Transcript Role of Sales Promotions

Role of Sales Promotions
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To increase customer awareness
To introduce new products and services
To increase sales volume and revenue
To combat competition
To encourage current customers to
purchase more
To stimulate demand in non-peak
periods
Chapter 12.1
Types of Sales Promotions
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Push Techniques
– Point-of-sale
displays
– Cooperative
advertising
– Advertising materials
– Traditional and
electronic collateral
materials
– Meetings and
conventions
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Pull Techniques
– Sampling
– Price reduction
promotions
– Price reduction
coupons
– Bundling/packaging
– Premiums
– Contests and
sweepstakes
Chapter 12.2
Coupons
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Advantages
– Tangible inducement
– Limited time for
discount
– Can focus on
specific objectives
– Can calculate the
maximum cost in
advance
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Disadvantages
– Possible fraud
– Redemption rates
are not easily
predicted
Chapter 12.3
Sampling
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Advantages
– Gets consumers to
try the product
– Represents real
value to the
consumer
– May produce
referrals; word-ofmouth
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Disadvantages
– Can be expensive if
done for too long
– Food needs to be
fresh; may be
unattractive
– May displace paying
customers
Chapter 12.4
Premiums
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Advantages
– Consumers like to
get things free or at a
good price
– Positive word-ofmouth if unique
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Disadvantages
– Storing and handling
the premium
– Employee theft
– Must match or
exceed quality image
of firm
– Forecasting demand
for premium is
difficult
Chapter 12.5
Contests
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Advantages
– Consumers are
involved in the
process because of
skill/talent
– Creates interest in
product
– May induce trial;
could be required to
participate
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Disadvantages
– May be difficult to
judge; select
winner(s)
– Rules may be too
lengthy or
complicated and turn
off customers
Chapter 12.6
Sweepstakes
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Advantages
– Entry is easy; no
purchase is
necessary
– Rules simple; focus
is on prizes
– May create more
interest since entry is
easy
– Selection of winner is
easy
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Disadvantages
– Entry box may be
stuffed; rules not
followed
– Chance of winning
good price is small;
may discourage
consumers from
participating
Chapter 12.7
Steps to a Successful Promotion
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Select the target market
Establish specific objectives
Select the promotional technique
Brainstorm about potential offer
Create the promotional theme
Develop the promotional budget
Select the media to promote the offer
Develop a timetable
Conduct internal training of staff
Implement the plan
Monitor results
Chapter 12.8
Evaluating the Impact of Sales
Promotions
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Administrative costs associated with
conducting the sales promotion
Cost of displaced sales among existing
customers
Additional revenue from new customers
Chapter 12.9
Suggestive Selling
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Develop a positive attitude
Do not try to manipulate the guest
Suggest favorite items or items that you are
knowledgeable about
Use props to support suggestive selling
Always make positive suggestions
Be attentive to guests’ needs
Don’t make excuses for why suggestive
selling will not work
Chapter 12.10
Training Guest-Contact
Personnel
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Product-service Knowledge – cognitive
aspect
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Physical Skills – psychomotor aspect
Attitude – affective aspect
Reassurance – affective aspect
Chapter 12.11
Brochures
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Identify the facility, including logo
Provide descriptive facts on the facility
Map and directions to the facility
Basic information about the facility
Contact person for more information
Amenities offered by the facility
Area attractions and things to do
Transportation information
Chapter 12.12
Components of a Press Kit
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Fact sheet
Description of the local trading area
Special features of the product-service
mix
Specific details about the product
Photographs
Biographical sketch of the general
manager
Chapter 12.13
Public Relations Techniques
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News releases
Photographs
Letters, inserts, and enclosures
House organs and newsletters
Speeches and public appearances
Posters, bulletin boards, and exhibits
Audiovisual materials
Open houses and tours
Chapter 12.14
Guidelines for Public Relations
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Identify photographs when submitted
Do not damage or mutilate photos by folding,
stapling, or writing too hard on the back
Qualify the publications that you send to
Provide contact information
Do not send too many releases at one time
Be brief and provide a summary of release
Be careful when placing logo on photos
Synchronize with the timing of the publication
Do not threaten to pull advertising if not covered
Chapter 12.15
Evaluating Public Relations
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Personal Observation
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Public Opinion Surveys
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Use Objective Measures
Chapter 12.16