Sales Promotion

Sales Promotion

Introduction and Current Trends

WHAT COURSE OBJECTIVES?

Course Objectives

Understanding of the marketing communications discipline of Sales Promotion

Develop models and processes for Sales Promotion as a key component of IMC

Understanding of difference between consumer promotion and trade promotion

Enhance presentation and writing skills with sales promotion plan development

Understand sales promotion tactics

Sales Promotion?

How do you decide what Sales Promotions to engage?

One additional question=> What is your Marketing?

• 3 keywords:

–Consumers

–Value

–Relationships

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What is Marketing?

BusinessManagement

• Business objectives• Business strategies

Marketing

Marketingobjectives

Linkage to purchasingbehavior:• Needs recognition• Information search• Alternatives comparison• Purchase decision• Post purchase behavior

UnderstandMarket

ConsumersCompetition

Etc.

Coremarketingstrategies

• Target Market• ValueProposition• Positioning

MarketingMix

• 4 P’s• For each:- Objectives- Strategies- Tactics

Product

Price Promotion

Placement(distribution)

• Needs• Wants• Demand

How to get there?Fundamental Marketing Process Overview

BusinessManagement


Marketing

Marketingobjectives

Core baseline applications:• Acquisition• Loyalty• Retention• Winback

UnderstandMarket


Etc.



Product

Price Promotion


• Consumers Needs or Problems

• Competition

• Market offerings


Value Proposition: Benefits For Price“Your unique competitive advantages set for

your Top Target against your top competition”

Benefits

Price

More Same Less

More

Same

Less

BusinessManagement


Marketing

Marketingobjectives


UnderstandMarket


Etc.



MarketingMix


Product

Price Promotion


• Needs• Segments• Competitions• Offerings


Marketing Planning Framework: Focus on Promotion

BusinessManagement


Marketing

Marketingobjectives

Marketing Objectives:• Acquisition• Loyalty• Retention• Winback

UnderstandMarket


Etc.



MarketingMix


• Advertising• Public Relations• Personal Selling• Direct Marketing• WOM Marketing• Sales Promotion

• Needs• Wants• Demand

Promotion(IMC)

Sales Promotion is a direct component of the Promotional Mix

OnlineMobile

Social Media

Promotional elements vary with the stages of the consumer purchase decision process

18-13

So What is Sales Promotion?

• KEY FOCUS: Temporary boost of sales

• KEY ROLE: A short-term incentive to purchase a product

• KEY TIMING & MECHANISM:• Towards the end stages of the Consumer

Buying Process (alternative comparison, purchase decision)

• Alters directly Benefits/Price relationship (Value Proposition)

WHAT IS SALES PROMOTION?

How could you alter the Benefits/Price relationship (Value

Proposition) with Sales Promotion?

How could you alter the Benefits/Price relationship (Value

Proposition) with Sales Promotion?

BP = V

Value Proposition Alterationswith Sales Promotion – Illustration!

Benefits

Price

More Same Less

More X

Same

Less

Benefits

Price

More Same Less

More

Same

Less

For the same price


Benefits

Price

More Same Less

More XSame

Less

For the same price


X

•Acquire new customers•Obtain new product trial and adoption

•Boost sales of mature brands• Increase Store traffic generation•Neutralize competitive promotional efforts

•Etc.

SALES PROMOTION JUSTIFICATIONS?

2 Key Sales Promotion Strategies

Consumer Promotion Trade Promotion

• Increase distribution outlets• Increase shelf space• Increase in-store presence•Expand selling season• Increase purchase frequency• Increase transaction size• Increase usage occasions•Generate trial

Let’s be clear!Sales Promotion Objectives

MarketingManagement

• Marketing objectives• Marketing strategies

• Target Market• Value Proposition• Positioning

SalesPromotion

Target


UnderstandTarget

purchasebehavior

SalesPromotion

DesiredResults

SalesPromotion

Mix

• Coupons• Games• Discount• Bonus packs• Etc.

ConsumerPromotion

TradePromotion

TemporaryPurchase/

SalesBoost

• Price sensitivity• Brand loyalty• Etc.

Sales Promotion Planning

• Free goods• Advertising allowance• Trade coupons• Etc.

SalesPromotionObjectives

Just to have an initial idea: Available Consumer Sales Promotion Techniques!

Type

Coupon

Bonus pack

In-Pack/ On-Pack/Near-Pack

Specialty Container

Continuity program

Refund

Sweepstake

Contest

Through the mail Premium

Sampling

Price-Off

Trade Deal

Cause-Related Promotions

How big is Sales Promotion in the US?

How big is Sales Promotion in the US?

• $288 Billion in spending in 2004 (*)

• 46% (*)

• 19% (*)

• 33% to 70% of CPG’s (P&G, L’Oreal, etc.) marketing budget on trade promotion(**)

(*) 2004 Promotion Marketing Association and PROMO Magazine(**) 2011 Comscore

Direct (Promotional) Channels continue to gain spending share

And all Direct Channels, subject to Sales Promotion integration, continue to grow!

Why such a growth?

• Results focused

• Quick

• Measurable

• “Easy & inexpensive”

Limitations?

• Brand building support?

• Deterioration of positive brand perceptions

• Low volume or thin profitability

• Short term bias

Sales Promotion is evolving!

•Generating immediate sales

But also

•Altering positively long-term brand value


Smart-Sign Tech by MS & IntelCoupons Apps

Twitter & sweepstakes Online Coupons Finders

• Sales Promotion has its own planning

• Sales Promotion is big

• Quick & measurable BUT risky

• Sales Promotion is evolving…Digital Marketing

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So in conclusion!

Sales Promotion

Documents

Transcript of Sales Promotion