SALES PROMOTIONS STRATEGY

Promotions have four elements called the Promotions Mix: 1. 2. 3. 4. Advertising- to effectively inform and persuade target market. Public Relations- to offer a positive image of the company and the brand. Selling- to get the customers to buy. Sales Promotions- to convince customers to buy immediately. Characteristics of Sales Promotion 1. Temporary Sales promotions are conducted on short durations. 2. Better Value As similar products are looked at in a similar sense, sales promotions are used to create short-term product differentiation via offering a better product value. 3. Beneficial Sales promotions promote growth, sometimes however, even at an artificial level.

TRADE PROMOTIONS Trade promotions are designed to convince trade channels like retailers and wholesalers to buy immediately, or to buy more than their usual quantity. Examples of Trade Promotions 1. Cooperative Advertising It happens when supplier and his trade customers share in paying for an advertising campaign. 2. Discounts and Terms Discounts are straight deductions from the list price. 3. Display Allowance Display allowances are financial support granted to the trade outlet for the performance of in-store display requirements. 4. Free Products Free products promotions involve giving of additional quantity of products on top of regular purchase volume. 5. Trade Contest Goldstar appliances once launched their best window display contest in 1991 after sponsoring a seminar on window display to the artists of their appliance retailers. 6. Rebates/Rewards

8. CONSUMER PROMOTIONS Consumer promotions are designed to convince end-users to buy immediately or to buy more than their usual quantity. Exhibits Joining exhibits and tradeshows is a cost-effective way to create awareness. Price-Off Price-offs are promotions that offer immediate savings upon purchase. 6. 10. Push Pin Money A variety of rewards promotions is Push Pin Money which is money given to the salesclerks of the dealers (and frequently including the dealers themselves) to push the firm’s products. 3. Personality Mystery buyer is an example. Bonus Packss Bonus packs involve giving extra quantity of the same product without increase in price. and generate sales leads. Rebates Rebates are like coupons except that the price reduction is usually larger and are given after the purchase rather than at the point of sale. 5.Marketers may offer year-end rebates as a token of appreciation for the loyalty of their dealers. Coupons Coupons are certificates entitling the bearer to a published saving on the purchase of a specific product. Conferences/Training Conferences and training are promotions which advance goodwill with the trade. most specially for business-to-business products and high priced consumer durables. Sampling Sampling is a limited amount of the free products offered to consumer. she is entitled to an incentive. . If the saleslady of the trade store will recommend the specific brand of your company. 1. 7. 2. Sample Packs Sample packs involve trial size of a product at a price usually lower than market standard. 4. 9.

15. Self – Liquidating Promotions The marketers can recover all his expenses for the promotion. Free Trial This type of promotions invites prospective customers to try the product without cost in the hopes that they will buy the product.) Title This is name given to the sales promotion 2. 9. This is to ensure that all elements of the sales promotion are defined and agreed upon. Premiums Premiums are free gifts offered as incentive to purchase a particular product.7. most especially for high involvement or high-priced products and service. 10. Contest Contest are promotions given to consumers to have a chance of winning something of value. 8. Special Packs Products combined as single packs can bring savings for consumer. Prizes Consume may be offered an opportunity to win a prize after purchasing product. 11. and sometimes even experience profit. 14. Warranty Warranty reduces the risk factor in a purchase. 13. 12. a sales promotion needs a written plan. Patronage Reward Consumer may be given an incentive in promotion to the volume of product regularly purchased. 1.) Objective Objectives answer the question “why are you having a sales promotion? “This means that no sales no sales promotion should be implemented if no improvement will be experienced objective also answer the question “what problems do you want to solve? . Personality “Mystery Visitor” is a common form of personality promotion this entails the consumer to show the product of the company of the mystery visitor to win a prize. SALES PROMOTION PLAN Like any project.

4. 5. . 3. 7.) Objective – task method Objectives are defined to determine the intensity of strategies and tactics. 2.) Communications How to communicate the sales promotions at the start. They must be concrete and clear to the marketer. 8.SMART OBJECTIVES Specific – not vague Measurable – than can be quantified Attainable – and not overly ambitious Realistic – and must consider constraints Trackable – with checkpoints capable of being monitored to ensure improvement. Marketers must answer questions like “will share and profit increase? The two most common ways of establishing sales promotion budget are: 1.) Coverage Coverage defines the specific territories included in the sales promotion. during.) Mechanics This section identifies approaches to the achievement of objectives.) Budget The cost to promote section is critical.) Key factors for success 1. and after the promotions duration is as important as the sales promotions itself.) Duration Duration identifies the length of the promotion. Strong trade support A short promotion period A high level of incentives Dual promotions The support of salesforce and the trade 9. 4. 5. 6. 3.) Offer An offer identifies the type and size of promotion to be executed.

3. which aims to develop goodwill for a company or industry. Institutional advertising. ADVERTISING STRATEGY Advertising serves several purposes. Advocacy advertising. 2. 1. 5. 3. Promotional advertising. which aims to convince audience regarding a particular cause. 4. Brand preference Brand switching Urgency to buy now Action to be taken ( phone-in inquiry) Advertising Mix Advertising decisions to be decided before an advertising program can be implemented. Advertising Objectives TO INFORM target customers about: 1. 2. Brand advertising. 5. Classified advertising. 1. 6. which aims to stimulate demand for particular brand. New product Product function Correct usage New uses New distribution Price adjustment TO PERSUADE target customers about: 1. which aims to inform prospects regarding opportunities such as buy and sell. 3. WHAT to say (message) HOW to say (copy execution) WHERE to say (media selection) WHEN to say ( media scheduling) Positioning . 2. 4.2. and employment. 2. 3. events. 4. which aims to inform prospects about promotional activities such as special sale. 4.) Percentage of sales method Pegs a specific percent of sales promotional budget to anticipated sales.

1. Preparation of copy strategy and or brief from which the creative team must work. variants bought as can be gathered in a usage. This could be a combination of logic. Diagnostic Positioning In terms of competitive standing. 3. The first one is changing an old brand positioning to a new brand positioning. and interest (UAI) survey. consumer promise. what attributes are important to the customers where we have the advantage? 4. Evaluation of the creative output.  Guide questions are very important before a copy brief can be written. or statement of benefit. relative to the competition. how often. 2. size.  Repositioning has two concepts. how. attitude. The creative process itself where the output is a storyboard (similar to a comic strip) in the case of a TV advertisement. Target Market What is the demographic and psychographic profile of the primary and secondary target market we plan to reach? 3. Brand Overall Objective Is our objective to create new uses. Factor influencing product purchase This answers the where.Positioning is the act of communicating to consumers the overall positive impression for brand. Advertising Execution  Advertising message can be presented in at least 9 execution styles as follows: . 2. research and judgement. and script (with or without jingle) in the case of commercial. or more usage for our brand? 2. Repositioning Repositioning is done to change the past perceptions of the target consumer. The second one attempts to change consumer perception of competitors. They are: 1. Copy Brief Copy brief or copy strategy is basic proposition. COPY STRATEGY  The following are the stages in creating advertising: 1.

Lifestyle 6. radio.1. Fantasy 7. 3. 2. hear. Gross Rating Point (GRP) and Cost per Thousand (CPM)  Gross Rating Point or GRP is the result of combining Reach(R) and Frequency (F). Impact (I) or the qualitative value of an exposure though a given medium size.  Cost per thousand (CPM) is a term used to compare the cost effectiveness of various media. Registration – or people who correctly recall and playback something meaningful b. Personality Symbol MEDIA PLAN: WHERE and WHEN to advertise Exposure (E) is the placement in a media vehicle such as TV. but recognize the advertisement. Frequency (F) or the number of times consumers are reached. or read. E = R x F. Reach is composed of two types: a. Testimonial Evidence 4. Technical Expertise 5. Slice Of Life 2. . Reach (R) or the number of consumers exposed to a particular advertising at least once during the specified duration. that the target audience is known or expected to see. Recognition – or people who could not playback anything meaningful. If a given media plan reaches 60% or the homes with an average frequency of 10 in a week. Image 8. print newspapers. Musical 9.000 persons with an advertisement. Thus. It is the media cost of gaining exposure to 1. To find the audience. Scientific Evidence 3. magazines. three important and interrelated exposure variables must be considered: 1. the media plan is said to have a GRP of 600 points (60 x 10) for that particular week.

plus their own interpretation of its visual and copy elements. Involvement The feelings or Involvement stage seeks to determine the levels of consumer emotional reactions to the advertisements. and DE households (total 330) as TV rating panel.PEOPLE METER Most ratings of TV shows are done using 110 of each AB. ADVERTISING TESTING There are many ways to test effectiveness of advertising materials. C. BUY TEST BUY SCHALE Recall The first step in the BUY TEST is to determine the extent of understanding of the visual as well as the copy elements of the advertisement. . Persuasion Consumers reaching the Persuasion stage demonstrate a high commitment to the product with a burning desire to act on the advertising message. The BUY TEST utilizes a one-on-one interview technique with a minimum of 130 respondents per advertising material to be tested.