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Effective methods of managing retail 'sales'

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The 'sale' is a dominant part of modern retailing worldwide. As a marketing tool it has always had an important and legitimate role in creating consumer excitement and in clearing surplus or obsolete stock. However, in recent years the sale has become ubiquitous and pervasive and, apparently, used to excess, threatening profit margins and even the survival of certain retailers that rely too much on them. This paper contrasts the methods used by two sub-groups of New Zealand retailers, one subgroup is selected on the basis of their being cost-effective managers of 'sales' and the other group on the basis of their cost-ineffective management of sales. The study identifies various practices, such as accurate demand forecasting, which the effective group uses more. Further, these differences are shown to depend on the particular objectives of the 'sale'. Different 'sales' objectives require different marketing management practices.
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Document Type: Research Article

Publication date: 01 January 1999

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