Download
sales promotion n.
Skip this Video
Loading SlideShow in 5 Seconds..
Sales Promotion PowerPoint Presentation
Download Presentation
Sales Promotion

Sales Promotion

267 Views Download Presentation
Download Presentation

Sales Promotion

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Sales Promotion WWW.PPTMART.COM

  2. Promotion Mix / Communication Mix (PR) • Sales Promotion • PR • Selling • Advertising • Below the line • Above the line WWW.PPTMART.COM

  3. Two Types of Sales Promotion • Consumer Promotion • Trade Promotion WWW.PPTMART.COM

  4. What do we want the consumers and trade to do? • Buy More • Buy Now WWW.PPTMART.COM

  5. A sales promotion should be • Temporary – if not the consumers would not believe it the next time • Great Value Added – they should find reason to buy now and more WWW.PPTMART.COM

  6. Trends on Sales Promotion • ¾ of the marketing budget is allocated to sales promotion • In 1995, 51% of total adspend represents trade promotions. 24% on media spending 22% on consumer promotion • Growth in the coupon segment is tremendous in aspirational markets • Americans redeem more than 7 billion coupons annually. WWW.PPTMART.COM

  7. Why the Growth??? • Instant results • Faster implementation • Measurable • Relatively easy and inexpensive WWW.PPTMART.COM

  8. The Downside of Sales Promotion • Brand Erosion • Profitability increase is relatively low • Implementation cost and problems • Orients marketing managers towards short term results WWW.PPTMART.COM

  9. 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 relationship of a product / service perceived by the target • Generating immediate sales • Altering long term brand value WWW.PPTMART.COM

  10. 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 WWW.PPTMART.COM

  11. Types of Buyers • Loyals • Buy a particular brand on a more or less consistent basis • Competitive loyals • People who are loyal to the competing brand • Switchers • Purchase of various brands in one category • Price buyers • Non Users WWW.PPTMART.COM

  12. 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 WWW.PPTMART.COM

  13. 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 WWW.PPTMART.COM

  14. Coupons • Clip and bring to the store to exchange • Now it is phone based • Induce loyalty • Repeat purchase • Keeps the consumers “locked” WWW.PPTMART.COM

  15. Bonus Packs • Like bundle pricing but this is temporary • Adds value WWW.PPTMART.COM

  16. In Pack, On Pack Promotion • It is used to introduce new products / service • Dispose of excess inventory • Use excess overhead WWW.PPTMART.COM

  17. Specialty Container • Increases product’s perceived value • Uy tignan mo ito meron libreng pitchel WWW.PPTMART.COM

  18. Continuity Program /Loyalty Cards WWW.PPTMART.COM

  19. Refund / Rebate Promotion • If the product does not perform, then its money back • Or consume X number of products and get Y FREE • Increases consumer confidence • Loyalty program WWW.PPTMART.COM

  20. Sweepstakes • Chance game where the consumer has the chance to win something big through purchases • The more purchases, the more tickets • Creates loyalty WWW.PPTMART.COM

  21. Sampling • Used when the consumer is unaware of the brand or product • Product buying is prone to retail channel based trial • Use when the product can be broken down into smaller dimensions WWW.PPTMART.COM

  22. Price off promotion • Use for slow moving items • Excess inventory • Off season • Dislodge competitors WWW.PPTMART.COM

  23. Choose the right promotion for the right situation WWW.PPTMART.COM

  24. Example WWW.PPTMART.COM

  25. Consumer Promotion • To induce immediate off take from the shelf • To induce trial • To buy more of your products • To buy immediately WWW.PPTMART.COM

  26. WWW.PPTMART.COM

  27. Trade Promotion • Encourages your trade channel to load up • Move inventory from the company to the warehouse of the trade • Distributor or Key Accounts • Deals with promotional tools for staff and sales people who are involved with the trade. WWW.PPTMART.COM

  28. Sell in (PUSH STRATEGY) • Trade Promotion based on • Volume – buy a certain volume to attain a high discount • Prompt Payment – pay on time and get a discount • Free goods – using new products or slow moving products as promotional items WWW.PPTMART.COM

  29. Volume Promotion • It motivates the dealer to buy more • Example • 10+1 promotion – buy 10 boxes get one free • Volume discounts • Bundle promotion – feature a new product as freebie WWW.PPTMART.COM

  30. Advertising Promotion • Cooperative advertising • Coke and Julie’s Bakeshop • Lock in to the outlet to exclusively sell your brand WWW.PPTMART.COM

  31. Cooperative Promotion • Co-branding • Using another brand to penetrate the market • Good if the equity of the other brand is high or parallel WWW.PPTMART.COM

  32. Co-branding • Can be a strategy or a promotion • It increases margin • Synergizes strength of two brands • Increases profitability due to the higher value perception WWW.PPTMART.COM

  33. Free Goods • Better profitability • Moves higher volume • Economies of scale WWW.PPTMART.COM

  34. Trade Advertising • Advertisements used as a basis for booking sales • Rationale is consumers will look for a brand that has ad support WWW.PPTMART.COM

  35. Direct Selling Distribution Selling Outlet Selling Personal Selling WWW.PPTMART.COM

  36. Direct Sales • One of the recent trends in consumer marketing • Direct hit to consumers • Smaller ad spending WWW.PPTMART.COM

  37. Direct sales • Uses human capital as resource • Offering high earnings to those who do not have businesses • Home based • People get people strategy • Very sound business model WWW.PPTMART.COM

  38. How do they profit? • Gross Margin 40% • 1st level Commission – 10% • 2nd level commission – 8% • 3rd Level commission – 5% • AT this point, the company still earns and yet the number of networks grow…. WWW.PPTMART.COM

  39. Direct Sales • Meaningful to sales people • The consumer saves money • Answer to the crisis of power of retail channels WWW.PPTMART.COM

  40. Distribution Selling • Sales efforts to cover geographic region • Cover relevant distribution channels • Example: • Bonheur Marketing WWW.PPTMART.COM

  41. Bonheur Marketing • Former exclusive distributor of Marlboro and Philip Morris • Covers outlets such as • Supermarkets • Sari sari stores • Sub distriutors • Dealers • Luzon wide WWW.PPTMART.COM

  42. BiC became better when… • Distribution was assigned to FilStar – an affiliate of National Bookstore • That’s why BiC enjoys great retail presence in NBS WWW.PPTMART.COM

  43. Advertising WWW.PPTMART.COM

  44. Key things to remember • Creative brief • Copy strategy • Execution methods • Media • Media Planning • Success tracking WWW.PPTMART.COM

  45. Creative Brief • Brand elements • Target segment • Reason to buy • Current behavior • Current perception • Desired impression WWW.PPTMART.COM

  46. Copy Strategy • Tagline • Plot • Mood and Tone • Reason to believe • Execution • Media • Media Plan WWW.PPTMART.COM

  47. Media Plan • Medium • Above the line • Below the line • Loading • Front • Back • Seasonal • Flat WWW.PPTMART.COM

  48. Media • TVC • Print • Radio • Internet • CPM (clicks per million) • Ad click • Ad impressions • Banner or button advertisement • Click through • Cost per click • Spam • URL WWW.PPTMART.COM

  49. Media • Billboard – of course they will stay • Mall panels • Comfort ads • Transit ads • Non traditional • Corporate gifts • Leaflets WWW.PPTMART.COM

  50. Media Plan • Using each medium optimally to achieve brand objectives • It is all about making the right mix or right allocation of budgets • Hitting consumers where it matters most WWW.PPTMART.COM