63391582-s-1286528822-sales-promotion-1

7/30/2019 63391582-s-1286528822-Sales-Promotion-1

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SALES PROMOTION..


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Introduction Sales promotion in action-it adds fun and persuades,

customers buy!

The extent of sales promotion.

Why sales promotion has grown.

Sales Promotion 2/45


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Starting with the customer Identifying your customer.

Think from the customer viewpoint.

The new customer on the block. Valuing authenticity and originality in all they buy and experience;

Well informed and hugely involved in the products, services and the

brands they buy;

Individualistic, doing things their way and trying to persuade suppliers

to convert to that way;

Time-poor and valuing anything that saves them time;

Socially responsible, exercising ethical awareness via product and

brand choices;



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The new marketing mix-the offer, the six Cs

and matching the customer expectation Cost

Convenience

Concept-a mix of product and service. Communication

Customer relationship

Consistency



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Its all in the mind of the customer Branding

Buying process and behaviour

The role of influencers Managing the brand-influencing the mind of the customer



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Sales PromotionThere are five things you should do establish a strategic

approach to sales promotion

1. Understand the strategic framework in terms of the

competitive advantage and positioning that should underpin

every sales promotion, as with any other marketing activity.

2. Establish guidelines for each product or service, determining

the style of sales promotion that will be appropriate to it-this

is the same for all marketing activities.

3. Ensure that sales promotions are handled or overseen by a

sufficiently senior executive so that they are conceived,

integrated and implemented professionally.



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Sales Promotion4. Insist that sales promotions are researched and evaluated

through marketing accountability measurement in a way that

enables you to assess their performance and compare it to

that of other types of marketing expenditure.

5. Plan and budget of your use of sales promotion over the year

ahead so that the promotions become integral to your

marketing effort alongside other marketing activities.



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What sales promotions can doThe 12 core promotional objectives

1. Increasing volume;

2. Increasing trial;3. Increasing repeat purchase;

4. Increasing loyalty;

5. Widening usage;

6. Creating interest;

7. Creating awareness;

8. Deflecting attention from price;

9. Gaining intermediary support;



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What sales promotions can do10. Discriminating among users;

11. Restoring brand perceptions and deflecting attention from

complaints after operational mishandling of customer

accounts;

12. Retaining brand perception on service failure.



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1. Increasing volume: Reasons why1.1 To shift stock of an old model prior to a new introduction;

1.2 To reduce inventories prior to their financial year end;

1.3 To increase stockholding by retailers prior to theintroduction of a competitors product;

1.4 To lift production to a new and higher level.



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2. Increasing trial2.1 Providing a free sample or a trial coupon.

2.2 Providing an additional benefit so that your product or

service seems superior to others on the market;

2.3 Providing short-term financial benefits.

2.4 Doing something different and imaginative, such as an open

day or special event.



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3. Increasing repeat purchase3.1 Coupons on the product giving discounts off the nest

purchase;

3.2 Specific incentives for multiple purchases-for example, buy

three, get one free;

3.3 Collector promotions, such as collecting 10 tokens and

sending for free merchandise or a cash refund.

3.4 Voucher pack.

3.5 Frequency program.



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4. Increasing loyalty4.1 Long-term collector promotions.

4.2 Clubs that people can join that offer a range of special

benefits.

4.3 Factory visits, road shows and other direct-contact

promotions, which bring purchasers into personal contact

with the people behind the product or service.

4.4 Frequency program.

4.5 Point collection.

4.6 Bonus.

4.7 Progressive rebate.



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5. Widening usage5.1 By physically linking the product or service with something

else already in the new usage area.

5.2 By offering books or pamphlets that are of value in

themselves and explain new ways to use the product or

service.

5.3 By creating a non-physical link with something else already

in the new usage area, via coupons or joint promotions with

another company.

5.4 Advertising and publicity.



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6. Creating interest6.1 Being the first to offer a new product or service.

6.2 Linking up with a celebrity or relevant charity.

6.3 Finding a totally new way to do something that people enjoydoing.



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7. Creating awareness7.1 Joint promotions with another product or service that is

already well known in a particular market;

7.2 Link-ups with charities or voluntary groups that have a

relevant image;

7.3 Sponsorship.



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8. Deflecting attention from price8.1 Variations on price cuts, that appear more valuable than a

straight price cut;

8.2 Making price comparisons less direct, by offering extra-fill

packs, short term multi-packs, joint packs, or part of the

product or service free,

8.3 Long-term collector promotions.



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9. Gaining intermediary support9.1 Specific programmes directed at wholesalers, retailers,

agents and distributors to gain distribution, display and

cooperative advertising;

9.2 Member get member schemes, which reward customers for

introducing new people to you:

9.3 Promotional events aimed at the media and other decision-

making influencers.

9.4 Incentives directed at store managers and sales assistants.

9.5 Free offers targeted at those who place the orders.

9.6 Price offers that enhance the margin to the intermediary:



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9. Gaining intermediary support9.7 Tailor-made promotions, which run only in one store group.

9.8 Progressive rebate.

9.9 Credit terms9.10 Consignment

9.11 Allowance

9.12 Dealer load



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10. Discriminating among users10.1 Time usage

10.2 Place usage

10.3 Early birds10.4 Special groups

10.5 Packages of product, price, distribution and promotion for

different categories of user.



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11. Restoring brand perceptions anddeflection attention from complaints

afteroperational mishandling of

customer accounts.



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How to use promotions What is the strategic nature of the brand-its positioning and

differential advantage?

What is the promotional objective?

Define how you will know it has been a success, Find the

particular key performance indicator (KPI) that you need to

measure whether you have.

Who are the people whose behaviour you want to influence?

What are they like and what interests them?

What bahaviour do you want them to reinforce or change?

What are the operational constraints of the promotion-

budget, timing, location, product coverage and logistics?



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The promotional planning cycle

Business Objectives Other business activities

Define the offerthe marketing mixthe six Cs

Marketing Objectives

Consider the promotional mix

Consider the promotional mix

Other marketing activities

Promotional Objective

Marketing Plan

Campaign



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The promotional planning cycle

How to use promotions

Write the promotional brief

How to be creative

Feedback to next year How to use suppliers

Marketing accountability-toMeasure, evaluate, research

Check the legal position

How to implement a promotion



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In using the flow chart, it is important

to ask yourself four questions. Who holds the key to the business problem? Is it the end-user

or the retailer?

What are these customers like? What other things do they do

with their time? What are their motivations, interests and

desires? What is holding them back from behaving as I would

like them to behave?

What exactly I want them to do? Buy one product or more?

Use it more frequently or for the first time? Put it on displayor tell their friends about it?



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In using the flow chart, it is important

to ask yourself four questions. Who else on the chain has leverage? Some intermediary? Is it

a boss or other staff member? Is it children or friends? Who

are they with when they are making the decision that I am

interested in?



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How to use supplier1. Seles promotion agencies

There are five key attributes that companies normally look for

in their sales promotion agencies, whish form a handy

checklist for selection:

Creativity.

Communication skills.

Budget control.

Good service.

Good track record.



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How to use supplier2. Handling houses.

3. Point-of-purchase manufacturers.

4. Field marketing agencies.5. Premium sourcing houses.



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How to implement a promotion:The components

1. Budget

2. Timing

When the promotion is needed to impact on the consumer;

How long it will last;

How that relates to the purchase frequency of your product or service;

What lead times intermediaries require;

How long you have for print and merchandise delivery;

When you need your promotional concepts ready.



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How to implement a promotion:3. Communication

The wrapping of the product;

Leaflets in or with the product or service;

Leaflets separate from the product or service;

Advertisements in the press or on radio, TV, the internet or posters;

Sponsored shows or events;

Posters, stickers and other support material;

Sales aids;

Mailshots;

Mobile marketing;



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How to implement a promotion:4. Logistics

Who will do what?

Where will items be stored?

How will they be distributed?

What resources are needed at each stage?

5. Legalities



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The brief to the result

Brief

Possible Concepts

Communication Logistics LegalitiesTimingsBudget

Short-list And Check Against Objectives

Short-listed Concepts

Communication Logistics LegalitiesTimingsBudget

Outline Plans, Visuals And Copy

Check Back To Brief, Evaluate And Select

Top Concept

Check Against



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The brief to the result

Define Success

Finalize

Administration

Finalize Offer

Materials

Establish

Evaluation

Finalize

Communication

Materials

Finalize

Copy And

Design

Make Detailed Operational Plan

Check All Legalities

Run The Promotion

Evaluate Results Against Success Criterion And Brief



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The purpose of marketing accountability1. Think accountability

2. Measure

3. Evaluate

3.1 Background and objectives

3.2 Description

3.3 What happened

a) Marketing accountability

b) Promotional response

c) Sales

d) Finance

4. Analysis



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Off-the-shelf offers1. Free accommodation

2. Holiday vouchers

3. Discount coupons

4. Two-for-one flights

5. High street vouchers

6. Insurance offers

7. Packaged schemes



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Joint promotions:1. Planning principles:

1.1 Involve everyone.

1.2 Make realistic promises.

1.3 Avoid unplanned changes.

1.4 Build in good liaison.

1.5 Bargain realistically.

1.6 Be proactive.



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Joint promotions:2. The needs joint promotions can meet include the following:

2.1 To gain trial for your product or service from among the customers of

another product or service;

2.2 To associate your product or service with someone elses in the mindof your target audience;

2.3 To make a promotional offer that will attract your customers at low

cost to yourself;

2.4 To explain to your customers new ways in which your product or

service call be used;

2.5 To place your product in an environment where potential customers

are likely to see it;

2.6 To reduce the cost of a planned activity by sharing it with someone

else.



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Joint promotions:3. Methods

3.1 Sample promotions

3.2 Referral coupon promotions

3.3 Charity promotions

3.4 Loyalty schemes



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Price promotions1. Segment pricing

1.1 Time.

1.2 Location.

1.3 Conditions.

1.4 Version.

2. Immediate discounts

2.1 Seasonal discounts

2.2 Multi-buys2.3 Banded packs

2.4 Reduced shelf price

2.5 Reduced price offers

2.6 Extra-fill packs



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Price promotions3. Delayed discounts

3.1 Cash rebates

3.2 Repurchase offers

4. Coupons

5. Finance deals



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Price promotions6. Trade price promotions

6.1 Overriders

An overriding discount is agreed at the beginning of a year

between a supplier and a purchaser, and is payable by the supplier

at the end or the year if the purchaser has achieved the agreed

targets.

6.2 Display and advertising allowances

These are allowances for a retailer to conduct some piece ofpromotion for the manufacturer. The allowances can pay for

media support, stack ends, leaflets, coupons, window bills, display

and any other form of retail support.



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Price promotions6. Trade price promotions

6.3 Volume and case bonuses

These are short-term bonuses given by manufactures to retailers.

A case bonus is an amount of additional discount given per casebought, A volume bonus is an amount of additional discount givenfor buying a certain volume of product-more than would normallybe bought at that time.

6.4 Count and recount

The name count and recount derives from the days whensalespeople would habitually go into customers stockrooms tocount the stock, Count and recount gave the retailer a bonus onthe difference between the original count and the recount.

6.5 Credit offers



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Premium promotions1. On-pack offers

2. With-purchase premiums

3. Free mail-ins

4. In-pack premiums

5. Self-Liquidators

6. Brand extension

promotions7. Business gifts

8. Package Deal

9. Voucher Pack

10. Value Pack

11. Add-ons

12. Software



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Prize promotions1. Competitions

2. Free draws

3. Instant wins

4. Games

5. Probability promotions

6. Bonus

7. Point Collection



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SALES PROMOTION..

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63391582-s-1286528822-sales-promotion-1

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