Sales Promotions I MKT4114

What we’re going to talk about A quick recap of Sales Promotions What do they do? What types are there? What types are good for which objectives? How to develop creative promotions...

A quick recap of Sales Promotions

What do they do?

What types are there?

What types are good for which objectives?

How to develop creative promotions...

Sales Promotions... What were they? They add value “Pull” and “Push” Promotions... Three categories: - Consumer - Retailer - Trade

They add value

“Pull” and “Push” Promotions...

Three categories: - Consumer - Retailer - Trade

Retail Promotions: Increase store traffic Even out fluctuating sales Increase purchase frequency/quantity Increase loyalty Increase specific brand sales Special offer Loyalty Card BOGOF Linked purchase

Increase store traffic

Even out fluctuating sales

Increase purchase frequency/quantity

Increase loyalty

Increase specific brand sales

Special offer

Loyalty Card

BOGOF

Linked purchase

Trade Promotions: New product launch Counter competition Increase stock levels Even out fluctuating sales Increase shelf space Allowances & discounts Free merchandise Contests

New product launch

Counter competition

Increase stock levels

Even out fluctuating sales

Increase shelf space

Allowances & discounts

Free merchandise

Contests

Consumer Promotions Encourage trial Counter competition Trade up/bigger products Expand usage Load up existing users Attract new customers Even out existing sales Disseminate information

Encourage trial

Counter competition

Trade up/bigger products

Expand usage

Load up existing users

Attract new customers

Even out existing sales

Disseminate information

Main Types: Four main areas: Money-based Product-based Gift-based Store-based

Four main areas:

Money-based

Product-based

Gift-based

Store-based

Consumer Promotions 4 main types: Money based Product based Gift/Prize based Store based

4 main types:

Money based

Product based

Gift/Prize based

Store based

Money based: Reduced Price (on pack/shelf) Rebates/Cash back (mail in) Coupons

Reduced Price (on pack/shelf)

Rebates/Cash back (mail in)

Coupons

Product based: Extra Product: xx% extra free BOGOF Samples

Extra Product: xx% extra free BOGOF

Samples

Gift/Prize based: Self liquidating offer Free mail in Contest/Sweepstake Free with/in/on product Loyalty schemes

Self liquidating offer

Free mail in

Contest/Sweepstake

Free with/in/on product

Loyalty schemes

Store based Special offer for one store (chain of stores) Sampling POP Displays Store discount vouchers (in-store dist.) Ambient ads & Field marketing :-) !

Special offer for one store (chain of stores)

Sampling

POP Displays

Store discount vouchers (in-store dist.)

Ambient ads

& Field marketing :-) !

“Promotion mechanics” Cummi, 2002s Promotion Type Immediate Delayed Value Free in Pack Reusable Container Instant Win Home sampling Free on-pack Free Mail-in Competition Free draw Self-liquidator Charity promotion Price Pence-off Flash BOGOF Extra-fill packs Instore coupons Finance offer Next purchase coupon Cash refund Cash share-out Buy-back offer

Typical Objectives Increase volume Increase trial Increase repeat purchase Increase loyalty

Increase volume

Increase trial

Increase repeat purchase

Increase loyalty

... and more: Widening usage Create interest Deflect attention from price Gaining intermediary support Discriminate amongst users

Widening usage

Create interest

Deflect attention from price

Gaining intermediary support

Discriminate amongst users

Try it for yourself... Match the objective to the best promotional mechanic: Evaluate on a scale from 9 = Very good ... 5 = OK ... 1 = Not really suitable 0 = Out of the question

Match the objective to the best promotional mechanic:

Evaluate on a scale from 9 = Very good ... 5 = OK ... 1 = Not really suitable 0 = Out of the question

Get some creativity into your promotions Meet Reggy from Manchester: Hello, my name is Reggie and I’m your feathered friend - you can take me home with you if you wish For £2.50 you can send one of my feathered friends to one of your feathered friends.

Meet Reggy from Manchester:

Hello, my name is Reggie and I’m your feathered friend - you can take me home with you if you wish For £2.50 you can send one of my feathered friends to one of your feathered friends.

What’s up with Reggy? What do you want from a hotel? How can you communicate this? Who is the best promoter of a hotel? What do you want that person to do ?

What do you want from a hotel?

How can you communicate this?

Who is the best promoter of a hotel?

What do you want that person to do ?

The who and what... Stop C1s, A and Bs and get a bit more creative Think about relationships and relationship to your brand: Lager (for example): Existing drinkers of your brand Lager drinkers (different brand) Ale drinkers Wine drinkers People who vary what they drink Home drinkers Pub drinkers

Stop C1s, A and Bs and get a bit more creative

Think about relationships and relationship to your brand: Lager (for example): Existing drinkers of your brand Lager drinkers (different brand) Ale drinkers Wine drinkers People who vary what they drink Home drinkers Pub drinkers

Maybe they are also: Amateur pop singers Fashion followers Tennis players Golfers Classical music devotees ...

Amateur pop singers

Fashion followers

Tennis players

Golfers

Classical music devotees

...

... And what should they do? Existing drinkers of your brand: recommend your brand Lager drinkers (different brand): switch brand Ale drinkers: switch to lager, your brand Wine drinkers: try lager when it’s hot People who vary what they drink: be consistent, your brand Home drinkers: go to the pub Pub drinkers: take lager home

Existing drinkers of your brand: recommend your brand

Lager drinkers (different brand): switch brand

Ale drinkers: switch to lager, your brand

Wine drinkers: try lager when it’s hot

People who vary what they drink: be consistent, your brand

Home drinkers: go to the pub

Pub drinkers: take lager home

So now we can picture them... We want tennis players who are not consistent in their drink to drink our lager once a week in their tennis club We want wine drinkers who are also classical music devotees to try a nice’n cool lager when it is hot We want amateur pop singers who drink in the pub to take a crate of our brand home

We want tennis players who are not consistent in their drink to drink our lager once a week in their tennis club

We want wine drinkers who are also classical music devotees to try a nice’n cool lager when it is hot

We want amateur pop singers who drink in the pub to take a crate of our brand home

Five techniques... Listing Mind maps Brainstorming The Village I am somebody else

Listing

Mind maps

Brainstorming

The Village

I am somebody else

Practice... Makes perfect After Eight Free Levi’s Jean to be won Yorkie Bar Win a racehorse Jellytots Free Mother’s Day lunch to be won Dairy Box Win a holiday in LA Toffee Crisp Visit to Legoland Drifter Win a mountain bike Lion bar Win a day out in a tank