Transcript Hoorcollege week 5 ( 1.7MB)

Effective sales promotion
Hoorcollege marketing communication blok 4
week 5
Hogeschool van Amsterdam
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Learning goals
 By the end of the college and you should:
 Be in a position to define sales promotion
 Be aware of the factors that have led to a growth in sales
promotion as a tool
 Understand what above the line and below the line
communications are
 Understand how sales promotion can be integrated into a
communications campaign
 Be aware of the traditional and interactive media tools
available to develop sales promotions
 Be able to use the appropriate tools to develop a sales
promotion for a campaign (such as the eBay campaign)
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Agenda
 What is sales promotion?
 Stages in developing a sales promotion
 Objectives of sales promotion
 Different targets for sales promotion activities
 Tools of sales promotion
 Interactive media and sales promotion
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What is sales promotion?
 Sales promotions are short-term incentives (above
the basic product benefits) aimed at encouraging
purchase or sales
Source: Kotler, P., (2005) Principles of Marketing 4th European Edition, Harlow:
Pearson Education Ltd, p. 785
 There are issues with this definition
 Over emphasizes “incentives”
 Sales promotions also include product literature,
merchandising, point of sale (POS) materials
 It is not clear who these incentives are aimed at?
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Definition of sales promotion

All below the line communication activities
designed to encourage
 Sales staff to push
and/or
 Intermediaries to purchase
and/or
 End customers to purchase
a product or service by affecting their perceived
value of the product in a positive manner
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Below the line?
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The growth of sales promotion
Ratio of advertising to sales promotion spend
1997
1991
30%
70%
60%
40%
Advertising
Sales promotion
Estimates from Pickton, D. & Broderick, A. (2005). Integrated Marketing
Communications 2nd edition, Harlow: Pearson Education Ltd, p. 636
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Reasons for growth
*Advertising when combined with sales promotion has 2 to 7 times the sales
effect as advertising alone
Source: Roberts, A. (1996), ‘What do we know about advertisings short-term effects?’, Admap, February, pp. 42-45
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Stages in developing a sales
promotion
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Targets of sales promotion
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Sales promotion objectives
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End customer sales promotion
objectives
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Intermediary sales promotion
objectives
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Sales force promotion objectives
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Tools of sales promotion
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Customer sales promotion tools

Samples

Coupons

Cash-refunds / rebates (aka cash-back)
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Price packs
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Bulk discount / 12 halen, 11 betalen (BOGOF)

Premium items

Give aways

User gets user rewards

Usage rewards

Point of Purchase / Sale (POP / POS) actions & materials

Competitions / lotteries etc.

Brochures
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Intermediary sales promotion tools
 Discounts
 Allowances
 Reductions for damaged / old goods
 Advertising costs
 Free goods for bulk purchases
 Push incentives
 Sales force incentives
 Advertising support
 Support for retail environment
 Support
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POS materials / brochures
Preference on new product launches
Invoicing and logistics
Service support
Accredited dealer status
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Sales force sales promotion tools
 Bonus
 Prizes
 Promotions
 POS materials / brochures
 Creativity is key here
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Interactive media and sales
promotion
 Interactive media is an interesting new channel for
sales promotion
 Customer focused

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Coupons
Virtual trial
Competitions
Product information
Cash back administration
 Intermediary focused
 Product information
 Virtual trial
 Joint promotion activites
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Fulfilment is the key to a successful
sales promotion
 A sales promotion that is not thought through is very
risky
 Can cost more than it brings in
 Can leave unhappy customers / dealers / sales people
 When developing a sales promotion you must
always think how it be fulfilled
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Summary
 There is more to sales promotion than just giveaways
 Sales promotion is strong at converting desire into
action
 A successful sales promotion must be thought
through
 Fulfilment is key
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