Friday, February 18, 2011

Sales Promotion

Sales Promotion
Sales Promotion is playing an important role in the business market, and it is a new way to attract more consumers to a new business. According to the book “Basic Marketing” defines the sales promotion “it refers to promotion activities-other than advertising and publicity, and personal selling- that stimulate interest, trial or purchase by final consumers or others in the channel”. (371) I believe that it is the best way to reach more consumers through offering them discounts or coupons to come and check out a new business.  My first experience with the sales promotion was when I received a coupon from Dominos pizza, I wanted to try it.  I went one time to buy from dominos pizza, and I started to go regularly. Therefore, if business or restaurant satisfies customer’s needs, so the customers will have incentive to come to the business or the restaurant for a second time then customers will become clients of the business.  Also, if the companies and businesses are working to attract more customers to come and to check out their business, they do not satisfy customers’ needs. In this way, the customers will not have incentive desire to come to the restaurants or the companies for the second time. As a result, the companies or any business should have marketing strategy to improve their business, to attract customers through sales promotion which is the fast way to attract them, and to satisfy their needs so they will come to buy for second times.

Thursday, February 3, 2011

Summary of the Article “Concept behind physical distribution”

These days, we have seen how the price of physical distribution is getting higher and higher. The concept of physical distribution is always trying to decrease the price of the distribution. According to the book “Basic Marketing” defines the physical distribution concept includes “all transportation, storing and product- handling activities of a business and a whole channel system should be coordinated as one system that seeks minimize the cost of distribution for a given customers service level” (318). In the introduction of the article, it mentions that the biggest achievement of the physical distribution is lower cost of the distribution with better customer’s service. Therefore, the sales will increase, and it will help the firm to gain profits. 
According to the Article, two benefits come from good strategy in physical distribution.
The first benefits are to decrease the total cost of distribution through eliminating the number of warehouses. For example, the article gives real examples regarding to this point: “European union’s unification of the elimination of transportation barriers among member countries”. Eliminating the transportation will reduce the total cost of distribution, and it will reduce warehouse numbers, as well as, the cost of warehouses will reduce also.
Secondly, the physical distribution system can help the companies to determine the demand for a specific product, so they can send the goods fast. In this way, the company will reduce the price of warehouses. As a result, the company will gain profit for selling their product in a high- demand market.
In summary, physical distribution systems is very hard to understand, especially in unstable economic situations.