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This chapter focuses
on the studies and journals which is related to promotional strategies of coffee
shops in Davao City. In this chapter, a number experimental researches have
been studied to analyze the different promotional strategies.Promotional
strategy is the plan on how to use the marketing resources to achieve the
promotional objective of a company. Promotional strategies focus on specific
areas of business such as, market needs, and product or service offering.
Business owners and managers should always have a plan on what promotional
strategy they will use.Khotler, P.
(2013) stated that promotion includes all the tools in marketing mix which are
used mainly to persuade consumers. Therefore, promotion plays a vital role in a
business. It is one of the key of a successful business. It includes
activities which relates in promoting sales of the goods and services or in encouraging
the buyer to buy the goods and products available for sale.Coffee shops are
becoming more aware that brand loyalty is becoming an increasing importance in
the business. It is an effective approach for fortifying a competitive
advantage in business. Due to
technological advancements, coffee shops find effective promotional strategies
to market their products.The main problem
in coffee shops is that owners are unable to get the customer’s attention
(Folkinsteyn, 2014). The specific problem is that coffee shops were
not able to formulate effective promotional strategies.Marketing is one
of the factors that help the economy in its continuous growth. In the business,
marketing is useful in aiding of leveling the process of dealing and
manufacturing products.In McDonald`s
Marketing Planning, he identified some possible objectives of promotional
strategies. These strategies are made to carry information, to change
perceptions and attitudes, to generate desires, to launch connections, to
deliver reassurance, to direct actions, to remind, to give reasons for buying,
to demonstrate, and to generate inquiries.Marketing is the
process of business activities that helps the efficient flow of goods and
services from producer to consumer or user. This means that marketing and
promoting are all about selling the goods to customers. Promotional
activities intent to establish an effective communication between businesses
and customers. Marketing managers communicate with customers through
promotional activities. In Agarwal`s
Organization and Management, he described advertising as the most common promotional
strategy. Advertising is marketing or presenting the goods to customers.  Agarwal described product as the heart of a
promotional strategy. There won`t be a
need for promotion if there is no product. Therefore, promotional strategy
revolves around the product.Promotions
contribute greatly in accomplishing these goals. Advertising is considered both
a science and an art. The history of advertising dates back from the early
times where goods and products were sold from person to person.It is actually the
way you produce identity to your business.The efficiency of a promotional
strategy is in a way related to its trustworthiness. It is important
to consider what the customers feel about the reliability and general message
of the promotions. Consumers view some specific kinds of adverts as more
reliable than the rest.In his study, Dinu
(2012) looked for the significance of marketing in the consumer’s purchasing behavior.
His study show that many consumers buy products with discounted price. He found
out that discounts and other promotional incentives has a great effect on the consumer.
Consumers get fascinated to new products. Online promotional also has an impact
in their buying decision. Self-congruity
is the key notion of consumer’s behavior. It reflects the consumer’s
discernment about the product. A consumer’s
want to express his self is what urge him to buy a certain product. When a consumer wants to be noticed, he buys
something. When he wants to satisfy his self, he buys something. Therefore,
there is a relationship between the want of a consumer to satisfy his self and
his purchasing behavior.Graeff states
that the more comparable the consumer’s self-image and the product’s brand
image is, the more it is satisfactory to the consumer. Meaning to say, the more
the product fits the consumer’s preference, then the more possibility of it
being chosen by the consumer. Therefore, the loyalty of consumers depends on
the brands that fit their self-image.Personality
traits are outlines of thoughts, feelings, and behaviors that relays to
customers. Since brands have their own dispositions, then consumers treat them
as human beings. They like to use products that are in lined with their
personality. Many customers
view going to coffee shops as part of their personality. It is their way of
expressing their self and communicating their self-identity. Consumers have
different perceptions of themselves. The concept of
self is defined by Markus (2013) as to what a person thinks of his own
attributes and the way they are assessed. These self-perceptions are closely
related with nature and the consumer’s choice of products or services.  Coffee shops
must adapt to the changes in business. Suitable adaptation may lead to
sustainability. Therefore, they should also learn to revolutionize their
promotional strategies. Education and
proper training may help coffee shop owners to deal with change. Knowledge may
help owners and managers to make better calculations, decisions, and
pronouncements. But too much trust in the abilities of your business can create
an undesirable situation. There should be
a valuable complaint-handling system in coffee shops. In addition, trained and
motivated staffs should be hired in order for the coffee shop to build a stable
customer portfolio.Psychological
Ownership Theory was used by Asatryan and Oh in clearing up why consumers are
driven to say good comments.  Customers
feel a sense of loyalty in the products they have been using.  In this instance, we could say that loyal consumers
really share to others their good comments about the business.In recent years
there has been an expansion of the coffee shop business. Last year, especially
in Davao City, was a year of coffee shop boom. Because of this, it became very
crucial for coffee shop owners to set their products different from the rest.The population
in Davao City is quite big. Think of the percentage of our population who
drinks coffee. We can see that students alone go to coffee shops to study. Of
course, while studying, they will buy some coffee. Therefore coffee shops
really strive hard to look for effective promotional strategies.In this study,
the researchers discussed three promotional strategies which are physical
environment, traditional media, and electronic media. When we talk about
physical environment, it refers to the one-on-one talk with the customer. It is
having personal communication with customers. Bowie described
personal communication as when people directly talk to each other in real time,
face-to-face, or on the telephone, via online chat and exchanges by email or
text. Personal
communication offers physical environment or interaction to customers. When we
say interaction, it is when the customer can ask questions about the product
and in return, the company can find out more about the consumer`s preference.The history of
media was dated back in 19th century. As time goes by, the media industry
slowly evolved. Businesses also learned to use media in their own advantage. There is no
point in spending so much on promotional because the competitors will just find
ways to surpass your promotional strategy. The main key is to target consumers using
the correct message. Therefore,
businesses must look at the physical environment. They must rely on their
agents to do one-on-one talk with customers in promoting their product. One of the
advantages of advertising through television and radio is that it can reach a
large scale of viewers. Not everyone has a social media account. Therefore,
those who are not reach by social media can be reached by television and radio
advertisements. Even people with social media accounts watch television and
listen to radio.