Transcript what is 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?
What is Marketing?
• 3 keywords:
–Consumers
–Value
–Relationships
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How to get there?
Fundamental Marketing Process Overview
Business
Management
• Business objectives
• Business strategies
Marketing
Product
Understand
Marketing
objectives
Core
marketing
strategies
Market
Consumers
Competition
Etc.
•Needs
•Wants
•Demand
•Target Market
•Value
Proposition
•Positioning
Linkage to purchasing
behavior:
•Needs recognition
•Information search
•Alternatives comparison
•Purchase decision
•Post purchase behavior
Marketing
Mix
•4 P’s
• For each:
-Objectives
-Strategies
-Tactics
Price
Placement
(distribution)
Promotion
How to get there?
Fundamental Marketing Process Overview
Business
Management
• Business objectives
• Business strategies
Marketing
Product
Understand
Marketing
objectives
Market
Consumers
Competition
Etc.
• Consumers
Needs or
Problems
•Competition
•Market
offerings
Core
marketing
strategies
•Target Market
•Value
Proposition
•Positioning
Price
Core baseline applications:
• Acquisition
• Loyalty
• Retention
• Winback
Placement
(distribution)
Promotion
Value Proposition: Benefits For Price
“Your unique competitive advantages set for
your Top Target against your top competition”
Price
More
More
Benefits
Same
Less
Same
Less
How to get there?
Fundamental Marketing Process Overview
Core baseline applications:
• Acquisition
• Loyalty
• Retention
• Winback
Business
Management
• Business objectives
• Business strategies
Marketing
Product
Understand
Marketing
objectives
Market
Consumers
Competition
Etc.
•Needs
•Segments
•Competitions
•Offerings
Core
marketing
strategies
•Target Market
•Value
Proposition
•Positioning
Marketing
Mix
•4 P’s
• For each:
-Objectives
-Strategies
-Tactics
Price
Placement
(distribution)
Promotion
Marketing Planning Framework: Focus on Promotion
Business
Management
Marketing Objectives:
• Acquisition
• Loyalty
• Retention
• Winback
Marketing
Understand
Marketing
objectives
• Business objectives
• Business strategies
Market
Consumers
Competition
Etc.
•Needs
•Wants
•Demand
Core
marketing
strategies
•Target Market
•Value
Proposition
•Positioning
Marketing
Mix
•4 P’s
• For each:
-Objectives
-Strategies
-Tactics
Promotion
(IMC)
• Advertising
• PublicOnline
Relations
• Personal Selling
• DirectMobile
Marketing
Social
Media
• WOM
Marketing
• Sales Promotion
Sales Promotion is a direct component of the Promotional Mix
Promotional elements vary with the stages of
the consumer purchase decision process
18-13
So What is Sales Promotion?
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)
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?
B
P
= V
How could you alter the
Benefits/Price relationship (Value
Proposition) with Sales Promotion?
B
P
= V
How could you alter the
Benefits/Price relationship (Value
Proposition) with Sales Promotion?
B
P
= V
How could you alter the
Benefits/Price relationship (Value
Proposition) with Sales Promotion?
B
P
= V
Value Proposition Alterations
with Sales Promotion – Illustration!
Price
More
More
Benefits
Same
Less
X
Same
Less
Value Proposition Alterations
with Sales Promotion – Illustration!
Price
More
For the same price
More
Benefits
Same
Less
Same
Less
Value Proposition Alterations
with Sales Promotion – Illustration!
Price
More
Same
Less
For the same price
More
Benefits
Same
Less
X
X
SALES PROMOTION JUSTIFICATIONS?
•Acquire new customers
•Obtain new product trial and
adoption
•Boost sales of mature brands
•Increase Store traffic generation
•Neutralize competitive promotional
efforts
•Etc.
2 Key Sales Promotion Strategies
Consumer Promotion
Trade Promotion
Let’s be clear!
Sales Promotion Objectives
•Increase distribution outlets
•Increase shelf space
•Increase in-store presence
•Expand selling season
•Increase purchase frequency
•Increase transaction size
•Increase usage occasions
•Generate trial
Sales Promotion Planning
Core baseline applications:
• Acquisition
• Loyalty
• Retention
• Winback
Marketing
Management
• Marketing objectives
• Marketing strategies
•Target Market
•Value Proposition
•Positioning
Consumer
Promotion
Sales
Promotion
Objectives
Understand
Target
purchase
behavior
•Price sensitivity
•Brand loyalty
•Etc.
Sales
Promotion
Target
Sales
Promotion
Desired
Results
Sales
Promotion
Mix
•Coupons
•Games
•Discount
•Bonus packs
•Etc.
Trade
Promotion
•Free goods
•Advertising allowance
•Trade coupons
•Etc.
Temporary
Purchase/
Sales
Boost
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
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
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
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
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
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
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
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
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
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
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
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
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
Sales Promotion is evolving!
Smart-Sign Tech by MS & Intel
Twitter & sweepstakes
Coupons Apps
Online Coupons Finders
Sales Promotion is evolving!
So in conclusion!
• Sales Promotion has its own
planning
• Sales Promotion is big
• Quick & measurable BUT risky
• Sales Promotion is
evolving…Digital Marketing
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