Transcript Sales Promotion

Sales and Promotions
rd
Management Session 3
Dated: -21-03-2010
By: -Neeraj Gupta
Execution of Television Commercial



Television is a powerful advertising medium and has the unique
ability of combining visuals, words, sounds, motion, and
technology. With high levels of advertising clutter in this medium,
producing commercials that can communicate effectively is a
complex and expensive process.
Video Elements- The decisions may concern the product, the
presenter, action sequences, close-ups, customer interview,
humour, comparison, graphics, characters, colour, symbols,
lighting etc.
Audio Elements- This portion includes accompanying music,
voices, and special sound effects. Two people one
spokesperson, and voiceover can be used for this element
Planning and Production of TV
Commercial




Type of appeal and the execution style that will be
used.
For that a written script has to be produced which Is
a kind of a blueprint of what the ad is going to
include in terms of audio and video elements.
After the script a storyboard is created which is a
series of drawings to show the layout or visual plan
of the proposed commercial.
Production starts after the client approves the
storyboard or cinematic.
Radio Commercial




There is no visual or colour to attract the audience
attention, except the sound. There is opportunity to
play with the listeners' imagination, often referred as
the theatre of the mind.
The scriptwriter has to be sure that the listeners will
believe the message. It must deliver the right words
to the right audience and must ask herself/himself if
the message strongly communicates the brand
position.
The copywriter uses words, sound, and music to
create images, influence recall, and kindle emotions.
Carefully selected words describe the product,
arrest the attention, generate interest, and build
desire among listeners that can lead to desired
behaviour.
Radio Commercial


Some selected techniques based on recommendations from Guidelines
for Radio Copywriting, (Reed Bunzel, National Association of
Broadcasters, 1982) are mentioned here:
Expand on the introduction and work it into part of the selling offer. A
sound effect can be used to attract attention and then inserted
throughout the spot to maintain the interest in the product.







Describe the fundamental aspect of the product. Why is it better than some
other similar solutions?
Emphasize the benefits of owning the product. Rational and emotional
benefits (do good, feel good, or look good) such as economy, reliability,
quality, appreciation, approval, status, and achievement etc.
Explain the selling points that deliver the desired benefits and important
extra benefits.
Communicate the enjoyment that comes from ownership.
Mention the disadvantages of not owning the product.
At the end of the spot, close it with product theme or punch line, and invite to
act.
The close should be set up powerfully.
How to make it powerful?


The basic ingredient in a radio commercial is the promise of an important
and persuasive benefit from the listener's point of view.
Some ways to put the punch in the copy are as follows:









Keep it simple and short (KISS): Build the commercial around one central idea.
The copy needs to be conversational.
Maintain clarity: At the end of the commercial, the listener should understand the
message points. The message facts must communicate the big idea.
Create rapport: The tone of voice should be warm and personal as if talking to a
friend, or just one or two people. Frequently address the listeners as you. That is
how they address their friends.
Make it believable: Each product has its good points, but avoid making
overstatements & obvious exaggerations. As trust is very important in audio ads.
Make it interesting: It is the manner of presentation that makes the products or
services interesting or fascinating. Reward the listeners with some useful
information.
Create distinctiveness: Give the commercial a distinct character. The first few
seconds are critical in capturing or losing the listener's attention. While concluding
the message, repeat the product promise and register the brand name. Urge the
listener to act now.
Message must be intrusive
Time slot major consideration
Use different ways to sell on radio
Steps in creating Radio Ads






The first step in preparing the radio commercial is to appoint a
producer, who prepares the cost estimates, and selects a
recording studio.
Subsequently, the producer casts the commercial (with or without
the help of a casting director).
If music is to be included in the commercial, the producer selects
a music director and chooses the music.
At this stage, the producer may deem it necessary to conduct a
rehearsal.
In the next phase, the music and sounds are taped separately,
and the studio mixes music, sounds with voices.
The final step is to prepare the master tape for shipping to radio
stations.
FORMATS FOR RADIO AND TV
COMMERCIALS





STRAIGHT ANNOUNCEMENT
PRESENTER COMMERCIAL
TESTIMONIAL-DEMONSTATION-MUSICAL
SLICE OF LIFE
LIFESTYLE-ANIMATION
Online Ads

Designing Web Site





Web site pages should be designed like posters in
which the graphics are eye-catching but not
demanding too much downloading time.
Keep navigation through web pages simple.
Interactivity is very important
Feedback communication needs to be very
strong.
Copy testing methods are being developed to
evaluate a site's potential to motivate clickthrough behaviour.
Definition…
Sales promotions
action
focused
marketing
events
whose purpose is to
have a direct impact
on the behavior of
the firm’s customers
Even Internet can be
used for using sales
promotions.
Sales Promotion Objectives










Increase sales volume
Attract new customers
Launch new product and increase trial
Encourage repeat purchase
Clearance of excessive inventories
Motivate dealers to stock and sell more
To gain advantageous shelf-space
To increase store traffic
To block competitors' moves
Motivate sales force
How does it differ from Advertising?
􀂄 Sales Promotion
􀂄 Short-term focus immediate response
􀂄 Quick sales
􀂄 Helps boost market
share
􀂄
Advertising
Long-term focus
Image building
positioning
Sales Promotion Tools
Coupons
Trade
Allowances
Samples
Premiums
POP Displays
Contests/Sweepstakes
Buy-Back
Training
Allowance
Programs
Trade
Shows
Advertising
Coop
Advertising
Allowance
Refunds/Rebates
Bonus Packs
Loyalty Programs
Events
Consumeroriented
[For end-users]

Trade-oriented

[For resellers]
Coupons…
Samples
Allowing the Customer to Experience the
Product or Service.
Very Effective Strategy for Introducing
A New or Modified Product.
Most Common Method of Distributing
Samples is Through the Mail.
9 Out of 10 Customers Prefer a Sample
To a Cents-Off Coupon to Introduce
Product.
Contests/Sweepstakes
Contests/Sweepstakes…
Contests/Sweepstakes…
Contests
Compete for a Prize Based
On Some Skill or Ability
Generates
High Degree
Of Consumer
Involvement
Can Help
Revive
Lagging
Sales
Sweepstakes
Participants Submit Names
To Be Included in Drawing
Game –
Type of Sweepstakes;
Time Frame Much
Longer
POP
Cent Off Deals (Price Packs)
Refund, Rebate & Premiums
Refunds and Rebates
A Marketer’s Offer to Return a Certain Amount Of
Money to the Consumer Who Purchases the
Product. i.e cash rebate + low-value coupon
Premiums
Tangible Reward for Performing a Particular Act.
Direct – Received
At Time of Purchase
Mail – Proof of
Purchase & Payment
Be Mailed In
Rebate…
Rebates are often effective at changing purchase
probabilities, even for big-ticket items
Internet Sales promotion

The number of companies using Internet
promotions is increasing. Contests and
sweepstakes are among the most commonly
used to motivate people to visit marketers'
Internet sites.
Sales Promotion Planning Guidelines





"Sales promotion is an integral part of the marketing
mix."
"Sales promotion should be used as an offensive
weapon in the brand's marketing arsenal, not merely
as a defensive reaction when a problem arises."
"Sales promotion should extend and reinforce the
brand's advertising and positioning, whenever
possible."
"Sales promotion should be developed as
campaigns, not as single, unrelated events."
"Good sales promotions are built upon sound
strategic planning."
There are two major approaches for
consumer and trade promotions


Same for less, and
More for the same


Immediate Value Offer vs Delayed Value Offer
Price-Cut vs Extra Value Offer
Some Important Decisions




Which Products to Promote
Choice of Market Areas
Promotion, Timing, Duration and
Frequency
Rate of Discount, Terms and Conditions
Promotion Evaluation



Pre Testing
Concurrent Testing
Post testing
Direct Marketing

"The total of all activities by which the seller, in
effecting the exchange of goods and services
with the buyer, directs efforts to a target
audience using one or more media (direct
selling, direct mail, telemarketing, direct-action
advertising, catalogue selling, cable TV selling,
etc.) for the purpose of soliciting a response by
phone, mail, or personal visit from a prospect or
customer."
— Peter D. Bennett, ed., Dictionary of
Marketing Terms (AMA, 1988)
Direct marketing





Interactive
Variety of media
Measurable response
Database
Direct Response Advertising
Direct Marketing Decisions

For successful implementation of directmarketing, marketers must establish
objectives, specify target market, choice of
strategies, and set evaluation criteria.
Direct Marketing Objectives



Objectives of direct marketing usually focus on
seeking direct response in terms of behaviour.
Order response rate varies across product
categories and prices but in most cases, usually a 2
per cent order placement is viewed as good.
Some organisations use direct marketing to inform
and educate customers about product/service in
anticipation that it may precipitate future actions,
reminding about offers, image building, maintain
customer satisfaction, strengthen relationship, and
reassure customers about purchases.
Direct Marketing Offer and Media




According to Edward L. Nash, there are five
important decision areas: Product, offer, medium,
distribution method, and creative strategy.
Direct marketers use all the available major media
such as direct mail, telemarketing, direct-response
broadcasting, print, the Internet, E-mail, and others.
One-Step Approach: - Like use of Infomercials
on television, or subscription forms in
magazines.
Two Step approach: -Use of more than one
medium. Two steps: First identifying prospects
and then taking steps to get the desired
response.
Various Mediums available







Direct Mail
Catalogues
Broadcast media-Television or radio
Print media
Telemarketing
Electronic shopping-Infomercials and home
shopping use TV channels
Direct Selling
Advantages of Direct Marketing










Direct marketing offers the advantage of reaching large number of welldefined target customers and almost eliminates waste coverage.
Good quality databases are available from independent suppliers and
the marketer can segment customer groups with considerable
precision.
Direct marketer can personalise the message.
Direct marketing can deliver almost perfect offers to customers.
Marketer can build desired frequency level based on media.
Direct marketing offers creative flexibility in different media.
Direct marketer can quickly develop a list of specific profiles for direct
mail.
Direct marketing is more effective in building customer relationship.
It is very cost effective considering the sale generated per contact.
The results can be measured most accurately.
Measurement of Direct Marketing Effort


The objectives of direct marketing in many
cases are related to purchase behaviour and
the marketer knows in no uncertain terms,
the number of orders received.
For non-behavioural response objectives,
traditional measurement methods are used.
Thank You