Promotions as market transactions

Abstract

Marketing management involves the identification, creation, capture, communication and delivery of superior customer value to the target market to satisfy their needs and wants simultaneously meeting organizational objectives. Promotions as a part of communication of value include consumer sales promotions, trade promotions and promotions to the sales force. The study lays out the definition and conceptualization of promotions as market transactions. This involves defining promotions as well as defining transactions and placing transactions as a part of the market sequencing of exchanges, transactions and contracts. The study distinguishes market transactions as different from the transactions that are part of industrial organization studies. The study lays out implications for marketers and infers that promotions have an important role to play in transactional marketing in all four aspects-demand management, market potential realization that also results in demand, market share dynamics and market equilibrium. An empirical illustration of the distinction between ‘exchange’ and ‘transaction’ is laid out. Promotions should also act as the foundation of effective competitive market transactions that markets are built upon. Marketing strategists have to consider promotional strategies as an effective ploy for managing consumers and competitors in the long run.