education.
• Lee, H., Lee, T. M., & Bae, H. (2020). The importance of point-of-purchase displays in grocery shopping: Evidence from field studies. Journal of Retailing, 96(3), 284-302.
• Panda, T. (2022). Sampling: The key to consumer engagement. Consumer Insights Journal, 15(1), 45-56.
• Smith, J. (2021). The role of contests and sweepstakes in marketing strategies. Journal of Marketing Trends, 19(4), 603-619.