Marketing Activities

Marketing Activities

Marketing activities such as promotions contribute to about half of the budget of consumer goods manufacturing (Progressive Grocer, 1995). The years 1985-1990 saw an evident increase in the expenses relating to trade promotions (Forbes 1991). Brand loyalty among consumers has dropped down from 77% in 1975 to 62% in 1990, which is why there has been more emphasis on trade promotions than advertising (Business Week 1991).

Study of the issues, relating to changes in marketing activities over time from will allow us to comprehend the changes in consumer purchase decisions.

(CARL F et.al.,2010)

Mela, C., Gupta, S., Lehmann, D.. (1997). The Long-Term Impact of Promotion and Advertising on Consumer Brand Choice.. Journal of Marketing Research (JMR);. Vol. 34 (14p), p248-261.

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Stimulating a consumer to purchase a product through confidence can be achieved through an effective advertisement which creates vigilance and knowledge by providing information, details etc. and also tend to change their mind-set and approach. (Lavidge & Steiner 1961)

In addition Callcott and Phillips (1996) stated that many researchers have implied that the advertisement with the most likeable cause has tremendously boosted the awareness of the ad and has resulted of an optimistic feelings towards the brand, which later converts into a purchasing behavior (Callcott & Phillips 1996)

Yilmaz, C., Telci, E., Bodur, M., Iscioglu, T. (2011). Source characteristics and advertising effectiveness. International Journal of Advertising;. Vol. 30 Issue 5, (26p), p889-914.

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Two conflicting theories on impacts of advertising on consumer purchase decisions are suggested

 Through advertising, product differentiation is achieved and this makes consumers less price sensitive in nature (Comanor and Wilson, 1974).

 However, by advertising consumers become more aware of the different products and its pricings and in turn makes them price sensitive (Nelson, 1974).

A prominent investigation also states that depending on whether the consumer belongs to a brand loyal (reliable) or brand unreliable segment, the effect of advertising will differ. For example, a brand loyal consumer will hardly have an effect of advertising in terms of purchase behavior whereas a consumer belonging to the brand unreliable segment will be price sensitive and make changes in his purchase decisions (Krishnamurti