Intensity of sales turnover and promotional expenditure and the likelihood of new product success: Configurational matrix of fast moving consumer goods (FMCG)

Abstract

The FMCG marketing phenomenon plays all elements of the marketing mix (4P's), so that each element is thought to have a high degree of complexity. The first objective of this research was to uncover the responses of buyers in the business market to the offering of a new product related to the marketing environment situation-P: promotion and other environments; and next, detecting product performance and its parameters as an evaluation tool for the success of new products. Qualitative research methodology was applied, and was designed using a grounded theory strategy and an interpretative approach, constructivism and pragmatism. Data was collected from the phenomenon of FMCG competition in traditional markets in Indonesia. The results of the research identified buyers' responses reveal that the marketing-promotion environment was directly taken into consideration by purchasing decisions; marketing environment-promotion is valued by the buyer in relation to the marketing environment-price, and the expected impact on the competitive environment-activity and results of promotion. The concepts from the results of this study have implications for the practice of corporate strategies regarding new product launches, marketing and financial budgeting, brand strategy, and marketing market performance. All these matters show that the depth of the purchasing behavior perspective, as well as the performance and success of a product based on promotional strategies is the originality of this paper.