Corrected Sales Promotion PGP

8/8/2019 Corrected Sales Promotion PGP

1/28

Sales PromotionSales PromotionMarketing communicationMarketing communication

activities, other thanactivities, other thanadvertising, personal selling,advertising, personal selling,and public relations, in whichand public relations, in which

aashort short--term incentiveterm incentive

motivates a purchase.motivates a purchase.


2/28

Steps involved in salesSteps involved in sales

promotionpromotionE stablishing the sales promotionE stablishing the sales promotionobjectivesobjectivesSelecting the sales promotion tools.Selecting the sales promotion tools.Constructing the sales promotionConstructing the sales promotionPrePre--testing the sales promotiontesting the sales promotion

programprogramImplementing & controllingImplementing & controllingE valuating the sales promotion resultsE valuating the sales promotion results


3/28

Uses of Sales PromotionUses of Sales Promotion

IImmediate Purchases

Increase Trial Boost consumer inventory

Encourage repurchase

Increase ad effectiveness

Encourage brand switching

UsesUsesof of

SalesSalesPromotionPromotion

Encourage brand loyalty


4/28

Obj ectives of SalesObj ectives of Sales

PromotionPromotion Type of Buyer Type of Buyer

Loyal Customers

CompetitorsCustomers

Brand Switchers

Price Buyers

Desired ResultsDesired Results

RICReinforce behavior Increase consumptionChange timing

BPBreak loyaltyPersuade to switch

P

Persuade to buy your brand more often

A

S

Appeal with lowpricesSupply added value

Sales PromotionSales PromotionExamplesExamples

LBLoyalty marketingBonus packs

SS

SamplingSweepstakes,contests, premiums

P

T

Price-loweringpromotionTrade deals

C

T

Coupons, price-off packages, refundsTrade deals


5/28

Obj ectivesObj ectives

F or consumersF or consumersMore usageMore usagePurchase of large size unitsPurchase of large size unitsBuilding trial among non usersBuilding trial among non usersAttracting trial among other brandAttracting trial among other brandusersusers

F or consumersF or consumersMore usageMore usagePurchase of large size unitsPurchase of large size unitsBuilding trial among non usersBuilding trial among non usersAttracting trial among other brandAttracting trial among other brandusersusers

F or consumersF or consumers

More usageMore usagePurchase of large size unitsPurchase of large size unitsBuilding trial among non usersBuilding trial among non users

Attracting trial among other brand usersAttracting trial among other brand users


6/28

Obj ectives(cont.)Obj ectives(cont.)

F or retailersF or retailersStocking new items or large volumesStocking new items or large volumesOff season buyingOff season buyingBuilding brand loyaltyBuilding brand loyaltyGaining entry into new retail outlet Gaining entry into new retail outlet


7/28

Obj ectives(cont.)Obj ectives(cont.)

For sales force

For sales force

E ncourage support E ncourage support Stimulate sales in off seasonStimulate sales in off season


8/28

Sales PromotionSales Promotion

Consumer

Sales Promotion

Trade

Sales Promotion

S Sales PromotionSales Promotion

TargetsTargets


9/28

CCoupon

Rebate

Premium

A certificate that entitlesconsumers to an immediate

price reduction.

A cash refund given for thepurchase of a product during

a specific product.

An extra item offered to theconsumer, usually in exchange

for some proof of purchase.

T ools forT ools for

Consumer Sales PromotionConsumer Sales Promotion


10/28

LLoyaltyMarketing

ProgramFrequent

Buyer Program

A promotional program designedto build long-term, mutually

beneficial relationships betweena company and key customers.

A loyalty program in which loyalconsumers are rewarded for making multiple purchases.



Sampling

A promotional program that allowthe consumer the opportunity to try a

product or service for free.


11/28

CContest

Sweepstakes

Promotions that require skill or

ability to compete for prizes.

Promotions that depend onchance or luck, with

free participation.




12/28

T ools for T rade SalesT ools for T rade SalesPromotionPromotion

Trade Allowances

Push Money

Training

Free Merchandise

Store Demonstration

Conventions & Trade Shows

Unique ToolsUnique Toolsfor for

Trade SalesTrade SalesPromotionPromotion


13/28

D eveloping the salesD eveloping the sales

promotion programpromotion program

Size of incentiveSize of incentiveCondition for participationCondition for participationDistributor vehicleDistributor vehicle

DurationDurationTimingTimingOverall budget Overall budget


14/28

D istri b ution VehiclesD istri b ution Vehicles

N ewspapersN ewspapersMagazinesMagazinesRadioRadio

TelevisionsTelevisionsDirect mailDirect mail

OutdoorOutdoor

signssignstransit transit

Shopping guideShopping guide

inin--storestoreYellow pagesYellow pagesInternet Internet


15/28


16/28

E valuating the salesE valuating the sales- -

promotion resultspromotion resultsF or consumer promotionF or consumer promotion

Sales performance movement Sales performance movement Analysis of consumer panel dataAnalysis of consumer panel dataConsumer surveysConsumer surveysEx

perimental studiesEx

perimental studies


17/28

ShortShort- -term and longterm and long- -termtermeffectseffectsof sales promotionsof sales promotions

Short-termeffect

Long-term effect

PromotionPeriod

Sales


18/28

Plan etPlan et MM

Leading retailer in Music andLeading retailer in Music andaccessories.accessories.Started in 1999.Started in 1999.Promoted by Times of India Group.Promoted by Times of India Group.Managed by Times Retail.Managed by Times Retail.F ocus on urban consumers (Metros).F ocus on urban consumers (Metros).


19/28

Obj ectivesObj ectives

Short term sales increaseShort term sales increaseLong term sales increaseLong term sales increaseCustomer loyaltyCustomer loyaltyPlanet M as a BrandPlanet M as a Brand


20/28

Sales Promotion T eamSales Promotion T eam

TOI

Store Manager Store Manager Store Manager

Staff Staff Staff


21/28

Consumer Sales PromotionsConsumer Sales Promotions

DurationDuration --1 month1 month3 to 4 promotions every month3 to 4 promotions every monthSeasonal promotionsSeasonal promotionsTargets everyTargets every Planet Planet MM customercustomer


22/28

Consumer Sales PromotionsConsumer Sales Promotions

Tools usedTools usedF ree trials of music and video gamesF ree trials of music and video gamesPoint Point--of of--Purchase displayPurchase displayClub Membership to frequent customersClub Membership to frequent customersF ree gifts like posters, fancy mugs, etc.F ree gifts like posters, fancy mugs, etc.Discounts on ItemsDiscounts on Items

Mix of theseMix of these


23/28

D istri b ution vehiclesD istri b ution vehicles

Times of India newspaperTimes of India newspaperRadio MirchiRadio MirchiInIn--store announcementsstore announcementsPosters for their promotional programsPosters for their promotional programs


24/28

T rade promotionsT rade promotions- -RecordingRecording

CompaniesCompaniesDiscounts to push their cassette salesDiscounts to push their cassette salesSponsor artists to perform in the storesSponsor artists to perform in the storesBenefits all threeBenefits all three

Planet MPlanet MRecording companiesRecording companies

ArtistsArtists


25/28

PrePre--tests , I mplementation andtests , I mplementation and

evaluationevaluationStore notes given to employeesStore notes given to employees

Operational detailsOperational detailsF acts and figuresF acts and figures

For celebrity events staff is made to go

For celebrity events staff is made to gothrough dry runs .through dry runs .


26/28

PrePre--tests , I mplementation andtests , I mplementation and

evaluationevaluationE valuationE valuation

Data baseData baseAnalyzedAnalyzed

Promotion model is upgradedPromotion model is upgraded

Depending on the success the modelDepending on the success the modelis repeatedis repeated


27/28


28/28

ThanksThanks

Corrected Sales Promotion PGP

Documents

Transcript of Corrected Sales Promotion PGP