Sales Promotion –
basic sales promotion
techniques
Atanas Luizov
Атанас Луизов

Burgas Free University
Business Faculty
ww...
Sales Promotion

Defining Sales promotion

“A planned and implemented marketing activity that both enhances product or
ser...
Sales Promotion

Characteristics

1. SP are action focused.
2. SP are marketing events.
3. SP are design to have a direct ...
Sales Promotion

Impact of SP on the consumer

1. Economic – monetary and non-monetary gain derived from the
nature of pro...
Sales Promotion

The reasons for growth

1. The growing power of retailers.
2. Declining brand loyalty.
3. Increased promo...
Sales Promotion

The benefits of sales promotion

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

Problems with Sales promotion
1. Many sales promotions are not effective brand-building tools.
2. The ove...
Sales Promotion

Problems with Sales promotion
1. Many sales promotions are not effective brand-building tools.
2. The ove...
Sales Promotion

Types of Promotions (1)

9
Sales Promotion

Types of Promotions (2)

10
Sales Promotion

Consumer promotion techniques (Don E. Schultz)
1. Temporary price discounts (TPD)
2. Coupons
3. Bonus (sp...
Sales Promotion

Temporary price discounts

12
Sales Promotion

Coupons

13
Sales Promotion

Bonus packs / BOGOF

14
Sales Promotion

Sampling programs

15
Sales Promotion

Premium

16
Sales Promotion

Sweepstakes

17
Sales Promotion

Continuity programs

18
Sales Promotion

Cause-related promotions

19
Sales Promotion

Planning Sales promotion programs (1)
1. Who are the customers we want to reach?
2. What are the reasons ...
Sales Promotion

Planning Sales promotion programs (2)
1. Environmental analysis
2. Internal analysis
3. Consideration of ...
Sales Promotion

Target(s) (1)

1. Who holds the key to the business problem?
2. What are these customers like?
3. What ex...
Sales Promotion

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

Price buyers
Nonusers

23
Sales Promotion

What Sales promotion can do?
1. Increasing volume
2. Increasing trial
3. Increasing repeat purchase

Prin...
Sales Promotion

THE SECRETS OF PROMOTIONAL SUCCESS
Fits in with the brand
Offers real added value
Is simple to operate an...
Thank you!
Contact:

Atanas Luizov
BFU
louizov@abv.bg

26
Upcoming SlideShare
Loading in …5
×

Sales promotion: basic sales promotion techniques

12,104 views

Published on

Published in: Marketing, Business, Career
0 Comments
18 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
12,104
On SlideShare
0
From Embeds
0
Number of Embeds
132
Actions
Shares
0
Downloads
1,276
Comments
0
Likes
18
Embeds 0
No embeds

No notes for slide

Sales promotion: basic sales promotion techniques

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

×