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
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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.
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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.
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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
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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
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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.
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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.
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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?
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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
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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?
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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
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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
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