Sales Promotion.pptx

7/31/2019 Sales Promotion.pptx

1/61

Sales Promotion

The wonders and the wounds


2/61

Promotion Mix /

Communication Mix (PR) Sales Promotion

PR Selling

Advertising

Below the line Above the line


3/61

Three Types of Sales Promotion Consumer Promotion

Trade Promotion Sales Force Promotion


4/61

What do we want the

consumers and trade to do? Buy More

Buy Now


5/61

A sales promotion should

be Temporaryif not the consumers

would not believe it the next time

Great Value Addedthey shouldfind reason to buy now and more


6/61

Trends on Sales Promotion of the marketing budget is allocated

to sales promotion

In 1995, 51% of total adspend representstrade promotions. 24% on media

spending 22% on consumer promotion

Growth in the coupon segment istremendous in aspirational markets

Americans redeem more than 7 billioncoupons annually.


7/61

Why the Growth??? Instant results

Faster implementation

Measurable

Relatively easy and inexpensive


8/61

The Downside of Sales

Promotion Brand Erosion

Profitability increase is relatively low

Implementation cost and problems

Orients marketing managers

towards short term results


9/61

What a sales promotion

should be. Lets go back to the basics

Should hit the consumer at a particular

behavioral stage Are marketing communication activities

that change the price/value relationshipof a product / service perceived by the

target Generating immediate sales

Altering long term brand value


10/61

Planning Sales Promotion Who is our target set of consumers?

What is the reason for that behavior

What is the goal of the program

Is there a meaningful economics

attached to sales promotion


11/61

Types of Buyers Loyals

Buy a particular brand on a more or less

consistent basis Competitive loyals

People who are loyal to the competingbrand

Switchers Purchase of various brands in one category

Price buyers

Non Users


12/61

Results that are needed . Loyals

Reinforce behavior

Increase consumption

Change buying timing

Competitive loyals Break loyalty

Encourage brand switching

Switchers

Persuade to buy the right brand more often Price

Value added to make price less important

Non users Create awareness, create category worth


13/61

Types of Sales Promotions Coupon

Bonus Packs

In pack, On pack, and Near Pack

Specialty container Continuity program

Refund

Sweepstakes

Contest

Through the mail Premium

Sampling

Price off

Trade deal

Cause related promotion


14/61

Coupons Clip and bring to

the store to

exchange Now it is phone

based

Induce loyalty

Repeat purchase Keeps the

consumerslocked


15/61

Bonus Packs Like bundle pricing

but this is

temporary Adds value


16/61

In Pack, On Pack Promotion

It is used tointroduce

new products/ service

Dispose of

excess

inventory

Use excessoverhead


17/61

Specialty Container Increases

products

perceived value

Uy tignan mo itomeron libreng

pitchel


18/61

Continuity Program /Loyalty

Cards


19/61

Refund / Rebate Promotion If the product does

not perform, thenits money back

Or consume Xnumber ofproducts and get YFREE

Increasesconsumerconfidence

Loyalty program
http://30daychallenge.purinaone.com.au/registration/register.aspx


20/61

Sweepstakes Chance game

where theconsumer hasthe chance towin somethingbig throughpurchases

The morepurchases, themore tickets

Creates loyalty


21/61

Sampling Used when the

consumer isunaware of the

brand or product Product buying is

prone to retailchannel basedtrial

Use when theproduct can bebroken down intosmaller

dimensions


22/61

Price off promotion Use for slow

moving items

Excessinventory

Off season

Dislodgecompetitors


23/61

Choose the right promotion

for the right situation


24/61

ExampleProblem Solution

New product Sampling, on pack promo

Consumers not loyal Rebates, sweepstakes, loyaltycards

Competitors are attackingthe market with ads

Price off, free goods,premiums, rebates, etc

Excess inventory

Shelf life is critical


25/61

Consumer Promotion To induce immediate off take from

the shelf

To induce trial

To buy more of your products

To buy immediately


26/61


27/61


28/61


29/61

Trade Promotion Encourages your trade channel to

load up

Move inventory from the companyto the warehouse of the trade Distributor or Key Accounts

Deals with promotional tools for staffand sales people who are involvedwith the trade.


30/61

Sell in (PUSH STRATEGY) Trade Promotion based on

Volumebuy a certain volume to

attain a high discount

Prompt Paymentpay on time andget a discount

Free goodsusing new products orslow moving products as promotionalitems


31/61

Volume Promotion It motivates the dealer to buy more

Example

10+1 promotionbuy 10 boxes get

one free

Volume discounts

Bundle promotionfeature a newproduct as freebie


32/61

Advertising Promotion Cooperative advertising

Coke and Julies Bakeshop

Lock in to the outlet to exclusively sell

your brand


33/61

Cooperative Promotion Co-branding

Using another

brand topenetrate the

market

Good if the equity

of the other brand

is high or parallel


34/61

Co-branding Can be a strategy

or a promotion

It increases margin Synergizes strength

of two brands

Increases

profitability due tothe higher valueperception


35/61

Free Goods Better

profitability

Moves highervolume

Economies of

scale


36/61

Trade Advertising Advertisements used as a basis for

booking sales

Rationale is consumers will look for abrand that has ad support


37/61

Massive advertising always leads

to higher trade acceptance

Trade will only stock items that will

sell


38/61

Personal Selling

Direct Selling

Distribution SellingOutlet Selling
http://www.fqpi.biz/firstquadrant/products2.html


39/61

Direct Sales One of the recent

trends in consumer

marketing

Direct hit to consumers

Smaller ad spending
http://www.fqpi.biz/firstquadrant/products2.htmlhttp://www.fqpi.biz/firstquadrant/products2.html


40/61

Direct sales Uses human capital as resource

Offering high earnings to those whodo not have businesses

Home based

People get people strategy

Very sound business model


41/61

How do they profit? Gross Margin 40%

1st level Commission10%

2nd level commission8%

3rd Level commission5%

AT this point, the company still earnsand yet the number of networksgrow.


42/61

Direct Sales Meaningful to sales people

The consumer saves money

Answer to the crisis of power ofretail channels


43/61

Distribution Selling Sales efforts to cover geographic

region

Cover relevant distribution channels

Example:

Bonheur Marketing


44/61

Bonheur Marketing Former exclusive distributor of

Marlboro and Philip Morris

Covers outlets such as Supermarkets

Sari sari stores

Sub distriutors Dealers

Luzon wide


45/61

BiC became better when Distribution was assigned to FilStar

an affiliate of National Bookstore

Thats why BiC enjoys great retailpresence in NBS
http://images.google.com.ph/imgres?imgurl=http://www.bicworld.com/img/intro_biclogo.gif&imgrefurl=http://www.bicworld.com/&h=400&w=400&sz=8&hl=tl&start=8&tbnid=fyh0rO6w3y85GM:&tbnh=124&tbnw=124&prev=/images?q=BiC&svnum=10&hl=tl&lr=


46/61

Public Relations


47/61

Advertising


48/61

Key things to remember Creative brief

Copy strategy

Execution methods

Media

Media Planning Success tracking


49/61

Creative Brief Brand elements

Target segment

Reason to buy

Current behavior

Current perception Desired impression


50/61

Copy Strategy Tagline

Plot

Mood and Tone

Reason to believe

Execution Media

Media Plan


51/61

Media Plan Medium

Above the line

Below the line Loading

Front

Back Seasonal

Flat


52/61

Media TVC Print Radio Internet

CPM (clicks per million) Ad click Ad impressions Banner or button advertisement

Click through Cost per click Spam URL


53/61

Media Billboardof course they will stay

Mall panels

Comfort ads

Transit ads

Non traditional Corporate gifts

Leaflets


54/61

Media Plan Using each medium optimally to

achieve brand objectives

It is all about making the right mix orright allocation of budgets

Hitting consumers where it matters

most


55/61

Executions Humor

MTV

Slice of life

Celebrity endorser

Testimonial

Image modelcan be a competentlooking person

Performance test


56/61

Just make sure they do not Laugh and forget which brand is

being advertised

Remember the story in the ad andthen forget about the brand

Remember the song and then

ano nga palang brand yun?!


57/61

Things you should remember Matrix or charts or altering SWOT with

TOWS analysis (which by the way is not a

marketing tool but a centralmanagement tool) DONT BUY THE IDEA

The basics still workand it will sans a

few alterations

IMC is integrating all communication

materials under one big idea


58/61

Remember Life is a journey of learning The moment you get cocky is the time

you die

Mistakes are best teachers

Do not believe all teachers too someof them have issues as well pick goodmentors

Dont label anything good or bad Know thy Dharmaknow what you are

here for


59/61

Remember Detachment is a great tool

Make yourself competentgoal is

not to be employed butemployable

Dont make yourself stagnant

even if your family or husband is rich

Have FAITH


60/61

Remember PR competence is as important as

knowledge

Be the best you can ever be (notAlipin Sagigigilid all your life)


61/61

Thank you for such awonderful semester really

Sales Promotion.pptx

Documents

Transcript of Sales Promotion.pptx