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Paper Topic:

promotion strategies slp 4

PROMOTION STRATEGIES

Costco Wholesale Corporation , which was established in 1983 as a single store in Seattle , became the biggest membership warehouse club chain the world , employing the so-called less-is-more ' concept . With such concept , Costco Wholesale Corporation also looks upon themselves as the membership warehouse club that has the capability to sell top-quality food , hardlines , softlines , and other goods usually in a large number or bulk quantity at the lowest possible price . Costco now has over 457 stores which are situated in most parts of the United States and is still growing

. Their success was mainly attributed to their sales volume , good consumer acceptance , generally good services and customer care , and the lowest possible price offered . Furthermore , it is able to provide lower cost and greater discounts because the corporation 's marketing style is to reduce overhead cost by reducing fancy outlet designs , taking almost everything to simplicity

Though , generally , for a company to thrive in the business world , having good-quality products which are sold at attractive prices is not enough Oftentimes , the advantages of certain products are communicated with the customers in to create more sales and profits , and this process is generally known as promotion ' Promotion is the method or process wherein companies are able to communicate with the customers , using blends of advertising , sales promotion , personal selling and or public relations tools (O 'Guinn , 2006

Advertising includes the use of print ads , store displays , television billboards and any other paid form of methods or non-personal presentation of either ideas , or services and goods . Unfortunately Costco does not use this means of promotion or as a means to communicate with the customers , and this is supported by the fact that Costco does not have a

.R . department . But , since Costco has loyal employees , most often having employees who are already working at Costco since it was founded in 1983 , promotion is done through personal selling , sales promotion and or public relations . This is the promotional mix that Costco uses , which are done by Costco employees as well , but not by an employee specifically assigned to do this task . This is Costco 's way of communicating with the customers , without sacrificing the prices of both goods and services

Sales promotion can be done using sweepstakes , coupons , FSI 's or Free Standing Inserts , Gifts with Purchase , On-Pak which is a promotion on the package and or sampling . Sales promotion in Costco is done through sampling or sampling programs , enabling Costco to communicate its products to customers as they shop for stuffs . Costco provides booths or areas where there are free samples of food or new products . An advantage of this is that , sometimes , customers would eat a lunch ' made up of these free products or samples without actually buying anything . Direct marketing on the other hand , can be done through direct response for the company to receive or gather contributions , inquiries , memberships , etc To support Costco 's use of this promotional mix , Costco receives cash flow from the annual...

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