Sales promotion Homework help
misz_n
sales_promotion_lesson_1_fall_12-3.pptxSales Promotion
Introduction and Current Trends
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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 |
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Sales Promotion?
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How do you decide what Sales Promotions to engage?
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One additional question=> What is your Marketing?
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3 keywords:
Consumers
Value
Relationships
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What is Marketing?
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Business
Management
Business objectives
Business strategies
Marketing
Marketing
objectives
Linkage to purchasing
behavior:
Needs recognition
Information search
Alternatives comparison
Purchase decision
Post purchase behavior
Understand
Market
Consumers
Competition
Etc.
Core
marketing
strategies
Target Market
Value
Proposition
Positioning
Marketing
Mix
4 P’s
For each:
Objectives
Strategies
Tactics
Product
Price
Promotion
Placement
(distribution)
Needs
Wants
Demand
How to get there?
Fundamental Marketing Process Overview
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Business
Management
Business objectives
Business strategies
Marketing
Marketing
objectives
Core baseline applications:
Acquisition
Loyalty
Retention
Winback
Understand
Market
Consumers
Competition
Etc.
Core
marketing
strategies
Target Market
Value
Proposition
Positioning
Product
Price
Promotion
Placement
(distribution)
Consumers Needs or Problems
Competition
Market offerings
How to get there?
Fundamental Marketing Process Overview
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Value Proposition: Benefits For Price “Your unique competitive advantages set for your Top Target against your top competition”
Benefits
Price
| More | Same | Less | |
| More | |||
| Same | |||
| Less |
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Business
Management
Business objectives
Business strategies
Marketing
Marketing
objectives
Core baseline applications:
Acquisition
Loyalty
Retention
Winback
Understand
Market
Consumers
Competition
Etc.
Core
marketing
strategies
Target Market
Value
Proposition
Positioning
Marketing
Mix
4 P’s
For each:
Objectives
Strategies
Tactics
Product
Price
Promotion
Placement
(distribution)
Needs
Segments
Competitions
Offerings
How to get there?
Fundamental Marketing Process Overview
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Marketing Planning Framework: Focus on Promotion
Business
Management
Business objectives
Business strategies
Marketing
Marketing
objectives
Marketing Objectives:
Acquisition
Loyalty
Retention
Winback
Understand
Market
Consumers
Competition
Etc.
Core
marketing
strategies
Target Market
Value
Proposition
Positioning
Marketing
Mix
4 P’s
For each:
Objectives
Strategies
Tactics
Advertising
Public Relations
Personal Selling
Direct Marketing
WOM Marketing
Sales Promotion
Needs
Wants
Demand
Promotion
(IMC)
Sales Promotion is a direct component of the Promotional Mix
Online
Mobile
Social Media
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Promotional elements vary with the stages of the consumer purchase decision process
18-13
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So What is Sales Promotion?
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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)
WHAT IS SALES PROMOTION?
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How could you alter the Benefits/Price relationship (Value Proposition) with Sales Promotion?
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How could you alter the Benefits/Price relationship (Value Proposition) with Sales Promotion?
B
P
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V
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How could you alter the Benefits/Price relationship (Value Proposition) with Sales Promotion?
B
P
=
V
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How could you alter the Benefits/Price relationship (Value Proposition) with Sales Promotion?
B
P
=
V
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How could you alter the Benefits/Price relationship (Value Proposition) with Sales Promotion?
B
P
=
V
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Value Proposition Alterations with Sales Promotion – Illustration!
Benefits
Price
| More | Same | Less | |
| More | X | ||
| Same | |||
| Less |
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Benefits
Price
| More | Same | Less | |
| More | |||
| Same | |||
| Less |
For the same price
Value Proposition Alterations with Sales Promotion – Illustration!
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Benefits
Price
| More | Same | Less | |
| More | X | ||
| Same | |||
| Less |
For the same price
Value Proposition Alterations with Sales Promotion – Illustration!
X
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Acquire new customers
Obtain new product trial and adoption
Boost sales of mature brands
Increase Store traffic generation
Neutralize competitive promotional efforts
Etc.
SALES PROMOTION JUSTIFICATIONS?
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2 Key Sales Promotion Strategies
Consumer Promotion
Trade Promotion
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Increase distribution outlets
Increase shelf space
Increase in-store presence
Expand selling season
Increase purchase frequency
Increase transaction size
Increase usage occasions
Generate trial
Let’s be clear!
Sales Promotion Objectives
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Marketing
Management
Marketing objectives
Marketing strategies
Target Market
Value Proposition
Positioning
Sales
Promotion
Target
Core baseline applications:
Acquisition
Loyalty
Retention
Winback
Understand
Target
purchase
behavior
Sales
Promotion
Desired
Results
Sales
Promotion
Mix
Coupons
Games
Discount
Bonus packs
Etc.
Consumer
Promotion
Trade
Promotion
Temporary
Purchase/
Sales
Boost
Price sensitivity
Brand loyalty
Etc.
Sales Promotion Planning
Free goods
Advertising allowance
Trade coupons
Etc.
Sales
Promotion
Objectives
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
35
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 |
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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 |
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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 |
38
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 |
39
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 |
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How big is Sales Promotion in the US?
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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
46% of 2003 Marketing budget on Consumer promotion vs 24% on Consumer advertising (*)
19% of 2003 Marketing budget on Trade promotion (*)
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Direct (Promotional) Channels continue to gain spending share
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And all Direct Channels, subject to Sales Promotion integration, continue to grow!
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Why such a growth?
Results focused
Quick
Measurable
“Easy & inexpensive”
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Limitations?
Brand building support?
Deterioration of positive brand perceptions
Low volume or thin profitability
Short term bias
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Sales Promotion is evolving!
Generating immediate sales
But also
Altering positively long-term brand value
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Sales Promotion is evolving!
Smart-Sign Tech by MS & Intel
Coupons Apps
Twitter & sweepstakes
Online Coupons Finders
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Sales Promotion is evolving!
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Sales Promotion has its own planning
Sales Promotion is big
Quick & measurable BUT risky
Sales Promotion is evolving…Digital Marketing
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So in conclusion!
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