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Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
Sales promotion: basic sales promotion techniques
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Sales promotion: basic sales promotion techniques

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  • 1. Sales Promotion – basic sales promotion techniques Atanas Luizov Атанас Луизов Burgas Free University Business Faculty www.bfu.bg
  • 2. 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 firm’s customers”. Blattberg and Neslin 2
  • 3. 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. 3
  • 4. 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. 4
  • 5. 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 5
  • 6. 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 6
  • 7. 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. 7
  • 8. 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. 8
  • 9. Sales Promotion Types of Promotions (1) 9
  • 10. Sales Promotion Types of Promotions (2) 10
  • 11. 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 11
  • 12. Sales Promotion Temporary price discounts 12
  • 13. Sales Promotion Coupons 13
  • 14. Sales Promotion Bonus packs / BOGOF 14
  • 15. Sales Promotion Sampling programs 15
  • 16. Sales Promotion Premium 16
  • 17. Sales Promotion Sweepstakes 17
  • 18. Sales Promotion Continuity programs 18
  • 19. Sales Promotion Cause-related promotions 19
  • 20. 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? 20
  • 21. 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 21
  • 22. 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? 22
  • 23. Sales Promotion Target(s) (2) Loyal users Competitive loyals Switchers Price buyers Nonusers 23
  • 24. 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 24
  • 25. 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 25
  • 26. Thank you! Contact: Atanas Luizov BFU louizov@abv.bg 26

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