2.

1 Promotion
Promotion—the many actions that aim to sell your products—is a crucial aspect of every
marketing plan. A wide range of tactics are used to convince potential purchasers of a product or
service's benefits. Promotions include ads, sales, PR, and personal selling. Promoting a product
or service draws attention. Commercials let companies reach a big audience with their products
and services. Businesses often offer discounts, coupons, and incentives to stimulate sales and
encourage speedy purchases. Public relations tactics including news releases, events, and
sponsorships boost company credibility. Personal selling involves direct, one-on-one
engagement with customers. Advertising requires a deep understanding of market dynamics and
client behavior. Marketers must consider their target demographic, product qualities, and
competitive landscape when picking promotional tools and tactics. They should also consider
marketing goals and budget constraints to ensure promotional efforts align with company goals.
Today, more promotions are happening online using social media, email marketing, and others.
This move allows for more targeted ads to reach more people. Promotions are essential to the
marketing mix because they boost sales, customer acquisition, retention, and brand loyalty.
Quality promotional activities help a company communicate its value proposition and succeed
(Bui & Martinez, 2019).
As per Nelson (2023), efficient advertising connects with potential customers and
educates them about your products or services. Advertising must synergize with other marketing
tactics and business components to achieve success. Advertising should be interruptive to
capture your attention and make you pause from your current activity to engage with the ad. For
advertising to be effective, it must possess credibility, uniqueness, and memorability. Effective
marketing support must be based on a strong positioning strategy. For any advertising campaign
to be effective, it is essential to allocate sufficient funds to create a media plan that ensures the
frequency of ads, which is crucial for enhancing ad memorability. Through the different
promotional strategies, a business can advertise well.

2.2. Importance of Promotions

Marketers depend on promotions to achieve their goals. Promoting sales and money is the
goal. Marketers use discounts, coupons, and special deals to boost sales instantly. Marketers can
differentiate their products via promotions. A brand may stand out and attract potential
customers in a crowded market with promotions. Marketing is also used to launch new products
and services. Promoting a new service with incentives can boost awareness and
acceptance. Promotions also affect brand loyalty. Marketers can increase brand loyalty by giving
exclusive deals or discounts. This may lead to repeat customers. Promotions in marketing
initiatives can help gather customer data. Digital promotions let marketers understand customers'
demographics, buying behaviors, and preferences. Promotions benefit customers in different
ways. Saving money is great. Offering discounts on products and services makes them more
affordable. Clients can feel urgency and excitement from promotions. Limited-time discounts
and special deals may make customers buy faster. Sales allow individuals to test new brands and
products. Marketers might encourage experimentation by promoting obscure or novel
products. Promotions are crucial to the marketing ecology and benefit consumers and businesses.
These technologies can help marketers raise sales, brand loyalty, and customer insights.
Promotions help customers save money, discover new products, and interact with their favorite
brands (Bondarenko & Vyshnivska, 2023).
Based on Hong et al., (2021), the visibility of a company within its target audience can
be increased through the use of promotion campaigns. Because of this, potential customers are
made more familiar with the brand, which in turn raises awareness about the items or services
that are being offered. When compared to other businesses, it helps a company stand apart. An
organization is able to highlight its unique selling propositions (USPs) and demonstrate what
differentiates it from other businesses in the market. Additionally, it serves as a form of
communication with the audience that is being targeted. The ability to communicate directly with
prospective customers about the products, values, and benefits of a company is made possible by
this practice.

2.3 Types of Promotions

The promotion mix, also known as the mix of promotions, is broken down into six
categories, according to Marketing Communication mix. (2022) advertising, sales promotion,
events and experiences, public relations, direct marketing, and personal selling. Advertising is
one of the paid methods used in the first promotional mix to introduce products and services..
The Second is sales promotion which is useful to increase short-term sales. Third is events
and experience as a part of the promotional mix, referring to a variety of marketing strategies
such as offering entertainment, sponsoring different philanthropic causes, planning festivals and
artistic events. The fourth promotion is public relations, which aims to foster positive
relationships with external parties by preserving the company's positive reputation and
organizing in a way that minimizes negative news (Kotler & Armstrong, 2012). Direct
marketing is the fifth promotional strategy, it is where goods and services to customers directly
without the use of brokers. Lastly, personal selling, is a tried-and-true method of product
promotion that involves selling directly to customers.
Based on Bazergan et al. (2021), study on “The Influence of Promotional Mix on
Customer Savings Decisions,” which used the promotional mix, which includes public relations,
sales promotion, personal selling, and advertising on how these promotional mix affects
customers decisions to save at PT Bank Rakyat Indonesia. They confirmed that both individually
and collectively, advertising, personal selling, and sales promotion have a favorable and
significant impact on consumer decisions. Public relations, however, failed to show any
appreciable effect. Here, it is evident how important promotional materials influence consumers'
choices.

2.3.1 Advertising
Godday (2019) states that one of the foundational elements of the promotional mix that
is well recognized in general promotional techniques is advertising. This aspect is the outcome of
its inclusion and exposure in every other crucial component of marketing communication. In
firms, advertising aims to inform, remind, and persuade the customer to buy the product.
Advertising is defined as any paid form of nonpersonal presentation and promotion of ideas,
goods, and services through the media such as newspapers, magazines, television, or radio by an
identified sponsor. These effective channels for advertising include TV, radio, magazines,
newspapers, billboards, and posters (Kotler and Keller 2013) Due to its low cost when
compared to other techniques, this promotional strategy is essential for businesses as it reaches a
large number of people (Daniel 2018). According to Bazergan et al. (2021) Advertising
encompasses various channels, including print and electronic media, guidebooks, brochures,
symbols, logos, and bulletin boards.

2.3.2 Direct Marketing

 Soegoto and Utomo (2019) Direct marketing involves the direct transmission of
promotional messages to clients without using mass media. It establishes a direct connection
between manufacturers and customers through various advertising mediums, aiming for a
measurable response or deal. Existing consumers can be contacted for introducing new products
and special offers to influence loyalty, while potential customers can be identified and convinced
to make direct purchases. However, the effectiveness of specific direct marketing techniques
remains an area where studies have not provided conclusive results.

2.3.3 Sales Promotion

Sales promotion is an important marketing strategy that aims to reach targeted consumers
and persuade them to buy. It entails organizing initiatives to create informational and persuasive
channels for the sale of products and services (Nakarmi, 2018). Promotion, as a marketing
function, aims to achieve specific objectives by adding external, tangible, or intangible value to a
product or service (Eleboda 2017). Sales promotion involves a variety of short-term incentive
tools aimed at stimulating consumers, distribution chains, and the sales force. These tools include
free product samples, coupons, discounts, and point-of-purchase techniques used by service
providers (Chine 2021). On the other hand, according to (Kotler and Keller 2013) to increase
short-term sales using sales promotion through several ways such as free sampling, coupons,
discounts, free gifts, and loyalty cards. The relationship between sales promotion and
performance is statistically significant, with sales promotion improving brand preference,
subsequently enhancing brand performance, and ultimately increasing profit (Jean &
Yazdanifard, 2015).

2.3.4 Personal Sales or Personal Selling

According to Oladipo (2019) Personal selling is a dynamic process that depends heavily
on the ability to interact with and influence potential customers through persuasion, flexibility,
and interpersonal skills. Different components that are included in personal selling that are
necessary for productive interactions with potential customers. First of all, it highlights an
approach to direct, in-person interactions where competent corporate representatives hold deep
conversations with prospective clients. A more customized and individualized exchange is made
possible by this method. Second, persuasion skills are essential for personal selling. The job of
persuading potential customers to accept and invest in the supplied product falls to company
representatives. In order to accomplish this, these agents need to play roles that are compelling,
positively affecting consumers and creating a positive impression of the product. A crucial
quality for effective personal selling is adaptability. In order to meet the diverse needs of their
customers, representatives must modify their selling strategies. To influence a customer's
decision, this may entail describing the details of the product, emphasizing its benefits, and even
holding product demonstrations. Bazergan et al. (2021) states that professional staff members
committed to customer service are involved in personal sales.

2.3.5 Public Relations

According to (Odunlami & Akinruwa, 2014) Marketers use public relations to target
consumers and foster a favorable perception of their company's products in the eyes of the
general public. Public relations encompasses outreach communication initiatives aimed at
establishing and preserving a beneficial connection between an entity and its audience. Public
relations efforts focus on fostering and establishing positive relationships with customers. This is
achieved through consistent participation in humanitarian activities, establishing cooperation
with various entities, and sponsoring events (Bazergan et al. 2021).

2.4 Sales Promotion and Types

Sales promotion includes all the different marketing actions that are meant to quickly
boost sales of a product or service. It's a strategy used in the context of marketing to get
customers to act right away, and it usually works best when combined with other marketing
efforts. Discounts, coupons, free samples of products, loyalty programs, and points of purchase
are just a few of the many ways that businesses try to boost sales. Such strategies are meant to
make people feel like they need to act quickly or give them a reason to buy, which changes how
they behave and leads to short-term sales growth. To do good sales promotion, you need to know
a lot about your target market, what customers want, and your competitors. This way, businesses
can make sure that their promotions have the most impact and return on investment.

2.4.1 Free product samples

 The psychological principle of loss aversion is at the heart of the fascination that is
associated with the concept of free sample. With regard to this principle, it is commonly
accepted that individuals would rather avoid losses than get benefits that are similar. To put it
another way, the satisfaction of obtaining something without having to pay for it is frequently
greater than the possibility of spending even a small amount for the same thing. Despite the fact
that the discounted item might be of superior quality, sixty percent of consumers would prefer to
receive a free item rather than a discounted one, according to a survey conducted by Statista in
2023. This finding demonstrates the force of loss aversion (Klotz, 2022).

2.4.2 Coupons
Throughout the years, Barat & Ye (2014), marketers have made extensive use of
coupons as an essential promotional tool in a wide variety of consumer product categories. In the
past few years, customers have increased their usage of coupons as a cost-saving tool in an
economic environment that has been volatile. It is difficult to overstate the significance of
coupons as a kind of advertising and marketing, as well as the function that they play in our day-
to-day lives. It is the primary objective of retailers and manufacturers to provide coupons with
the purpose of increasing sales. This can be accomplished by encouraging existing customers to
make larger purchases, by luring new customers to make trial purchases, or by doing both.

2.4.3 Discounts
A price discount is a marketing strategy that is often used to attract customers by offering
them an additional value or incentive. This motivates customers to make instant purchases of the
products that are being pushed within the marketing strategy. The provision of a price promotion
to clients can result in monetary gain or loss, as well as non-monetary gain or loss (such as time
and effort), which can then be converted into price discounts. It is possible for the face value of a
coupon or the amount of a refund to generate a monetary effect that is on the positive side when
it comes to price promotion. According to the economic impacts of price discounts, a price
discount results in a monetary gain, which serves as an incentive for customers to acquire the
goods in question. When a bigger price reduction is offered for a product, consumers have the
perception that they are saving more money on that goods. This association has been proven by a
number of studies that were conducted in the past (Lee & Yu, 2018).
 According to a study by Fathoni et al., (2022) offering discounts is one strategy that
research suggests organizations use to quickly earn income. Presently, a lot of companies rely on
sales techniques that persuade customers to purchase at a bargain. (Dewi et al.,, 2018) on
Traveloka consumers in Surabaya who purchase tickets online and take advantage of the
discount, the variable of discount pricing has a major impact on customer happiness. Customers
are more likely to look for businesses that offer discounts. This suggests that the customers
prefer the variable of discounted price. (Zhang, 2017) investigated how the promo price affected
customer happiness in a study performed at a Starbucks in Thailand by looking at the
relationship between the promo price and the customer evaluation of the quality, the customer
contentment, and the intensity of rebuying.
Offering consumers incentives in the form of price breaks is one way to try and stop them from
switching to other businesses. According to research by (Kim, 2019) on the effect of promo
prices on customer attrition and the strategy of discount prices on purchase decisions, offering
discounts to customers can both influence their purchasing decisions and prevent them from
losing business.
As a result, price takes on significant importance as a direct or indirect indicator of
satisfaction that may have an impact on customer loyalty. (Raji & Zainal, 2016) certifies this in
a study that demonstrates how values obtained have an impact on customer satisfaction, with
monetary pricing thought to be the best indicator of satisfaction.

2.4.4 Point-of-Purchase
According to Kansal (2021), the consumer, the money, and the product join together to
form the point of purchase, which is a place where the consumer can buy a variety of things. In
accordance with Quelch (2006), the Point of Purchase is the most appropriate location and time
to engage with customers because it is the point at which they decide which brand to purchase.
The point of sale is the moment and location where all aspects of the sale—the consumer, the
money, and the product—come together, despite the fact that point of purchase advertising has
been the primary force behind consumer purchasing behavior in recent years. A growth in sales
volume and the development of a brand can be attributed to the existence of questions regarding
the efficiency of marketing communications.
2.4.5 Free gifts
According to (Nbdubisi et al., 2005) identifies a gap in understanding how consumers
reciprocate when presented with deep discounts or unexpected promotional rewards. Drawing
from the gift- giving in social psychology, he discusses the impact of promotional offers in a
retail setting, specifically examining the reciprocity norm, appreciation, and indebtedness. It
unveils that consumer appreciation and indebtedness play pivotal roles in fostering diverse
reciprocal responses, including increased likelihood of additional purchases, positive word of
mouth, loyalty, and favorable attitudes towards the store, particularly in the context of discounts
and rewards. Furthermore, situational factors such as staff helpfulness, purchase expectations,
social presence, and the depth of promotion formats significantly influence the likelihood of
consumer purchases. Cultural variations are also identified in how consumers react to specific
promotion formats, contributing valuable insights to the understanding of consumer behavior in
response to sales promotions.

2.4.6 Loyalty Programs

Based on the findings of Myftaraj et al., (2023), it appears that the respondents had a
substantial level of awareness regarding loyalty card programs. According to research, higher
levels of consumer loyalty are related with higher levels of satisfaction with particular perks,
such as discounts and the accumulation of points. Customers who reported using their loyalty
cards more frequently exhibited a higher level of loyalty. Personalized advantages, in particular
discounts and the accumulation of points, have a substantial impact on the level of happiness
experienced by customers. Other categories of benefits, on the other hand, did not demonstrate
statistically significant relationships with consumer loyalty.

2.5 Sales Promotion and customer behavior

Sales promotion has evolved into an essential instrument for marketing, and its
significance has been steadily growing over the course of the past several years. The purpose of
this research is to determine the extent to which sales promotions play a role in influencing the
behavior of consumers and the purchasing patterns they exhibit. It is possible for managers to
have an understanding of the significance of sales promotion as well as the shifting behavior and
purchasing habits of consumers as a result of this concept. It makes it possible to gain an
understanding of the features of consumers as well as the different behaviors that they exhibit
from the point of view of sales promotion that is aimed at a variety of consumers (Nakarmi,
2018).
Bogomolova et al. (2017) demonstrated a gaining of competitive advantage over the
competitors in the market in companies using sales promotion. With the aim to attract new
customers and maintain existing customers who are contemplating switching brands, sales
promotion tools work as inducements capable of inducing purchase intention (Wong et al.,
2019), increase brand awareness and brand recall as well as encouraging new product trials
(Farrag, 2016). There are two categories of sales promotion: (1) monetary promotions (coupons,
price reduction, bonus pack, rebates, etc.) and (2) non monetary promotions (free merchandise,
product samples, giveaways, contests, etc.) (Carpenter & Moore, 2008; Chandon et al., 2000;
Grewal et al., 2011; Rao, 2009).
Shahzad (2020) has stated that its advantages is that it provides customers with the
opportunity to reflect on and differentiate between the various products and services offered by
the company. The sales When it comes to promotional tactics, discounts, coupons, free things,
and samples are typically included. When it comes to integrated marketing communications,
sales promotion is absolutely essential. It was said in a variety of promotional activities that the
purpose of promotional activities should be to keep existing customers and to attract new
customers.

2.6 Sales Promotion and Millennials

Millennials have a favorable attitude toward the utilization of sales promotion strategies.
Specifically, they have a favorable attitude toward price reductions (which are monetary-based
promotions) and product samples (which are non monetary-based promotions). Furthermore,
Millennials are influenced by the opinions of others, and their impression of the opportunities for
value-expression and monetary savings that are provided by sales promotions inspire purchasing
behavior of products and brands that are on sale. These benefits are considered to be utilitarian
benefits and hedonic benefits, respectively (Antunes et al., 2023).
It was proved by Slack, J. (2023) that millennials are the generation that is constantly
communicating with one another and using the internet in every aspect of their lives. Due to the
fact that they were the first generation to completely embrace the digital world, Millennials are
more likely to make purchases, see adverts, and share material on mobile devices than they are
on desktop computers. But they won't be the last ones. For the purpose of maintaining your
relevance to generations that come after Millennials, such as Gen Z, it is a good idea to begin
incorporating strategies that are aimed at reaching Millennials in the places where they are. This
entails adopting a social, mobile, and digital approach.

2.7 Millennials on the deal-proneness of consumers

According to Dastidar (2016), younger consumers tend to be more deal-prone than older
consumers. Factors related to age, gender, income, and education, characterize the composition
of a population Heleneze et al. (2014) looked into the efficacy of sales promotion strategies
among Millennials in South Africa, finding that they had a generally favorable opinion of the
practice. Free samples and buy one get one free offers are well-liked by millennials, who would
rather use fewer coupons. Marketers claim that employing generational cohorts rather than age
for segmentation is more beneficial. However, there hasn't been much research done on how
different generations of customers purchase (Lissitsa et al,, 2016). Parment (2013) contends
that several generational cohorts possess distinct beliefs, interests, and shopping habits. Among
them, Baby Boomers and Millennials are of particular interest to researchers because of their
size, way of life, and high purchasing power. Millennials make decisions more quickly (Lissitsa
et al., 2016) and place less importance on physically inspecting things (Ordun, 2015), but they
also typically conduct prior research before making purchases, place a lot of stress on technical
details, and depend on the advice of others (Rahulan et al., 2015).

2.8 Sales Promotion and Filipino customer behavior on Millennials in the Philippines
Public service announcements, sales promotions, advertisements, and various other
marketing gimmicks have the potential to influence and drive successful sales. Millennials often
will seek information about a product or service that is currently available on the market
whenever they make a purchase, usually who have sales promotion. It is typical for them to want
items that are durable enough to withstand the effects of wear and tear. Due to the fact that it
results in increased product awareness, the integrated marketing communication technique can
also be utilized with the Filipino consumer. The marketing of items and services that are
substantially less expensive can also be accomplished through the use of efficient transportation
marketing. When it comes to the mobility of items and goods, the trend that is being observed
right now is essentially convenience. As a result of the fact that the majority of products that are
sold in supermarkets and shopping malls may also be found in other stores, the likelihood of
purchasing things is increased (Castillo, 2018).
According to Rivera III (2021), an understanding of the customers is essential to the
success of a firm. As a result of their highly emotional and anxious disposition, dealing with and
having conversations with Filipino millennials is more difficult than it has ever been until now.
For the purpose of establishing a connection with Filipino Millennials, it is essential to learn
more about them than merely referring to them as the "selfie generation." There is a strong desire
among Millennials to be the "first to know," and the availability of smartphones contributes to
this desire. Taking into account the fact that its number is growing, this generation is by far the
largest group. Just like other communities, millennials can be divided into distinct subgroups
according to factors such as their general view on life, their use of technology, and their
involvement in cause marketing.

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