Impact Of Sales Promotion On Long Term Shareholder

Impact assessment of Sales Promotion on long term shareholder wealth in Retailing Industry Introduction Retailing has been an important industry in any country. History would indicate that its form has changed with time as competition was no more a local phenomenon. Retailers started moving from being â€Å"neighbourhood stores† to expand their horizons nationally as well as internationally. Technology brought revolution in the retail industry with the advent of internet. Online retailers today have become a common part of everyone’s life. Mobile commerce too has started growing with the innovation of â€Å"App Stores† brought by Google and Apple. In this face of retailing, competitors have pushed themselves to gain more market share by trying†¦show more content†¦This research aims to test the impact of sales promotion on generation of profits and shareholder wealth maximization. Research Objectives The research undertaken would have 3 main objectives: 1. To study and understand the sales promotion activities carried out by retailers 2. To study its impact on sales and profits of the company 3. To study the impact of such promotional activities on shareholder wealth Research Questions The research will try to address the below questions in a sequential manner in order to assess actual impact: 1. What sales promotion activities are carried out by participants in the retail industry? 2. What are the effects of sales promotion on the sales of the retailers? 3. What are the effects of the sales generated by sales promotion on the profits of the retailers? 4. What are the effects of sales promotion activities on long term shareholder wealth? Literature Review Marketers have come to identify that advertising alone is not always enough to move their products into the hands of consumers. Sales promotion is used to ensure that customers are aware of the products that organizations offer. Sales promotional activities were originally intended as short term incentive aimed at producing immediate consumer buying responses. Consumer promotions are short-term incentives targeted directly at consumers and they include: buy-one-get-one-free, price discount, event sponsorship, coupons,