Sales promotion: basic sales promotion techniques

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<ul><li> 1. Sales Promotion basic sales promotion techniques Atanas Luizov Burgas Free University Business Faculty www.bfu.bg</li></ul> <p> 2. Sales PromotionDefining Sales promotionA planned and implemented marketing activity that both enhances product or service appeal and changes consumer behavior positively in return for an additional benefit for purchase or participation. The Institute of Sales Promotion (UK) SP are marketing and communications activities that change the price/value relationship of a product or service perceived by the target, thereby (1) generating immediate sales and (2) altering the long-term brand value. Schultz, Robinson and PetrisonSP is an action-focused marketing event whose purpose is to have impact on the behavior of the firms customers. Blattberg and Neslin 2 3. Sales PromotionCharacteristics1. SP are action focused. 2. SP are marketing events. 3. SP are design to have a direct impact on consumer behavior. 4. SP are designed to influence consumers or marketing intermediaries.3 4. Sales PromotionImpact of SP on the consumer1. Economic monetary and non-monetary gain derived from the nature of promotional offer. 2. Emotional the feelings/emotions aroused by exposure to the promotional offer. 3. Informational the communication of information about a brand.4 5. Sales PromotionThe reasons for growth1. The growing power of retailers. 2. Declining brand loyalty. 3. Increased promotional sensitivity.4. Brand proliferation 5. Fragmentation of consumer market. 6. Short-term focus.7. Increased accountability 8. Competition 9. Clutter5 6. Sales PromotionThe benefits of sales promotion1. Re-timed purchasing 2. Brand switching 3. Increased volume of purchasing4. Product-type substitutions 5. Store substitutions6 7. Sales PromotionProblems with Sales promotion 1. Many sales promotions are not effective brand-building tools. 2. The overuse of sales promotion activities may have the potential of resulting in less positive attitude toward the brand. 3. Even though many sales promotion programs result in a much larger volume of product sold, profitability increases may be relatively low. 4. Sales promotion programs often require substantial implementation costs. 5. Sales promotions tend to orient marketing managers toward the short-term. 7 8. Sales PromotionProblems with Sales promotion 1. Many sales promotions are not effective brand-building tools. 2. The overuse of sales promotion activities may have the potential of resulting in less positive attitude toward the brand. 3. Even though many sales promotion programs result in a much larger volume of product sold, profitability increases may be relatively low. 4. Sales promotion programs often require substantial implementation costs. 5. Sales promotions tend to orient marketing managers toward the short-term. 8 9. Sales PromotionTypes of Promotions (1)9 10. Sales PromotionTypes of Promotions (2)10 11. Sales PromotionConsumer promotion techniques (Don E. Schultz) 1. Temporary price discounts (TPD) 2. Coupons 3. Bonus (special) packs (BOGOF) 4. Sampling programs 5. Premiums 6. Sweepstakes and contest7. Continuity programs 8. Cause-related promotions 9. Joint promotions 11 12. Sales PromotionTemporary price discounts12 13. Sales PromotionCoupons13 14. Sales PromotionBonus packs / BOGOF14 15. Sales PromotionSampling programs15 16. Sales PromotionPremium16 17. Sales PromotionSweepstakes17 18. Sales PromotionContinuity programs18 19. Sales PromotionCause-related promotions19 20. Sales PromotionPlanning Sales promotion programs (1) 1. Who are the customers we want to reach? 2. What are the reasons for that behavior? 3. What behavior do you want them to reinforce or change? 4. What is the goal of the program? 5. What are the operational constrains of the promotion (budget, timing, location, logistics?20 21. Sales PromotionPlanning Sales promotion programs (2) 1. Environmental analysis 2. Internal analysis 3. Consideration of the marketing strategy 4. Identification of the target audience(s) 5. Determination the promotional objectives 6. Budget determination7. Developing the program design of campaign elements, research and pre-testing 8. Implementing the promotional program 9. Evaluation and feedback21 22. Sales PromotionTarget(s) (1)1. Who holds the key to the business problem? 2. What are these customers like? 3. What exactly do we want them to do?22 23. Sales PromotionTarget(s) (2) Loyal users Competitive loyals SwitchersPrice buyers Nonusers23 24. Sales PromotionWhat Sales promotion can do? 1. Increasing volume 2. Increasing trial 3. Increasing repeat purchasePrinciple: SMART4. Increasing loyalty 5. Widening usage 6. Creating interest7. Creating awareness 8. Deflecting attention from price 9. Gaining intermediary support10. Discriminating among users24 25. Sales PromotionTHE SECRETS OF PROMOTIONAL SUCCESS Fits in with the brand Offers real added value Is simple to operate and communicate Rewards lots of people not just a few Has good single minded creative25 26. Thank you! Contact:Atanas Luizov BFU louizov@abv.bg26 </p>