The article, “Three Faces of Consumer Promotions”, was written by Raghubir, Inman and Grande. It critically analyzes the economic, informational and affective aspects of consumer promotions as applied to the target population. From this article, I concluded that managers must understand how the consumer understands, interprets and reacts to these marketing strategies. The authors are unequivocal that managers must look beyond the economic aspects of promotions and analyze the interplay between information, emotions and consumer purchasing decisions, if promotions are to boost a firm’s sales and profits.
The article is crafted around verifiable evidence and constant reference to other scholars and practical models. Raghubir, Inman and Grande begin by emphasizing how firms are spending a huge chunk of their marketing budgets on consumer promotions (2004). The examples cited by the authors are relevant to what most managers are assigned to accomplish in a firm. The paper is well researched, considering the long list of references that are cited. The author’s “Process Model of Promotion Design” is easy to follow and amenable to the needs of various business organizations. The writers’ “Dos and Don’ts of Promotion Design” serve as a quick reference for managers involved in designing and launching consumer promotions.
This is a valuable article for the contemporary manager. Since sales and profits are the forte of any business, this information will enable managers to strategize effectively, to win customers and increase profits, and to ensure that there is a high return on promotion investment. Managers who read Raghubir, Inman and Grande’s article will understand the psychology of the consumer, especially in relation to economic implications of purchasing a product, the role of new and old information related to a product or brand and the inter-relation between feelings and promotions. With this information, promotions will be mutually beneficial to both the consumer and the company.
I would recommend that managers and student study this article carefully. This is because of its value as a decision-making tool. Often, managers think that promotions are premised only on offering attractive discounts, an issue that is practically critiqued in this article. For students, this information will serve as an important tool when they begin to work in different firms.
References
Raghubir, P., Inman, J. J., & Grande, H. (2004). Three Faces of Consumer Promotions.
California Management Review, 46 (4), 23-42.
