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Sales Promotion

basic sales promotion


techniques
Atanas Luizov

Burgas Free University


Business Faculty
www.bfu.bg

Sales Promotion

Defining Sales promotion

A 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 Petrison

SP is an action-focused marketing event whose purpose is to have impact on the


behavior of the firms customers.
Blattberg and Neslin
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Sales Promotion

Characteristics

1. 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.

Sales Promotion

Impact of SP on the consumer

1. 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.

Sales Promotion

The reasons for growth

1. 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. Clutter

Sales Promotion

The benefits of sales promotion

1. Re-timed purchasing
2. Brand switching
3. Increased volume of purchasing

4. Product-type substitutions
5. Store substitutions

Sales Promotion

Problems 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.
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Sales Promotion

Problems 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.
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Sales Promotion

Types of Promotions (1)

Sales Promotion

Types of Promotions (2)

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Sales Promotion

Consumer 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 contest

7. Continuity programs
8. Cause-related promotions
9. Joint promotions
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Sales Promotion

Temporary price discounts

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Sales Promotion

Coupons

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Sales Promotion

Bonus packs / BOGOF

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Sales Promotion

Sampling programs

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Sales Promotion

Premium

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Sales Promotion

Sweepstakes

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Sales Promotion

Continuity programs

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Sales Promotion

Cause-related promotions

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Sales Promotion

Planning 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?

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Sales Promotion

Planning 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 determination

7. Developing the program design of campaign elements,


research and pre-testing
8. Implementing the promotional program
9. Evaluation and feedback

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Sales Promotion

Target(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?

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Sales Promotion

Target(s) (2)
Loyal users
Competitive loyals
Switchers

Price buyers
Nonusers

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Sales Promotion

What Sales promotion can do?


1. Increasing volume
2. Increasing trial
3. Increasing repeat purchase

Principle: SMART

4. Increasing loyalty
5. Widening usage
6. Creating interest

7. Creating awareness
8. Deflecting attention from price
9. Gaining intermediary support

10. Discriminating among users

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Sales Promotion

THE 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 creative

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Thank you!
Contact:

Atanas Luizov
BFU
louizov@abv.bg

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